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I","page_number":2,"box":{"x":219,"y":468,"width":652,"height":8}},{"id":"ed64eb57-953a-4bad-abf4-96175f984d3e","block_type":"box","text":"I-139","page_number":2,"box":{"x":874,"y":467,"width":35,"height":9}},{"id":"28611254-c803-429a-a9b3-4eec02defed8","block_type":"box","text":"Appendix A — Description of Bond Ratings. . . .","page_number":2,"box":{"x":68,"y":484,"width":332,"height":11}},{"id":"cbefc7a4-98e6-4b7b-a700-d30e064c5805","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1","page_number":2,"box":{"x":407,"y":484,"width":502,"height":9}},{"id":"ea459f69-c916-459c-8727-7a9cd515443a","block_type":"box","text":"Appendix B — Proxy Voting Policies . . . . . .","page_number":2,"box":{"x":68,"y":500,"width":300,"height":11}},{"id":"ba6e6fb6-4265-440a-9b50-9c6b1e382eeb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1","page_number":2,"box":{"x":374,"y":500,"width":535,"height":9}},{"id":"9cb681ff-d36b-4d5e-942b-95d5a8a0ccc0","block_type":"box","text":"NM1026U-5982509-2/232","page_number":2,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"8df274c2-52b2-45c3-a258-dd34b94b1233","block_type":"box","text":"PART I: INFORMATION ABOUT BLACKROCK ENERGY OPPORTUNITIES FUND","page_number":3,"box":{"x":212,"y":45,"width":554,"height":9}},{"id":"fa22a7ef-22cf-4ff8-8521-84e43845b344","block_type":"box","text":"Par t I of this Statement of Additional Information (“SAI”) sets for th information about BlackRock Energy","page_number":3,"box":{"x":102,"y":67,"width":737,"height":12}},{"id":"0fa7819c-0939-460e-a25f-ad883aa9445f","block_type":"box","text":"Oppor tunities Fund (the “Fund”), a series of BlackRock Funds","page_number":3,"box":{"x":69,"y":82,"width":438,"height":11}},{"id":"4422c892-0a9e-49a7-b0bd-f262882efe2b","block_type":"box","text":"SM","page_number":3,"box":{"x":508,"y":83,"width":11,"height":4}},{"id":"61f1a68f-3b18-4acf-a55a-eb563a7c7007","block_type":"box","text":"(the “Trust”). It includes information about the Trust’s","page_number":3,"box":{"x":525,"y":82,"width":384,"height":11}},{"id":"efdbfe40-8721-4453-a443-7263f4b0a7c3","block_type":"box","text":"Board of Trustees (the “Board”), the advisory and management services provided to and the management fees paid","page_number":3,"box":{"x":70,"y":98,"width":827,"height":11}},{"id":"1a8bf510-4790-4268-9e10-5d9a7e5a2ab5","block_type":"box","text":"by the Fund and information about other fees applicable to and services provided to the Fund. This Par t I of this SAI","page_number":3,"box":{"x":69,"y":113,"width":825,"height":11}},{"id":"f68a99c8-0365-4cad-bf50-a0ce3bfdd1dc","block_type":"box","text":"should be read in conjunction with the Fund’s Prospectus and those por tions of Par t II of this SAI that per tain to the","page_number":3,"box":{"x":69,"y":128,"width":829,"height":11}},{"id":"68a54e89-a0b2-415f-a91c-f4981cd5bb67","block_type":"box","text":"Fund.","page_number":3,"box":{"x":70,"y":143,"width":36,"height":9}},{"id":"bdb8e256-5dee-4d03-b4f8-72a7d3d07053","block_type":"box","text":"I. Investment Objective and Policies","page_number":3,"box":{"x":69,"y":173,"width":262,"height":11}},{"id":"f7fc0863-1c88-4c61-b2ff-8bdfbd52c97c","block_type":"box","text":"The Fund is subject to Rule 35d-1 under the Investment Company Act of 1940, as amended (the “Investment","page_number":3,"box":{"x":101,"y":196,"width":779,"height":11}},{"id":"f88ff9a2-8b4e-4104-a786-9f90f4a4b64e","block_type":"box","text":"Company Act”), and will not change its investment policies required by that Rule without giving shareholders sixty","page_number":3,"box":{"x":69,"y":211,"width":807,"height":11}},{"id":"26984061-abc4-4438-aeb7-acc203ee36d8","block_type":"box","text":"days’ prior written notice. Please see the section “Details About the Fund - How the Fund Invests” in the Fund’s","page_number":3,"box":{"x":69,"y":226,"width":794,"height":11}},{"id":"846c1782-509c-45e9-bf25-2ef51b644411","block_type":"box","text":"Prospectus for information about the Fund’s investment objective and policies.","page_number":3,"box":{"x":69,"y":241,"width":560,"height":11}},{"id":"b1e02381-f5d3-4098-ab2d-904c46521544","block_type":"box","text":"Investments in Energy and Natural Resources Companies.","page_number":3,"box":{"x":102,"y":264,"width":422,"height":11}},{"id":"31a3fc16-ff2b-4034-b39c-248d6ffe1aa9","block_type":"box","text":"The investments of the Fund will be concentrated in","page_number":3,"box":{"x":530,"y":264,"width":367,"height":9}},{"id":"000c3bf6-0b1d-4373-8749-bea2cf02ab1b","block_type":"box","text":"energy and natural resources companies. Because the Fund is concentrated in these companies, it may be subject to","page_number":3,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"36f3b096-5ab1-4112-aab2-f32d1ac298ce","block_type":"box","text":"more risks than if it were broadly diversified over numerous industries and sectors of the economy. A downturn in the","page_number":3,"box":{"x":69,"y":294,"width":835,"height":11}},{"id":"1308d4d4-6a57-46c2-9035-e4f69be15118","block_type":"box","text":"energy and natural resources industries would have a larger impact on the Fund than on an investment company that","page_number":3,"box":{"x":69,"y":309,"width":835,"height":11}},{"id":"0b5b6dde-c9c1-4a83-8d51-d02c13ce4170","block_type":"box","text":"does not concentrate in such companies. Energy companies can be significantly affected by the supply of and","page_number":3,"box":{"x":69,"y":324,"width":782,"height":12}},{"id":"9c06b2b1-6592-481e-a77c-b230486a1f80","block_type":"box","text":"demand for specific products and services, the supply of and demand for oil and gas, the price of oil and gas,","page_number":3,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"28a1c3af-af68-402d-8df0-15763d601aff","block_type":"box","text":"exploration and production spending, government regulation, world events and economic conditions. Natural resource","page_number":3,"box":{"x":69,"y":355,"width":837,"height":11}},{"id":"59f36cb4-b2a4-40ee-bc0c-ba550d10df86","block_type":"box","text":"companies can be significantly affected by events relating to international political developments, energy","page_number":3,"box":{"x":69,"y":370,"width":748,"height":11}},{"id":"90bab873-0514-415a-9e11-355bfad5a8e6","block_type":"box","text":"conservation, the success of exploration projects, commodity prices and tax and government regulations. At times,","page_number":3,"box":{"x":69,"y":385,"width":819,"height":11}},{"id":"034009e8-d191-4898-92fa-dc6d68cb0a37","block_type":"box","text":"the per formance of securities of energy and natural resources companies will lag the per formance of other industries","page_number":3,"box":{"x":68,"y":400,"width":839,"height":11}},{"id":"92821b96-4f9f-45a1-a09a-4910320417e9","block_type":"box","text":"or the broader market as a whole. Other risks inherent in investing in energy and natural resources companies","page_number":3,"box":{"x":69,"y":415,"width":787,"height":11}},{"id":"65674ad6-0a7b-4c5b-967d-30d70d7acb89","block_type":"box","text":"include:","page_number":3,"box":{"x":70,"y":430,"width":53,"height":9}},{"id":"94c9e7d6-c51a-492f-832f-3f071dfedaa1","block_type":"box","text":"Supply and Demand Risk.","page_number":3,"box":{"x":102,"y":453,"width":181,"height":11}},{"id":"71deee82-6b26-426c-b9a2-50ca193feeaf","block_type":"box","text":"A decrease in the production of natural gas, natural gas liquids (“NGLs”), crude oil,","page_number":3,"box":{"x":289,"y":453,"width":592,"height":11}},{"id":"171ac9be-2091-473a-b58c-108d3bdb35d7","block_type":"box","text":"coal or other energy or other natural resource commodities or a decrease in the volume of such commodities","page_number":3,"box":{"x":69,"y":468,"width":777,"height":11}},{"id":"348c95ee-70f2-4c67-b8a8-0790e2a0bbc3","block_type":"box","text":"available for transpor tation, mining, processing, storage or distribution may adversely impact the financial","page_number":3,"box":{"x":69,"y":483,"width":753,"height":11}},{"id":"9324bdb6-6ac2-408e-a068-23bdff67db92","block_type":"box","text":"per formance of energy and natural resources companies. Production declines and volume decreases could be","page_number":3,"box":{"x":70,"y":498,"width":785,"height":11}},{"id":"cb477661-bf2a-41ce-ac41-1fbab5d47870","block_type":"box","text":"caused by various factors, including catastrophic events affecting production, depletion of resources, labor","page_number":3,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"73333802-8985-48dd-bd30-de771ab34b27","block_type":"box","text":"difficulties, environmental proceedings, increased regulations, equipment failures and unexpected maintenance","page_number":3,"box":{"x":69,"y":528,"width":797,"height":12}},{"id":"5a6b257f-61e5-411d-83a3-da02acd93347","block_type":"box","text":"problems, impor t supply disruption, increased competition from alternative energy sources or commodity prices.","page_number":3,"box":{"x":70,"y":543,"width":799,"height":12}},{"id":"0358b6d3-232b-4d72-95da-12e97926121a","block_type":"box","text":"Alternatively, a sustained decline in demand for such commodities could also adversely affect the financial","page_number":3,"box":{"x":68,"y":559,"width":760,"height":11}},{"id":"54f0a986-0143-4973-addc-941760f304f5","block_type":"box","text":"per formance of energy and natural resources companies. Factors which could lead to a decline in demand include","page_number":3,"box":{"x":70,"y":574,"width":813,"height":11}},{"id":"70a600f9-c55a-49a7-84f4-d37643455592","block_type":"box","text":"economic recession or other adverse economic conditions, higher fuel taxes or governmental regulations, increases","page_number":3,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"acb1f1f5-a67b-40a2-a0bc-7a7e8c191ffb","block_type":"box","text":"in fuel economy, consumer shifts to the use of alternative fuel sources, changes in commodity prices, or weather.","page_number":3,"box":{"x":70,"y":604,"width":808,"height":11}},{"id":"35ed9385-8c4d-4c7e-b55f-9e30fc7f36b7","block_type":"box","text":"Depletion and Exploration Risk.","page_number":3,"box":{"x":102,"y":627,"width":221,"height":11}},{"id":"0ea70938-4b14-49f4-b20d-ef49b96b2fa1","block_type":"box","text":"Many energy and natural resources companies are either engaged in the","page_number":3,"box":{"x":330,"y":627,"width":516,"height":11}},{"id":"e6b5b639-d824-41a2-b740-69bc1c9b9b71","block_type":"box","text":"production of natural gas, NGLs, crude oil, refined petroleum products or coal, or are engaged in transpor ting,","page_number":3,"box":{"x":70,"y":642,"width":782,"height":11}},{"id":"9d40914f-0e5a-4587-8524-49bcc54eec66","block_type":"box","text":"storing, distributing and processing these items on behalf of shippers. To maintain or grow their revenues, these","page_number":3,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"e48a7c59-ad59-4349-84ad-2ae01dd02639","block_type":"box","text":"companies or their customers need to maintain or expand their reserves through exploration of new sources of","page_number":3,"box":{"x":69,"y":672,"width":792,"height":11}},{"id":"2313f6b3-c12f-4ee0-9ffb-83924291a8ea","block_type":"box","text":"supply, through the development of existing sources, through acquisitions, or through long-term contracts to acquire","page_number":3,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"45c8a536-b52a-4d25-97e2-089bfcdf1a20","block_type":"box","text":"reserves. The financial per formance of energy and natural resources companies may be adversely affected if they, or","page_number":3,"box":{"x":69,"y":702,"width":836,"height":12}},{"id":"4890d4a7-601e-40d6-8502-fd694c5fd7e2","block_type":"box","text":"the companies to whom they provide the service, are unable to cost-effectively acquire additional reserves sufficient","page_number":3,"box":{"x":68,"y":717,"width":833,"height":12}},{"id":"46423765-a391-4367-89e7-661ec9ad3b27","block_type":"box","text":"to replace the natural decline.","page_number":3,"box":{"x":68,"y":733,"width":213,"height":10}},{"id":"2c8cb6a6-dd52-4a32-9188-8fcf446a2ea8","block_type":"box","text":"Regulatory Risk.","page_number":3,"box":{"x":102,"y":755,"width":114,"height":11}},{"id":"0a07b43e-376d-4f3b-a256-49df0822bb05","block_type":"box","text":"Energy and natural resources companies are subject to significant Federal, state and local","page_number":3,"box":{"x":224,"y":755,"width":642,"height":11}},{"id":"7d142386-cfdc-4a77-a9a1-6c27b5c6c544","block_type":"box","text":"government regulation in vir tually every aspect of their operations, including how facilities are constructed,","page_number":3,"box":{"x":68,"y":770,"width":760,"height":12}},{"id":"0e552115-90c1-4098-acfc-78b023589a96","block_type":"box","text":"maintained and operated, environmental and safety controls and the prices they may charge for the products and","page_number":3,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"362b1062-29df-44d2-a640-0124d887aa63","block_type":"box","text":"services they provide. Various governmental authorities have the power to enforce compliance with these regulations","page_number":3,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"836db61c-6427-490d-b00e-4d209ba09fb2","block_type":"box","text":"and the permits issued under them, and violators are subject to administrative, civil and criminal penalties, including","page_number":3,"box":{"x":69,"y":816,"width":833,"height":11}},{"id":"fe45fb31-2701-40ca-989e-9b25da6bddc5","block_type":"box","text":"civil fines, injunctions or both. Stricter laws, regulations or enforcement policies could be enacted in the future which","page_number":3,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"22a9afff-871d-4017-b2d6-af5f9fe23056","block_type":"box","text":"would likely increase compliance costs and may adversely affect the financial per formance of energy and natural","page_number":3,"box":{"x":68,"y":846,"width":804,"height":11}},{"id":"f7ace811-dba7-4160-8183-225255a5ac89","block_type":"box","text":"resources companies.","page_number":3,"box":{"x":69,"y":861,"width":156,"height":11}},{"id":"6e8f249a-2b33-45d4-b580-612dfa7b9ea6","block_type":"box","text":"Commodity Pricing Risk.","page_number":3,"box":{"x":102,"y":884,"width":169,"height":11}},{"id":"5f151b33-a032-4716-8832-c6d7642a0845","block_type":"box","text":"The operations and financial per formance of energy and natural resources companies","page_number":3,"box":{"x":277,"y":884,"width":613,"height":11}},{"id":"7b118f98-e339-40c1-83e2-830e661027c8","block_type":"box","text":"may be directly affected by energy and other natural resource commodity prices, especially those energy and natural","page_number":3,"box":{"x":69,"y":899,"width":829,"height":11}},{"id":"73bd636f-914b-41d4-b50d-33d8753ee53c","block_type":"box","text":"I-1","page_number":3,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"564bb57a-90b5-47cb-9a54-c7b8c5fef488","block_type":"box","text":"NM1026U-5982509-3/232","page_number":3,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"0ca23689-91a1-45bb-9e87-614abe447a02","block_type":"box","text":"resources companies which own the underlying energy or other natural resource commodity. Commodity prices","page_number":4,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"32e362ba-bacc-4d9c-8012-0afa0e6351cc","block_type":"box","text":"fluctuate for several reasons, including changes in market and economic conditions, the impact of weather on","page_number":4,"box":{"x":68,"y":60,"width":784,"height":11}},{"id":"4851078f-ad05-40a9-b3aa-8dae074717f9","block_type":"box","text":"demand, levels of domestic production and impor ted commodities, energy conservation, domestic and foreign","page_number":4,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"8da4887a-86b9-41c1-a703-19122c9d605e","block_type":"box","text":"governmental regulation and taxation and the availability of local, intrastate and interstate transpor tation systems.","page_number":4,"box":{"x":68,"y":90,"width":817,"height":11}},{"id":"d94a3d03-35b8-49d9-ae29-b18442f7b36c","block_type":"box","text":"Volatility of commodity prices, which may lead to a reduction in production or supply, may also negatively impact the","page_number":4,"box":{"x":68,"y":105,"width":825,"height":11}},{"id":"6c1b76df-42dc-418a-97a8-1acbb36f9385","block_type":"box","text":"per formance of energy and natural resources companies which are solely involved in the transpor tation, processing,","page_number":4,"box":{"x":70,"y":120,"width":828,"height":12}},{"id":"3d4ac1b6-2eb6-4276-b0ba-457d8fe6c3f5","block_type":"box","text":"storing, distribution or marketing of commodities. Volatility of commodity prices may also make it more difficult for","page_number":4,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"1d156a82-9777-4a38-809f-f75d5d90cf6e","block_type":"box","text":"energy and natural resources companies to raise capital to the extent the market perceives that their per formance","page_number":4,"box":{"x":69,"y":150,"width":818,"height":12}},{"id":"95b92031-eaa2-4c48-8e7b-3382c1c616fc","block_type":"box","text":"may be directly or indirectly tied to commodity prices.","page_number":4,"box":{"x":69,"y":166,"width":377,"height":11}},{"id":"4a6b90c0-fb4e-4b3a-bc34-92d106bc3cd5","block_type":"box","text":"Rights Offerings and Warrants.","page_number":4,"box":{"x":102,"y":188,"width":223,"height":11}},{"id":"adc532c9-0ea6-4821-893d-2bd99ac30047","block_type":"box","text":"The Fund may invest in rights offerings and warrants. The Fund will not invest","page_number":4,"box":{"x":331,"y":188,"width":551,"height":12}},{"id":"18d92bc1-9db0-4646-8484-e28ea4952c6f","block_type":"box","text":"more than 5% of its net assets, taken at market value, in warrants, or more than 2% of its net assets, taken at","page_number":4,"box":{"x":69,"y":203,"width":793,"height":11}},{"id":"93e9db68-c29f-4236-a9a3-09f13432633b","block_type":"box","text":"market value, in warrants not listed on the New York Stock Exchange (“NYSE”) or NYSE American (formerly known as","page_number":4,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"f253550a-5d57-4260-9ee1-780febb18d98","block_type":"box","text":"The American Stock Exchange). Warrants acquired by the Fund in units or attached to other securities are not subject","page_number":4,"box":{"x":68,"y":234,"width":837,"height":11}},{"id":"adc6dacb-fa70-445e-b858-d090bba611d5","block_type":"box","text":"to this restriction.","page_number":4,"box":{"x":68,"y":249,"width":126,"height":9}},{"id":"10a234f7-2aa5-4777-a9b4-c36a63a76250","block_type":"box","text":"In implementing the Fund’s investment strategy, from time to time, BlackRock Advisors, LLC (“BlackRock” or the","page_number":4,"box":{"x":102,"y":271,"width":799,"height":12}},{"id":"deb45283-b9fb-4898-9a86-17b19e30e50b","block_type":"box","text":"“Manager”), the Fund’s investment manager, may consider and employ techniques and strategies designed to","page_number":4,"box":{"x":70,"y":287,"width":784,"height":11}},{"id":"c7769b44-a587-402c-a2a3-e14505ab5430","block_type":"box","text":"minimize and defer the U.S. federal income taxes which may be incurred by shareholders in connection with their","page_number":4,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"3ba7cb9f-ebf9-4966-88f9-f5b5e5eb5283","block_type":"box","text":"investment in the Fund.","page_number":4,"box":{"x":70,"y":317,"width":165,"height":9}},{"id":"9a701039-1ddc-46d5-930e-515471b3b945","block_type":"box","text":"Set for th below is a listing of some of the types of investments and investment strategies that the Fund may","page_number":4,"box":{"x":102,"y":339,"width":774,"height":12}},{"id":"e685b130-9e7b-45a5-a4a4-e229cba845c6","block_type":"box","text":"use, and the risks and considerations associated with those investments and investment strategies. Please see Par t","page_number":4,"box":{"x":69,"y":355,"width":837,"height":11}},{"id":"cf272a6d-191f-4ca6-8675-70a76e08bd4e","block_type":"box","text":"II of this SAI for fur ther information on these investments and investment strategies. Information contained in Par t II","page_number":4,"box":{"x":70,"y":370,"width":828,"height":11}},{"id":"fcdd884c-2ae1-46f9-b99b-6cd3fb052e91","block_type":"box","text":"about the risks and considerations associated with investments and/or investment strategies applies only to the","page_number":4,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"24cc57d0-9994-4af1-b47f-611d767fbec1","block_type":"box","text":"extent the Fund makes each type of investment or uses each investment strategy. Also set for th below is a listing of","page_number":4,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"06ca31e7-3d4e-452f-aa81-30155d53a5b0","block_type":"box","text":"the proxy voting policy and related guidelines applicable to the Fund. 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Acquire any other investment company or investment company security except in connection with a","page_number":9,"box":{"x":134,"y":423,"width":723,"height":11}},{"id":"a67c5fde-797b-42e2-b3f4-13e307f599ab","block_type":"box","text":"merger, consolidation, reorganization or acquisition of assets or where otherwise permitted by the Investment","page_number":9,"box":{"x":102,"y":438,"width":784,"height":11}},{"id":"0973aa46-722b-4a80-ac47-b0292bd5561b","block_type":"box","text":"Company Act.","page_number":9,"box":{"x":102,"y":453,"width":95,"height":11}},{"id":"0970e128-db74-4d31-a373-6ab1b7eee8a6","block_type":"box","text":"5. Act as an underwriter of securities within the meaning of the Securities Act of 1933, as amended, except","page_number":9,"box":{"x":134,"y":475,"width":771,"height":12}},{"id":"20182b06-be15-4594-9d1c-9dfbfbd466ae","block_type":"box","text":"to the extent that the purchase of obligations directly from the issuer thereof, or the disposition of securities, in","page_number":9,"box":{"x":101,"y":491,"width":797,"height":11}},{"id":"af23a2ae-ef86-4517-98fd-7c5ff15b60aa","block_type":"box","text":"accordance with the Fund’s investment objective, policies and limitations may be deemed to be underwriting.","page_number":9,"box":{"x":102,"y":506,"width":777,"height":11}},{"id":"e25993e0-5fab-40fd-aa59-41cf29a0bfb0","block_type":"box","text":"6. Write or sell put options, call options, straddles, spreads, or any combination thereof, except for","page_number":9,"box":{"x":134,"y":528,"width":706,"height":12}},{"id":"4a79dce6-7d18-4ed6-8d16-70c5934a6708","block_type":"box","text":"transactions in options on securities and securities indices, futures contracts and options on futures contracts","page_number":9,"box":{"x":101,"y":543,"width":790,"height":11}},{"id":"423ae0d3-5d06-443c-8bdd-f5bf9baf7a5a","block_type":"box","text":"and currencies.","page_number":9,"box":{"x":102,"y":559,"width":108,"height":9}},{"id":"4e94e0be-f8c9-495b-8a63-2bed41035217","block_type":"box","text":"7. Purchase securities of companies for the purpose of exercising control.","page_number":9,"box":{"x":135,"y":581,"width":526,"height":12}},{"id":"c794c5bd-b1ff-497d-b94d-e32dfa5778b3","block_type":"box","text":"8. Purchase securities on margin, make shor t sales of securities or maintain a shor t position, except that","page_number":9,"box":{"x":134,"y":604,"width":757,"height":11}},{"id":"d35803d7-3a1e-4e96-bbf2-f3cd79c7c1ab","block_type":"box","text":"(a) this investment limitation shall not apply to the Fund’s transactions in futures contracts and related options","page_number":9,"box":{"x":102,"y":619,"width":791,"height":11}},{"id":"31998875-c4c1-404b-9046-46cb0e6aca18","block_type":"box","text":"or the Fund’s sale of securities shor t against the box, and (b) the Fund may obtain shor t-term credit as may be","page_number":9,"box":{"x":102,"y":634,"width":790,"height":12}},{"id":"1cd39a30-cf47-4a09-830c-fac11a3dc6e8","block_type":"box","text":"necessary for the clearance of purchases and sales of por tfolio securities.","page_number":9,"box":{"x":102,"y":649,"width":531,"height":12}},{"id":"2a3ba954-50ff-434a-a199-3851dbf71a92","block_type":"box","text":"9. Purchase or sell commodity contracts, or invest in oil, gas or mineral exploration or development","page_number":9,"box":{"x":134,"y":672,"width":707,"height":11}},{"id":"fb5ee0de-ed1f-4107-b23a-c11e7142a481","block_type":"box","text":"programs, except that the Fund may, to the extent appropriate to its investment policies, purchase securities of","page_number":9,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"885f7975-6a1a-439b-90d7-f4485ff3d768","block_type":"box","text":"companies engaging in whole or in par t in such activities and may enter into futures contracts and related","page_number":9,"box":{"x":101,"y":702,"width":755,"height":12}},{"id":"d727ff2e-7caa-45fb-87d4-393c804dd2b0","block_type":"box","text":"options.","page_number":9,"box":{"x":102,"y":718,"width":55,"height":10}},{"id":"02f5038d-225d-41e4-8181-8bd24eafe00a","block_type":"box","text":"10. Make loans, except that the Fund may purchase and hold debt instruments and enter into repurchase","page_number":9,"box":{"x":135,"y":740,"width":754,"height":11}},{"id":"a9878183-17d8-4d83-ad13-95b12116c61f","block_type":"box","text":"agreements in accordance with its investment objective and policies and may lend por tfolio securities.","page_number":9,"box":{"x":102,"y":755,"width":729,"height":11}},{"id":"12313176-f799-4eef-a1ac-4e77213e7c16","block_type":"box","text":"11. Purchase or sell commodities except that the Fund may, to the extent appropriate to its investment","page_number":9,"box":{"x":135,"y":778,"width":735,"height":11}},{"id":"bfeb6ed6-9a42-4733-8706-ec8e221882b1","block_type":"box","text":"policies, purchase securities of companies engaging in whole or in par t in such activities, may engage in","page_number":9,"box":{"x":102,"y":793,"width":744,"height":11}},{"id":"07535cc4-8426-4bb0-aa38-f01a3a7ff4f0","block_type":"box","text":"currency transactions and may enter into futures contracts and related options.","page_number":9,"box":{"x":101,"y":808,"width":565,"height":11}},{"id":"4dc251fc-a839-43c7-ad03-bfdb23080a07","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":9,"box":{"x":102,"y":831,"width":494,"height":11}},{"id":"1fc0e613-e252-41d9-8abb-e169b4fe8433","block_type":"box","text":"The following notations are not considered to be par t of the Fund’s fundamental investment restrictions and are","page_number":9,"box":{"x":101,"y":853,"width":799,"height":12}},{"id":"d01c8d9b-4321-4ac0-8ae9-fd21d3ff3eb3","block_type":"box","text":"subject to change without shareholder approval.","page_number":9,"box":{"x":69,"y":869,"width":341,"height":11}},{"id":"fec9e805-83f7-461f-9296-494852e9730c","block_type":"box","text":"For purposes of investment restriction 1 above, with respect to the Fund’s industry classifications, the Fund","page_number":9,"box":{"x":102,"y":891,"width":768,"height":11}},{"id":"833f969b-ead2-4a79-b234-562a2df2c794","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":906,"width":817,"height":12}},{"id":"9f0fcb78-3758-4c70-8b12-9eea20268bdd","block_type":"box","text":"I-7","page_number":9,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"4f2ee3c5-602e-40f3-a5a8-1c2f85a90276","block_type":"box","text":"NM1026U-5982509-9/232","page_number":9,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"7c9ac510-a242-4c5b-971d-bfeebef96ed3","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":10,"box":{"x":70,"y":45,"width":817,"height":11}},{"id":"5bd5c390-ded1-450c-b22d-eacb484b4279","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":10,"box":{"x":69,"y":60,"width":597,"height":11}},{"id":"d5603487-92cf-46ba-a295-35d1b7d57bc4","block_type":"box","text":"While cer tain swaps are now considered commodity interests for purposes of the Commodity Exchange Act and","page_number":10,"box":{"x":101,"y":82,"width":793,"height":12}},{"id":"cd4d748f-abe0-4945-a069-7a088f4c0946","block_type":"box","text":"the rules thereunder, at the time of the Fund’s adoption of fundamental investment restrictions no. 6, 9 and 11","page_number":10,"box":{"x":68,"y":98,"width":796,"height":11}},{"id":"973590f3-e00b-4ce7-a663-dfedd28827f0","block_type":"box","text":"above, many swaps were treated as securities for purposes of the Fund’s compliance with applicable law.","page_number":10,"box":{"x":69,"y":113,"width":752,"height":11}},{"id":"c31d8e1a-9d52-4f0b-b102-f2b764da66c1","block_type":"box","text":"Accordingly, fundamental investment restriction no. 6, which does not restrict transactions in options on securities","page_number":10,"box":{"x":68,"y":128,"width":817,"height":11}},{"id":"763be22e-6675-42f4-aa61-cd4d1b91f87f","block_type":"box","text":"and securities indices, and fundamental restrictions no. 9 and 11 are being interpreted to permit the Fund to engage","page_number":10,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"f0fe0371-df85-401b-a4b1-e32490645996","block_type":"box","text":"in transactions in swaps and options on swaps, as applicable, related to financial instruments, such as securities,","page_number":10,"box":{"x":70,"y":158,"width":815,"height":11}},{"id":"2f08dd2c-4c64-4649-b21c-e4055a62152f","block_type":"box","text":"securities indices and currencies, but not to engage in transactions in swaps or options on swaps related to physical","page_number":10,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"7a09defd-6896-4614-a930-113dc6a0245f","block_type":"box","text":"commodities, such as oil or metals.","page_number":10,"box":{"x":69,"y":188,"width":254,"height":11}},{"id":"ea1c23c1-90f0-4f1d-ab75-aaeb44ea3985","block_type":"box","text":"With respect to the fundamental policy relating to issuing senior securities above, the Investment Company Act,","page_number":10,"box":{"x":101,"y":211,"width":795,"height":11}},{"id":"9dd2628b-e13e-4817-84d8-6a98aa404acd","block_type":"box","text":"including the rules and regulations thereunder, generally prohibits the Fund from issuing senior securities (other than","page_number":10,"box":{"x":70,"y":226,"width":832,"height":11}},{"id":"0822d9ee-fd24-4c9e-b661-c329d848ce1c","block_type":"box","text":"cer tain temporary borrowings) unless immediately after the issuance the Fund has satisfied an asset coverage","page_number":10,"box":{"x":69,"y":241,"width":790,"height":11}},{"id":"55847610-6950-428c-a4ab-bcc559db4aff","block_type":"box","text":"requirement with respect to senior securities representing indebtedness prescribed by the Investment Company Act.","page_number":10,"box":{"x":69,"y":256,"width":828,"height":12}},{"id":"4e65b309-84bf-4266-bb3c-e454c943145a","block_type":"box","text":"Cer tain trading practices and investments, such as derivatives transactions, may be treated as senior securities.","page_number":10,"box":{"x":69,"y":272,"width":805,"height":11}},{"id":"18e45a3d-5cee-4273-b474-900f69e65bec","block_type":"box","text":"Prior to the adoption and implementation of Rule 18f-4 under the Investment Company Act, when the Fund engaged in","page_number":10,"box":{"x":69,"y":286,"width":839,"height":12}},{"id":"3189012a-0368-4ebb-9eb8-2fe5a9a3eb65","block_type":"box","text":"a derivatives transaction that creates future payment obligations, consistent with SEC staff guidance and","page_number":10,"box":{"x":69,"y":302,"width":749,"height":11}},{"id":"42d2fa12-e6d3-4acc-a0d7-7810c7e18bd2","block_type":"box","text":"interpretations, the Fund was permitted to segregate or earmark liquid assets, or enter into an offsetting position, in","page_number":10,"box":{"x":70,"y":317,"width":830,"height":11}},{"id":"e94b3a66-5645-42fb-bc7f-306930b76db8","block_type":"box","text":"an amount at least equal to the Fund’s exposure, on a mark-to-market basis, to the transaction, instead of meeting","page_number":10,"box":{"x":69,"y":332,"width":823,"height":11}},{"id":"3e6dee5c-b73e-4349-ac1f-65665097c894","block_type":"box","text":"the asset coverage requirement with respect to senior securities prescribed by the Investment Company Act. The SEC","page_number":10,"box":{"x":68,"y":347,"width":840,"height":11}},{"id":"0a045e8f-ccd5-411c-9060-86d1ffa0693a","block_type":"box","text":"staff guidance and interpretations were rescinded in connection with the adoption of Rule 18f-4, and the Fund now","page_number":10,"box":{"x":69,"y":362,"width":817,"height":11}},{"id":"35517b18-9a0f-45cc-acb3-cdfd7be64757","block_type":"box","text":"complies with Rule 18f-4 with respect to its derivatives transactions. Thus, the fundamental policy relating to issuing","page_number":10,"box":{"x":69,"y":377,"width":831,"height":12}},{"id":"7de076c8-eb33-446e-8253-55f42c95cb6e","block_type":"box","text":"senior securities above will not restrict the Fund from entering into derivatives transactions that are treated as senior","page_number":10,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"f581c757-4c2f-4914-9220-69b94e1b408c","block_type":"box","text":"securities so long as the Fund complies with Rule 18f-4 with respect to such derivatives transactions.","page_number":10,"box":{"x":69,"y":407,"width":724,"height":12}},{"id":"8c5532f5-c4ea-45bc-9a11-50c8d80fce7c","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":10,"box":{"x":102,"y":430,"width":768,"height":11}},{"id":"76b78026-64fb-435e-96da-987848a7f8e7","block_type":"box","text":"approval, the Fund may not:","page_number":10,"box":{"x":69,"y":446,"width":197,"height":10}},{"id":"5ba5cc35-5990-40e0-b3d7-8f43177a8503","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":10,"box":{"x":102,"y":468,"width":742,"height":11}},{"id":"b8857542-5441-402f-8255-f6ce197f5449","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":10,"box":{"x":69,"y":483,"width":759,"height":11}},{"id":"c31554b8-f835-4e27-bd93-6e815b61bc81","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds”","page_number":10,"box":{"x":70,"y":498,"width":829,"height":11}},{"id":"5e6483d1-39f7-4630-abf6-05bb14893847","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by","page_number":10,"box":{"x":70,"y":513,"width":808,"height":12}},{"id":"7c730221-6938-4a9e-b6eb-1053fd15b8dd","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":10,"box":{"x":69,"y":528,"width":763,"height":12}},{"id":"d4223b9b-e7da-4a4f-b769-27fc51177c9e","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 under the Investment","page_number":10,"box":{"x":102,"y":551,"width":771,"height":11}},{"id":"fff9c787-ec8d-45d8-86a0-01f45ffa3d34","block_type":"box","text":"Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions apply only at","page_number":10,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"7fca2935-358c-4358-bc9a-3edbf2f346cb","block_type":"box","text":"the time that a transaction is under taken. Any change in the percentage of the Fund’s assets invested in cer tain","page_number":10,"box":{"x":68,"y":581,"width":803,"height":12}},{"id":"538d29ac-05e6-4603-84ac-8ba2782aa8b0","block_type":"box","text":"securities or other instruments resulting from market fluctuations or other changes in the Fund’s total assets will not","page_number":10,"box":{"x":69,"y":596,"width":835,"height":12}},{"id":"18151cd1-98c4-4953-80bd-fbdd728b4b81","block_type":"box","text":"require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell or close out the","page_number":10,"box":{"x":69,"y":612,"width":833,"height":11}},{"id":"67ec5fe1-9039-4c3e-a182-2778ad603541","block_type":"box","text":"investment without undue market or tax consequences.","page_number":10,"box":{"x":70,"y":627,"width":393,"height":11}},{"id":"93428c1c-3a11-492f-932f-d540e0effd11","block_type":"box","text":"III. Information on Trustees and Officers","page_number":10,"box":{"x":69,"y":657,"width":290,"height":9}},{"id":"1f9de120-aa06-45bc-be1f-7deee3e08196","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thir teen of whom are not “interested persons” of","page_number":10,"box":{"x":101,"y":680,"width":788,"height":11}},{"id":"db45398e-21c1-418f-b2a1-46bde2dec62a","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":10,"box":{"x":68,"y":695,"width":779,"height":11}},{"id":"997445fb-899f-4f1d-94fd-9722c6621adb","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":10,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"fcb4f81f-c64d-4aee-af88-a7eb256cdd09","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":10,"box":{"x":70,"y":725,"width":793,"height":11}},{"id":"19ccaf89-2fb1-4281-a334-d760c9868f7b","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":10,"box":{"x":69,"y":740,"width":822,"height":11}},{"id":"260c8f4a-0949-461f-b112-cc03bcae46aa","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":10,"box":{"x":68,"y":755,"width":837,"height":11}},{"id":"6c2064d8-c130-4494-b169-dbe85936d21c","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":10,"box":{"x":70,"y":770,"width":335,"height":11}},{"id":"ffca37ca-ce1b-4b34-961b-dc3245149c83","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Fund. The Chair of the Board is an","page_number":10,"box":{"x":101,"y":793,"width":769,"height":11}},{"id":"9b218b3d-b2e4-4a5c-8ca3-8cd16654c9c4","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":10,"box":{"x":70,"y":808,"width":827,"height":11}},{"id":"0d812b96-1556-4386-ae5a-b8ab13efb240","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":10,"box":{"x":70,"y":823,"width":821,"height":12}},{"id":"e7862168-0ecf-4636-a6f6-ebc5e6e56c56","block_type":"box","text":"Committee, a Per formance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":10,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"46c1973f-218b-4ceb-b8d7-69f40bb61e0d","block_type":"box","text":"is to preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":10,"box":{"x":70,"y":853,"width":830,"height":12}},{"id":"97059e86-d5ec-4524-a97e-89905dc76288","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":10,"box":{"x":68,"y":869,"width":789,"height":11}},{"id":"ca839c4b-02b2-4fdc-854d-a6dd46e9acfb","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also per form such other functions as may be","page_number":10,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"4d6c5b04-8448-440a-bbd9-f1dd1c45adb9","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":10,"box":{"x":69,"y":899,"width":809,"height":11}},{"id":"cd4771c9-21c1-4fdf-8e21-b3f582f2009f","block_type":"box","text":"I-8","page_number":10,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"376e0760-b48d-4b8e-97f6-1c4690375359","block_type":"box","text":"NM1026U-5982509-10/232","page_number":10,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4e29c042-4dee-4b74-81a4-5ae3d20df867","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":11,"box":{"x":70,"y":45,"width":794,"height":11}},{"id":"d6c5cecd-578b-405c-890d-b3058bd737ac","block_type":"box","text":"regular meetings five times a year, and may hold special meetings if required before its next regular meeting. Each","page_number":11,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"f72c613b-8103-4e5a-98ea-5b79b7e88633","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":11,"box":{"x":69,"y":75,"width":831,"height":11}},{"id":"35b83d15-5829-4e0b-8f24-c3d837eacd90","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":11,"box":{"x":70,"y":90,"width":811,"height":11}},{"id":"1d755696-a8ea-4875-821c-259b2bb00505","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":11,"box":{"x":68,"y":105,"width":809,"height":11}},{"id":"6e44fe9f-8651-4085-ac98-ac80af43cdd7","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":11,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"653148f6-b3f4-4012-a672-a9a7fb877736","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":11,"box":{"x":69,"y":135,"width":441,"height":12}},{"id":"c8ed06d4-7457-4b21-a282-f34aeb20d1a0","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":11,"box":{"x":101,"y":158,"width":777,"height":11}},{"id":"e263eff9-3e02-4e5d-a4f9-e29ef7f05373","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":11,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"dbf683de-7253-41c1-9380-b1b08fb010ef","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s char ter, and the Fund’s","page_number":11,"box":{"x":68,"y":188,"width":820,"height":11}},{"id":"2c7fcbbb-b85b-4aef-84fa-403463a779d1","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":11,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"bf7c65bc-29c8-47a9-8be0-8633597af2b6","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":11,"box":{"x":69,"y":218,"width":819,"height":12}},{"id":"95f56aa1-7c33-4fe2-9da2-a1cfb4fcb4de","block_type":"box","text":"the operations of the Fund.","page_number":11,"box":{"x":68,"y":234,"width":192,"height":11}},{"id":"dc275bb9-7deb-49cd-a3cd-f7bc57683de2","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":11,"box":{"x":102,"y":256,"width":785,"height":12}},{"id":"b371833e-5da1-4252-9a57-ce352e99a6c4","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":11,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"2d5115c6-2a7b-4a04-84ef-c533f4c52f93","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":11,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"a36010ca-a31f-4275-b040-846ffdc3086a","block_type":"box","text":"there are a number of risk management functions per formed by the Manager and the sub-advisers or other service","page_number":11,"box":{"x":68,"y":302,"width":820,"height":11}},{"id":"5f0991e8-2032-4e5e-8273-980106b3df87","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":11,"box":{"x":70,"y":317,"width":811,"height":11}},{"id":"22be139b-052c-4232-95d4-3cc38d3dbe5d","block_type":"box","text":"par t of the Board’s general oversight of the Fund and is addressed as par t of various Board and Committee","page_number":11,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"ca3e8812-abdd-4db7-9e52-f981b49dd208","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":11,"box":{"x":69,"y":347,"width":815,"height":11}},{"id":"def938d9-aab1-47a0-bbb3-9854ff1266f6","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":11,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"919a44a0-ca46-43e1-a0c1-623ff6089d14","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":11,"box":{"x":69,"y":377,"width":840,"height":12}},{"id":"5a282afd-bdfd-4631-a785-54d0fa315b80","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":11,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"8d82e5e0-6e8e-4146-b502-173240d7ff34","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":11,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"f1aa7027-9b96-4216-b194-8b0eaa76652f","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":11,"box":{"x":69,"y":423,"width":812,"height":11}},{"id":"944fa7bf-3604-4f1f-8ead-4ee7e8cde972","block_type":"box","text":"testing of the Trust’s compliance program and repor ts to the Board regarding compliance matters for the Fund and","page_number":11,"box":{"x":68,"y":438,"width":818,"height":11}},{"id":"82295cc3-98f9-409b-a815-c0995f53cfe2","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":11,"box":{"x":70,"y":453,"width":759,"height":11}},{"id":"40182eef-8417-4d21-9677-c6e465ddfff2","block_type":"box","text":"per forming their oversight responsibilities.","page_number":11,"box":{"x":70,"y":468,"width":299,"height":11}},{"id":"9cd679cd-23ac-4a2e-a89c-485289585c6a","block_type":"box","text":"Audit Committee.","page_number":11,"box":{"x":101,"y":491,"width":122,"height":9}},{"id":"7f82b278-bfe7-484c-ac7b-6351b9aa84b5","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":11,"box":{"x":229,"y":491,"width":673,"height":11}},{"id":"3e9554f7-2ed6-4512-b238-409532850977","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees.","page_number":11,"box":{"x":68,"y":506,"width":831,"height":11}},{"id":"61dad904-4aeb-496e-95c7-6ac1ffa9a88f","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":11,"box":{"x":68,"y":521,"width":820,"height":11}},{"id":"e2a7cb4d-91a9-49b0-9ec5-622ed4fadb48","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":11,"box":{"x":68,"y":536,"width":823,"height":11}},{"id":"6aa33ada-e704-4176-8151-0f51f64d2c3a","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":11,"box":{"x":69,"y":551,"width":830,"height":11}},{"id":"4aadb6d9-76c4-409d-8268-b8f691e8b17d","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":11,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"3ba62e4d-925d-4f5d-88fb-41e83f3e75af","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":11,"box":{"x":70,"y":581,"width":807,"height":12}},{"id":"2873bc53-e15e-4449-b953-175039679c82","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":11,"box":{"x":68,"y":596,"width":781,"height":11}},{"id":"d5bde7f9-7a27-4f1f-a47e-7e81801a0bf0","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":11,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"d660714f-6498-4c5f-900c-ecfc5e96ecd0","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund and the internal controls of the Fund","page_number":11,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"a4827f94-a22d-4be8-9448-42b8a6c04552","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":11,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"fa4e2df9-770c-44d7-8438-aac7810e76d0","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":11,"box":{"x":70,"y":657,"width":809,"height":11}},{"id":"706ac801-a8c6-4e79-9570-f20c6c2820cf","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":11,"box":{"x":70,"y":672,"width":815,"height":11}},{"id":"0c3cd7bb-c01d-4e43-8aa4-1c9537744def","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":11,"box":{"x":69,"y":687,"width":774,"height":11}},{"id":"a6c5fe5e-b2e7-427e-9213-f0a659c76b64","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":11,"box":{"x":69,"y":702,"width":815,"height":12}},{"id":"d1e19a8f-3907-4bf2-9e90-c2456c84e6eb","block_type":"box","text":"regarding financial repor ting; and (9) under take such other duties and responsibilities as may from time to time be","page_number":11,"box":{"x":69,"y":717,"width":819,"height":12}},{"id":"52775d27-e023-4f92-bd40-e474e7c5424f","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written char ter for the Audit Committee.","page_number":11,"box":{"x":69,"y":732,"width":812,"height":12}},{"id":"6a541a2c-d37e-4448-adac-d259ea9fb5e1","block_type":"box","text":"During the twelve months ended May 31, 2026, the Audit Committee met four times.","page_number":11,"box":{"x":70,"y":748,"width":605,"height":11}},{"id":"4d6e4c81-f9a6-4b83-ac08-883988927692","block_type":"box","text":"Governance and Nominating Committee.","page_number":11,"box":{"x":102,"y":770,"width":286,"height":12}},{"id":"7619e526-8458-4268-a42b-784a5d19e157","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":11,"box":{"x":394,"y":770,"width":464,"height":12}},{"id":"f9548d5a-09c8-46a7-80b0-979d0a1ef0d8","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton,","page_number":11,"box":{"x":70,"y":786,"width":838,"height":11}},{"id":"15d577f6-cc5f-4e35-8ea5-30cb90df5a05","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":11,"box":{"x":70,"y":801,"width":784,"height":11}},{"id":"e24f5fbe-5a90-496b-8d85-6ea6c9e2a2d8","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and","page_number":11,"box":{"x":69,"y":816,"width":803,"height":11}},{"id":"ba76cd40-d8bb-4b10-adfd-ed4e1b3d29f1","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":11,"box":{"x":69,"y":831,"width":829,"height":11}},{"id":"caf994d0-2b4c-456c-91fd-19fefe61fccb","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":11,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"9ebc928c-22a4-489d-b039-9ddbb1c90837","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":11,"box":{"x":70,"y":861,"width":809,"height":11}},{"id":"bfa98835-6266-4bfb-97c1-63a3e1f35bce","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":11,"box":{"x":69,"y":876,"width":838,"height":11}},{"id":"d4cf3b28-37ee-46e4-af99-ed024707230f","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":11,"box":{"x":69,"y":891,"width":800,"height":11}},{"id":"715c103e-9e22-4509-a8e1-37a402006146","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":11,"box":{"x":70,"y":906,"width":813,"height":11}},{"id":"26551aa4-14cd-4a0b-9cc8-d75d87014803","block_type":"box","text":"I-9","page_number":11,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"deefd093-8e78-4b92-8da9-351cfb5d9180","block_type":"box","text":"NM1026U-5982509-11/232","page_number":11,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"93177554-92a1-4f86-a09a-c75d8530b003","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) under take such other duties and responsibilities as may from","page_number":12,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"c7bc9e48-a09f-4c87-842a-b239f43e2950","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":12,"box":{"x":68,"y":60,"width":804,"height":11}},{"id":"5ab958a0-d9ca-48a1-976e-afec1f95dfdd","block_type":"box","text":"nominations for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Trust’s Amended and","page_number":12,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"0e89593a-fade-4861-bff7-43a51b3c35d2","block_type":"box","text":"Restated Code of Regulations (“Bylaws”), shareholders must follow cer tain procedures to nominate a person for","page_number":12,"box":{"x":70,"y":90,"width":801,"height":11}},{"id":"7b18208a-8db3-438b-9c1b-eea94fd5e2ad","block_type":"box","text":"election as a Trustee at a shareholder meeting at which Trustees are to be elected. Under these advance notice","page_number":12,"box":{"x":69,"y":105,"width":799,"height":11}},{"id":"e01a1671-4cd6-4170-b7cf-f70bfee8752b","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Trust must be delivered to or mailed and","page_number":12,"box":{"x":70,"y":120,"width":776,"height":11}},{"id":"5f45355e-0074-4213-802f-e39723067616","block_type":"box","text":"received at the principal executive offices of the Trust not later than the close of business on the fifth day following","page_number":12,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"0ca03c79-249e-4081-97d4-ee79cd9a05c8","block_type":"box","text":"the day on which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was","page_number":12,"box":{"x":68,"y":150,"width":812,"height":12}},{"id":"cda7eec4-d8a8-4b60-9982-e0c0d307a4ef","block_type":"box","text":"made, whichever first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include cer tain","page_number":12,"box":{"x":69,"y":166,"width":823,"height":11}},{"id":"0969cc8c-d858-4fef-a1fc-8228250a8b59","block_type":"box","text":"information about the shareholder and the nominee, as well as cer tain other information, including a written consent","page_number":12,"box":{"x":70,"y":181,"width":832,"height":11}},{"id":"a1e21688-9984-44c5-b7f0-5831a326ae2c","block_type":"box","text":"of the proposed nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details. The Board","page_number":12,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"2d293968-1e95-4a42-bc8b-7b5eb26c18a3","block_type":"box","text":"has adopted a written char ter for the Governance Committee. During the twelve months ended May 31, 2026, the","page_number":12,"box":{"x":69,"y":211,"width":813,"height":11}},{"id":"141edf28-da95-44de-bc78-f07c6ce2dcb5","block_type":"box","text":"Governance Committee met ten times.","page_number":12,"box":{"x":69,"y":226,"width":274,"height":9}},{"id":"7eea76d7-bca8-4415-a3eb-0b5ba6634dac","block_type":"box","text":"Compliance Committee.","page_number":12,"box":{"x":102,"y":249,"width":168,"height":11}},{"id":"9ec1aa7b-07e1-4efb-8fd6-97069924ca7e","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":12,"box":{"x":276,"y":249,"width":629,"height":11}},{"id":"fbc9df63-385d-4f8b-9c96-9858c5f0f53f","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":12,"box":{"x":68,"y":264,"width":828,"height":11}},{"id":"c8b2d9df-290d-4975-bc26-253b51e396d5","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":12,"box":{"x":68,"y":279,"width":771,"height":11}},{"id":"61016ee7-4310-4049-b326-9781ef2cce07","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of","page_number":12,"box":{"x":69,"y":294,"width":835,"height":11}},{"id":"d60bb563-e735-4c63-914c-7309e1c2827e","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-par ty service providers. The Compliance Committee’s","page_number":12,"box":{"x":70,"y":309,"width":754,"height":11}},{"id":"4f393805-ec35-46ec-aaf1-b62919108fe1","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Trust and its","page_number":12,"box":{"x":69,"y":324,"width":834,"height":11}},{"id":"000dec33-6217-4dcd-a3d2-e5a35a759908","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":12,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"9ecbfb02-52d5-41c3-84de-e25c62db3a46","block_type":"box","text":"and, where appropriate, recommend policies concerning the Trust’s compliance with applicable law; (3) review","page_number":12,"box":{"x":69,"y":355,"width":785,"height":11}},{"id":"78efa262-fa26-4671-9f5a-1a6d4998cd72","block_type":"box","text":"repor ts from, oversee the annual per formance review of, and make cer tain recommendations and determinations","page_number":12,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"42c83d74-e1ed-4ba1-b889-fb5e7cfaa916","block_type":"box","text":"regarding the Trust’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":12,"box":{"x":69,"y":385,"width":812,"height":11}},{"id":"fab5de8f-a2e0-4e51-9dd7-018281bbaece","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":12,"box":{"x":69,"y":400,"width":812,"height":11}},{"id":"8fb5b093-d354-4c3a-b4a0-13ae61dfc8b8","block_type":"box","text":"and (4) under take such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":12,"box":{"x":69,"y":415,"width":825,"height":11}},{"id":"949f920c-94a8-495d-bbc2-180f0cee9fec","block_type":"box","text":"Compliance Committee. The Board has adopted a written char ter for the Compliance Committee. During the twelve","page_number":12,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"5149dd7f-c7e9-4b0f-a85e-2fab894f40d3","block_type":"box","text":"months ended May 31, 2026, the Compliance Committee met four times.","page_number":12,"box":{"x":69,"y":445,"width":525,"height":11}},{"id":"c1ac6960-eff2-4db3-81ef-3ed16393185c","block_type":"box","text":"Per formance Oversight Committee.","page_number":12,"box":{"x":102,"y":468,"width":248,"height":11}},{"id":"b9f35714-384d-4db9-b2c6-93227076c838","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":12,"box":{"x":356,"y":468,"width":531,"height":11}},{"id":"c336601c-c97d-481a-a948-65dd2ee36cd6","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton, Neil A.","page_number":12,"box":{"x":69,"y":483,"width":829,"height":11}},{"id":"0ed8e64c-6c73-40fd-b759-1bc2de34d4cc","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is","page_number":12,"box":{"x":69,"y":498,"width":830,"height":11}},{"id":"41a0c5e8-996f-4e5b-aed0-399482ea76bb","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed","page_number":12,"box":{"x":68,"y":513,"width":832,"height":12}},{"id":"4b8685f1-f2e4-4ee2-ae8a-5413048bd8c3","block_type":"box","text":"upon per formance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":12,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"a0a671fa-38ad-40ec-a765-33ffcc4e9644","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":12,"box":{"x":69,"y":543,"width":782,"height":12}},{"id":"b5b91f1f-13b9-46bc-b2c0-48332da2035c","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":12,"box":{"x":70,"y":559,"width":829,"height":11}},{"id":"8d5bab73-1ce3-462c-8454-01a1db447177","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":12,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"cae5826e-5bda-467b-b9b3-ae171729e030","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":12,"box":{"x":69,"y":589,"width":803,"height":11}},{"id":"3008e726-2da6-45c3-b307-e17f33ee6d73","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":12,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"b79b81e4-00be-488c-a5a8-6f4949c006a1","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":12,"box":{"x":68,"y":619,"width":811,"height":11}},{"id":"e9d47583-d704-4a04-8548-25f4882d151f","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":12,"box":{"x":69,"y":634,"width":757,"height":12}},{"id":"777099c4-0075-4b36-9e91-1d55bb4ed130","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":12,"box":{"x":70,"y":649,"width":835,"height":12}},{"id":"59c35fb3-75ea-4122-89bf-725a9ef6bde6","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":12,"box":{"x":68,"y":664,"width":800,"height":12}},{"id":"72806970-97dc-4722-8628-6f87fdd6929b","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Per formance Oversight","page_number":12,"box":{"x":69,"y":680,"width":780,"height":11}},{"id":"00b8c9d6-670c-4318-b342-7ec8dfc8c462","block_type":"box","text":"Committee. The Board has adopted a written char ter for the Per formance Oversight Committee. During the twelve","page_number":12,"box":{"x":69,"y":695,"width":810,"height":11}},{"id":"f5741c98-4b10-4910-b896-8e080e751000","block_type":"box","text":"months ended May 31, 2026, the Per formance Oversight Committee met five times.","page_number":12,"box":{"x":69,"y":710,"width":602,"height":11}},{"id":"e610b5c4-17b8-432e-a9d4-b0305f651c56","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":12,"box":{"x":101,"y":733,"width":186,"height":10}},{"id":"461d1339-aac5-4db2-ab71-4282e2bffa1e","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":12,"box":{"x":293,"y":732,"width":598,"height":12}},{"id":"a8460e19-4da6-44ac-98e8-8907260b625d","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":12,"box":{"x":70,"y":748,"width":817,"height":11}},{"id":"74803324-aa8d-4b42-aa0b-c4572db34d20","block_type":"box","text":"serves as an interested Trustee. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":12,"box":{"x":69,"y":763,"width":795,"height":11}},{"id":"3684c79a-fc23-4a93-bf5f-912e48fc92d5","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":12,"box":{"x":69,"y":778,"width":788,"height":11}},{"id":"529bc8f2-4105-45cb-a911-060c1982a9be","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":12,"box":{"x":69,"y":793,"width":813,"height":11}},{"id":"3a25b1e9-e907-4da6-ad4c-287d598d6e64","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written char ter for the Ad Hoc Topics Committee. During","page_number":12,"box":{"x":68,"y":808,"width":816,"height":11}},{"id":"73db0ef3-7ae7-4321-85c9-57bf1d4e3094","block_type":"box","text":"the twelve months ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":12,"box":{"x":68,"y":823,"width":606,"height":11}},{"id":"291b711e-121f-4cc6-903b-ce58e5af1357","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":12,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"9275aec9-9d1f-4ded-88fc-a3eeea8e6b9f","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":12,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"6d251bea-a68b-4e30-9c21-9d63bd3caa3c","block_type":"box","text":"of Policy”). The Board believes that each Independent Trustee satisfied, at the time he or she was initially elected or","page_number":12,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"2d96507a-9e47-49ae-a57f-16f8e474feb9","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":12,"box":{"x":69,"y":891,"width":825,"height":11}},{"id":"28cd498d-33b1-47d3-ab12-e4f2929cdfcd","block_type":"box","text":"in determining that a par ticular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":12,"box":{"x":70,"y":906,"width":807,"height":12}},{"id":"0cda18f4-26bf-4a8c-adf1-8f954ee0741c","block_type":"box","text":"I-10","page_number":12,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"810197ef-1cab-4666-b543-8a37dff43a93","block_type":"box","text":"NM1026U-5982509-12/232","page_number":12,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3451cc46-0d6c-49af-8f3b-9e4504590bf2","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":13,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"36b0a31e-40a6-43b4-b64d-8470bab77f81","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":13,"box":{"x":69,"y":60,"width":805,"height":11}},{"id":"f8e8fe6f-0bda-44e9-99cd-b67ba7f6a3b3","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":13,"box":{"x":68,"y":75,"width":794,"height":11}},{"id":"dc241478-b113-4abb-8eb6-c52156c613b0","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":13,"box":{"x":68,"y":90,"width":829,"height":11}},{"id":"563031e2-f3c7-4bf0-9ff6-183f37d0a94e","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":13,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"21ad56d1-a611-40ab-84f5-49a1a15e5d75","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":13,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"5017189d-4353-48f0-9179-9cc4792bd65e","block_type":"box","text":"business judgment in the per formance of their duties as Trustees.","page_number":13,"box":{"x":69,"y":135,"width":473,"height":12}},{"id":"40af50ef-176f-4f95-8882-516bed995233","block_type":"box","text":"Each Trustee’s ability to per form his or her duties effectively is evidenced by his or her educational background","page_number":13,"box":{"x":102,"y":158,"width":792,"height":11}},{"id":"5ddbdddf-a4bd-4bea-b034-968fa626093c","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":13,"box":{"x":69,"y":173,"width":807,"height":11}},{"id":"2bd0abc0-4a7e-4af8-9456-b216fef5bf67","block_type":"box","text":"board member of the Trust and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":13,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"491375a9-5f1b-456f-99d8-56d2c73f4025","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":13,"box":{"x":70,"y":203,"width":759,"height":12}},{"id":"98d84b39-21d2-4a78-9e96-70d98b1957ca","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":13,"box":{"x":70,"y":218,"width":685,"height":12}},{"id":"980bf638-890e-4818-bfe4-e234736e832e","block_type":"box","text":"ad hoc","page_number":13,"box":{"x":762,"y":219,"width":47,"height":8}},{"id":"7cc657ad-989d-492a-aeb5-3b5fdabda7a8","block_type":"box","text":"committees","page_number":13,"box":{"x":814,"y":219,"width":82,"height":8}},{"id":"40f04348-3d7b-4c19-a292-ed51fdf8956e","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":13,"box":{"x":68,"y":234,"width":395,"height":11}},{"id":"30983d2e-af7a-4a57-9303-26fdfafc4e6d","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":13,"box":{"x":101,"y":256,"width":751,"height":11}},{"id":"fa199c29-0ba5-4e58-93ce-f3af8b5748f6","block_type":"box","text":"suppor t the conclusion that each Trustee should serve on the Board.","page_number":13,"box":{"x":69,"y":272,"width":492,"height":10}},{"id":"4e38c434-abce-47c9-adc2-cb4c5e9292a5","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":13,"box":{"x":68,"y":300,"width":409,"height":8}},{"id":"87204437-f926-43a8-bb24-1c9499d0ed19","block_type":"box","text":"Independent Trustees","page_number":13,"box":{"x":70,"y":316,"width":154,"height":11}},{"id":"fa295c05-35bf-44d3-a8dc-89d25b05f147","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":13,"box":{"x":69,"y":331,"width":781,"height":11}},{"id":"ba7b0a77-8e6e-442d-bc37-631c3e869f42","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":13,"box":{"x":265,"y":346,"width":604,"height":12}},{"id":"6eddd815-c5e8-4007-ba00-444543a1ffe0","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":13,"box":{"x":265,"y":361,"width":623,"height":12}},{"id":"6fccf7b9-e8f7-49a7-bff4-09ad4d279b51","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":13,"box":{"x":265,"y":377,"width":637,"height":11}},{"id":"be242664-7c1c-4f37-9042-a57580d455a3","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":13,"box":{"x":265,"y":392,"width":631,"height":11}},{"id":"2b4c1465-7482-48a1-902f-1a7c00fbf400","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":13,"box":{"x":264,"y":407,"width":626,"height":10}},{"id":"c61e1cfa-7989-4805-b458-3696f12b4c0e","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":13,"box":{"x":265,"y":422,"width":639,"height":11}},{"id":"06356665-9480-460d-8b47-0e98da0b1b62","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":13,"box":{"x":264,"y":437,"width":637,"height":11}},{"id":"c68969ec-e9d3-4e7f-bbbf-37e5b5e2bbaa","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":13,"box":{"x":265,"y":452,"width":586,"height":11}},{"id":"7f553b2d-fd7c-4fd8-830c-62960a59884b","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":13,"box":{"x":265,"y":467,"width":640,"height":11}},{"id":"25885b53-c22e-4705-bf07-c3d8f185a2c7","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":13,"box":{"x":265,"y":482,"width":389,"height":12}},{"id":"85b318bd-e2ff-41fa-8aa2-246e74aca85f","block_type":"box","text":"Susan J. Car ter Susan J. Car ter has over 35 years of experience in investment management. She has","page_number":13,"box":{"x":69,"y":505,"width":806,"height":11}},{"id":"a879fe0b-3767-4f1e-a87a-6674f90e5382","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":13,"box":{"x":265,"y":520,"width":604,"height":11}},{"id":"370b39bd-86c8-4d4c-bbe4-439ab6dd5b69","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":13,"box":{"x":265,"y":535,"width":632,"height":12}},{"id":"457d220a-ad9e-422c-a204-658876c31e06","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":13,"box":{"x":265,"y":550,"width":562,"height":9}},{"id":"c6b1b07d-88b6-4220-badf-9ba855b2e9b3","block_type":"box","text":"Ms. Car ter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":13,"box":{"x":265,"y":566,"width":616,"height":10}},{"id":"cc24cb13-953e-477c-93c0-56eb82e6e8df","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":13,"box":{"x":264,"y":581,"width":591,"height":11}},{"id":"bec847a8-e1e5-4a7c-809b-72a8843f378d","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":13,"box":{"x":265,"y":596,"width":641,"height":11}},{"id":"dcaee1e7-c5b3-437c-ac15-6118bd682321","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":13,"box":{"x":264,"y":611,"width":638,"height":11}},{"id":"f7fb9e20-178d-4b37-882c-d73c4188784d","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":13,"box":{"x":265,"y":626,"width":584,"height":11}},{"id":"c96e6d9b-a83c-439e-b4f0-a41c0ee45434","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":13,"box":{"x":265,"y":641,"width":630,"height":11}},{"id":"25afab1f-e589-4185-9e16-67562e2fa23f","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":13,"box":{"x":265,"y":656,"width":634,"height":11}},{"id":"1483b8e6-ef09-4fcd-ad9e-18f9704b93ac","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":13,"box":{"x":265,"y":671,"width":599,"height":11}},{"id":"2ca20db4-00f7-4f66-96a3-b59d6cc93051","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":13,"box":{"x":265,"y":687,"width":407,"height":11}},{"id":"165d25ce-0e2f-4c93-a17f-e085073ce589","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":13,"box":{"x":69,"y":709,"width":837,"height":11}},{"id":"a2be7780-987d-4cbe-a739-d4f9b48e06ee","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":13,"box":{"x":265,"y":724,"width":638,"height":12}},{"id":"7b94020e-aa93-4edc-bb6b-e23de57c04c7","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":13,"box":{"x":265,"y":739,"width":642,"height":12}},{"id":"db34a09c-4941-4f06-bedb-8274707c30dc","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":13,"box":{"x":265,"y":754,"width":601,"height":12}},{"id":"2a1b27da-e9f8-43c4-8776-fe2052f827d9","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":13,"box":{"x":265,"y":770,"width":595,"height":11}},{"id":"eb7cb82e-6680-452f-91fe-bc94f6a4616a","block_type":"box","text":"perspective on the markets and the economy.","page_number":13,"box":{"x":265,"y":785,"width":323,"height":11}},{"id":"7db77eb0-e912-4ff0-893d-5abbccc9eee4","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":13,"box":{"x":70,"y":807,"width":798,"height":12}},{"id":"308ca0ac-9a3e-437c-8d21-5768c6672d3d","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":13,"box":{"x":265,"y":823,"width":631,"height":11}},{"id":"1d585773-5cbf-4d00-83fe-7018d6a40702","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":13,"box":{"x":265,"y":838,"width":633,"height":11}},{"id":"35435dee-5fd5-4973-9421-01397f630daf","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":13,"box":{"x":265,"y":853,"width":628,"height":11}},{"id":"83e29fd4-7a03-4b9c-8f18-ad016bec63ee","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":13,"box":{"x":265,"y":868,"width":596,"height":11}},{"id":"24513c0a-6f54-4448-90d4-b70b4f5cca1d","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial exper t, as such","page_number":13,"box":{"x":265,"y":883,"width":616,"height":11}},{"id":"946ebfb1-69d4-4d6b-afe3-1b13984ab53f","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":13,"box":{"x":264,"y":898,"width":368,"height":11}},{"id":"3b3074f7-8406-4dfc-b734-2ccface6588a","block_type":"box","text":"I-11","page_number":13,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"347f0514-ca36-4baa-a24f-33a175b8627a","block_type":"box","text":"NM1026U-5982509-13/232","page_number":13,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e2372a28-962d-4896-9112-51979d18df63","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":14,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"cfe9e304-183f-4b65-b55a-9e254a8ebd5d","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":14,"box":{"x":69,"y":65,"width":777,"height":12}},{"id":"d802626f-0cba-4eb4-b9ca-893a89cbe515","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":14,"box":{"x":265,"y":81,"width":613,"height":11}},{"id":"b32536d0-b9d9-45f6-8ece-e7089572ddb4","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":14,"box":{"x":265,"y":96,"width":563,"height":11}},{"id":"31193081-efb3-460a-b4f7-1277246712d2","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":14,"box":{"x":265,"y":111,"width":607,"height":11}},{"id":"2a7bfc06-620f-4275-97bf-3518eb669d35","block_type":"box","text":"par tner at Deloitte and Ar thur Andersen for approximately 17 years. These positions have","page_number":14,"box":{"x":265,"y":126,"width":638,"height":11}},{"id":"a78f5701-abfe-48c5-8f84-93815aadd6c9","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":14,"box":{"x":265,"y":141,"width":626,"height":11}},{"id":"021f0e95-2a57-4496-99b1-6798baeec71a","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":14,"box":{"x":265,"y":156,"width":563,"height":11}},{"id":"b5a37d69-c320-46a6-b32c-555d0fc39c54","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Trustees prior to becoming an","page_number":14,"box":{"x":265,"y":171,"width":625,"height":12}},{"id":"7815a2e9-be18-444d-8b83-325cd79a89c0","block_type":"box","text":"Independent Trustee. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":14,"box":{"x":265,"y":186,"width":625,"height":12}},{"id":"b6decf14-2a48-4164-ab2f-eedaf0ff266f","block_type":"box","text":"audit committee financial exper t, as such term is defined in the applicable Commission","page_number":14,"box":{"x":265,"y":201,"width":623,"height":11}},{"id":"534d6d04-ec83-4620-a5ad-9999888162ff","block_type":"box","text":"rules.","page_number":14,"box":{"x":265,"y":217,"width":38,"height":9}},{"id":"08b3c91f-7a4c-4770-bbe6-f11f47c6f785","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":14,"box":{"x":70,"y":239,"width":806,"height":12}},{"id":"27039f4b-3f1c-4747-8e6c-2ca1f50a3e5d","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":14,"box":{"x":264,"y":254,"width":584,"height":12}},{"id":"d4598bab-ac2b-4ffb-b007-e99db3b0e2b3","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":14,"box":{"x":265,"y":270,"width":622,"height":11}},{"id":"58af391a-8e62-4076-9358-41f92f6f8693","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":14,"box":{"x":265,"y":285,"width":638,"height":11}},{"id":"1f538032-18e1-495e-944b-15d1a54894ea","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":14,"box":{"x":265,"y":300,"width":570,"height":11}},{"id":"9f61ccbf-acfc-49b0-a100-4447c9eee6d2","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":14,"box":{"x":265,"y":315,"width":642,"height":11}},{"id":"360a2d0b-f0d5-44d5-9197-41972d58b29d","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":14,"box":{"x":265,"y":330,"width":626,"height":11}},{"id":"a079c99a-f3db-404a-973c-79abf5ff689e","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":14,"box":{"x":265,"y":345,"width":630,"height":11}},{"id":"ca2ee2e9-d4e3-4328-b3c2-3e5513bd1642","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":14,"box":{"x":265,"y":360,"width":602,"height":12}},{"id":"8cdacc72-ff76-4136-bb48-f92542b7f145","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":14,"box":{"x":264,"y":375,"width":643,"height":12}},{"id":"34e4076d-15c5-4d44-b9dd-8228d520d381","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":14,"box":{"x":264,"y":390,"width":639,"height":12}},{"id":"c89a9b92-2fd5-49dd-b2bc-dc13f3b4e8d7","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":14,"box":{"x":264,"y":406,"width":641,"height":11}},{"id":"aa79bf52-fc41-4476-8640-c236a1e3439f","block_type":"box","text":"applicable Commission rules.","page_number":14,"box":{"x":265,"y":421,"width":208,"height":11}},{"id":"c8ad8522-846b-40e1-ace4-0f0443a5dd3c","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":14,"box":{"x":69,"y":443,"width":769,"height":12}},{"id":"4b10595e-776c-4fe8-8ccf-6ab803d8aac4","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":14,"box":{"x":265,"y":458,"width":621,"height":12}},{"id":"40bdfc5c-924e-4ed9-8db2-1c7693cb59ce","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":14,"box":{"x":265,"y":474,"width":599,"height":11}},{"id":"957a5fbe-c151-427f-9601-a3f5b3a0e915","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":14,"box":{"x":265,"y":489,"width":641,"height":11}},{"id":"6fd53008-9cca-4e02-bda1-d399e476ad4f","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":14,"box":{"x":264,"y":504,"width":602,"height":11}},{"id":"b09b4e03-b885-4c94-a0ed-9c6c37ae65ab","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":14,"box":{"x":264,"y":519,"width":617,"height":11}},{"id":"373e5f89-384c-45ed-951b-c591bf4fde05","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":14,"box":{"x":265,"y":534,"width":629,"height":11}},{"id":"113afd9c-b8dc-4a28-86d0-0cde7f603eb4","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":14,"box":{"x":264,"y":549,"width":628,"height":11}},{"id":"1133cb6c-6204-41dd-b60b-441a8e886bc5","block_type":"box","text":"ar ticles and books on these topics.","page_number":14,"box":{"x":265,"y":565,"width":251,"height":10}},{"id":"af8015ee-8cb4-42e2-abd3-43f8a921af96","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":14,"box":{"x":70,"y":587,"width":764,"height":11}},{"id":"7c7a498c-90d8-495d-83f0-12a4dd22a11d","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":14,"box":{"x":265,"y":602,"width":642,"height":11}},{"id":"1b624a03-834d-49a4-a09a-d68159aa3405","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":14,"box":{"x":264,"y":617,"width":593,"height":12}},{"id":"f9cfd635-5ec1-4aec-a83a-acd436d3f76a","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":14,"box":{"x":265,"y":632,"width":603,"height":12}},{"id":"ce598544-66fc-49c8-8cb5-e21e85de7792","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":14,"box":{"x":265,"y":647,"width":629,"height":12}},{"id":"26c6f9f5-0a53-43fc-a2a1-81210f1bbe4e","block_type":"box","text":"I-12","page_number":14,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"55dd6ebc-30ec-4084-ab5b-2a0561a2def3","block_type":"box","text":"NM1026U-5982509-14/232","page_number":14,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2173d23e-fc02-4214-a041-7b27949bc303","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":15,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"39987094-5251-4af1-9c7d-6928913d5c8e","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":15,"box":{"x":70,"y":65,"width":804,"height":12}},{"id":"18e905c5-5cf8-40ea-81a5-24a851f6f9d8","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":15,"box":{"x":265,"y":81,"width":552,"height":11}},{"id":"b66fa426-7320-40c7-a7b4-ed73aa637ad8","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":15,"box":{"x":265,"y":96,"width":636,"height":11}},{"id":"45bb2644-7083-40e2-bf88-d6e95475cf2d","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":15,"box":{"x":265,"y":111,"width":639,"height":11}},{"id":"8b9eb4d8-f85c-4526-9c97-e257fca10f03","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":15,"box":{"x":265,"y":126,"width":576,"height":11}},{"id":"318b4f39-4362-47de-812a-261260ab8a1c","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":15,"box":{"x":265,"y":141,"width":626,"height":11}},{"id":"7de02b11-9597-4025-975a-bc33ee1660c2","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":15,"box":{"x":265,"y":156,"width":592,"height":11}},{"id":"a861273a-0786-4a46-b9e0-acf3bf348f8e","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":15,"box":{"x":265,"y":171,"width":629,"height":12}},{"id":"1e93483f-3016-4854-8b27-c2716643bcf9","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":15,"box":{"x":265,"y":186,"width":626,"height":12}},{"id":"9ab889e6-bab2-43c8-a402-bf40bcfa506d","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":15,"box":{"x":264,"y":201,"width":608,"height":12}},{"id":"6d748bec-c3d7-4cc2-af18-4a433f1eee3f","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":15,"box":{"x":265,"y":217,"width":575,"height":11}},{"id":"3d224c61-8ef5-4fb7-9bbe-3cfb563f745e","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":15,"box":{"x":264,"y":232,"width":591,"height":11}},{"id":"8bf086eb-a860-42ae-9e0a-372616bb50cf","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":15,"box":{"x":265,"y":247,"width":627,"height":11}},{"id":"0416c911-96b0-4249-b5f0-427bea7d5ec2","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":15,"box":{"x":265,"y":262,"width":578,"height":11}},{"id":"c0439ce5-51a3-4664-ae7f-717fa9e6390e","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":15,"box":{"x":265,"y":277,"width":607,"height":11}},{"id":"968181a6-d191-4090-bbe3-8b18a94404e8","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":15,"box":{"x":265,"y":292,"width":615,"height":11}},{"id":"72fc6232-e29e-4871-bf33-72293bd8baa0","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":15,"box":{"x":265,"y":307,"width":638,"height":12}},{"id":"1d3f459a-eb9f-400b-9916-17da2fe75aed","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":15,"box":{"x":265,"y":322,"width":635,"height":12}},{"id":"d9f380aa-bec0-4798-92be-d8d9f357c4b2","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":15,"box":{"x":265,"y":338,"width":642,"height":11}},{"id":"bcc1fbc2-9c00-4c41-89b1-6030a495c79a","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":15,"box":{"x":265,"y":353,"width":627,"height":11}},{"id":"71db01ee-f355-44bc-9bd0-35fee84e1daf","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":15,"box":{"x":265,"y":368,"width":628,"height":11}},{"id":"59830d8d-c293-421f-bf51-a58b680ffc9a","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":15,"box":{"x":265,"y":383,"width":460,"height":11}},{"id":"edf373ee-c599-4ec9-88a8-eb8c2b00906c","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":15,"box":{"x":70,"y":406,"width":818,"height":11}},{"id":"4c455126-d081-4dd2-8ff9-016388ef5e0b","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":15,"box":{"x":264,"y":421,"width":603,"height":11}},{"id":"96eac0cb-e12c-44e0-9ff1-6261c4674de5","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":15,"box":{"x":265,"y":436,"width":606,"height":11}},{"id":"5c3afea6-2bef-461a-8587-1429496a7cb7","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":15,"box":{"x":265,"y":451,"width":608,"height":9}},{"id":"09d7407b-b68b-424f-b5ae-7f1081e1de62","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":15,"box":{"x":265,"y":466,"width":626,"height":11}},{"id":"928ed82e-a6b8-45b5-88b6-dc7a60c8f0bd","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":15,"box":{"x":265,"y":481,"width":591,"height":11}},{"id":"b6b69e34-03f6-47ed-9f65-54d3653c21c4","block_type":"box","text":"various private and non-profit boards.","page_number":15,"box":{"x":264,"y":496,"width":265,"height":11}},{"id":"1a705b50-9224-43c5-b278-7a2dae90fce7","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":15,"box":{"x":70,"y":519,"width":833,"height":11}},{"id":"89ba5cc7-1500-43ae-af59-7f76af25eead","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":15,"box":{"x":265,"y":534,"width":638,"height":11}},{"id":"0d14fe84-707e-4e99-bada-f785bc4804bb","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":15,"box":{"x":265,"y":549,"width":608,"height":11}},{"id":"6451dc1b-78bc-4570-85e9-f0a01b710431","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":15,"box":{"x":264,"y":564,"width":645,"height":11}},{"id":"807961eb-ccd1-44bd-9ff7-4b61ebf5f09e","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":15,"box":{"x":264,"y":579,"width":639,"height":9}},{"id":"0fbaca4b-6663-4323-bc4d-60b34e3d064d","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":15,"box":{"x":264,"y":595,"width":573,"height":11}},{"id":"0c35b2f6-31e3-4297-bb72-438b89c9141c","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":15,"box":{"x":265,"y":610,"width":625,"height":11}},{"id":"355f7ab2-6db5-48d2-b3af-1dede018c12c","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":15,"box":{"x":265,"y":625,"width":610,"height":11}},{"id":"7be16390-220f-49f9-b80a-273c8d5a4d1c","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":15,"box":{"x":265,"y":640,"width":642,"height":11}},{"id":"28430a07-08e4-4e74-9f13-66f8bea8354a","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":15,"box":{"x":265,"y":655,"width":583,"height":11}},{"id":"fe7f7b66-6316-4445-bfc9-28f99d07a4a7","block_type":"box","text":"Trustees prior to becoming an Independent Trustee.","page_number":15,"box":{"x":264,"y":670,"width":369,"height":11}},{"id":"54c7c9a2-186f-4e70-93df-85081efefe56","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":15,"box":{"x":70,"y":693,"width":807,"height":11}},{"id":"2cb7afef-9f8f-45d1-9a19-df071c310081","block_type":"box","text":"companies, most recently as a member of the boards of cer tain BlackRock-advised Funds","page_number":15,"box":{"x":264,"y":708,"width":641,"height":11}},{"id":"9e97b400-5016-4a72-8a16-050eaacbd68d","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":15,"box":{"x":265,"y":723,"width":618,"height":11}},{"id":"35344d15-5849-49aa-bbd3-1be0ebeeb16a","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":15,"box":{"x":265,"y":738,"width":594,"height":11}},{"id":"19a285d7-9f94-4c20-a7bc-6ff6a2d37db6","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":15,"box":{"x":265,"y":753,"width":639,"height":12}},{"id":"daf4d9b4-d1f6-48f2-a47d-2b20d9d30861","block_type":"box","text":"be an audit committee financial exper t, as such term is defined in the applicable","page_number":15,"box":{"x":265,"y":768,"width":575,"height":11}},{"id":"57d57298-8e6e-4515-814d-d729b1a8f73b","block_type":"box","text":"Commission rules.","page_number":15,"box":{"x":265,"y":784,"width":131,"height":9}},{"id":"83cfdfba-b87b-40b6-9567-e4acf78b61c2","block_type":"box","text":"I-13","page_number":15,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"b44d140f-8d3a-4b00-a659-e6bc905b248c","block_type":"box","text":"NM1026U-5982509-15/232","page_number":15,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"87af8cac-5214-4d40-af89-5fe8b2604560","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":16,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"e25c1faa-d5c9-42c8-bf85-804a46e92ffe","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":16,"box":{"x":69,"y":65,"width":808,"height":12}},{"id":"1d996c13-8278-493e-b16b-be4ac14513b1","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liber ty Square Asset","page_number":16,"box":{"x":265,"y":81,"width":630,"height":11}},{"id":"7ae59382-02d6-45da-b80f-73c43bc530d2","block_type":"box","text":"Management, LP / Steel Par tners Japan Asset Management, LP from 1998 to 2015, an","page_number":16,"box":{"x":265,"y":96,"width":627,"height":11}},{"id":"60905480-1322-4cbd-b0e3-aea822b40710","block_type":"box","text":"investment manager that specialized in long/shor t non-U.S. equity investments, and was","page_number":16,"box":{"x":265,"y":111,"width":632,"height":11}},{"id":"af29ff63-3c56-4d89-ad10-44fe48ad3cfe","block_type":"box","text":"an owner and General Par tner of Neon Liber ty Capital Management, LLC from 2003 to","page_number":16,"box":{"x":265,"y":126,"width":615,"height":11}},{"id":"b1e5d429-47f6-459d-b694-172fca66e81e","block_type":"box","text":"2023, a firm focusing on long/shor t equities in global emerging and frontier markets.","page_number":16,"box":{"x":265,"y":141,"width":608,"height":11}},{"id":"7a1e4679-589c-4dec-a313-193596f6baa0","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":16,"box":{"x":264,"y":156,"width":620,"height":11}},{"id":"c5e67b38-74fa-4f8a-a0a4-06b879c15d27","block_type":"box","text":"economy. 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Management, Advisory and Other Service Arrangements","page_number":22,"box":{"x":69,"y":256,"width":432,"height":11}},{"id":"8deff821-d45e-46ac-90f6-53df6f3f7f9b","block_type":"box","text":"Management Agreement","page_number":22,"box":{"x":69,"y":286,"width":180,"height":11}},{"id":"1ed2cfea-11cf-4106-a8fa-19e14db0b034","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into an investment advisory agreement with BlackRock pursuant to","page_number":22,"box":{"x":101,"y":309,"width":805,"height":11}},{"id":"4fa45ea1-5f7b-4944-b1a6-31a90ef111e8","block_type":"box","text":"which BlackRock is entitled to fees for the services it provides (the “Management Agreement”).","page_number":22,"box":{"x":68,"y":324,"width":680,"height":11}},{"id":"9e8188b6-0617-46e2-8838-b125185ac48d","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any por tion of the Fund’s","page_number":22,"box":{"x":102,"y":346,"width":762,"height":12}},{"id":"2c5a6ff0-4182-4ae6-a711-14efa92432da","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":22,"box":{"x":69,"y":361,"width":799,"height":12}},{"id":"47f9b5fd-10ed-4935-a0cb-657d4b856f36","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":22,"box":{"x":68,"y":377,"width":726,"height":11}},{"id":"b9e895d4-4cdb-4b08-87b7-1d2ea1bb270f","block_type":"box","text":"June 30, 2028. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":22,"box":{"x":69,"y":392,"width":797,"height":11}},{"id":"606542e6-f5de-4864-b87f-f6424f5928f3","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":22,"box":{"x":69,"y":407,"width":789,"height":11}},{"id":"4af2f849-8a59-4073-8f61-8485f714f0f4","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’","page_number":22,"box":{"x":70,"y":422,"width":810,"height":11}},{"id":"b35d9ddf-c26b-488a-9663-eb0bdab93eee","block_type":"box","text":"notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of the","page_number":22,"box":{"x":69,"y":437,"width":827,"height":11}},{"id":"99f744f0-2c30-44a8-9dc5-af40ee8ac610","block_type":"box","text":"Fund.","page_number":22,"box":{"x":70,"y":452,"width":36,"height":9}},{"id":"6e237502-8b76-4768-864c-decf744b273f","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":22,"box":{"x":102,"y":475,"width":773,"height":11}},{"id":"d190cf43-5a23-426b-ba05-1d76d7fdd129","block_type":"box","text":"Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend","page_number":22,"box":{"x":68,"y":490,"width":787,"height":11}},{"id":"fff6649d-d0ee-4bbc-a4aa-b46428bec458","block_type":"box","text":"Expense, Interest Expense, Acquired Fund Fees and Expenses and cer tain other Fund expenses (as defined in the","page_number":22,"box":{"x":70,"y":505,"width":811,"height":11}},{"id":"da63f921-7326-4871-b54d-fc4a4ba186d0","block_type":"box","text":"Fund’s Prospectuses)) as a percentage of average daily net assets to 1.32% for Investor A Shares, 2.04% for","page_number":22,"box":{"x":70,"y":520,"width":779,"height":12}},{"id":"184015c1-4c01-4b7b-8131-48b03f2309cd","block_type":"box","text":"Investor C Shares, and 0.91% for Institutional Shares through June 30, 2028. The contractual agreement may be","page_number":22,"box":{"x":70,"y":535,"width":807,"height":12}},{"id":"fcc9a181-f5fc-459d-a7a1-bb823ff4020f","block_type":"box","text":"terminated upon 90 days’ notice by a majority of the Independent Trustees or by a vote of a majority of the","page_number":22,"box":{"x":68,"y":550,"width":761,"height":12}},{"id":"3cba5f17-13d8-45fc-a869-f9bec7e505f3","block_type":"box","text":"outstanding voting securities of the Fund.","page_number":22,"box":{"x":69,"y":566,"width":293,"height":11}},{"id":"c490fcdb-9770-462e-be33-a327bf80b45b","block_type":"box","text":"Pursuant to the Management Agreement, BlackRock may from time to time, in its sole discretion to the extent","page_number":22,"box":{"x":102,"y":588,"width":784,"height":12}},{"id":"0b4947a8-08a1-492c-a1c7-e17b679cbf15","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of BlackRock, to","page_number":22,"box":{"x":70,"y":603,"width":838,"height":12}},{"id":"896fe63f-9c84-4f4b-a43d-61f93846e8e0","block_type":"box","text":"per form investment advisory services with respect to the Fund. In addition, BlackRock may delegate cer tain of its","page_number":22,"box":{"x":70,"y":618,"width":810,"height":12}},{"id":"8091c9f8-a486-4a1d-8b74-6970a7c3bf60","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":22,"box":{"x":70,"y":634,"width":779,"height":11}},{"id":"7ba7ec22-03e9-4fe2-a863-490a7af004db","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":22,"box":{"x":70,"y":649,"width":827,"height":11}},{"id":"5d6cdfca-e07f-4278-8b0e-7cb3b93f381b","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":22,"box":{"x":69,"y":664,"width":486,"height":11}},{"id":"e9615615-cd61-4ab7-9bd8-7da1ae963a6c","block_type":"box","text":"BlackRock has entered into a sub-advisory agreement with BlackRock International Limited (the “Sub-Adviser”),","page_number":22,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"553bfc77-5ae1-4007-ad53-41c15763ad4b","block_type":"box","text":"pursuant to which BlackRock pays the Sub-Adviser for providing services to BlackRock with respect to that por tion of","page_number":22,"box":{"x":70,"y":702,"width":831,"height":11}},{"id":"03770d70-feaf-43f9-b7ef-f1398039f5c9","block_type":"box","text":"the Fund for which it acts as sub-adviser a monthly fee at an annual rate equal to a percentage of the management","page_number":22,"box":{"x":68,"y":717,"width":822,"height":11}},{"id":"74ba0fe0-ee79-415b-93e7-90c058c2c2ea","block_type":"box","text":"fee paid to BlackRock under the Management Agreement.","page_number":22,"box":{"x":68,"y":732,"width":411,"height":11}},{"id":"4a306f2b-b7f5-4366-93a0-43023e4929c1","block_type":"box","text":"The table below sets for th information about the management fees paid by the Trust, on behalf of the Fund, to","page_number":22,"box":{"x":101,"y":755,"width":789,"height":11}},{"id":"767fc430-e60d-4af3-949b-fe675f460c45","block_type":"box","text":"BlackRock (which includes amounts paid by BlackRock to the Sub-Adviser), and the amounts waived, and/or","page_number":22,"box":{"x":70,"y":770,"width":770,"height":11}},{"id":"73c37bb9-c62b-4f42-bb0d-bcb2630f4031","block_type":"box","text":"reimbursed, for the periods shown.","page_number":22,"box":{"x":69,"y":785,"width":248,"height":11}},{"id":"f4625ae1-f12d-49c3-be87-94d036bad664","block_type":"box","text":"Fees Paid","page_number":22,"box":{"x":598,"y":813,"width":56,"height":7}},{"id":"0326baf0-c386-4644-a522-e109a0437aba","block_type":"box","text":"to BlackRock","page_number":22,"box":{"x":586,"y":823,"width":79,"height":7}},{"id":"881912f8-0309-449a-855c-4120922c2a5d","block_type":"box","text":"Fees Waived","page_number":22,"box":{"x":704,"y":813,"width":72,"height":7}},{"id":"9cf41d8f-177c-4da0-8ef3-0ca1eaa01bc0","block_type":"box","text":"by BlackRock","page_number":22,"box":{"x":700,"y":823,"width":80,"height":9}},{"id":"9ac521ef-789e-42de-9599-a56961464147","block_type":"box","text":"Fees Reimbursed","page_number":22,"box":{"x":810,"y":813,"width":99,"height":7}},{"id":"98310d00-13ab-4995-91c7-b73e9d5983b2","block_type":"box","text":"by BlackRock","page_number":22,"box":{"x":820,"y":823,"width":80,"height":9}},{"id":"0b027e88-c313-4507-88b8-ad1fde422438","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,249,008 $3,144 $151,074","page_number":22,"box":{"x":70,"y":840,"width":825,"height":12}},{"id":"be4faa2e-17f9-4fa4-a60f-bb9605963220","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,304,832 $9,967 $103,913","page_number":22,"box":{"x":70,"y":855,"width":825,"height":12}},{"id":"f3256c59-9ed6-4683-b974-b1f1d98ba87a","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,614,369 $3,230 $166,955","page_number":22,"box":{"x":70,"y":870,"width":825,"height":12}},{"id":"5c268f8d-a7db-445c-9658-cd736cb67fdb","block_type":"box","text":"I-20","page_number":22,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"646afdbe-45be-4bef-8b83-08c8c69a7607","block_type":"box","text":"NM1026U-5982509-22/232","page_number":22,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"753ec092-6758-422d-ad00-2b72ac5d74d9","block_type":"box","text":"Administration Agreement","page_number":23,"box":{"x":68,"y":45,"width":191,"height":11}},{"id":"d9631ef0-c8c5-4ea2-b859-f5fb70938eb4","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":23,"box":{"x":102,"y":68,"width":711,"height":10}},{"id":"de4ebb10-06a9-4eac-93cf-b91d9d383c0a","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":23,"box":{"x":69,"y":82,"width":838,"height":12}},{"id":"34ec8f50-5197-49fe-a004-fde4a63532ef","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":23,"box":{"x":68,"y":98,"width":830,"height":11}},{"id":"3e993656-d5d0-424a-9301-a9c0641d0648","block_type":"box","text":"publication of the Fund’s net asset value; oversee the preparation and filing of Federal, state and local income tax","page_number":23,"box":{"x":70,"y":113,"width":813,"height":11}},{"id":"b5db5ef9-4c03-4e7f-8b85-5bea6a9c41eb","block_type":"box","text":"returns; prepare cer tain repor ts required by regulatory authorities; calculate various contractual expenses; determine","page_number":23,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"9091c362-1871-44b4-8747-1bbdef2a28e4","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":23,"box":{"x":68,"y":143,"width":836,"height":11}},{"id":"bf41dfe7-4f45-40a2-91d9-b04fca717f57","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":23,"box":{"x":68,"y":158,"width":785,"height":11}},{"id":"9361e6f3-9d2c-43ae-81a8-0496e02ba28e","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Trust’s officers,","page_number":23,"box":{"x":69,"y":173,"width":765,"height":11}},{"id":"18263ab0-974e-4d2f-a5f6-ba3097a06791","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":23,"box":{"x":70,"y":188,"width":819,"height":12}},{"id":"e22f0397-5c81-4002-babb-12a2d63dbfbb","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. The","page_number":23,"box":{"x":69,"y":203,"width":818,"height":12}},{"id":"73231e67-7f06-46e4-8921-10a0c0bd131b","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":23,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"8d33ac38-d9f7-48d5-b291-ac17cc098905","block_type":"box","text":"reimburse the Fund for expenses.","page_number":23,"box":{"x":69,"y":234,"width":238,"height":11}},{"id":"60242be5-87a8-4b73-8846-d23dba1523b6","block_type":"box","text":"Under the Administration Agreement, the Trust, on behalf of the Fund, pays to the Administrator a fee, computed","page_number":23,"box":{"x":102,"y":256,"width":802,"height":12}},{"id":"5351c2bd-8dda-44e7-b987-75118a48d84d","block_type":"box","text":"daily and payable monthly, at an aggregate annual rate of (i) 0.0425% of the first $500 million of the Fund’s average","page_number":23,"box":{"x":69,"y":271,"width":830,"height":12}},{"id":"d39a6afd-cc95-4d70-82de-44d062dcdaad","block_type":"box","text":"daily net assets, 0.040% of the next $500 million of the Fund’s average daily net assets, 0.0375% of the next","page_number":23,"box":{"x":69,"y":286,"width":788,"height":12}},{"id":"f46cf7c2-c883-43c0-b327-ff8ecc65d79f","block_type":"box","text":"$1 billion of the Fund’s average daily net assets, 0.035% of the next $2 billion of the Fund’s average daily net","page_number":23,"box":{"x":69,"y":301,"width":785,"height":12}},{"id":"4c9c6a9e-628d-4532-b368-abb10dfa1509","block_type":"box","text":"assets, 0.0325% of the next $9 billion of the Fund’s average daily net assets and 0.030% of the average daily net","page_number":23,"box":{"x":69,"y":316,"width":816,"height":12}},{"id":"80bd632b-fc8b-4ca0-962b-630c363f2af4","block_type":"box","text":"assets of the Fund in excess of $13 billion and (ii) 0.020% of average daily net assets allocated to each class of","page_number":23,"box":{"x":69,"y":331,"width":805,"height":12}},{"id":"e2aa3877-91d5-4387-93a4-47498b8e95aa","block_type":"box","text":"shares of the Fund.","page_number":23,"box":{"x":69,"y":347,"width":137,"height":9}},{"id":"af258727-7b86-4c55-bba5-e9e7eded612c","block_type":"box","text":"The table below sets for th information about the administration fees paid by the Trust, on behalf of the Fund, to","page_number":23,"box":{"x":101,"y":370,"width":798,"height":11}},{"id":"0323f94c-8a32-43e9-8cf9-feed6c840070","block_type":"box","text":"the Administrator, and the amounts waived, for the periods shown.","page_number":23,"box":{"x":68,"y":385,"width":474,"height":11}},{"id":"b9c771de-2016-4ecf-b371-8eacdd0cbd0f","block_type":"box","text":"Fees Paid","page_number":23,"box":{"x":681,"y":413,"width":56,"height":7}},{"id":"d2d83c48-4dbd-4d32-95bc-b8d2776c06c6","block_type":"box","text":"to the Administrators","page_number":23,"box":{"x":647,"y":423,"width":124,"height":7}},{"id":"aac99e50-2652-41b2-8f8e-39e306be3642","block_type":"box","text":"Fees Waived by","page_number":23,"box":{"x":811,"y":413,"width":89,"height":9}},{"id":"498235b4-b16a-4d67-af66-e51f6da8d674","block_type":"box","text":"the Administrators","page_number":23,"box":{"x":801,"y":423,"width":108,"height":7}},{"id":"c109dd2a-1dd5-48f0-a598-b6007501d2f3","block_type":"box","text":"Fiscal Year Ended May 31, 2026","page_number":23,"box":{"x":70,"y":441,"width":230,"height":11}},{"id":"d971e0b7-a679-484c-a971-69e6bf76dc3e","block_type":"box","text":".......................................","page_number":23,"box":{"x":304,"y":448,"width":312,"height":2}},{"id":"45f39698-16ef-400c-87b4-fff494fc4d23","block_type":"box","text":"$187,432 $52,131","page_number":23,"box":{"x":673,"y":440,"width":213,"height":11}},{"id":"a78e81b9-e768-43fe-b671-cc916546276d","block_type":"box","text":"Fiscal Year Ended May 31, 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service providers may engage third-par ty plan administrators who provide trustee,","page_number":23,"box":{"x":101,"y":495,"width":707,"height":11}},{"id":"c9c5d980-e344-408a-8541-9e713c8c76df","block_type":"box","text":"administrative and recordkeeping services for cer tain employee benefit, profit-sharing and retirement plans as agent","page_number":23,"box":{"x":69,"y":510,"width":830,"height":11}},{"id":"03819f2f-0c3c-4b56-baf1-e83684f15df2","block_type":"box","text":"for the Trust with respect to such plans, for the purpose of accepting orders for the purchase and redemption of","page_number":23,"box":{"x":68,"y":525,"width":800,"height":12}},{"id":"d8b6c33b-d273-4383-9e5a-1b6e1d24db28","block_type":"box","text":"shares of the Trust.","page_number":23,"box":{"x":69,"y":540,"width":138,"height":9}},{"id":"28e07255-c4bd-4de2-b31e-7383b706f962","block_type":"box","text":"In addition, pursuant to a shareholders’ administrative services agreement, BlackRock provides cer tain","page_number":23,"box":{"x":102,"y":563,"width":736,"height":11}},{"id":"e236aa6e-b45c-480e-aa86-d6f2c18490e2","block_type":"box","text":"shareholder liaison services in connection with the Trust’s investor service center. The Trust reimburses BlackRock","page_number":23,"box":{"x":69,"y":578,"width":822,"height":9}},{"id":"65dd8ac4-bb15-4f8a-b5d8-63ee815834e1","block_type":"box","text":"for its costs in maintaining the service center, which costs include, among other things, employee salaries, leasehold","page_number":23,"box":{"x":68,"y":593,"width":838,"height":12}},{"id":"88d1ba42-2e02-4d62-bc7f-1411128f9b6b","block_type":"box","text":"expenses, and other out-of-pocket expenses.","page_number":23,"box":{"x":69,"y":608,"width":318,"height":11}},{"id":"6ca08b3a-fc36-41d8-a53b-1bb9d7aeb447","block_type":"box","text":"For the periods shown, the Trust, on behalf of the Fund, reimbursed to BlackRock fees for shareholder liaison","page_number":23,"box":{"x":102,"y":631,"width":779,"height":11}},{"id":"9a64c6b4-d471-4645-888d-965bae90c52f","block_type":"box","text":"services pursuant to such agreement as 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2026.","page_number":23,"box":{"x":70,"y":870,"width":755,"height":11}},{"id":"77c03c43-e5ff-475b-ae97-972240baa159","block_type":"box","text":"I-21","page_number":23,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"364789b6-25c4-4de9-98cc-c0319c761942","block_type":"box","text":"NM1026U-5982509-23/232","page_number":23,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b7db4f82-5a2b-4345-8386-8124294cf135","block_type":"box","text":"Number of Other Accounts Managed","page_number":24,"box":{"x":360,"y":49,"width":211,"height":9}},{"id":"7a8c8174-458d-4e41-a36e-acb7f4c3128a","block_type":"box","text":"and Assets by Account Type","page_number":24,"box":{"x":383,"y":59,"width":164,"height":9}},{"id":"62a89053-fae5-49e5-844b-a8d45fcbc516","block_type":"box","text":"Number of Other Accounts and Assets","page_number":24,"box":{"x":656,"y":49,"width":222,"height":7}},{"id":"28abcd37-042c-41c0-84ba-1f9a40e4fee7","block_type":"box","text":"for Which Advisory Fee is 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$0","page_number":24,"box":{"x":325,"y":128,"width":554,"height":8}},{"id":"d1a77699-509a-4736-934f-5f51ce106452","block_type":"box","text":"Mark Hume 1 20 0 0 2 0","page_number":24,"box":{"x":74,"y":141,"width":801,"height":7}},{"id":"bbeca2f0-650c-4c8c-a01a-3cb6bd2c4dd4","block_type":"box","text":"$441.16 Million $3.15 Billion $0 $0 $0 $0","page_number":24,"box":{"x":316,"y":153,"width":563,"height":8}},{"id":"0b993e02-3497-4904-a4e4-001fb6c1e953","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":24,"box":{"x":69,"y":188,"width":304,"height":11}},{"id":"6f512885-f4ac-427d-9b49-55fcf4b4cb07","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of May 31, 2026.","page_number":24,"box":{"x":101,"y":210,"width":656,"height":12}},{"id":"8889a186-da26-4a03-82c4-c78f164f30c2","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":24,"box":{"x":102,"y":233,"width":774,"height":11}},{"id":"b2c97cf3-f893-4528-8832-6977b68ecbf1","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":24,"box":{"x":70,"y":248,"width":837,"height":11}},{"id":"9b2adc85-a745-42e0-9992-20a78aa4ad88","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":24,"box":{"x":69,"y":263,"width":823,"height":11}},{"id":"675e79db-ffff-41d6-b77a-051ea7bf2a75","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":24,"box":{"x":69,"y":278,"width":799,"height":11}},{"id":"53351c26-caea-497e-9ddd-65460c71d4e6","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":24,"box":{"x":70,"y":293,"width":670,"height":12}},{"id":"00b58784-8e21-4fbc-91af-ceba214299f3","block_type":"box","text":"Base Compensation.","page_number":24,"box":{"x":102,"y":316,"width":148,"height":11}},{"id":"20bf1688-588e-4805-abb5-c8de235e86ce","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":24,"box":{"x":257,"y":316,"width":640,"height":11}},{"id":"9d58419c-de15-4ae7-8654-07c271d3dddb","block_type":"box","text":"firm.","page_number":24,"box":{"x":68,"y":331,"width":32,"height":9}},{"id":"15027c75-5e0b-4b83-bbb4-e95d23b3a7c2","block_type":"box","text":"Discretionary Incentive Compensation","page_number":24,"box":{"x":69,"y":362,"width":277,"height":11}},{"id":"5fa05598-63fd-416c-a4dc-e6a9e00be750","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities por tfolio managers is based on a","page_number":24,"box":{"x":102,"y":384,"width":763,"height":11}},{"id":"118ea86d-0e45-4a37-99b9-6c14cba6a2fc","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic por tfolio manager compensation program is based on team","page_number":24,"box":{"x":68,"y":399,"width":832,"height":12}},{"id":"55222dd8-f42e-4f08-b861-fdfcd1ab06b5","block_type":"box","text":"revenue and pre-tax investment per formance relative to appropriate competitors or benchmarks over 3- and 5-year","page_number":24,"box":{"x":69,"y":414,"width":815,"height":12}},{"id":"444ebce2-ebb0-4ce4-aa11-2a1df57bdc7c","block_type":"box","text":"per formance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":24,"box":{"x":70,"y":429,"width":757,"height":11}},{"id":"7f2c4ff2-d080-4703-8cd0-03f92340fb89","block_type":"box","text":"benchmarks against which the per formance of the Fund or other accounts managed by the por tfolio managers are","page_number":24,"box":{"x":69,"y":445,"width":814,"height":11}},{"id":"4e380ffd-2171-42ae-93e3-2f5a48037d36","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":24,"box":{"x":69,"y":460,"width":780,"height":11}},{"id":"32add996-a548-4b06-be41-d78351611e19","block_type":"box","text":"per formance of the Fund and other accounts managed by each por tfolio management team is compared and the","page_number":24,"box":{"x":70,"y":475,"width":802,"height":11}},{"id":"a4884311-7aca-4bcf-8458-a10095cf5f9f","block_type":"box","text":"period of time over which per formance is evaluated. With respect to these por tfolio managers such benchmarks for","page_number":24,"box":{"x":70,"y":490,"width":823,"height":11}},{"id":"bd66ce64-3cc1-4cd3-8bbf-d3c4fff30683","block_type":"box","text":"the Fund and other accounts are: Bloomberg Commodity Index Total Return; FTSE Gold Mines Index (Gross Total","page_number":24,"box":{"x":68,"y":505,"width":799,"height":11}},{"id":"34df8df8-b8e7-4ca2-bb3a-88889625fd79","block_type":"box","text":"Return); FTSE Gold Mining Index - expressed in JPY; FTSE Gold Mining Index - GBP Price; SOFR 3 Month Index; MSCI","page_number":24,"box":{"x":70,"y":520,"width":824,"height":12}},{"id":"4847d89a-460f-40b0-a91d-1f89496435bd","block_type":"box","text":"10/40 DW Energy (Net); MSCI ACWI Metals & Mining 30% Buffer 10/40 (1994) GBP Net TR; MSCI ACWI Metals &","page_number":24,"box":{"x":70,"y":535,"width":814,"height":12}},{"id":"a7f387b9-9ca8-4c7c-948f-dda81538fd17","block_type":"box","text":"Mining 30% Buffer 10/40 (1994) USD Net TR; MSCI World Energy Net Daily TR Index; NYSE Arca Gold Miners Index","page_number":24,"box":{"x":70,"y":550,"width":823,"height":12}},{"id":"b3aaf961-6378-4981-96f4-f2e7ad55c19c","block_type":"box","text":"EUR Net Total Return; S&P Global Natural Resources Index; S&P Global Natural Resources Index - In GBP; S&P Global","page_number":24,"box":{"x":70,"y":566,"width":838,"height":10}},{"id":"f94cd2d0-718d-4c34-8474-80645986b38b","block_type":"box","text":"Natural Resources Net Return.","page_number":24,"box":{"x":70,"y":581,"width":216,"height":9}},{"id":"76ea684d-eb4b-4a9b-8e74-d013e9648f77","block_type":"box","text":"A smaller element of por tfolio manager discretionary compensation may include consideration of: financial","page_number":24,"box":{"x":101,"y":603,"width":759,"height":12}},{"id":"714f4fe2-396b-4275-8733-b722b8460f27","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":24,"box":{"x":69,"y":618,"width":798,"height":12}},{"id":"5ecf097f-91e3-4906-8723-995d66ce0591","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":24,"box":{"x":69,"y":634,"width":814,"height":11}},{"id":"fb7333f6-252e-4b08-a32a-2b14e34a3ab4","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":24,"box":{"x":68,"y":649,"width":798,"height":11}},{"id":"bc28f767-2ecb-4e01-8347-6c60a2ddaf65","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":24,"box":{"x":102,"y":671,"width":389,"height":12}},{"id":"a3711e26-3c28-4e0d-ad37-781d68dc13f3","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":24,"box":{"x":499,"y":672,"width":383,"height":11}},{"id":"eeff39b7-dbcd-46fc-b466-65c8b370655d","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":24,"box":{"x":70,"y":686,"width":815,"height":12}},{"id":"2ff13cea-637a-476b-a75e-0de27336015e","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":24,"box":{"x":68,"y":702,"width":522,"height":11}},{"id":"9946445d-a5c4-4d54-a4e2-6429bda2ba73","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":24,"box":{"x":102,"y":724,"width":760,"height":12}},{"id":"aa27e4c5-0120-4505-af33-543ad518982f","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":24,"box":{"x":69,"y":739,"width":795,"height":12}},{"id":"42d51fe5-9cc9-4747-ab11-27b800dc31b6","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":24,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"06104adb-211a-4373-9483-8b95eefce79c","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":24,"box":{"x":69,"y":770,"width":822,"height":11}},{"id":"16a575c5-9253-4425-8ba9-31362d69cbf3","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":24,"box":{"x":68,"y":785,"width":839,"height":11}},{"id":"decc0d15-7530-4a53-93fd-b7144334a556","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":24,"box":{"x":69,"y":800,"width":802,"height":11}},{"id":"1c367226-e6d0-4869-9a2b-ce777b1e643b","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":24,"box":{"x":70,"y":815,"width":820,"height":11}},{"id":"556d3b7f-e090-4cd5-a110-f1e364ce90e5","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":24,"box":{"x":70,"y":830,"width":801,"height":11}},{"id":"2f0fcec2-c166-4343-88fb-5bf27726f50f","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":24,"box":{"x":70,"y":845,"width":831,"height":11}},{"id":"2e420441-2ec2-438e-9de8-0352aed5b504","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":24,"box":{"x":69,"y":860,"width":479,"height":12}},{"id":"d213e370-f7fb-4d7f-ab2d-e5d0f73eb0c5","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":24,"box":{"x":102,"y":883,"width":785,"height":11}},{"id":"93943eb3-204e-4cbb-932c-6ae302b93c35","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":24,"box":{"x":68,"y":898,"width":836,"height":11}},{"id":"458ea0b4-3981-4b48-ad18-8e7d2934c93c","block_type":"box","text":"I-22","page_number":24,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"2d752496-e514-42d6-bb6f-4d2f0467fb8c","block_type":"box","text":"NM1026U-5982509-24/232","page_number":24,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3022862e-8407-418c-9da9-0c3547722621","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":25,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"6395f0d4-b431-46ff-a964-f6f4fbb9ea72","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":25,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"c4fc53da-db37-42ae-a0f1-3cd38a19bdb4","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":25,"box":{"x":70,"y":75,"width":835,"height":11}},{"id":"dcd5da81-d953-4f5b-ba22-4786e90a76ea","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":25,"box":{"x":69,"y":90,"width":414,"height":11}},{"id":"e0085814-3f4b-4bae-8cbf-112b81811fb2","block_type":"box","text":"Other Compensation Benefits.","page_number":25,"box":{"x":101,"y":113,"width":218,"height":11}},{"id":"21aa29b8-b599-4889-b19a-329548e2107f","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":25,"box":{"x":327,"y":113,"width":552,"height":11}},{"id":"4af130d3-a4df-410c-94ee-e8e2b58f4eb4","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":25,"box":{"x":69,"y":128,"width":582,"height":11}},{"id":"24ab2576-021f-4be2-b24e-b19b4e398fcb","block_type":"box","text":"Incentive Savings Plans —","page_number":25,"box":{"x":102,"y":151,"width":189,"height":11}},{"id":"252c46c1-c053-49e7-b6ad-0c596cf39854","block_type":"box","text":"United Kingdom-based por tfolio managers are also eligible to par ticipate in broad","page_number":25,"box":{"x":296,"y":150,"width":584,"height":12}},{"id":"52f3a8a5-4652-43c3-a45c-f8d66b842c40","block_type":"box","text":"based plans offered generally to BlackRock employees, including broad-based retirement, health and other employee","page_number":25,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"fdca3b49-d787-44c0-a67e-cfa86475d31c","block_type":"box","text":"benefit plans. For example, BlackRock has created a variety of incentive savings plans in which BlackRock employees","page_number":25,"box":{"x":69,"y":181,"width":837,"height":11}},{"id":"3807e7e9-c835-40f5-a1e9-53a5032b936c","block_type":"box","text":"are eligible to par ticipate, including the BlackRock Retirement Savings Plan (RSP) and the BlackRock Employee Stock","page_number":25,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"c029242d-d66b-44c7-b0fa-39c6252fc809","block_type":"box","text":"Purchase Plan (ESPP). The employer contribution to the RSP is between 10% and 15% of eligible pay capped at","page_number":25,"box":{"x":69,"y":211,"width":792,"height":11}},{"id":"00d2b696-7658-4697-b846-b32ea835a00f","block_type":"box","text":"£160,000 per annum. The RSP offers a range of investment options, including several collective investment funds","page_number":25,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"7fe65f3a-3744-49af-91a1-160b09b69336","block_type":"box","text":"managed by the firm. BlackRock contributions follow the investment direction set by par ticipants for their own","page_number":25,"box":{"x":69,"y":241,"width":781,"height":11}},{"id":"151561d8-4121-4a3e-9ffc-82ca3abb3fb1","block_type":"box","text":"contributions or, in the absence of an investment election being made, are invested into a target date fund that","page_number":25,"box":{"x":69,"y":256,"width":794,"height":12}},{"id":"f4d04aed-0974-4cef-ac71-7e7d6fc0f5fb","block_type":"box","text":"corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for investment in","page_number":25,"box":{"x":69,"y":271,"width":823,"height":12}},{"id":"5ea4cd85-7fa8-4cfe-ada2-26e2a3386ca4","block_type":"box","text":"BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual","page_number":25,"box":{"x":70,"y":286,"width":784,"height":11}},{"id":"11ed253d-38d0-4a5a-866f-35d8399b2dd6","block_type":"box","text":"par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a US dollar value of","page_number":25,"box":{"x":70,"y":302,"width":776,"height":11}},{"id":"6a6301d2-8df9-454a-90cd-4dfbe709e10d","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":25,"box":{"x":69,"y":316,"width":808,"height":12}},{"id":"69542a07-19e2-407c-a0db-2a7a6d0aca3f","block_type":"box","text":"par ticipate in these plans.","page_number":25,"box":{"x":70,"y":332,"width":185,"height":11}},{"id":"1c48a7ab-7065-4b32-a5de-142ee4e4db82","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":25,"box":{"x":69,"y":362,"width":268,"height":11}},{"id":"f6d43a63-5f97-4985-90b0-aaad71fd464b","block_type":"box","text":"As of May 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":25,"box":{"x":101,"y":385,"width":731,"height":11}},{"id":"182d5e55-024c-400a-9394-02c9745d3867","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":25,"box":{"x":69,"y":400,"width":519,"height":11}},{"id":"5ccfb951-ffbe-4761-8a7f-ce1a5520fabb","block_type":"box","text":"Portfolio Manager","page_number":25,"box":{"x":69,"y":438,"width":105,"height":9}},{"id":"60819120-3604-4e7d-802c-82833cc65c3d","block_type":"box","text":"Dollar Range of Equity","page_number":25,"box":{"x":759,"y":428,"width":129,"height":9}},{"id":"7636ce2a-9bd6-4227-a8cb-daa43c0e9518","block_type":"box","text":"Securities Beneficially Owned","page_number":25,"box":{"x":736,"y":438,"width":173,"height":9}},{"id":"2477ad7d-f961-425c-a575-e2e00068202a","block_type":"box","text":"Alastair Bishop . . .","page_number":25,"box":{"x":68,"y":456,"width":132,"height":11}},{"id":"af74b225-7ffb-4a30-b055-b5a54a6c1ece","block_type":"box","text":"..............................................................","page_number":25,"box":{"x":206,"y":463,"width":499,"height":2}},{"id":"d2c721e3-9ebf-4795-a051-45fa607d4e71","block_type":"box","text":"$50,001 - $100,000","page_number":25,"box":{"x":749,"y":455,"width":148,"height":11}},{"id":"d2547a08-85f8-453c-9f2f-a20177ef1ee1","block_type":"box","text":"Mark Hume . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":25,"box":{"x":70,"y":471,"width":635,"height":9}},{"id":"40b41faf-a04c-44c8-ac0a-1ad2ff8963a4","block_type":"box","text":"$10,001 - $50,000","page_number":25,"box":{"x":754,"y":470,"width":138,"height":12}},{"id":"9a68fa37-2d57-4a97-b17d-328a4e72d9a2","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":25,"box":{"x":69,"y":503,"width":403,"height":11}},{"id":"c3b1a93b-353b-4fd1-8c00-1aa2408b6889","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":25,"box":{"x":102,"y":525,"width":727,"height":12}},{"id":"e3dbdbf9-4621-42d8-9c90-e7e9139b836b","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":25,"box":{"x":70,"y":540,"width":814,"height":12}},{"id":"147d91a3-21ec-4bb7-8ef7-0bf4a1d9624c","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":25,"box":{"x":70,"y":555,"width":837,"height":11}},{"id":"45394709-8309-43c9-96ff-f0c219b9a9a0","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":25,"box":{"x":70,"y":571,"width":810,"height":11}},{"id":"4a1b8e2b-c3c2-48fa-898c-e1488fce7d4e","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":25,"box":{"x":69,"y":586,"width":782,"height":11}},{"id":"055036a8-485f-4f8f-b195-5e4797fb61e3","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":25,"box":{"x":69,"y":601,"width":830,"height":11}},{"id":"f52183bd-f283-43fc-87b3-8a3e3aadf302","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":25,"box":{"x":69,"y":616,"width":828,"height":11}},{"id":"c2bb3bc8-646f-4080-8830-661b07f0620d","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":25,"box":{"x":68,"y":631,"width":834,"height":11}},{"id":"4b18615c-6e52-4a96-9f21-8b5b65a1633b","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":25,"box":{"x":70,"y":646,"width":777,"height":11}},{"id":"77052744-aba6-46ab-9f5c-f7fe837bcb1e","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":25,"box":{"x":70,"y":661,"width":821,"height":12}},{"id":"534af8c8-a4f9-45d2-8881-456b48e74d5c","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":25,"box":{"x":69,"y":677,"width":819,"height":10}},{"id":"7ecc9a0e-1c14-4dd2-8ccc-c3db2d0ab5a1","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":25,"box":{"x":69,"y":692,"width":832,"height":11}},{"id":"3adc009a-0f5e-462a-9fd3-f408687122cc","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":25,"box":{"x":68,"y":707,"width":804,"height":11}},{"id":"6db92d24-e580-4e12-8f34-cc6bc5d19a4f","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":25,"box":{"x":69,"y":722,"width":760,"height":11}},{"id":"9718e463-ea89-427c-99fb-ef6cfebff02c","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":25,"box":{"x":69,"y":737,"width":834,"height":11}},{"id":"f5bf1350-ba10-47e5-a864-44144e4c0d70","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":25,"box":{"x":69,"y":752,"width":836,"height":11}},{"id":"5ba459e3-7bc7-4db8-8b1c-23c398959d03","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":25,"box":{"x":69,"y":767,"width":822,"height":11}},{"id":"0d77e477-a3c3-4ff8-a601-a17c329d8b1e","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":25,"box":{"x":70,"y":782,"width":835,"height":12}},{"id":"1195fa9c-c71e-405e-8bcd-f4b261ee438a","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Messrs. Bishop and Hume may be","page_number":25,"box":{"x":69,"y":797,"width":794,"height":12}},{"id":"1d37791f-c8fa-455d-b7f3-6be0ef83d02c","block_type":"box","text":"managing hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long only","page_number":25,"box":{"x":69,"y":812,"width":811,"height":12}},{"id":"dda6d396-6b95-4d11-ae7d-49a3fe2d4e68","block_type":"box","text":"accounts, subject to incentive fees. Messrs. Bishop and Hume may therefore be entitled to receive a por tion of any","page_number":25,"box":{"x":69,"y":828,"width":824,"height":11}},{"id":"9cd1541b-07d3-4ae1-a313-c21e36477cfc","block_type":"box","text":"incentive fees earned on such accounts.","page_number":25,"box":{"x":70,"y":843,"width":286,"height":9}},{"id":"26c1b59f-cbed-4d9f-b5e6-867bc94b7440","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":25,"box":{"x":101,"y":865,"width":788,"height":12}},{"id":"11ab5001-0582-4f69-b0ce-86806d8f8fce","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":25,"box":{"x":70,"y":881,"width":839,"height":11}},{"id":"ec59710c-1216-4ff8-8f4e-3de4d13270e6","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":25,"box":{"x":68,"y":896,"width":823,"height":11}},{"id":"b9ed749c-9f22-4bec-be25-758b00bce623","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":25,"box":{"x":68,"y":911,"width":812,"height":11}},{"id":"d5203265-de7c-4b0f-8330-93a2124bb2f4","block_type":"box","text":"I-23","page_number":25,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"3e6db046-1936-4225-8657-4406a8e9e0be","block_type":"box","text":"NM1026U-5982509-25/232","page_number":25,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fdd7abbc-8c19-41e8-a886-a73dc577fa3e","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":26,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"8f453caf-170c-4e1f-a277-f27c37df9b95","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":26,"box":{"x":70,"y":60,"width":826,"height":11}},{"id":"f1901032-5a9a-494a-84b0-4547013360c0","block_type":"box","text":"Accounting Services","page_number":26,"box":{"x":68,"y":90,"width":150,"height":11}},{"id":"4d1cb7a8-135a-49f1-8a60-c15f6e571c57","block_type":"box","text":"The Bank of New York Mellon (“BNY Mellon”), which has its principal place of business at 240 Greenwich Street,","page_number":26,"box":{"x":101,"y":113,"width":803,"height":11}},{"id":"46dcc12d-8f99-4fef-b42f-addf43fdb213","block_type":"box","text":"New York, New York 10286, serves as the accounting services provider for the Fund. BNY Mellon records investment,","page_number":26,"box":{"x":70,"y":128,"width":837,"height":11}},{"id":"67eb06c6-2903-4811-97c1-d53e3839a6a5","block_type":"box","text":"capital share and income and expense activities; verifies and transmits trade tickets; maintains accounting ledgers","page_number":26,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"e6904301-1e78-465d-a954-36641aefa121","block_type":"box","text":"for investment securities; maintains tax lots; reconciles cash with the Fund’s custodian; repor ts cash balances to","page_number":26,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"4267472e-631d-48fe-9dc7-ce26d70c0374","block_type":"box","text":"BlackRock; prepares cer tain financial statements; calculates expenses, gains, losses and income; controls","page_number":26,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"44d3e3b6-3375-4be5-8862-6297f16f7534","block_type":"box","text":"disbursements; works with independent pricing sources; and computes and repor ts net asset value. In connection","page_number":26,"box":{"x":69,"y":188,"width":815,"height":12}},{"id":"8bf3aa6a-fdd6-4005-b6b5-00a1c5c40694","block_type":"box","text":"with its accounting services, BNY Mellon also provides cer tain administration services.","page_number":26,"box":{"x":68,"y":204,"width":621,"height":11}},{"id":"444de5f3-8280-474f-8574-3391be98b628","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY Mellon for accounting services for the fiscal years","page_number":26,"box":{"x":101,"y":226,"width":793,"height":11}},{"id":"5e5d5eaf-068a-47b5-b427-cb8e7ab9597a","block_type":"box","text":"shown:","page_number":26,"box":{"x":69,"y":241,"width":48,"height":9}},{"id":"5248e5b6-bdd7-4e46-a8a7-85ca80852b3c","block_type":"box","text":"Fees Paid","page_number":26,"box":{"x":840,"y":269,"width":55,"height":8}},{"id":"78baf276-9528-4e91-a0d3-b9608e976bc0","block_type":"box","text":"to BNY Mellon","page_number":26,"box":{"x":825,"y":280,"width":84,"height":7}},{"id":"dbae198d-48f9-4242-b71a-ddafbb159993","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . .","page_number":26,"box":{"x":70,"y":297,"width":317,"height":11}},{"id":"86125b1d-47f1-46a7-b685-d88922b157c0","block_type":"box","text":"..................................................","page_number":26,"box":{"x":393,"y":305,"width":402,"height":1}},{"id":"0d0cdca8-ccd8-4801-b492-43b5a5694ff2","block_type":"box","text":"$52,474","page_number":26,"box":{"x":837,"y":297,"width":62,"height":11}},{"id":"395aab4c-39a3-4d24-8f3d-207c1dd4bed3","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . .","page_number":26,"box":{"x":70,"y":312,"width":317,"height":11}},{"id":"7f563322-5f4a-4896-919b-075f18181f8d","block_type":"box","text":"..................................................","page_number":26,"box":{"x":393,"y":320,"width":402,"height":1}},{"id":"a75ebd35-ffc0-4096-abcb-783cc0c66d4a","block_type":"box","text":"$53,318","page_number":26,"box":{"x":837,"y":312,"width":62,"height":11}},{"id":"8c358b94-018d-4850-a483-d6b89799a94c","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . .","page_number":26,"box":{"x":70,"y":328,"width":317,"height":11}},{"id":"f9efea5f-d021-462d-a584-d9b3b85f9e7e","block_type":"box","text":"..................................................","page_number":26,"box":{"x":393,"y":335,"width":402,"height":1}},{"id":"ba41b82b-ea85-4ce0-a1c8-88e7af82a58e","block_type":"box","text":"$55,452","page_number":26,"box":{"x":837,"y":327,"width":61,"height":11}},{"id":"0c302b54-d3d2-4823-b486-82458866408b","block_type":"box","text":"Custodian","page_number":26,"box":{"x":69,"y":359,"width":72,"height":9}},{"id":"d456863e-143d-4e18-bbf6-f627f0c8834b","block_type":"box","text":"BNY Mellon, which has its principal place of business at 240 Greenwich Street, New York, New York 10286, also","page_number":26,"box":{"x":102,"y":382,"width":803,"height":11}},{"id":"d8727e08-0fa2-46e6-a546-bed613aaaa4b","block_type":"box","text":"serves as the custodian for the Fund (the “Custodian”). The Custodian, among other responsibilities, maintains a","page_number":26,"box":{"x":69,"y":397,"width":810,"height":11}},{"id":"76f4f0cb-76c5-40cb-aa23-d2ee10c6aaee","block_type":"box","text":"custody account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase","page_number":26,"box":{"x":69,"y":412,"width":815,"height":11}},{"id":"974fb91d-3150-4baa-8799-3d36873079e1","block_type":"box","text":"and upon sale or maturity, and collects and receives all income and other payments and distributions on account of","page_number":26,"box":{"x":69,"y":427,"width":824,"height":11}},{"id":"312be26d-345c-485a-a661-d61c7cf69ec5","block_type":"box","text":"the assets of the Fund.","page_number":26,"box":{"x":68,"y":442,"width":165,"height":9}},{"id":"b6198f16-9bc3-462f-9f34-79936e995172","block_type":"box","text":"Transfer Agent","page_number":26,"box":{"x":68,"y":472,"width":107,"height":11}},{"id":"cd781cd0-b2e0-4839-b0c3-4e1916998d7a","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":26,"box":{"x":102,"y":495,"width":764,"height":11}},{"id":"4b670601-91e9-4ba1-9a4c-baddb4fa877a","block_type":"box","text":"Westborough, Massachusetts 01581, serves as transfer agent and dividend disbursing agent for the Fund.","page_number":26,"box":{"x":68,"y":510,"width":764,"height":11}},{"id":"2e760c5d-cdc4-4d0c-982d-be5858e930b0","block_type":"box","text":"Credit Agreement","page_number":26,"box":{"x":69,"y":540,"width":129,"height":12}},{"id":"21568460-3b4a-424b-9f11-523e1b859570","block_type":"box","text":"The Trust, on behalf of the Fund, along with cer tain other funds managed by the Manager and its affiliates","page_number":26,"box":{"x":101,"y":563,"width":757,"height":11}},{"id":"e504814f-2591-442f-bb70-b206af63fc03","block_type":"box","text":"(“Par ticipating Funds”), is a par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":26,"box":{"x":69,"y":578,"width":817,"height":11}},{"id":"5fb90ebe-1052-49c3-a00e-2846f03972d9","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":26,"box":{"x":68,"y":593,"width":743,"height":12}},{"id":"d79ade31-affd-467c-b2e8-e2cc1b2cb47e","block_type":"box","text":"commitments designated for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up","page_number":26,"box":{"x":69,"y":608,"width":825,"height":12}},{"id":"cd906280-db3a-451e-bf15-0a0faf80adf4","block_type":"box","text":"to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other","page_number":26,"box":{"x":68,"y":623,"width":818,"height":12}},{"id":"c36bd681-79b5-4b06-a278-28547aaca390","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":26,"box":{"x":70,"y":639,"width":761,"height":11}},{"id":"b9112f14-75ff-4d43-8c41-4ab8139a9f51","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":26,"box":{"x":69,"y":654,"width":768,"height":11}},{"id":"cf82f515-a3f8-42db-895e-f2d43348d089","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectus and","page_number":26,"box":{"x":68,"y":669,"width":838,"height":11}},{"id":"f12d81c6-97ff-466e-861e-10f4d0800db0","block_type":"box","text":"SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other","page_number":26,"box":{"x":69,"y":684,"width":816,"height":11}},{"id":"66d165eb-db86-4631-8cc1-632ab0ac4d77","block_type":"box","text":"fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce the","page_number":26,"box":{"x":68,"y":699,"width":825,"height":11}},{"id":"d02ca27a-efb5-4e00-ada6-9a5d2ee281c4","block_type":"box","text":"Fund’s return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":26,"box":{"x":70,"y":714,"width":771,"height":12}},{"id":"b0e65674-0d68-4a7c-8dc8-d131c62caeae","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be","page_number":26,"box":{"x":69,"y":729,"width":833,"height":12}},{"id":"bb58efaa-c320-4f31-884c-e38e5d59c239","block_type":"box","text":"charged interest at a variable rate.","page_number":26,"box":{"x":69,"y":745,"width":245,"height":11}},{"id":"00cf4923-51fe-427a-846c-874c4fe3770e","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":26,"box":{"x":68,"y":775,"width":491,"height":11}},{"id":"e0c81268-2d4c-4a1c-b9b1-14ef2a0bd5a8","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":26,"box":{"x":102,"y":797,"width":773,"height":12}},{"id":"3a4a64a2-f3d1-4bd5-b4c7-0bbad797f2b8","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“affiliates”) for the periods shown.","page_number":26,"box":{"x":69,"y":812,"width":804,"height":12}},{"id":"7e238c45-b7f9-42d4-b16b-ceae141babf3","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”) acts as the Fund’s sole distributor.","page_number":26,"box":{"x":70,"y":828,"width":656,"height":11}},{"id":"afe10a67-7a60-4e76-ba52-2477578ac763","block_type":"box","text":"I-24","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"a1626efa-8823-4d67-b15e-98edb8c85b2e","block_type":"box","text":"NM1026U-5982509-26/232","page_number":26,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"04f336da-91bb-40af-815e-fed26bc62331","block_type":"box","text":"Investor A Shares","page_number":27,"box":{"x":645,"y":49,"width":102,"height":7}},{"id":"bc5f7d20-36a5-4f52-b0aa-6cf4d6bc132c","block_type":"box","text":"Gross Sales","page_number":27,"box":{"x":485,"y":75,"width":68,"height":7}},{"id":"b8061629-1ff7-4bb3-bff9-b43f6760eb97","block_type":"box","text":"Charges","page_number":27,"box":{"x":496,"y":85,"width":47,"height":9}},{"id":"13fd844d-1a81-4992-b844-786d2d7ea793","block_type":"box","text":"Collected","page_number":27,"box":{"x":492,"y":95,"width":54,"height":7}},{"id":"f1c25e28-52cb-49f9-8390-2f47c4ea01a0","block_type":"box","text":"Sales Charges","page_number":27,"box":{"x":585,"y":75,"width":84,"height":9}},{"id":"06ed135b-de78-43ae-ac7d-46f17004fd02","block_type":"box","text":"Retained","page_number":27,"box":{"x":602,"y":85,"width":51,"height":7}},{"id":"9e421030-dfb5-4bbb-9975-d34086a4c7fc","block_type":"box","text":"by BRIL","page_number":27,"box":{"x":606,"y":95,"width":44,"height":9}},{"id":"383c6c8a-d992-4df2-8b36-68b557ccada1","block_type":"box","text":"Sales Charges","page_number":27,"box":{"x":699,"y":75,"width":83,"height":9}},{"id":"cb7a0eb6-888f-4c72-b0f5-8596f38212fd","block_type":"box","text":"Paid to","page_number":27,"box":{"x":721,"y":85,"width":40,"height":7}},{"id":"293b321d-e411-4a31-9952-8a529fbb0e3b","block_type":"box","text":"Affiliates","page_number":27,"box":{"x":715,"y":95,"width":51,"height":7}},{"id":"710db8bc-dd89-4521-832e-58f007224200","block_type":"box","text":"CDSCs Received","page_number":27,"box":{"x":812,"y":65,"width":97,"height":7}},{"id":"a6ec27ae-a471-4cd1-9157-b79a075d854d","block_type":"box","text":"on Redemption","page_number":27,"box":{"x":817,"y":75,"width":87,"height":9}},{"id":"c115affb-0b62-4ea1-a106-89b4b41143e4","block_type":"box","text":"of Load-Waived","page_number":27,"box":{"x":817,"y":85,"width":87,"height":7}},{"id":"33b35a14-2313-4b22-993c-15d39e88e533","block_type":"box","text":"Shares","page_number":27,"box":{"x":841,"y":95,"width":39,"height":7}},{"id":"f854981b-2209-430b-85ed-efbfc315c41d","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . $179,176 $11,783 $11,783 $3,587","page_number":27,"box":{"x":70,"y":112,"width":817,"height":12}},{"id":"39cbfa67-b49b-43dd-a241-a6d1ac108d51","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . $150,328 $10,803 $10,803 $1,410","page_number":27,"box":{"x":70,"y":127,"width":817,"height":12}},{"id":"a638353f-3cc5-4af2-8830-96ef32e252db","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . $166,761 $12,085 $12,085 $ 309","page_number":27,"box":{"x":70,"y":142,"width":817,"height":12}},{"id":"740bea70-82f3-4d8c-84be-1f07ad126342","block_type":"box","text":"Investor C Shares","page_number":27,"box":{"x":780,"y":172,"width":103,"height":8}},{"id":"6d417aee-f7eb-4587-ae59-7981e4990aca","block_type":"box","text":"CDSCs","page_number":27,"box":{"x":765,"y":188,"width":39,"height":7}},{"id":"220c8df4-82d0-450b-bced-aa3227dbd902","block_type":"box","text":"Received","page_number":27,"box":{"x":759,"y":198,"width":52,"height":7}},{"id":"a0c095f3-1621-45b1-8cfb-2bb46f109107","block_type":"box","text":"by BRIL","page_number":27,"box":{"x":763,"y":208,"width":44,"height":9}},{"id":"b65cee36-8934-461e-8b1c-2e28de5fa45a","block_type":"box","text":"CDSCs","page_number":27,"box":{"x":858,"y":188,"width":39,"height":7}},{"id":"3cd1e892-39ad-41dd-a658-9389ab96d681","block_type":"box","text":"Paid to","page_number":27,"box":{"x":858,"y":198,"width":40,"height":7}},{"id":"ddceadaf-ada8-4646-a3b3-6675fbba2b70","block_type":"box","text":"Affiliates","page_number":27,"box":{"x":852,"y":208,"width":52,"height":7}},{"id":"4f8d84ad-a8dd-4f14-a0b6-193de23b4bf2","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . .","page_number":27,"box":{"x":70,"y":226,"width":269,"height":11}},{"id":"69b2fef7-e502-4fce-a56a-58cd6753fe1a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,536 $ 4,536","page_number":27,"box":{"x":345,"y":225,"width":564,"height":12}},{"id":"df8f3181-5d2f-4530-a9d9-509fbabfc358","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . .","page_number":27,"box":{"x":70,"y":241,"width":269,"height":11}},{"id":"3b06d92b-6bab-476f-bc32-1e45dc7bcc68","block_type":"box","text":"...............................................","page_number":27,"box":{"x":345,"y":249,"width":377,"height":1}},{"id":"27a2d9a1-4bee-4551-a291-a52229e4c4b8","block_type":"box","text":"$29,060 $29,060","page_number":27,"box":{"x":754,"y":241,"width":155,"height":11}},{"id":"cec66124-248f-4f22-b9a3-0e76fb74f742","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . .","page_number":27,"box":{"x":70,"y":256,"width":269,"height":11}},{"id":"c3121d3b-6f3d-446c-a090-908171dc26b4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,363 $ 2,363","page_number":27,"box":{"x":345,"y":256,"width":564,"height":11}},{"id":"d5f8aa05-3976-42d3-a639-a8e0ae671d52","block_type":"box","text":"The table below provides information for the fiscal year ended May 31, 2026 about the 12b-1 fees the Fund paid","page_number":27,"box":{"x":101,"y":280,"width":805,"height":11}},{"id":"d6794dc1-860a-408d-9d44-733a6c8e7ea9","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plans. A por tion of the fees collected by BRIL were paid to affiliates for providing","page_number":27,"box":{"x":68,"y":295,"width":804,"height":12}},{"id":"272322e9-8a61-45bb-b873-4e3c33e0f269","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution-related","page_number":27,"box":{"x":69,"y":310,"width":826,"height":12}},{"id":"eb927c16-6bd0-4c9b-a1ab-c247e45973fd","block_type":"box","text":"activities and services for Investor C Shares.","page_number":27,"box":{"x":69,"y":326,"width":318,"height":9}},{"id":"654514c2-d95f-4613-a8c7-dda95ee17849","block_type":"box","text":"Class Name","page_number":27,"box":{"x":69,"y":364,"width":68,"height":7}},{"id":"4594fda1-dfd2-42e5-85ea-b03eeb3aeaac","block_type":"box","text":"Fees Paid","page_number":27,"box":{"x":845,"y":354,"width":56,"height":7}},{"id":"d38e7cc9-8d60-45ae-ad04-3add63e4691e","block_type":"box","text":"to BRIL","page_number":27,"box":{"x":851,"y":364,"width":44,"height":7}},{"id":"1e301869-b67d-4d45-9057-59094d212932","block_type":"box","text":"Investor A Shares . .","page_number":27,"box":{"x":70,"y":382,"width":140,"height":9}},{"id":"3545ca77-aaef-4468-aaa2-7fc77c85b3b2","block_type":"box","text":".........................................................................","page_number":27,"box":{"x":217,"y":389,"width":588,"height":2}},{"id":"04df8163-6866-4e4a-9a3f-49415858eba8","block_type":"box","text":"$452,717","page_number":27,"box":{"x":837,"y":381,"width":71,"height":11}},{"id":"aa7dedc1-577a-4687-8d0a-4635447fe175","block_type":"box","text":"Investor C Shares","page_number":27,"box":{"x":70,"y":397,"width":125,"height":9}},{"id":"ef680d52-168f-4063-bb49-d579564e0427","block_type":"box","text":"...........................................................................","page_number":27,"box":{"x":200,"y":404,"width":605,"height":2}},{"id":"51d394ac-86cd-445f-b14a-c96e92237af5","block_type":"box","text":"$164,115","page_number":27,"box":{"x":837,"y":396,"width":72,"height":11}},{"id":"5ab84201-2d50-48f1-a65c-b62e825b3db5","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":27,"box":{"x":68,"y":428,"width":318,"height":11}},{"id":"0bcd4172-50fc-401d-86a6-ba0b3a9963d7","block_type":"box","text":"An illustration of the computation of the offering price of the Investor A Shares of the Fund based on the value of","page_number":27,"box":{"x":101,"y":451,"width":805,"height":11}},{"id":"1ef2d8f9-43a0-43d7-a952-8c7a62de4075","block_type":"box","text":"the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on May 31, 2026, is set","page_number":27,"box":{"x":68,"y":466,"width":827,"height":11}},{"id":"eb821e90-728d-4711-88c0-95a48699008e","block_type":"box","text":"for th below.","page_number":27,"box":{"x":68,"y":481,"width":83,"height":9}},{"id":"76b6b7ae-9152-42b4-b7f3-f65b605b90ba","block_type":"box","text":"Investor A","page_number":27,"box":{"x":827,"y":510,"width":58,"height":7}},{"id":"dff9c9e0-c5b5-44f0-b76c-96b291c279c8","block_type":"box","text":"Shares","page_number":27,"box":{"x":836,"y":520,"width":39,"height":7}},{"id":"b81c43fb-d748-40c5-8a33-47320adcfee9","block_type":"box","text":"Net Assets","page_number":27,"box":{"x":70,"y":537,"width":76,"height":9}},{"id":"4f632932-9c41-4e54-ad1e-b3428970e05a","block_type":"box","text":".............................................................................","page_number":27,"box":{"x":150,"y":545,"width":621,"height":1}},{"id":"dd72455c-fb56-4991-b9c5-0f98c64e99c4","block_type":"box","text":"$217,091,897","page_number":27,"box":{"x":803,"y":537,"width":105,"height":11}},{"id":"ddba9992-4cbc-430f-8352-8c7a7e3a9af9","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":27,"box":{"x":70,"y":552,"width":245,"height":12}},{"id":"8cdffecb-14ee-4626-bce2-ccd3b680317a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,","page_number":27,"box":{"x":321,"y":552,"width":524,"height":11}},{"id":"14e4ce07-3d14-4e94-bf19-9e3a08cc51f4","block_type":"box","text":"416,156","page_number":27,"box":{"x":847,"y":552,"width":62,"height":11}},{"id":"d2dda123-4694-4883-9c33-3341c50c9d36","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":27,"box":{"x":70,"y":567,"width":571,"height":12}},{"id":"80e0e961-bb0f-4e39-9442-5938a07ba53a","block_type":"box","text":"................","page_number":27,"box":{"x":647,"y":575,"width":124,"height":1}},{"id":"f8c29bbf-0ea2-4e3a-9330-ee52e267eec5","block_type":"box","text":"$17.48","page_number":27,"box":{"x":857,"y":567,"width":52,"height":10}},{"id":"78845e3a-462a-416c-89ca-2c21d115ac22","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":27,"box":{"x":69,"y":583,"width":534,"height":11}},{"id":"7254f98f-ba07-408c-be07-d1a7b66d2d9f","block_type":"box","text":"1","page_number":27,"box":{"x":604,"y":583,"width":4,"height":4}},{"id":"51bd6c2a-dc08-4fbf-9719-6e705f1b6755","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $.97","page_number":27,"box":{"x":615,"y":582,"width":293,"height":10}},{"id":"a698a1b2-8357-40e5-8e45-d55f4d9d72cf","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":69,"y":602,"width":702,"height":11}},{"id":"4b4ba409-d9fc-4e65-aee2-15a42ba55058","block_type":"box","text":"$18.45","page_number":27,"box":{"x":857,"y":601,"width":52,"height":11}},{"id":"7ba61d07-cf22-42b9-a71d-76d699a52799","block_type":"box","text":"1","page_number":27,"box":{"x":69,"y":634,"width":3,"height":4}},{"id":"12a949fe-8e35-45f8-bb92-5cef6753c514","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":27,"box":{"x":94,"y":634,"width":541,"height":9}},{"id":"3549c1ed-8b3e-474d-beff-0345c8dd8b9d","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’ net asset value computed as","page_number":27,"box":{"x":101,"y":655,"width":787,"height":11}},{"id":"1392062d-d5f7-435c-8720-7e35d684549e","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":27,"box":{"x":69,"y":670,"width":833,"height":11}},{"id":"9d67023e-a813-4b3c-a05d-88bc19a3a0ee","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":27,"box":{"x":69,"y":685,"width":813,"height":12}},{"id":"184eae93-5c81-4e68-8f63-c7e0b8849e44","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":27,"box":{"x":69,"y":700,"width":377,"height":12}},{"id":"4a33a700-7ec1-446e-a746-77aeca0fd0f8","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":27,"box":{"x":68,"y":731,"width":302,"height":11}},{"id":"47c25257-9546-4474-a0fe-21cc605e7266","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":27,"box":{"x":102,"y":753,"width":609,"height":12}},{"id":"9a6100a2-d27f-42d2-bc3e-d8a4802feea9","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, during","page_number":27,"box":{"x":102,"y":776,"width":798,"height":11}},{"id":"aa5ca85a-f751-485e-8bbf-f1b85467d746","block_type":"box","text":"the periods shown is set for th in the following table:","page_number":27,"box":{"x":68,"y":791,"width":371,"height":11}},{"id":"591dadcf-558a-4c8a-9642-9282fcc56a4b","block_type":"box","text":"Aggregate Brokerage","page_number":27,"box":{"x":620,"y":820,"width":125,"height":8}},{"id":"84ae535d-6721-4c25-b345-4806fc3e854f","block_type":"box","text":"Commissions Paid","page_number":27,"box":{"x":629,"y":829,"width":106,"height":8}},{"id":"70b54ab9-faf2-4796-b998-1eb5f977585b","block_type":"box","text":"Brokerage Commission","page_number":27,"box":{"x":775,"y":819,"width":134,"height":9}},{"id":"ca089b8d-945d-40e9-9930-a2bddb11b531","block_type":"box","text":"Paid to Affiliates","page_number":27,"box":{"x":794,"y":829,"width":96,"height":8}},{"id":"bfc404ba-53c4-4270-aff1-6f8d24d61c7d","block_type":"box","text":"Fiscal Year Ended May 31, 2026 .","page_number":27,"box":{"x":70,"y":847,"width":242,"height":11}},{"id":"b6ae3cc3-3109-4eeb-a1fe-d868773fa57a","block_type":"box","text":"..................................","page_number":27,"box":{"x":318,"y":855,"width":271,"height":1}},{"id":"4cb58cbb-e051-42b3-8bde-d7fe6b5a5fac","block_type":"box","text":"$45,868 $0","page_number":27,"box":{"x":651,"y":846,"width":200,"height":12}},{"id":"780a7915-6664-4a15-be5b-6beb06aab730","block_type":"box","text":"Fiscal Year Ended May 31, 2025 .","page_number":27,"box":{"x":70,"y":862,"width":242,"height":11}},{"id":"f4267479-1cdf-4675-9105-1f4c5e80bdf9","block_type":"box","text":"..................................","page_number":27,"box":{"x":318,"y":870,"width":271,"height":1}},{"id":"3fe93dd3-3e1b-4fab-9d09-53477fba4123","block_type":"box","text":"$99,268 $0","page_number":27,"box":{"x":651,"y":862,"width":200,"height":11}},{"id":"ffac844c-6e53-4109-8fd1-209db3c05221","block_type":"box","text":"Fiscal Year Ended May 31, 2024 .","page_number":27,"box":{"x":70,"y":878,"width":242,"height":11}},{"id":"dfa8ce52-66a1-4fd3-a8b6-990d70ed42a4","block_type":"box","text":"..................................","page_number":27,"box":{"x":318,"y":885,"width":271,"height":1}},{"id":"0647042b-bfa1-42be-9f08-ff68dee6e518","block_type":"box","text":"$76,695 $0","page_number":27,"box":{"x":651,"y":877,"width":200,"height":11}},{"id":"4b656800-b035-40fd-9fc8-ea9305d117c2","block_type":"box","text":"I-25","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"4a40599a-d2d3-49aa-9d64-ed93ab53b683","block_type":"box","text":"NM1026U-5982509-27/232","page_number":27,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"40d90c33-ce85-4aac-bd0d-277c0d5eb457","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":28,"box":{"x":101,"y":45,"width":770,"height":11}},{"id":"db403695-6b8d-4213-9514-7c2c9797d733","block_type":"box","text":"28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as amended, and","page_number":28,"box":{"x":69,"y":60,"width":814,"height":11}},{"id":"f168cb6c-19ae-4ff8-9553-cbaaf6f714db","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended May 31, 2026. The provision of","page_number":28,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"2be5abe2-96f8-4adb-8ff8-7a9707a7c11c","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":28,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"fba4b2f3-e130-4801-ae09-31b4d9e9d7c0","block_type":"box","text":"with such brokers.","page_number":28,"box":{"x":68,"y":105,"width":130,"height":9}},{"id":"9e8be0a7-3f36-4568-8ac2-6739337f2128","block_type":"box","text":"Amount of","page_number":28,"box":{"x":396,"y":133,"width":60,"height":8}},{"id":"1d8f7496-08db-459c-8525-202486bb430d","block_type":"box","text":"Commissions","page_number":28,"box":{"x":387,"y":144,"width":77,"height":7}},{"id":"fc707e24-1336-427f-bdfd-b0b268667dad","block_type":"box","text":"Paid to Brokers","page_number":28,"box":{"x":381,"y":154,"width":90,"height":7}},{"id":"0244e35a-98b0-4ec8-96a3-3c5c29191ed3","block_type":"box","text":"for Providing","page_number":28,"box":{"x":389,"y":164,"width":73,"height":8}},{"id":"3f6a0368-2985-48fa-8ddb-d18080a3eeeb","block_type":"box","text":"28(e) Eligible","page_number":28,"box":{"x":387,"y":174,"width":78,"height":9}},{"id":"3f632dff-457b-4999-95d9-615b3488d352","block_type":"box","text":"Research Services","page_number":28,"box":{"x":372,"y":184,"width":108,"height":7}},{"id":"bd1db584-fb86-4a94-be5b-be1d3de4d095","block_type":"box","text":"Amount of Brokerage","page_number":28,"box":{"x":588,"y":174,"width":124,"height":9}},{"id":"606708ed-df5b-4786-9ec2-11d0939c8317","block_type":"box","text":"Transactions Involved","page_number":28,"box":{"x":587,"y":184,"width":126,"height":7}},{"id":"0d8090ca-95a1-486a-9000-c51fe7410688","block_type":"box","text":"$0 $0","page_number":28,"box":{"x":417,"y":201,"width":243,"height":10}},{"id":"ecf586ea-cc06-43e9-9f75-9d16562dd803","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":28,"box":{"x":101,"y":225,"width":808,"height":12}},{"id":"5215896c-8b04-4713-ae73-b48d98208831","block_type":"box","text":"the Investment Company Act) or their parents whose shares were purchased during the fiscal year ended","page_number":28,"box":{"x":68,"y":241,"width":748,"height":11}},{"id":"25264b50-724a-4f4f-b0a8-ca1b1a955706","block_type":"box","text":"May 31, 2026.","page_number":28,"box":{"x":70,"y":256,"width":104,"height":11}},{"id":"764202fc-d985-458d-88c9-53d146dc80f2","block_type":"box","text":"Securities Lending","page_number":28,"box":{"x":68,"y":286,"width":135,"height":11}},{"id":"001a712f-3a24-4883-b740-ec2767817902","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":28,"box":{"x":101,"y":309,"width":807,"height":11}},{"id":"589b2a14-4c21-4b25-adee-125b3e228c3a","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":28,"box":{"x":69,"y":324,"width":817,"height":11}},{"id":"5d9d8c29-c23f-4665-ae74-1fb7c14cd1a4","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":28,"box":{"x":69,"y":339,"width":813,"height":11}},{"id":"7403d06a-de05-40d7-ba05-a627b5eb95ac","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":28,"box":{"x":70,"y":354,"width":838,"height":11}},{"id":"8ec6c3d7-8ad7-4c29-963a-b069e4c8d05a","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":28,"box":{"x":69,"y":369,"width":813,"height":11}},{"id":"12bf7500-cb46-479e-b631-8a33fe31d9f1","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":28,"box":{"x":70,"y":384,"width":646,"height":11}},{"id":"9c31ad67-e261-49df-b58d-18749554b627","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":28,"box":{"x":101,"y":407,"width":735,"height":11}},{"id":"a386acb3-2d99-43de-b20c-057ca62c85e4","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":28,"box":{"x":69,"y":422,"width":834,"height":11}},{"id":"7dc8e34d-5b05-4e6f-971d-c47ea5b1ba89","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":28,"box":{"x":70,"y":437,"width":822,"height":11}},{"id":"a83abe9d-e7d0-46e1-82eb-c02b17a778be","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":28,"box":{"x":69,"y":452,"width":787,"height":11}},{"id":"03cc995b-65e3-41af-b6f1-3f110fbdba9e","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":28,"box":{"x":69,"y":467,"width":783,"height":12}},{"id":"d052e58c-4824-46ad-bb9c-fb20b15e1039","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":28,"box":{"x":70,"y":482,"width":800,"height":12}},{"id":"3a65a40a-79e1-4857-9328-aa01ce4fe227","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":28,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"88413f7a-5872-4182-af85-cc70e502c938","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":28,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"b448d841-8461-4dff-a33a-7565a1cc852f","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":28,"box":{"x":69,"y":528,"width":773,"height":11}},{"id":"a40c6f7b-5cd5-4fc4-94b6-91fa508e8e54","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":28,"box":{"x":101,"y":550,"width":776,"height":12}},{"id":"6c7f07a9-e43b-46cf-9e66-efb7504f0411","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":28,"box":{"x":69,"y":566,"width":831,"height":11}},{"id":"a6f99ceb-da18-4de5-9e29-bf7fc45d3c2d","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":28,"box":{"x":68,"y":581,"width":812,"height":11}},{"id":"de1b2bd3-f543-4cf6-8d3f-3276c8e7bd9e","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":28,"box":{"x":69,"y":596,"width":799,"height":11}},{"id":"8fa9c88a-b001-4e25-90a1-438af16f6438","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":28,"box":{"x":68,"y":611,"width":835,"height":11}},{"id":"c42d4246-6973-44bf-9827-369af52043b9","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":28,"box":{"x":69,"y":626,"width":818,"height":11}},{"id":"45a07b5f-a3ed-4bd8-bd0d-2d56f8e129c9","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":28,"box":{"x":68,"y":641,"width":789,"height":11}},{"id":"6f792b82-c479-4c39-bafb-1ca1da159d05","block_type":"box","text":"making a good faith estimate of cer tain costs the money market fund would incur if it were to sell a pro rata amount","page_number":28,"box":{"x":69,"y":656,"width":829,"height":12}},{"id":"2b40097d-f3c7-457e-ae37-2270805431ec","block_type":"box","text":"of each security in the por tfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":28,"box":{"x":69,"y":671,"width":839,"height":12}},{"id":"8936552b-f832-409f-8730-94bb0ec1e5d8","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":28,"box":{"x":69,"y":686,"width":802,"height":12}},{"id":"73784ddd-c740-4890-9d6d-e3dface4b23b","block_type":"box","text":"por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity fee of 1% on the value","page_number":28,"box":{"x":70,"y":702,"width":830,"height":11}},{"id":"a913a61c-6671-4c87-8c29-627cbb1d1dd3","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":28,"box":{"x":69,"y":717,"width":838,"height":11}},{"id":"c90a715a-c340-41ba-bcfe-016058b243d7","block_type":"box","text":"Fund’s returns on securities lending.","page_number":28,"box":{"x":70,"y":732,"width":258,"height":11}},{"id":"3f33ea42-4995-48c9-a3fd-8f3f44597102","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":28,"box":{"x":102,"y":755,"width":774,"height":11}},{"id":"f9b1bd81-15a2-426b-a6b7-46d90e7bb3bb","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":28,"box":{"x":69,"y":770,"width":794,"height":11}},{"id":"717719c2-f9f5-431b-a92c-27d877525780","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":28,"box":{"x":68,"y":785,"width":809,"height":11}},{"id":"dd6be782-8a6a-410f-bdaa-8b7a6d8e6765","block_type":"box","text":"Trust and BIM.","page_number":28,"box":{"x":68,"y":800,"width":103,"height":9}},{"id":"ec357dc9-9c7b-48a8-b66f-3c28ecdd6211","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 82% of securities","page_number":28,"box":{"x":102,"y":823,"width":783,"height":11}},{"id":"39dd7433-540f-41d5-b619-238d1a3fede1","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":28,"box":{"x":70,"y":838,"width":815,"height":11}},{"id":"ca0e7bea-74be-40ce-8db4-2800a9031574","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":28,"box":{"x":69,"y":853,"width":463,"height":11}},{"id":"33d01282-cb80-4409-8aca-ad83b3dad32e","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":28,"box":{"x":102,"y":875,"width":753,"height":12}},{"id":"0d34cbc7-f117-4d90-a115-fdc09cd58ab1","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":28,"box":{"x":69,"y":891,"width":778,"height":11}},{"id":"a8fb06b8-bdd9-4706-9a1b-62f4b1bea355","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":28,"box":{"x":70,"y":906,"width":817,"height":11}},{"id":"e86d1d40-1680-46b6-918e-76385ae4b37f","block_type":"box","text":"I-26","page_number":28,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"a4fbc03e-019b-4f56-8a1b-1b92ed21ebf2","block_type":"box","text":"NM1026U-5982509-28/232","page_number":28,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"95a566b8-0131-474f-9671-50e5f2808dfe","block_type":"box","text":"lending income as follows: (i) 85% of securities lending income (which excludes collateral investment fees); and","page_number":29,"box":{"x":70,"y":45,"width":794,"height":11}},{"id":"87fc0191-dd93-4644-a40e-64fa9e76c1c1","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":29,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"76a54a23-2f33-4dce-9021-0bbac742f140","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":29,"box":{"x":102,"y":82,"width":683,"height":12}},{"id":"1d8d6b61-1c56-4ab8-b07d-8578ec1473d4","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":29,"box":{"x":101,"y":105,"width":803,"height":11}},{"id":"a8492180-9d3d-465c-bcee-8d16adad3986","block_type":"box","text":"the following:","page_number":29,"box":{"x":68,"y":120,"width":93,"height":12}},{"id":"a445eff6-4d5d-4cae-91ee-a4255e7865eb","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":29,"box":{"x":69,"y":140,"width":818,"height":12}},{"id":"50457c0f-3078-4baf-afa5-840b8754b40d","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":29,"box":{"x":102,"y":155,"width":333,"height":11}},{"id":"c9126a59-68b3-4096-975b-1f227ad06f96","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":29,"box":{"x":69,"y":176,"width":538,"height":11}},{"id":"c276821f-cb7b-4588-b17e-2eb04ba474e2","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":29,"box":{"x":69,"y":196,"width":330,"height":11}},{"id":"d4b8ec51-1350-4523-ad57-87b93f21d5e5","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":29,"box":{"x":69,"y":216,"width":834,"height":11}},{"id":"d9d40149-ea91-4fe5-beb2-4888064c5645","block_type":"box","text":"of excess collateral, as necessary;","page_number":29,"box":{"x":102,"y":231,"width":246,"height":11}},{"id":"77aa3954-e646-4cd5-b948-a2e58cfe28e4","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":29,"box":{"x":69,"y":251,"width":562,"height":12}},{"id":"c4959816-bea5-4350-af1b-e32903098441","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":29,"box":{"x":69,"y":271,"width":665,"height":12}},{"id":"881f313b-fd2e-4fa4-9f3c-0223dc7f3454","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":29,"box":{"x":69,"y":292,"width":822,"height":11}},{"id":"c28c87ad-7a00-47c0-bd36-bcc72887e1d2","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":29,"box":{"x":101,"y":307,"width":803,"height":11}},{"id":"fbf7b3c7-7911-405a-b9e1-e18b97ee7930","block_type":"box","text":"of the loaned securities; and","page_number":29,"box":{"x":102,"y":322,"width":203,"height":10}},{"id":"7ea65934-0b71-4715-b453-a7e37f593d61","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":29,"box":{"x":69,"y":342,"width":808,"height":11}},{"id":"9590d79a-71f4-4485-abca-f587c7831b66","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":29,"box":{"x":101,"y":365,"width":805,"height":11}},{"id":"d4d591ab-c39e-4276-adc8-5a921521b4c4","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":29,"box":{"x":69,"y":380,"width":546,"height":11}},{"id":"0f2fd0ad-01c6-486e-9179-7070c7965d51","block_type":"box","text":"Gross income from securities lending activities","page_number":29,"box":{"x":69,"y":408,"width":343,"height":11}},{"id":"477894bf-32c3-4057-9594-4b255e2de431","block_type":"box","text":"...................................................","page_number":29,"box":{"x":416,"y":415,"width":409,"height":1}},{"id":"6f82b8e1-88ef-49af-84eb-3d9a898bdcce","block_type":"box","text":"$13,680","page_number":29,"box":{"x":847,"y":407,"width":62,"height":11}},{"id":"55a1ad35-6221-4af1-a8cf-aea707c86b81","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":29,"box":{"x":70,"y":427,"width":565,"height":11}},{"id":"0d6e7053-0261-4220-930c-174adc7b29a4","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":29,"box":{"x":79,"y":442,"width":599,"height":11}},{"id":"3f2c29c9-a3d2-4906-bacb-f2ea23fed51d","block_type":"box","text":". . . . . . . . . . . . . . . . . . $ 159","page_number":29,"box":{"x":685,"y":441,"width":224,"height":11}},{"id":"fe86c841-0196-4b7e-b47e-5c08ba24d0eb","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":29,"box":{"x":79,"y":457,"width":673,"height":12}},{"id":"a088b7ff-0387-4c81-9a3e-02a1c74d0787","block_type":"box","text":". . . . . . . . . $ 133","page_number":29,"box":{"x":758,"y":457,"width":151,"height":10}},{"id":"780fb435-4c31-4b7b-9985-8cda73bf0393","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":29,"box":{"x":78,"y":472,"width":551,"height":12}},{"id":"3cb9b104-c052-4de1-b3d3-d8e967450d0d","block_type":"box","text":"........................ $ 0","page_number":29,"box":{"x":636,"y":472,"width":273,"height":10}},{"id":"a7c5346c-461b-42b6-9aa3-68dda9f3d5af","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":29,"box":{"x":79,"y":487,"width":567,"height":12}},{"id":"2e68f060-2b63-4a82-9dd6-17c82299c495","block_type":"box","text":"...................... $ 0","page_number":29,"box":{"x":652,"y":487,"width":257,"height":10}},{"id":"a7fd0a69-11e5-4f63-b466-d2e457a07f75","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":29,"box":{"x":79,"y":503,"width":289,"height":11}},{"id":"0f2d16be-5cef-481f-8941-2a5847d6f6b8","block_type":"box","text":"........................................................","page_number":29,"box":{"x":375,"y":510,"width":450,"height":1}},{"id":"421973c2-be7a-4c92-a2c8-e7c37277b592","block_type":"box","text":"$12,619","page_number":29,"box":{"x":847,"y":502,"width":62,"height":11}},{"id":"5975f777-052b-429f-a40e-4ecf34b6ff02","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":29,"box":{"x":79,"y":518,"width":542,"height":11}},{"id":"2f461ef0-8e6b-4ed2-83b0-1674600c2016","block_type":"box","text":"......................... $ 0","page_number":29,"box":{"x":628,"y":517,"width":281,"height":11}},{"id":"db71d7d5-c51b-4e48-b3ca-b7f631968f17","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":29,"box":{"x":68,"y":533,"width":455,"height":11}},{"id":"58a5d7ab-5bb0-4d98-b258-e582f72a19f8","block_type":"box","text":".....................................","page_number":29,"box":{"x":530,"y":540,"width":295,"height":2}},{"id":"88bd5837-0382-4911-9296-a53c53413410","block_type":"box","text":"$12,911","page_number":29,"box":{"x":847,"y":532,"width":62,"height":12}},{"id":"782102b6-ac27-4029-914f-2bc1d9ad92a5","block_type":"box","text":"Net income from securities lending activities","page_number":29,"box":{"x":69,"y":552,"width":327,"height":11}},{"id":"e0f74140-f151-452b-b803-b7416bb41f07","block_type":"box","text":".....................................................","page_number":29,"box":{"x":399,"y":560,"width":426,"height":1}},{"id":"99017edb-0f36-4acd-b8f1-7d2aaad075eb","block_type":"box","text":"$ 769","page_number":29,"box":{"x":847,"y":552,"width":62,"height":10}},{"id":"8e88b0ec-321f-42c3-9d62-ceec7d928f1f","block_type":"box","text":"VIII. Additional Information","page_number":29,"box":{"x":68,"y":588,"width":195,"height":9}},{"id":"90dc1122-3cbb-43f9-a881-77debabe633c","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":29,"box":{"x":102,"y":611,"width":352,"height":11}},{"id":"1fe19c84-b1ff-4f1d-9a20-04f0216fc5f4","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":29,"box":{"x":461,"y":611,"width":412,"height":10}},{"id":"ec60093a-0437-4d5a-b59a-bd46c9c8df88","block_type":"box","text":"Street, Boston, MA 02110, serves as the Fund’s independent registered public accounting firm.","page_number":29,"box":{"x":69,"y":626,"width":685,"height":11}},{"id":"0ec8d627-786d-49b7-b90d-a454c75858c1","block_type":"box","text":"Counsel.","page_number":29,"box":{"x":101,"y":649,"width":62,"height":9}},{"id":"a892aeaf-b562-49c2-871b-990016b94352","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":29,"box":{"x":170,"y":649,"width":736,"height":11}},{"id":"f0b523f0-e671-4e03-9787-e088da62ea2f","block_type":"box","text":"the Fund’s counsel.","page_number":29,"box":{"x":68,"y":664,"width":139,"height":9}},{"id":"0e910b2d-d05d-476e-ab9c-3df908584470","block_type":"box","text":"The Trust","page_number":29,"box":{"x":68,"y":694,"width":69,"height":9}},{"id":"55fafc05-dd6e-4c22-ae3b-68b6f28ae57b","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on December 22, 1988, and is registered under the","page_number":29,"box":{"x":101,"y":717,"width":807,"height":11}},{"id":"9c6f3124-c121-47c2-9668-b0b512191aa1","block_type":"box","text":"Investment Company Act as an open-end management investment company. The Fund is non-diversified. Effective","page_number":29,"box":{"x":70,"y":732,"width":808,"height":11}},{"id":"524eb73e-2e2a-4580-a71d-857ee8476040","block_type":"box","text":"January 31, 1998, the Trust changed its name from Compass Capital Funds","page_number":29,"box":{"x":69,"y":747,"width":542,"height":11}},{"id":"70238428-dbe5-4593-abce-4fd2280a83fb","block_type":"box","text":"SM","page_number":29,"box":{"x":612,"y":747,"width":11,"height":5}},{"id":"07b32e7f-54e2-482f-9b36-71cd4c84eb1a","block_type":"box","text":"to BlackRock Funds","page_number":29,"box":{"x":628,"y":747,"width":139,"height":9}},{"id":"74d73b21-6b6e-44c1-a856-c25d465e6891","block_type":"box","text":"SM","page_number":29,"box":{"x":769,"y":747,"width":10,"height":5}},{"id":"0027e56f-09e5-4e32-806f-ee83d56c0123","block_type":"box","text":". The Trust is","page_number":29,"box":{"x":782,"y":747,"width":90,"height":9}},{"id":"ea83ca5c-69f9-4c25-8959-4312cc4f8c89","block_type":"box","text":"authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share, which","page_number":29,"box":{"x":69,"y":761,"width":827,"height":12}},{"id":"c9669ede-f2b3-4151-8fa3-c0122785a01a","block_type":"box","text":"may be divided into different series and classes. Effective on December 27, 2017, all of the issued and outstanding","page_number":29,"box":{"x":69,"y":777,"width":832,"height":12}},{"id":"0f129711-d456-4b1b-8cd7-85313be7cf77","block_type":"box","text":"Investor B Shares of the Fund were conver ted into Investor A Shares of the Fund.","page_number":29,"box":{"x":70,"y":792,"width":577,"height":9}},{"id":"21ad1271-cda0-4bef-9b5d-456b63d8dbbe","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under cer tain circumstances, be held","page_number":29,"box":{"x":102,"y":815,"width":734,"height":11}},{"id":"e8ca273a-9103-4082-bcd5-6d13511aa658","block_type":"box","text":"personally liable as par tners for the obligations of the Trust. However, the Trust’s Declaration of Trust provides that","page_number":29,"box":{"x":70,"y":830,"width":822,"height":11}},{"id":"a0b90b22-d882-4fc9-8439-8f11ec108d0f","block_type":"box","text":"shareholders shall not be subject to any personal liability in connection with the assets of the Trust for the acts or","page_number":29,"box":{"x":69,"y":845,"width":814,"height":11}},{"id":"1b419296-ca3f-421b-abc7-342e389b2dd0","block_type":"box","text":"obligations of the Trust, and that every note, bond, contract, order or other under taking made by the Trust shall","page_number":29,"box":{"x":69,"y":860,"width":794,"height":12}},{"id":"71425eb5-79a1-4e2e-bfc8-c57a20d98f37","block_type":"box","text":"contain a provision to the effect that the shareholders are not personally liable thereunder. 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South","page_number":31,"box":{"x":509,"y":475,"width":96,"height":9}},{"id":"2a4fdb2c-c058-4d23-8943-36139e882511","block_type":"box","text":"Minneapolis, MN 55402-2405","page_number":31,"box":{"x":421,"y":490,"width":215,"height":11}},{"id":"d54b82d8-f09c-4192-8299-b08dfc131645","block_type":"box","text":"6.29% Institutional Shares","page_number":31,"box":{"x":685,"y":475,"width":224,"height":9}},{"id":"a07c3898-f691-42c7-a84c-2b86f97785db","block_type":"box","text":"Wells Fargo Clearing Services, LLC 2801 Market Street","page_number":31,"box":{"x":68,"y":513,"width":531,"height":11}},{"id":"8c4b1938-b1b2-4139-9302-7f9384250fcc","block_type":"box","text":"St. Louis, MO 63103","page_number":31,"box":{"x":454,"y":528,"width":149,"height":10}},{"id":"bd36f315-f565-43ce-b179-91139aecef0e","block_type":"box","text":"6.01% Institutional Shares","page_number":31,"box":{"x":685,"y":513,"width":224,"height":9}},{"id":"83f93eab-0842-4022-b77f-d1b01277563b","block_type":"box","text":"IX. Financial Statements","page_number":31,"box":{"x":69,"y":559,"width":179,"height":9}},{"id":"015331b7-2d58-40c0-9d2d-ce8737807713","block_type":"box","text":"The audited financial statements, financial highlights and notes thereto in the Fund’s Annual Financial","page_number":31,"box":{"x":101,"y":582,"width":726,"height":11}},{"id":"9c2eb576-391e-40bd-b858-56b4f65b9329","block_type":"box","text":"Statements and Additional Information for the fiscal year ended May 31, 2026, as filed with the SEC on Form N-CSR","page_number":31,"box":{"x":69,"y":597,"width":829,"height":11}},{"id":"0ea006b7-508a-4297-bf7d-21b153785948","block_type":"box","text":"(the “2026 Annual Financial Statements”), are incorporated in this SAI by reference. No other par ts of the 2026","page_number":31,"box":{"x":69,"y":612,"width":800,"height":11}},{"id":"7a12e067-df35-40e6-980f-1abbea65e73f","block_type":"box","text":"Annual Financial Statements are incorporated by reference herein. The 2026 Annual Financial Statements have been","page_number":31,"box":{"x":68,"y":627,"width":833,"height":11}},{"id":"579add80-c811-4901-8544-5d020d7df550","block_type":"box","text":"audited by Deloitte & Touche LLP. The repor t of Deloitte & Touche LLP is incorporated herein by reference. Such 2026","page_number":31,"box":{"x":69,"y":642,"width":839,"height":12}},{"id":"457f8b6e-add9-40f2-b42f-77ffa394f587","block_type":"box","text":"Annual Financial Statements have been incorporated herein in reliance upon the repor t of such firm given their","page_number":31,"box":{"x":68,"y":658,"width":790,"height":11}},{"id":"d997e022-3ece-4875-a075-96834a1e1870","block_type":"box","text":"authority as exper ts in accounting and auditing. Additional copies of the Fund’s annual and semi-annual repor ts to","page_number":31,"box":{"x":69,"y":673,"width":815,"height":11}},{"id":"9c85e145-90ef-46f3-a761-16f5ba9d84cf","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":31,"box":{"x":69,"y":688,"width":785,"height":11}},{"id":"0b99f719-053a-4266-bcc0-13daf72ae478","block_type":"box","text":"obtained at no charge by telephoning the Distributor at the telephone number appearing on the front page of this SAI.","page_number":31,"box":{"x":69,"y":703,"width":836,"height":11}},{"id":"4f7d2011-d1fa-4074-a5ad-e0e807069612","block_type":"box","text":"I-29","page_number":31,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"27cfbcbb-c38b-4572-934f-e0f7c4eb25b1","block_type":"box","text":"NM1026U-5982509-31/232","page_number":31,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b103155a-bb08-46bf-a957-591e78e47cee","block_type":"box","text":"PART II","page_number":32,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"a2533585-bc15-4ecd-8a73-22e41034b50b","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":32,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"79727539-53d5-44a8-95fa-c7fbc7150326","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Cer tain Funds may also be referred to as “Municipal Funds” if","page_number":32,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"4df23660-22dd-4a56-88da-f31d8a5e41e4","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":32,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"a7137cbc-f24e-40dc-ad6c-5ed0c478e652","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":32,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"34d08c6d-b97e-45f9-b233-1852f2e36319","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":32,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"b932575a-7aea-4ea9-a71e-74b8b58a824c","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":32,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"72938528-423b-4170-b003-21b6db924caa","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":32,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"08f8d0be-cfbc-4b4b-929a-57747e7dbcf8","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":32,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"0299d035-0e44-4d21-aad7-bc8dfc297996","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":32,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"36ed9946-3383-438a-9306-557e4fda8ba2","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":32,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"750a04fb-e3f0-402d-874a-7c8545ecbf52","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":32,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"dd51e807-c63c-4533-88d0-3b0b253841ca","block_type":"box","text":"Ar ticles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “char ter.”","page_number":32,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"ede5c816-3580-4344-adcc-53e510bdbe84","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":32,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"68cba0f1-47c9-4ebd-8a69-ab56bb8299f2","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":32,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"0e05e6fe-74d2-4d60-9ae8-814b39e25ce7","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":32,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"214fd844-168f-4b50-b3d9-366264c8ac5c","block_type":"box","text":"Cer tain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a por tion of their assets in a","page_number":32,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"a99b0bdf-8ead-4bc2-95d9-cf003983ffdc","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":32,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"c20bfcf2-063f-4d6e-a4f0-4486e26c8fdf","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":32,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"24790b7b-39ae-494c-8094-9aecec844844","block_type":"box","text":"made at the level of the Master Por tfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":32,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"9c1f87de-b14c-48f9-a09b-32d9b74aeae0","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":32,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"38966ef0-b61b-4984-aace-1f5a278a48aa","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":32,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"701ab395-b9b7-445f-82b1-57be94d61ba0","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":32,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"5baa7c69-f1ec-425a-b311-ede314a17637","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":32,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"2ce3d535-9cc8-402c-995d-cbdda2d57801","block_type":"box","text":"par ticular Fund.","page_number":32,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"578e8788-b3a3-4abb-89bc-c21030434324","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":32,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"1ecdc4b4-6d7b-4292-bfa7-700641173b88","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":32,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"5210cdfa-0638-439c-b7d3-31e649632cc5","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":32,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"d9f73ba4-22a6-4a38-9bd1-618c65881e18","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":32,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"817b33ac-1f23-42ce-904b-3a5e7633e0c7","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":32,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"9c301398-f3a1-4e2a-8c7e-267d58ebaf3a","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":32,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"6489b1db-87c7-4f79-8f17-ad5a95cb0671","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":32,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"486b3dea-d8b2-429e-a04a-81dd5dc17a19","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":32,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"d91cd7ff-cfac-4420-9ad5-268604000d10","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":32,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"b9be45ab-67a7-4fe0-bf2d-b68938d66756","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":32,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"abcf966b-b893-4c32-8b3d-cc9e1d03315b","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":32,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"f2c2a167-3b4b-4051-b24c-04a6a1c57da5","block_type":"box","text":"Asset-Backed Securities.","page_number":32,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"1364162c-5183-4cf3-ad7d-02cef8127bae","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":32,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"4488af76-c00c-4c15-89d4-5074b66121d6","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":32,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"ed94143e-bdeb-4d0c-82ab-9b75af6e2eab","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":32,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"73aa040c-3453-4f0e-9fa5-693012211fbc","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":32,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"8e8ecd9b-7f10-4aac-84a7-344238a09734","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":32,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"999f5035-d521-42c5-bba0-b62a31ebecc3","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":32,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"9549ff9b-6a41-4892-98b3-0549de49198a","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":32,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"0679f7e7-3c3f-4dd9-8176-a2fb46c28264","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":32,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"822388c8-baa6-4640-acf0-8effde642b1d","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":32,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"3ef3935a-7cc4-4a14-965d-a39f56278e20","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":32,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"dae13b9d-c9fb-443b-946c-b44245454234","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":32,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"3b6de7f0-7ea2-4b5c-874a-b3b6fff2b085","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":32,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"66f88dc5-cd91-4a4f-a38c-5966cc09f158","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":32,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"6069c8f4-a202-4169-b1be-ac844a13baeb","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":32,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"e7cf451d-bc55-4260-a577-d600c415da0e","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":32,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"b3c4db6d-9b17-4dd3-8914-4b17794dffe4","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":32,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"8f910535-60b1-4868-a840-8acaa300230f","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":32,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"17aeb4b1-dc7c-4b59-b1a0-44f6406e5821","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":32,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"c2fcd4f6-3440-4928-a68f-f6016da37cdf","block_type":"box","text":"II-1","page_number":32,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"a3bcd6d7-3cb0-4cce-b59b-d093c39ec280","block_type":"box","text":"NM1026U-5982509-32/232","page_number":32,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"55d2e19b-88a2-40ca-9493-b2e281e4e40d","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":33,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"53682697-8986-4b32-9be7-975e94b1a455","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":33,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"e529c978-7f9e-4141-a14a-4dc6a6d9fd92","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":33,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"d15fcd39-bdaf-4888-8670-78c47acf08d3","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":33,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"86b3b4bb-825c-4272-9f0a-77c40e1ea0c2","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":33,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"619e3504-c141-4835-a728-63c7131be25f","block_type":"box","text":"Asset-Based Securities.","page_number":33,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"d039eb85-d4f0-4ca9-9ad9-7cd744574944","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":33,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"655097b3-a253-49c2-865b-145d6b241c54","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":33,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"58887c79-a112-482e-918f-d07019ad856c","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":33,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"57016c83-9c03-4aad-b1ef-2ef9894b4f27","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":33,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"96f4bdd3-5f56-40e5-ba23-707da4b9fa9f","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":33,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"6a3a27e7-cc96-401a-8e7b-5fbdd5d796b3","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":33,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"1e12f124-a679-4062-a4ac-af16ab1fec09","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":33,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"e0929ace-56a8-49fd-b9f5-fc1d98d1f24f","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":33,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"ecb9c2d3-f76a-4816-b3ea-85f3a42d5f00","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":33,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"8dfdd732-764e-478e-9814-de68492a389b","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":33,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"4f011ff2-e3e6-4f91-a4af-bfbabcbc7bad","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":33,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"7cb14638-e7f0-4144-ad57-5036bbd3f291","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":33,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"4c3fe5c0-51c3-43a9-8473-ef2d5221947e","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":33,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"e59721c7-6391-49e7-9291-d34ce8f98188","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":33,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"08d6e482-c92f-4191-ab25-95ed245eb2a4","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":33,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"1e10241c-c849-4849-b57c-383d6754f4fd","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":33,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"19767c7b-2614-45ef-bff7-5a8cbbc0e2aa","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":33,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"931a81e0-dd1d-46ed-a29e-3d4e9b424343","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":33,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"e7eabbd4-fb94-4439-83c5-ca1649f3396a","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":33,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"f3db4e93-63c2-4841-af3b-5344dc2ce8fd","block_type":"box","text":"appreciation in the underlying asset.","page_number":33,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"6c0b728e-2dd6-453a-917b-c8e41b010a63","block_type":"box","text":"Precious Metal-Related Securities.","page_number":33,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"ab335881-c295-421d-b97f-66d25d89d6cf","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":33,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"b86c8723-9cf3-4275-a113-77042176b00d","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":33,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"39d37cc5-e5ad-40d0-b7b4-3e453d180cf1","block_type":"box","text":"e.g.","page_number":33,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"0bacc0a8-78e3-40d6-a78d-8245a655a62a","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":33,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"8d5f4790-29a6-4d8e-9419-6a39cd487674","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":33,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"1c8a009e-52bd-4fe3-a664-e7ee396626da","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":33,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"cbcbafd0-e061-4241-b0d4-9a77a2c728d0","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":33,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"04d6db8f-4211-49ec-a1b3-e40a6c8f750f","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":33,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"57da5080-2e9c-4cbe-8867-e4ddd7eed87f","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":33,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"a9c31240-2178-4288-9045-fcaf00c8828c","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":33,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"7b57b846-297e-4a72-b8b9-854804b68730","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":33,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"8eeec304-3af2-4663-8f15-5cab19853c38","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":33,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"8d28a1cb-3a20-4ad4-bc13-4edf80efd2a7","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":33,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"6a15e464-45ff-4fb2-a3e4-f54c5c2de85f","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":33,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"f3f7a372-b4db-4e65-9875-3eb42557a1ca","block_type":"box","text":"South African gold production.","page_number":33,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"e6fbf4dd-820e-4503-a3d7-aba18af9fcf4","block_type":"box","text":"Borrowing and Leverage.","page_number":33,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"9ac6e3c5-c879-4dde-b5a2-563c390cd98e","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":33,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"bc1bce4d-7c95-405a-be62-13405a62799a","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":33,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"9d5a4060-a5fb-42ed-86a0-412b159e291b","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":33,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"c3470467-6b4a-4e48-b760-b667e0267531","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":33,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"d289dead-7efc-476f-9ba4-1808fdf7e9b0","block_type":"box","text":"other securities transactions.","page_number":33,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"ad468dd4-8065-498d-9db9-a6089bf657d0","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":33,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"5eb14f5c-12e9-492c-a27c-af9df9ab585c","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":33,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"b7fb6217-a56c-4ae6-9fff-37fd1d313c51","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":33,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"1e9660ef-bf68-4ebd-8449-b69aadf89f9c","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":33,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"1e26390e-82c8-45e2-a5c6-22482bd4b201","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":33,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"2cd0631e-98e5-45ec-bdf3-c529658873da","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":33,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"0c87b531-a52f-4b1d-9af6-321989fa909f","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":33,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"528c64c8-4be0-49ac-9299-15bd206c9926","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":33,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"6d3f2da8-14c5-45c9-9adc-318512b7efc5","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":33,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"70286e34-ddaa-4c2e-82e0-752cf75d7c6e","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":33,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"92734e05-f702-40fa-9a3a-06f69157a6d2","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":33,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"a37c5184-c417-479c-a3ca-386cb65aa826","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":33,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"cd749380-e041-4afb-8157-f5d4df1b369c","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":33,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"faca351c-54e5-40de-b7de-dd45b6812e7e","block_type":"box","text":"II-2","page_number":33,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"3335e3c2-3ad9-450c-9a58-51940edddde6","block_type":"box","text":"NM1026U-5982509-33/232","page_number":33,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4c196ce3-8d0a-47fe-bfca-00fcf57999fc","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":34,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"9d33dd36-5223-4fcc-9dab-844eb64e9059","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":34,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"58295556-fe84-4cc5-b8cb-893f2a9b2c38","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":34,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"e9bc29ca-dd57-4996-afe2-dda1f81c54a6","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":34,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"09b91652-7427-40f4-b1ad-0bb0e0a2c539","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":34,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"53e2439f-4370-4aeb-941a-e5f6c8a5ba13","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":34,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"338378b4-007b-4e99-ad49-e2742c50de16","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":34,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"922c0d8e-b21a-4be2-a8e1-a1dc8316dbce","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":34,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"6d90cbf6-40e2-4dc5-9a61-8064a74b3560","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":34,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"96dc96be-57cf-4a52-87c6-64f1da063981","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":34,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"09d56ce6-f851-4efd-a87d-72018383e842","block_type":"box","text":"Cash Management.","page_number":34,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"45e6cb4e-a673-4473-9979-02ae188c6d25","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":34,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"3bdcd7d8-027b-4c80-9228-0d684a60dc35","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":34,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"3e4a2294-a918-45f2-82ac-799a55cfb8b2","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":34,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"5537f05b-6030-45c5-8da1-1ca2d7549448","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":34,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"ec49e6b5-a066-413c-9c34-058d543a5ed3","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":34,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"68761875-1a06-483d-95ff-9d4dd18fdaf9","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":34,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"9108eb46-cf79-4a20-81e6-eb725a56cd69","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":34,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"7f6460b8-67e5-4e06-a170-554c2a80bce6","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":34,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"30dd2048-76e5-475b-a987-035190e65669","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":34,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"fd9e8042-fa7e-4793-8cd2-5c1d41179bf0","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":34,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"1163cea2-32a3-4206-a50b-5bd484589006","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":34,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"b05556df-1aee-4b91-95ea-a0e1e7ee5e82","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":34,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"86b011ff-eaf2-4d08-a16e-625af0204743","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":34,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"ab40d154-8c3f-47bf-bf02-3ee30e16f082","block_type":"box","text":"Collateralized Debt Obligations.","page_number":34,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"9e5066eb-de13-4e12-9729-11f841125921","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":34,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"d17b6926-b73f-47ac-b642-c4fed2c6a394","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":34,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"67d8da49-3119-461e-a085-ee1965df63c3","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":34,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"0ece1094-ca21-4ce7-bf92-5b3695e7c9b4","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":34,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"3c1afcff-83b4-43a2-a9a2-cbec7ebf6c55","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":34,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"e700ae16-5086-427d-a071-ace4368198db","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":34,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"44444c5e-0d3d-4ec9-bad2-4d8be7a8b39e","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":34,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"ebb51d4f-49f4-4086-bb55-9dc526938bb9","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":34,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"b5e29db9-4120-47bf-b22f-90dc0993fb5b","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":34,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"a89a2f76-ea56-495b-9339-c0662d3d5eb7","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":34,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"8293aa33-d001-44b1-a21f-ac55c110ff04","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":34,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"fc0fd36c-3f4f-45c0-9aa7-da1776c88d1a","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":34,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"2e77fdab-c915-4e9c-9b6f-5c5684f5098e","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":34,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"490452bb-88db-4877-96e3-d0e968f4e4ec","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":34,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"b6505253-6b18-4c8a-be94-6128b25d0c12","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":34,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"a00acaec-1c01-45f1-8ff6-968c48b7ce54","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":34,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"6c847df2-e9e6-423c-a7ec-0a3966fe84fe","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":34,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"90b43da5-eb18-4297-848f-1c3ba95b3156","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":34,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"e18cc848-6735-426b-b187-086a76c7504d","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":34,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"e0aeb31d-4308-4b0a-a218-212479e8d2fc","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":34,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"30f5af24-0455-4162-ae34-15390a35159c","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":34,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"df1b2af9-0404-4784-91c6-1f26c8846231","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":34,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"bf3175ca-1f79-4097-a3de-e42dba2745b7","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":34,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"46e4e75d-6985-43e2-8b43-ea1e7e8c51ca","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":34,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"3ee73c30-d2ab-4ce1-a821-a7b4907cd3d1","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":34,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"7e7fb297-d527-4f7b-84ba-2c138fcbe6dd","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":34,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"01cf1559-d4bd-4e35-b1b3-bd51e6bfdbf8","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":34,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"5c1df4e7-4476-4563-a571-4ea3fb2c0c61","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":34,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"befb7168-10f7-4111-8377-674febecdb3a","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":34,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"bfab2cff-0da8-4030-a7d3-c6013911a903","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":34,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"4cd4c2d4-620a-4bec-a7ea-666a86d72966","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":34,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"3ad8e383-8499-4433-a0c6-d834b7176121","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":34,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"fcc8a75d-c5a9-47a6-845e-5dd8511d9c9b","block_type":"box","text":"II-3","page_number":34,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"cba75223-424a-4815-81e2-f23358e8cc46","block_type":"box","text":"NM1026U-5982509-34/232","page_number":34,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"abe2258e-77c1-4b02-9508-f48dc44a7238","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":35,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"9789f15b-fe0d-4a1b-a238-093b275434b5","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":35,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"7c1875ac-8f63-41a2-8f17-33f19ff8307e","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":35,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"208cf288-5f77-46f5-be53-157e4209d45a","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":35,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"73d3066f-3909-4340-9e86-c48e1c6ec85d","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":35,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"23850596-02a1-4181-b23a-e00d9ee9b122","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":35,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"0e2d6e81-8a3d-4ec5-913c-3c2a04a40e5b","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":35,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"8e5fbf15-988b-46ec-9606-7d7ebbdff495","block_type":"box","text":"Commercial Paper.","page_number":35,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"3a21124a-f9fd-43e7-9d32-0d5ef1c67a7a","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":35,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"0db10fec-4aed-4431-985f-bad2acacf442","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":35,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"d526649c-4798-4022-ab17-baf929b42473","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":35,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"0cd3b085-e85b-4164-8438-deaddcbb731e","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":35,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"6f09bca0-78db-4646-8336-6adf74e21fa8","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":35,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"59671c90-0238-41a9-907d-3eb73d5b7ac0","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":35,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"fd74c6c4-4d38-4a44-b9e7-f5f436d048e4","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":35,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"ad4f5236-6c87-481c-895d-ab6a71d44d4a","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":35,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"fa39aa7b-1e05-4690-b3ff-687775102a76","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":35,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"893a94df-ed72-4f36-ba97-47f288056e91","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":35,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"bfeac6fb-269a-4742-83b5-df59c2d644b6","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":35,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"c07c7b28-11e0-4ec0-8ee3-b28ada55aecc","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":35,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"9b9dc31f-f6d0-4847-a4bb-9cccbf724a54","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":35,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"3185fb88-a4af-4374-a0f5-1a8bc4d551e6","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":35,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"303f0b3d-8eca-484d-ba16-8f498da039a3","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":35,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"76a81057-4d7c-4eb2-a523-351689c63495","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":35,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"4e6c9581-ca26-49f8-bd41-64f3ef9cec3e","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":35,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"00b8d3a8-74fd-4900-b3d8-f931ca27fa1e","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":35,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"ed1bd61b-95e7-4e50-9185-40f89dac44dc","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":35,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"0ea7452b-682c-45bc-9e5e-7c781aaffd1c","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":35,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"fb063408-4813-45a3-86d6-56762696af9d","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":35,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"2fce4603-ac42-4bae-9ecf-efde53a59498","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":35,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"fb179c8c-54db-4627-965b-3525099f27a1","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":35,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"08504eec-6ca0-4131-b20a-2e2199175ede","block_type":"box","text":"variable.","page_number":35,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"1cd0d1fb-0414-469c-8f7f-1427b26b90b9","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":35,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"df86beb1-fde8-412b-917f-accc323ca45e","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":35,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"dad1b254-016c-462f-91d7-50c871bde2fb","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":35,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"a1245b30-93bc-465c-ba08-c94913d47d45","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":35,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"4e724222-0a8a-4a58-9c4e-95def3de0616","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":35,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"36966287-3923-4de6-9032-d74bba433b18","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":35,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"7392d8b2-da03-4780-b5b3-9694ae33ee2b","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":35,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"0dc5a800-31ac-4fff-902b-aad52aa03064","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":35,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"fab136d5-6082-499d-9eba-aee0e9edc4aa","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":35,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"54e576eb-436d-46ef-b928-bb1348e565c0","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":35,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"c1a7fe84-421a-4a7b-9818-91f6febba0b2","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":35,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"c415e5df-a4b3-4121-a048-1e727d84e01d","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":35,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"98f057d9-531f-4159-a143-7964b72869e4","block_type":"box","text":"correlation with stocks and bonds.","page_number":35,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"a6bd0d39-e3a7-49a9-9393-f46ff0082bed","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":35,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"5809055b-c525-4e6d-827d-a61b9f933276","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":35,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"ad1e3766-ca58-46fd-9cdf-669522a33a0b","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":35,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"d9e57830-ee3a-4d83-bf9d-98454d7b7443","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":35,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"e776bd04-3fd3-43c8-b29d-cf9a26d4047e","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":35,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"564c7260-1e03-4175-b468-996d8a406369","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":35,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"c23f92b8-c5bc-4e6d-b247-f2670273088c","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":35,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"7053eb3b-5be0-495e-9ebb-a02d29cf75cf","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":35,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"e3cb35b4-9fc2-4f74-b3c6-c3597fec9bc8","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":35,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"dc7c783d-e514-4c7a-916c-57691e9866f5","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":35,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"b6eb2d87-35c4-49ac-9489-1ac8c603b524","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":35,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"0efb8af6-7a4d-4c4f-b059-705400814560","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":35,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"4a39c8af-cb76-4f19-ae05-3bfe2ec2fb55","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":35,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"7caf1134-f666-481a-b62f-a588185cd568","block_type":"box","text":"II-4","page_number":35,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"0d7f92a0-f895-4291-a1d8-53e5df1b70d3","block_type":"box","text":"NM1026U-5982509-35/232","page_number":35,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0b6b7653-416d-4e72-9cf5-85ea8cba72b6","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":36,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"cd7abba3-1a49-419e-94a2-1eefe1ff1eef","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":36,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"9d8407ea-9508-4747-81bf-bfab458c9f71","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":36,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"a5e172b2-6898-4b2c-8959-9b5ecc74ce01","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":36,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"ece47c65-a679-4055-9b7e-c7cfce807e00","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":36,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"35a98f0d-e98c-480d-b07f-71f97afd8989","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":36,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"07a0e9c8-4509-4c36-b18c-b71ccbacac47","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":36,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"56a79faa-8697-4692-b580-68f84d42a236","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":36,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"d0c6f0a0-0a4b-4460-bfb4-636ae3a72225","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":36,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"2e0abd33-5cb4-419e-8ff6-628da11c6526","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":36,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"a4b86e33-4d37-44e8-99a8-09c48c4e4ec9","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":36,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"8b305006-3d1c-4a68-9a22-964beb7354af","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":36,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"309c8a57-bc5c-41d8-90e4-b363ed5f2408","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":36,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"68398bcd-8171-4a42-9198-8b976b92400b","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":36,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"b0d0f4a6-18d3-4b55-81c2-971ab0c8b991","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":36,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"68427e0d-13f9-4534-b145-9386228dc82d","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":36,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"c58a6094-ac88-4fd9-b066-d7a164094f7c","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":36,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"ddd66a3c-b264-4fb2-85d0-7634e9276739","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":36,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"1616e2cf-4ef0-401b-beb2-33b3d7cf5781","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":36,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"452cf4d6-1367-4296-9ad1-7c4ee373bd20","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":36,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"dc195e76-b013-468e-92de-042df71807b7","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":36,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"336d7700-0676-4bdd-b41c-70714852c9fd","block_type":"box","text":"the Manager believes are relevant.","page_number":36,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"f59dfa22-649a-4eda-ad98-9f0c17c88f7c","block_type":"box","text":"Limitations on Leverage.","page_number":36,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"9323c820-7fe4-42d4-929c-d922f742b317","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":36,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"440da531-2629-42db-ac00-7bd7dc037907","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":36,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"fa43d1d3-4e9e-45c2-b608-336277711eeb","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":36,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"f3797e55-d4bb-4c04-950b-d15d400fff05","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":36,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"4793b0a7-a0fc-41ee-9348-1adeba6d6330","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":36,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"5801f9a5-92b1-43db-8888-74e2efe1b5ee","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":36,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"2f2db817-73d6-4cc9-b931-ad859e389fc6","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":36,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"13872d9f-f4ec-42c3-9304-60194bb29108","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":36,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"00aafaba-7d3b-4e44-9b44-be8c238aad8e","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":36,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"59e7cb5d-8d31-4da9-ac8a-91c2c6bb93dd","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":36,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"153cc983-654a-444f-934f-22beed82c5da","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":36,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"c712b159-4568-4268-8494-2cf150509b76","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":36,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"7c632b66-a04d-48e7-a3c4-3592f4977d3b","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":36,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"4f8440b4-8685-4bf4-8227-61929ce0bd5a","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":36,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"bdaf7cc6-b54d-4c71-be97-d20cec969584","block_type":"box","text":"Counterpar ty Risk.","page_number":36,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"6d0b559b-6209-4481-a06c-841bbfb524ac","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":36,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"9fea4a41-bb9f-45d3-b00b-5ed3885cc2c8","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":36,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"7b3b9744-4738-4929-91ac-5eff89c2132e","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":36,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"a8fff186-738c-4ae2-a0d1-510f79c8bc21","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":36,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"d51a8da5-0b34-41a3-ba39-240f632b6756","block_type":"box","text":"e.g.","page_number":36,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"a6750552-daa1-4a8e-9509-bd186e59f506","block_type":"box","text":",","page_number":36,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"190bd8a7-e5b2-49ad-b526-2997bd445fdc","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":36,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"2073e89f-f6a5-41dc-8409-85d967c46f1b","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":36,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"4fcaa677-0b6d-43e8-8f3e-8fd4c0068cdb","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":36,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"64fd9676-1cbd-49c9-a8b9-6b170e365777","block_type":"box","text":"obligations under the structured note.","page_number":36,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"42ff3a13-3ded-46f8-982f-aab1fa812df0","block_type":"box","text":"Convertible Securities.","page_number":36,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"072e1120-3ac1-4ab8-81a9-2782ef6b7e0e","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":36,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"8cd4ad8c-8b83-4e89-8bca-1ce4df37c01c","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":36,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"5f8a0bbe-035e-4512-beb0-abd733ea75e8","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":36,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"0c6b8bbb-d240-464e-9c94-599bd8120026","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":36,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"ceed3955-11b7-459a-8e07-d140cdf477cc","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":36,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"50d27f06-ec61-4944-b4d8-98c3f2dc1481","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":36,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"6179f713-b4b7-4cac-a672-b02ec881619f","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":36,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"c200faa5-3ee4-4156-bdef-38b31e0d1a42","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":36,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"75f3a800-08c4-44fb-9a47-a3f773382138","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":36,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"65c8cffe-9e45-4a34-ba1f-5f0e802cf843","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":36,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"cfc475a8-c3dc-4531-8bc6-e61b11b118d5","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":36,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"507c1af2-0935-48b0-a7a8-93d9d86f9005","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":36,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"d46ee733-e59f-4034-a47f-d1cd7af2a36b","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":36,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"05c0a282-bcce-47b3-bc63-3fefe1bd3a2d","block_type":"box","text":"II-5","page_number":36,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"29c7f1a4-3bc1-4cd9-809d-b33b563bfbf8","block_type":"box","text":"NM1026U-5982509-36/232","page_number":36,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a2f75a71-73e1-4050-9fab-4d5136bf0b2c","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":37,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"4879ba89-005c-48e9-987d-4d3f2d62be07","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":37,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"437c3075-1467-4b19-83dc-1bbc5587afb3","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":37,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"2c50cfde-ac80-40e1-abb7-95fb14617b68","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":37,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"805ada39-06ce-4543-b816-9aa39161a05b","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":37,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"1d29971f-055b-4420-9ab8-84d4097e7510","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":37,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"ab053af4-e4e4-4669-b79c-07019308540c","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":37,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"aad1fa7f-2eee-4b87-95d1-41aabb62458c","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":37,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"a969b42f-2eda-47de-8c98-59d368a4ff45","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":37,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"d12c2cba-0189-4d1d-8ded-b19c08068773","block_type":"box","text":"things.","page_number":37,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"af186e0c-248d-412e-988d-056d0e85c61d","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":37,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"df9ca68c-7672-4318-9be7-bcdf60277c5c","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":37,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"eaef57e5-4651-40f7-a086-4fb31eee3c5a","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":37,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"a30b3b38-4ec5-49e8-bff7-461928acf290","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":37,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"f66bfa2b-d88e-4733-8b58-37f466a48e0b","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":37,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"5d180c39-8790-4fbd-a1e8-d8b54eaa8844","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":37,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"c1ecaa02-10a3-4448-8930-ccdd51776bb4","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":37,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"2a9e5377-2ed6-41e3-b887-c4dcd1ecfc8d","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":37,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"5767020e-d854-4799-ac20-7b76eeadf7e5","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":37,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"dcb52107-0472-410f-b6b0-9506d55a659d","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":37,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"219e1129-d530-457a-81ea-cde7ed1d63ec","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":37,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"7d500d45-37df-4a57-873f-5f4f6b02a97d","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":37,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"d7fa61ad-b89e-47dd-9d5e-bca7a4f385ba","block_type":"box","text":"i.e.","page_number":37,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"122fc82f-9f7e-4f96-be64-98500447cd28","block_type":"box","text":", strictly on the basis of its yield) is","page_number":37,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"ca37aaf7-63b4-468f-a918-c726d4b548f4","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":37,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"a90d5daf-534b-4138-b300-d15c3a3309f6","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":37,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"d01ff85c-dd43-4d54-9de5-bfa109701efa","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":37,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"53fc595d-1c6d-4cf4-96ca-8d8a27633d21","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":37,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"dcc529c2-ef08-423f-84f6-43ae63c03bbd","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":37,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"faf4a8d8-0601-48cf-a6aa-ddd60af6d4ce","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":37,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"ee64c02e-d13b-4d2d-a36b-47a4ae81237c","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":37,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"744434d6-793e-4f16-a2ed-1b84785770b4","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":37,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"4ff42dd7-d8f7-403d-9aca-447db08688ca","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":37,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"9021aa7e-e06a-4721-b07f-34d405b43c26","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":37,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"b84111e6-0b7f-4fcc-928d-b418e85047bf","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":37,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"b28693fd-2c9d-4fa4-8639-fa18ccf5a848","block_type":"box","text":"than the securities’ investment value.","page_number":37,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"b22db305-d971-4f83-99ff-115bc0afafd5","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":37,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"9a5e0b89-fcc8-4617-8844-2105133b4c08","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":37,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"5f971ae3-06e5-4158-8fe9-c501c908bcee","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":37,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"7abd8f8c-d8b2-4c97-b282-44ddff2ab6cc","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":37,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"ebc4c872-076e-493e-aa6c-61555524fd64","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":37,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"d92680c9-dec6-409c-80b9-0425edaa1ba6","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":37,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"33806165-cf43-4462-9955-d8b9a1eff3b4","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":37,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"277914df-256d-4a18-911c-c6be95874cc3","block_type":"box","text":"security under cer tain circumstances.","page_number":37,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"0eb17b2c-08c7-4fde-937e-2024ccc0767f","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":37,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"90344904-ebf9-491e-9438-48f42489a613","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":37,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"38321f7f-26a6-4643-a5e2-11b14206d94e","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":37,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"d64e49e9-f396-44a2-a8a3-409b307d4269","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":37,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"efe02d92-b5ae-46ca-9675-7b133c6506d3","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":37,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"3c5df49e-9ee9-48ab-a120-53047a4c6a2c","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":37,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"48fb7db5-677d-408a-b243-61d300b70593","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":37,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"5eae6f4b-4cad-4239-ac5b-78614c943cf1","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":37,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"5fedc9b7-9554-4be1-b868-a52930729df9","block_type":"box","text":"i.e.","page_number":37,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"33aae135-56d8-49e0-a2ce-6ff6658cb428","block_type":"box","text":", fixed-income (“fixed","page_number":37,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"2de2b9bc-b87e-4152-ab61-c970e70bec98","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":37,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"e1989edd-9196-4de5-9e38-873d7dec56d5","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":37,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"973f0c9d-8255-47fd-9042-0824cabad8eb","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":37,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"03090c49-13b8-4b9c-a97b-888a4e26a86f","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":37,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"f287274c-1cc8-4d5a-b10c-215b3548eae6","block_type":"box","text":"II-6","page_number":37,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"718db27b-2582-426e-b7de-909f26c4fdb2","block_type":"box","text":"NM1026U-5982509-37/232","page_number":37,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c6aa8fdc-bf96-46ea-ac7b-129b5dcf68bc","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":38,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"818c1aa9-a3de-40fb-b7ab-489da18ffe0c","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":38,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"2bfe005c-6121-4cc4-9e52-42d24dcebdaa","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":38,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"05e037f2-cc52-4d80-8a69-8b064e476687","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":38,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"b6620bc2-a1c9-4c39-840a-d971178538d8","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":38,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"af875096-da61-4523-b5ad-c7bef573ffe2","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":38,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"a7539e31-2036-40b2-b2e4-0069a1a8aecb","block_type":"box","text":"component.","page_number":38,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"cf76e243-f045-447c-86e6-b38b2fbeff06","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":38,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"37b796e4-0066-42c2-a8ec-36ffaf50c08a","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":38,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"b53f5c01-79a1-420d-8684-aba308c21de2","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":38,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"8841050f-39d9-4119-92ea-4f74577fe9ec","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":38,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"94464968-2a7b-40a6-a5b3-4814b509d9c6","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":38,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"dce45e2e-1148-4d5c-ac28-3c717d7f09c9","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":38,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"52f76ec9-4256-4498-a837-af685f07fee8","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":38,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"7bc3891c-8f65-49cf-b7b0-3d914b00bb1e","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":38,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"50ff9434-903f-484d-9e65-0ee517d1a13b","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":38,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"97a0afdc-e2ac-4d1e-b8a9-4614dc22fdf1","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":38,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"8e7dbc3f-69ef-46d2-b53d-fc5364b095b2","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":38,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"defa0d62-0140-437c-bab9-21dc25aada3e","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":38,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"dfc54e49-eef8-4e67-803f-bf14b42e47ba","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":38,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"70b75fbc-010c-444d-8d22-9a9024b943e7","block_type":"box","text":"favorable market conditions.","page_number":38,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"c24dad3f-ddd0-4b65-9434-c34e86d2efbd","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":38,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"4fbb4936-bd2f-4119-ae39-a3bb309280d8","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":38,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"ac38cfd6-f86b-44c5-beaf-4b0c47a1145b","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":38,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"cdce2a1d-7fc5-4fd7-8886-571e3f7a3710","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":38,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"8d2ae181-0994-4fba-aa16-6148cfe4c0b1","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":38,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"2250e890-66ea-4fb8-97ed-f1a4c3427f5b","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":38,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"f32dc5be-0abc-4f7c-a585-5beb8b302fd8","block_type":"box","text":"Corporate Loans.","page_number":38,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"b0c9fb5c-5084-4d62-97fc-ff1129de0f1e","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":38,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"4be81414-8d70-442c-9c13-1d7fc8abdd1c","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":38,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"f097f3ea-52da-45bc-a787-2ddf3cef3bae","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":38,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"1462ea7c-cc6e-42e3-a104-68e9bac6e826","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":38,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"1d3e762b-7f64-4620-af81-b3637dec666a","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":38,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"6b769421-97f6-4518-8553-2be86d8b91e9","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":38,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"e719d495-3d08-42dc-978c-77d107ef2fc3","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":38,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"9e6a492a-518d-4e88-b5e7-9e61119804da","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":38,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"249c3d66-3458-441e-9468-e0a08ae69f2d","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":38,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"ab6ad730-d44c-4e98-8cb8-a4bcbd9747e5","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":38,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"702d708d-6539-4d14-a11a-4deda106eb68","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":38,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"652adf2e-f55b-4aa7-87ab-99405cd1f5eb","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":38,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"2f86d7fe-86fd-424b-beb6-a193ec8759f9","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":38,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"86228d8a-5578-407e-8371-780fdd3a2b4d","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":38,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"af7eb631-5563-4208-b5f9-572ba116d377","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":38,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"ada5f3a7-c78b-460c-8d27-d18edb74dd57","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":38,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"f234205e-c953-4c6e-93ad-fc441f702a26","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":38,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"51f255ee-c249-439f-89c4-d32825604960","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":38,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"f912c47d-cd92-4412-82af-4df4babe8739","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":38,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"2ea5d186-ea4b-42c7-b7e1-6eaf754372ff","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":38,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"1b940b14-4d25-4b66-ad9a-f4bc61595634","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":38,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"1c517163-a7a4-4fd9-a430-c3aa05e996f8","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":38,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"9c3fa200-fac3-4ca5-88a0-0bb94a3e90d3","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":38,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"1ab8bfb4-ec07-45a5-bd2d-1f40002b2f3e","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":38,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"8440280e-cba0-45c1-9441-e7d78e87b0c2","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":38,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"b5961291-abf3-42f5-bf32-adfcb428cc86","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":38,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"930e6a58-3d85-4539-90a5-b9991a50e904","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":38,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"d7a0bc82-d8e0-4e2f-88cd-5765d4dab0f0","block_type":"box","text":"of the borrower.","page_number":38,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"15fc934b-7f5f-48b6-86c9-7ed2c479f0b2","block_type":"box","text":"II-7","page_number":38,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"f094015e-4c69-4ec5-845d-586c2198a215","block_type":"box","text":"NM1026U-5982509-38/232","page_number":38,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"be082b95-7a63-4a2f-bbab-8e3b9334d7c3","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":39,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"c6a2b038-dbe8-4284-84d3-d34756de869b","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":39,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"02613f92-4e2e-43c6-9d68-0e05eb1d77aa","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":39,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"652fe5e9-ee64-4ed0-ae06-a4b27f08495c","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":39,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"26e5b4ba-7318-4efa-a17b-203b11b5d632","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":39,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"a438bea5-d10e-42e5-b67e-63be1b82e2b3","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":39,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"be312ae2-c015-48c8-8497-fcf3acceefd6","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":39,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"7c16b532-a6d3-435c-925b-8f2bca6ac72d","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":39,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"43f0636c-838d-4efd-b6e0-4ce2a29238e0","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":39,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"4d578c2d-f0cf-4a8a-bace-1c6fe923c173","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":39,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"5c5ba9cf-ec0c-4d48-8869-4a6bf07e16a2","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":39,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"a8a4622e-1d88-4101-a506-eb99745d33ac","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":39,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"6ca4e612-c2ed-4602-b144-e79a816753d8","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":39,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"ef64de95-77bb-4e48-8b05-0f00cfcb327f","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":39,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"377674b3-5d82-44ef-bcbb-aa5908238c5b","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":39,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"6dc72d04-a160-4f02-897f-b58710e96f38","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":39,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"5116ec05-3082-4ee9-aa5a-a51a8d7345ca","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":39,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"1bfcc883-306c-47c5-8214-857d0604fd7a","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":39,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"a71ad87a-9da9-4dbf-a72f-d9af99139315","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":39,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"8705648e-ed60-4f36-9b8c-4dec210a6625","block_type":"box","text":"state law.","page_number":39,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"5f1eb8fd-b89a-46ab-9a72-377b181e398f","block_type":"box","text":"Direct Lending.","page_number":39,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"40e66f26-d4eb-4913-b47b-ca89794a738f","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":39,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"3cc7f992-04e4-4db4-9a94-808497ae3266","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":39,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"5efc405c-cdbc-42ef-8f8a-0e100029af14","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":39,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"8c815049-7d58-4658-8194-634e9e3aa281","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":39,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"6db049e9-57b4-4e30-af19-f7946c9445e4","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":39,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"3cc45e3a-c605-494a-9d00-9dc30a7ae575","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":39,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"e5ce4566-ddbc-4f55-9718-44e866402406","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":39,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"9cdf67e7-0a16-4d1f-9cee-e5bf3a63e252","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":39,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"05d2ecc0-e1a8-440f-93e0-7ccf96d345a9","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":39,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"75d87bcf-7616-49c5-b757-6e900bd566dd","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":39,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"5535737d-c8ca-46d2-9cfb-f2ac0a2a17d1","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":39,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"3ea02b49-7c5d-418f-b533-4824f8e28e75","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":39,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"cfb0dd62-4c65-4f60-a8d0-d58b80d70d45","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":39,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"a6b692ca-4b6a-470c-9966-4dd738e692ce","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":39,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"1f3ae0d3-4cae-4ec4-9aae-2e5aab7c6efc","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":39,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"a2833749-b4ca-47ed-bbe2-eeb1455fc89f","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":39,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"dc302858-70c7-4a5d-87cc-9ba89230783e","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":39,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"5f2e49ce-c3df-406e-b964-28999ddf5280","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":39,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"4b6a70ff-b6cc-47e7-8b93-0062ed6f33ae","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":39,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"db78aedd-f917-4a8a-9df1-3aaed5f37912","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":39,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"960852bd-bce1-4b9d-b762-824a1527e1ec","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":39,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"348b3503-1912-49f5-9786-055bda963742","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":39,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"70e64a58-53df-498a-8974-86aac07190b3","block_type":"box","text":"Credit Linked Securities.","page_number":39,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"1b6ee137-39e3-4c23-87b2-2d892568e3a8","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":39,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"2b2d7273-3690-4308-a84e-af8945cdede0","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":39,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"825af73f-7699-4ced-9e79-5a6c6c53b429","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":39,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"4182748b-d4b1-4c74-a08f-59d1349fbeef","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":39,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"0d15553a-9981-46e7-9647-90d975afc38a","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":39,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"0cd38dec-ea07-4ac0-8a5c-6efc4b95df38","block_type":"box","text":"traditional income producing securities are not available.","page_number":39,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"92ccc95e-37bc-4a6f-87de-cf5bba6ea863","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":39,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"f77932ab-86b3-4e12-bfa4-ea37f2220e29","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":39,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"8f71b148-96d1-4568-8c76-e7538df7348f","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":39,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"7a26b22b-0223-4ca8-91c7-30afa1d810a5","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":39,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"4e6e037d-98c5-4b23-87a8-6c60013a3f5e","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":39,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"7e8cc5b5-6241-40e1-b685-b83c14735511","block_type":"box","text":"II-8","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"11c0af03-e9ae-41dd-a300-098e2da576a6","block_type":"box","text":"NM1026U-5982509-39/232","page_number":39,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4deae2db-a277-4685-b686-42210abab0e9","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":40,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"f85cfc52-e4c1-4a11-921c-6378213e5266","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":40,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"9db3f871-8c34-41b6-82e4-e062cc67fbf3","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":40,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"a0414b35-4ff2-45b8-8921-a3f0f1273ac5","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":40,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"a5534be1-6779-4faa-9823-40b302e8050d","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":40,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"40cf7da3-9de2-40e7-acff-c06d3d7fd63f","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":40,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"6db75128-6d49-40f2-afc2-3b5e5b2fe312","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":40,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"104bc2e8-0446-4f62-be90-f8863c02f69f","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":40,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"f9ff50f0-5680-47ca-b3a8-ccf486b8f372","block_type":"box","text":"investments.","page_number":40,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"e932efbf-3106-4151-97c6-a4b12f2ec166","block_type":"box","text":"Debt Securities.","page_number":40,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"14718601-2811-4ca2-801c-afc66931f570","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":40,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"2091e876-e204-4be5-bd9d-1ea6c6e53edf","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":40,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"fc97c42e-1b33-46f9-868c-003f7b77587b","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":40,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"85521579-0191-4d9e-950d-528f31fde1c8","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":40,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"47fd5deb-f1ec-4c50-bba5-eaeb6b71c9f6","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":40,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"c50da7e9-cdbc-45c2-8fec-f65fb86c7a19","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":40,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"fe17e166-9a9e-405c-b32c-6f38d758f359","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":40,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"75edaa7e-3466-4a26-b1de-b5a9d564fbe8","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":40,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"80e4e1bd-7456-4af1-aae6-b8e8024a56e8","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":40,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"42d37f46-8338-4f91-998b-7cbe4f30cea1","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":40,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"afc36e02-a37f-4d97-8206-f68a157efa23","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":40,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"d99e8148-d730-4e99-a653-c690a08e6486","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":40,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"bfefec0c-93fa-4473-854b-8380d40160d1","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":40,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"65e7fe2d-5ee4-4556-a973-9ca7b4cc58ea","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":40,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"79936e73-2e8c-40e1-ae7b-56a9f2536a19","block_type":"box","text":"lose value. This is known as extension risk.","page_number":40,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"5110710b-f558-4424-aa55-4afddc41b606","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":40,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"10856a9f-bacb-4cad-9e0b-f59f1f4463ec","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":40,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"aaddd987-d6b5-478d-b3de-37633a46a7a6","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":40,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"cf9a6b7d-be0b-4356-bfbe-febceb3ff88a","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":40,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"e702a30e-dbe1-4c26-9044-fdb5077a9e7a","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":40,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"a720f504-8ac9-4d47-ae18-a3004a5cef76","block_type":"box","text":"Floating and Variable Rate Securities","page_number":40,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"0f846077-0e3e-4791-b725-bc0f6a1c31a8","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":40,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"ee787c1e-fdfe-449f-a2fd-021ff48858d0","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":40,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"2038e4fd-7d59-49f3-a8a9-30d91a9d9031","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":40,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"a5a7f67b-4398-487d-aa93-97a96eeec107","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":40,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"e03c1ea5-f731-4f58-8769-025d59fe446b","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":40,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"02d98d99-79b9-4cd7-834d-ab6a6613b5f3","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":40,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"24f1bd9d-893c-4ef6-8808-de1ef3321290","block_type":"box","text":"market interest rates.","page_number":40,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"1f6ab995-c2fe-4a5d-9a20-37799f5e20cb","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":40,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"afe3178e-c35a-4b25-8916-b0127bb5883a","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":40,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"2d167391-c4dd-4e22-a314-3facc40e8956","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":40,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"b790d748-fc10-426f-be72-1bd9e3c67011","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":40,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"0bccad1d-3bb1-4c50-807d-e42b482de500","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":40,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"5799d589-c40c-4016-84ed-9b1cbdf975b9","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":40,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"c591c6f5-bc83-4fe0-919c-28e69dc88a48","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":40,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"75f98c51-137b-4e4f-968e-d18d0c3b446e","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":40,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"ea84e646-62e1-48b0-97dc-928eee7cd5a6","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":40,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"f650ebe6-6c0d-4ca0-96ef-7f4af13976c8","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":40,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"4973e0de-ae7f-470f-96d5-c1c6c5144ba3","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":40,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"5ec08938-c74f-4c7a-a8b2-948d9b89d7d6","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":40,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"e3658cf5-d9b6-42b7-a8f0-9aebf95e3b98","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":40,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"7d713c67-62e7-4b25-ac48-23808e1af29d","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":40,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"c031106c-1f81-429f-a4ea-d64b96cd91ef","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":40,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"f02adab9-15c3-4cfb-95b5-7d7f97babf4f","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":40,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"09676b30-27a9-40e4-b6e3-2a54a6cc6bae","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":40,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"cc366c8f-f6c7-495b-88b5-f02426125ab3","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":40,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"7d2b03cc-dcec-4f81-b763-a433b0abecd1","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":40,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"5aaa9a45-3022-4fb9-8aec-f451b467f72a","block_type":"box","text":"II-9","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"76882a46-a274-416c-b975-80c788b667c9","block_type":"box","text":"NM1026U-5982509-40/232","page_number":40,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e8d298b1-f726-4f33-b081-e54a94a23b07","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":41,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"12b271a3-fc88-4715-9b94-a122a9b1ad64","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":41,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"f25a2c84-64a6-479b-807b-9d98bcd0398b","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":41,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"263f897e-ab00-4d24-95ba-db13d399a419","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":41,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"1e758946-8158-440e-a50e-66a6b87bab0c","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":41,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"33fa46a6-e448-460a-934b-b4fa55bba929","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":41,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"0deaf0fe-7cc6-49e2-8af2-176628cdeec4","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":41,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"7383afcd-4bc8-400f-9c76-63e0f5b287a4","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":41,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"0e06d2b6-eaa7-4c76-a52e-9f2b2cc32981","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":41,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"9bc7b829-b4cb-48aa-88f0-6051c3ce04bd","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":41,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"5f074531-d744-4c82-b0bd-7a09a1b16044","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":41,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"33377e40-574b-4dd6-8b51-46085f4da98b","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":41,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"778b7edd-2914-404c-9667-7adae7333713","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":41,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"c0fc0aff-0479-4062-acde-0b95cf0d50ec","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":41,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"72902b80-7eea-4bc0-8e28-7b7a8acd907e","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":41,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"5a8c8f2f-44d9-46ab-8656-c15e3fc37610","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":41,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"3c6ae324-b70a-4448-920c-bbacaebf3ab3","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":41,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"fc156ee8-4e5a-4fb0-ba89-f89a62b036d2","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":41,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"29402773-ba42-4afb-b397-757dda7b8950","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":41,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"5bf4ae79-bc2b-494f-be7f-aa8804dbe787","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":41,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"6b860aca-7018-48c1-b756-a0b3eb06196b","block_type":"box","text":"United States.","page_number":41,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"be7ef635-09eb-4f50-b8d9-ecb120d72c6e","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":41,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"6163ce88-4e41-44ce-8187-a87ba2527318","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":41,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"9686784f-2f60-4a9f-956c-6ed911b825c8","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":41,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"7915137c-8b82-4ee2-bcc2-c1d134336f62","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":41,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"a2b388b5-03ad-43e9-a1db-996b379080a3","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":41,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"4bc6b309-9ee7-43a2-9669-e8980b753cac","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":41,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"5131b6c2-b902-42c4-928d-a9f23f99b755","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":41,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"d3c81334-d3d9-48ea-b631-b66c48383d1b","block_type":"box","text":"i.e.","page_number":41,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"402925b0-2eec-4655-8d21-f0aaf7135bee","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":41,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"90b32116-1460-4c24-af5d-bc85db152095","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":41,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"89fb8e58-4691-4be5-a134-c2c930386eaa","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":41,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"01b89cf4-1b50-48bf-bd1d-e66d633c472f","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":41,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"219b828b-1478-46c8-a863-0020194308b8","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":41,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"9a278a77-4218-4309-82e8-47f49744738b","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":41,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"b463fa3d-ab8b-4aca-a98d-f5d093ea0fd3","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":41,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"53e8c41d-e8e3-47c9-93c4-79a36d5777ac","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":41,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"a977da1e-b2cb-45c8-9396-eb166289bc75","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":41,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"ac179efd-caa5-4eb7-95b4-fca46dbc1e0a","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":41,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"2b4c0a42-527f-44cb-9f17-362b16b3edaf","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":41,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"d809e1ce-b9b2-48ae-8d9d-7242eeb50df4","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":41,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"3df41605-f00c-4555-b488-ce91b02834a2","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":41,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"7548f16e-89f8-460d-b360-c9ca709c6937","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":41,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"dfe405b4-c54d-4c8a-83bc-e56db42bbc3a","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":41,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"c3296828-50c2-4dd7-b5d4-2bffb25ded1a","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":41,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"6ad9d97e-3895-4055-8fff-adba98c0b913","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":41,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"d441978c-c871-41b1-bf7d-28626873145b","block_type":"box","text":"risk than higher rated securities.","page_number":41,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"c2cebd5c-2c79-4487-8269-a1307b7a1cf5","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":41,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"2211921c-3b9a-4861-81b8-6ce768376031","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"d8abb6b6-1ce2-4589-a082-581a7c249699","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":41,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"6acc8886-5084-4440-856a-e6f0a6e499d5","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":41,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"e2cc663e-fe97-48d5-bfa2-590fbff5971e","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":41,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"31d68bfd-00db-41e7-b9cb-b7cdfed51658","block_type":"box","text":"unavailability of additional financing.","page_number":41,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"7a5d9588-e7a9-4553-bcfe-6cb263ff9dce","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"1b2687c4-7735-412b-b3f9-8d8956ebe00d","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":41,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"45be4395-bc89-4fc8-be6f-be5cccc30d4d","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":41,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"ab8e9440-6fef-458b-9fbd-2426936d6574","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":41,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"815cba1b-9c9a-491e-a670-da56b17065cc","block_type":"box","text":"II-10","page_number":41,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"27704747-9aa9-4e40-b20a-02bc109376e1","block_type":"box","text":"NM1026U-5982509-41/232","page_number":41,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"52c9914f-6e5e-4c6a-a359-1dfcad9eafe0","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":42,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"8ae8b9f0-76b6-461d-8bf7-00f5074d9d0a","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":42,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"e24e2715-b1fe-4255-bab1-6df530559dbb","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"9e044917-f64d-4d78-a9d1-983cec572f3f","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":42,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"9f8c3039-729e-49a2-8a74-abcca296c582","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":42,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"06e04f49-f379-4c39-9469-b235f0b7aab7","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":42,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"5142dd04-59a2-4ae6-bf9a-19c19cd15737","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":42,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"c3ab83c9-d430-480e-bcdc-0c7cfde18e65","block_type":"box","text":"investors in higher rated securities.","page_number":42,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"aeec5f5a-d6bd-4a0d-b0d4-688380de44d0","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"cdbe22b1-12f4-45a7-96ac-25ae6f75f330","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":42,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"3f61007a-c382-4335-ae4d-452fe2a280ef","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":42,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"73cd2b79-c824-4b2f-bca5-4e9f98393dcb","block_type":"box","text":"lower yields and may lose income.","page_number":42,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"c6b06f8e-a544-420c-97f7-ce47aa274e93","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"03af0241-66ea-4446-9b55-4056512425e0","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":42,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"ceedaa4b-7242-4aa0-8e04-814d45e2c1c1","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":42,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"d6c14750-4aac-45da-bc5e-6ad050753be8","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"67f94354-87b5-4919-b7de-78b45f289c35","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":42,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"51e04fce-26e6-4139-869c-747b2c44cced","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":42,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"c4fb9474-9128-4506-95e4-1c77a162e962","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":42,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"c724f6a3-be17-4392-9cad-a035c1970428","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":42,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"f2a81933-7de5-4c6d-9f20-509c64f3a020","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":42,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"6f1b95c8-dd39-4232-a748-f26ac4bea478","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":42,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"30420dd4-4af5-4b7f-8271-77cad2bf2172","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":42,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"cda67686-c2a4-49ea-b459-65e57733379c","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"88ca4605-db6f-49b6-92d0-7ae3d53db4b8","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":42,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"e733e269-e1bc-4343-9fdb-1a9e1c390600","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":42,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"f451b880-b9c4-4700-a3c1-77c924d9afef","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":42,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"a58af2fc-babd-4a23-8492-aea273ef85ba","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":42,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"7e0e546d-365d-40cf-a2ba-5256a569aa2e","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":42,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"e8bb9e29-f3e1-4f79-a84f-77868538723b","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":42,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"1bd879c0-3ef2-4438-ab22-218fa807fe44","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":42,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"905b4566-f8a1-4208-a942-4c3514f007da","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":42,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"abf69e5f-90f8-49ec-85e4-be14073afa83","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":42,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"3ee5d7c9-6b63-4e15-aa66-3684d0316990","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":42,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"c9ada7dd-c157-40a9-aa74-d3a586d0154b","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":42,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"968ef8f4-8053-4848-bf20-3094b89610bf","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":42,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"f3821eae-6e94-4364-99d9-2a14f65a49ef","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":42,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"a7c58259-c2ef-4004-9c49-fb51ad217925","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":42,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"9204bc6f-780f-4edf-9b33-e7f467e0e66e","block_type":"box","text":"role in determining such valuations.","page_number":42,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"e11c58dc-8d13-475d-80bb-b7642d91e352","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"2ab5a6cf-1a53-4b37-b130-cddd8f4086c2","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":42,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"c4384a7d-3e93-479c-97ea-9dea7cc3e82d","block_type":"box","text":"a defaulting issuer.","page_number":42,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"705785cd-8c81-49e7-b197-cb9a19a0cb50","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"5c40fa4c-5356-4553-8c32-36bf542ee5fd","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":42,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"45d45e4a-a51b-4b73-ae6b-f4320634914d","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":42,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"4740c33b-74b3-4ba8-b83a-5a5967ef93b2","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":42,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"5f3ae6e7-11c8-40b4-a059-b819ecfe2292","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":42,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"99e345d9-cc6a-4a46-80e8-4e0917d12cdd","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":42,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"e44480cb-9bc6-4ae8-b6db-cd3efa5754a7","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":42,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"de674071-4853-4aa3-aa4c-daec0c850107","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":42,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"0f76f725-00dd-42b4-a1f5-eebf98121c57","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":42,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"3c405776-b5d4-40af-9b6f-30c622ba8831","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"828bdf07-da6e-4ce1-85cd-373dda75e33d","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":42,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"7dd099d2-eead-4ed3-84f4-7857ee218651","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":42,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"ed6d2fce-acd3-433f-99d2-7018821b05e1","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":42,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"fe8f480c-c3a0-4c44-a6df-37cb7442ecad","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":42,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"c2ba4c17-6fe1-40d9-8dd7-8e436f12b69f","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":42,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"256e4306-56a0-4366-b80a-521848eac41a","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":42,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"e9df6694-1cae-4ac8-ba34-4de4c71c1a6e","block_type":"box","text":"higher-rated securities.","page_number":42,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"6cacd220-8d6b-49c7-bbc4-c6fb7106f476","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":42,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"fef8b063-b005-4cc7-8fbf-15322ce17908","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":42,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"c4fc0a6a-8d18-412f-9f6d-dd321549a75e","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":42,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"9c08e52a-6b2f-40da-9107-0d83de7d3701","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":42,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"7229e527-8087-411d-b9e4-b86c285ababf","block_type":"box","text":"II-11","page_number":42,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"16147cb5-eb58-4d58-9c9d-41a3e687dc48","block_type":"box","text":"NM1026U-5982509-42/232","page_number":42,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"729580ce-37ed-42c5-bcd5-dcd7e77bf45c","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":43,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"107e8e7a-59df-407d-9244-100a9c241fa5","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":43,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"c386b017-04ef-444e-9c67-7a937cf07835","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":43,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"5d2ca469-8bb0-46db-852f-4bab1d3c612f","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":43,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"bef37e2d-05a6-4bc8-a214-c2e417aa2559","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":43,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"006ebd17-c043-4272-a42f-7dde9036e592","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":43,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"69233430-b9c7-4ee4-9417-28c3f024149c","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":43,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"e2fc55c8-4f5a-4230-9387-6d2ecb3399cf","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":43,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"51c5a4f3-4af0-46dc-bb7f-068f9f6410ff","block_type":"box","text":"Mezzanine Investments.","page_number":43,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"4fabcb03-6072-419a-ac36-f1f951d2dd29","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":43,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"f82330b3-8704-4327-962a-674961fca6d0","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":43,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"9bc8aac3-9e32-4566-8f30-c5f68355bbf6","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":43,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"67d72bf4-faa6-4ffa-9b91-2ea80de17da0","block_type":"box","text":"e.g.","page_number":43,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"67091ed8-d2e2-4148-8ba1-646d02d32d90","block_type":"box","text":", with","page_number":43,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"fc1a7ef9-512b-47cf-99ef-72693510aa86","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":43,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"cc765b43-9a26-41bb-b44b-90629e886c91","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":43,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"33cd9d56-018f-4ad8-8bff-a0937e0364c0","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":43,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"8d6db8ab-4d68-4e2c-b3a4-9136d37c56e6","block_type":"box","text":"other obligations of the issuer.","page_number":43,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"d2acd5c2-a24a-40d2-b72d-88c573ebac33","block_type":"box","text":"Pay-in-kind Bonds.","page_number":43,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"6b56c9ce-a1c6-43b3-9043-7a2283bd4f9d","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":43,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"bcf7a3a2-c779-4123-83e5-e66554a451b4","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":43,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"002525b0-2f3c-402c-bd14-caea8888963e","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":43,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"8da9b1d3-00e8-4d3e-b640-e1ca6896c34d","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":43,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"e279d8d4-171c-4f88-9bbb-c5955a916cd8","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":43,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"46e2634e-6ffe-4a97-8781-5c8a0dc7c844","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":43,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"a2f82ebb-7a08-46cb-b6e7-91a5f5e8732f","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":43,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"e84f863c-11b6-4526-ae82-bfdedef5d38c","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":43,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"bd07b83d-d503-4c3c-a24b-80141d906a6b","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":43,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"fe7aff77-7b75-4f12-bd0c-09e7ee0dfe2b","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":43,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"859f25d3-2f39-4343-8e07-24263351d96c","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":43,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"f0533f8c-870a-4461-acba-d7793efe0909","block_type":"box","text":"Supranational Entities.","page_number":43,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"962b626a-ce1e-4f24-98fe-0ff91b573e2b","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":43,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"bb7bbb6a-3c81-403a-9425-593b8c98e578","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":43,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"87a30340-072b-4e00-ba6e-5e77742e6e91","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":43,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"094d77cb-89f6-495f-8ec6-9e0c2c790e48","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":43,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"0e0f2141-ada6-4357-9e76-c948f97857ec","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":43,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"94bc3d75-3894-4649-82a6-b2866005f10b","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":43,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"b1a10aae-8183-4dd4-9a83-eaebd6e5ad88","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":43,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"5755492f-190e-409f-a2ec-06061edb7ac2","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":43,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"a80e83db-a0a2-4648-afd3-eef0bc948921","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":43,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"ca1407ca-e16e-4622-8b35-b5c000ef0f61","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":43,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"9dd308e1-fb36-40df-ad62-c576bb9a2b59","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":43,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"23e55036-62b8-4422-bfee-2201ccb797dd","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":43,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"3286fb1f-7638-4656-a41b-d2859feaf745","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":43,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"ec606606-1ebd-4efd-a47f-0f27890566d0","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":43,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"fa88de71-5828-4126-a075-eb584ea44e55","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":43,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"1b60bcfc-783b-4d9d-8f91-14a024c71830","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":43,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"08a4140a-d07e-4bae-a987-be87d4d8d102","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":43,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"97968ee2-8561-4398-91fb-4e2746712b82","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":43,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"c5588657-238b-4f20-8e50-63bc650b40a9","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":43,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"5b8800e7-a0b8-4397-8f38-5a6cf31c7a92","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":43,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"b9f972e2-f5e2-4155-b80f-105e85b148f9","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":43,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"05836d4b-6010-4970-b21a-96421d08ddad","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":43,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"86e6e647-5266-4801-9088-3502d044821a","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":43,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"e0db9cfe-0f3b-4bc2-a7c9-6171aa3a29cd","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":43,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"264efb7f-64a8-4ebc-9fe4-233a1e1972c0","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":43,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"60b720bd-57e2-4ab4-ad63-dcae3ec23871","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":43,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"35b9f050-3397-4404-8031-05c3bc266c5a","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":43,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"65e49d5d-2895-4d07-89f5-5edf84f5b62f","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":43,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"bb49c2ac-a4bd-4427-b433-262d714dc250","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":43,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"9390541e-fc5e-408b-a280-ee1a0ebd40ca","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":43,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"b4d594c9-92ef-4810-82d9-2840c050564b","block_type":"box","text":"II-12","page_number":43,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e2b4a2f9-3921-488d-b650-0666d5547bc3","block_type":"box","text":"NM1026U-5982509-43/232","page_number":43,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"18a0238b-7d44-43b1-9f59-8c08ddc244e8","block_type":"box","text":"Derivatives.","page_number":44,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"4b0b7a9d-fe3f-44f8-8a55-db3811bc1e87","block_type":"box","text":"General.","page_number":44,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"5e9418df-489f-4515-968f-34632067aeab","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":44,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"246ddce3-31aa-4866-aa1f-abd4abce0d21","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":44,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"b8880827-75b6-4fe7-8e1f-2c45ef814da7","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":44,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"35b4221f-0374-4921-b2b6-17c85b45b250","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":44,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"f742f21d-e89b-4bf3-a3a8-a9dc2d3aa3ba","block_type":"box","text":"efficiently than with other transactions. Cer tain Funds may use derivatives to maintain a por tion of their long and","page_number":44,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"09304cdc-d503-4a62-a1ed-943edff72233","block_type":"box","text":"shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":44,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"dd5118d3-e9dd-44ae-9e01-fd15ffdf2ace","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":44,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"20826125-45d0-4bf4-ac49-ed8b4a88af78","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":44,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"64f73fff-1c73-43d4-88ac-33f333d5a8d5","block_type":"box","text":"i.e.","page_number":44,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"63cfe37c-9cae-4d34-bcd9-18d31e0ee1bc","block_type":"box","text":", the payment","page_number":44,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"020b9630-c672-4821-9429-73408affeb12","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":44,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"4dcbbdf2-21b6-4162-a3c7-745a286180b3","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":44,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"43f69301-c2a6-488f-83e0-8c9683216f30","block_type":"box","text":"Hedging.","page_number":44,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"6cf9b304-8f0e-4a2e-b2f5-4ad6e6835204","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":44,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"4edd8ced-4cba-4ffc-a1b4-cc077ca43dbd","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":44,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"4bcfb0b4-273d-45e3-b437-313e79cfcaac","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":44,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"179fb3d1-6726-4b65-a974-e736316a9b02","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":44,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"380f67a5-cb13-46fa-9222-18fb37a25713","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":44,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"4405ede8-afb7-47b3-8f9e-d115327bc9a8","block_type":"box","text":"correlation risk,","page_number":44,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"ffb518d5-b50f-4890-a12d-c810a6df5d43","block_type":"box","text":"i.e.","page_number":44,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"3cb5245a-f646-4315-b747-71d5910c95fb","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":44,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"40f0dc3c-7efc-43a2-82d1-33d7364f190e","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":44,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"1751c9b6-cf22-485e-8317-d340ed7a1499","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":44,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"6ed994e3-b787-46a5-8137-54b4b013bc06","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":44,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"421104ed-b09d-488b-80c2-728e4c100cda","block_type":"box","text":"Speculation.","page_number":44,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"295a80de-6805-450b-a324-5a3d1c3d4207","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":44,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"c969610b-b59a-4ac8-8d2b-e18a885554ac","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":44,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"5378b6e0-1250-407c-8e77-2d663fd00c53","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":44,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"7bb6e69a-61ad-40ad-bd35-1523ff0b8f22","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":44,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"2971af6b-abd4-4580-9ac2-25f284561943","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":44,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"470a2a5c-ba7f-4371-aadf-f8a1eddc5166","block_type":"box","text":"Regulation of Derivatives.","page_number":44,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"20e717c3-1f45-475f-bdaa-78e12ba37d34","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":44,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"82cb4b11-ccff-48ae-9707-4e6faa8f1704","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":44,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"5e57cc00-895f-4664-9d14-3048884694ca","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":44,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"f52e9612-6c8f-4857-85ec-6dc13ccd6842","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":44,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"d152a607-e8f8-479b-897a-210e3a085ba5","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":44,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"511ad768-b5a9-4867-94a5-65337b7453ea","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":44,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"edd66bd4-1f42-4e4d-a639-b2f3ef41beab","block_type":"box","text":"coverage”).","page_number":44,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"3f33265a-4720-4ef5-baf9-88f9b082e252","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":44,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"beaeff7f-a122-42d6-98a0-c9acdf6b3d9e","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":44,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"3db2bb0c-5f5f-4461-a54a-f435218641aa","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":44,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"4f55f702-c0e4-4af2-b846-f3ab13e66775","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":44,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"2b83934f-c671-4561-8f35-c7196b936d95","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":44,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"9954b327-dc6a-4cad-9538-3fd3dae10a2e","block_type":"box","text":"financing transactions (","page_number":44,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"2b4d11ea-b209-45c2-b1f7-e48bcf1affdd","block_type":"box","text":"e.g.","page_number":44,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"443069fd-e872-4830-9841-677ad5e1385c","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":44,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"101da41a-a9f1-4fc3-b182-f20895d0521d","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":44,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"595eead6-7521-46c4-9ab1-8af9102e3b8a","block_type":"box","text":"securities (","page_number":44,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"0e5601d4-c99f-4602-a91d-423a1313f4f1","block_type":"box","text":"e.g.","page_number":44,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"9bbbd48a-1165-48d5-b6d3-a1b7ccf154d1","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":44,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"9adbc14b-9089-46c9-8f18-52babc3a2058","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":44,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"160c64d9-2075-4f4b-9a20-b3535b7e99e3","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":44,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"c3030506-323c-4f08-819b-0b37413b20e2","block_type":"box","text":"Commitments”).","page_number":44,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"ddf0870f-baae-40fd-a722-59cea4ab6c43","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":44,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"cedcb6da-f84c-4b21-9a18-01d34b6bdda7","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":44,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"59d95264-3a3b-48e0-b0f1-0e9884d063c8","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":44,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"daf3b016-930c-433b-b211-3b4285cd6267","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":44,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"97955736-2b31-4703-9d0f-b18707759cfa","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":44,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"fec0ad5e-1b70-4d91-9df9-91d6fb7b1ea1","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":44,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"5eb9a73a-d90b-4bb9-b5f1-68173c4467d9","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":44,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"c34acabe-2f2e-41c3-afa3-49233d1f4316","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":44,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"326d6125-e85b-4dbd-b27d-aa62b84b2a72","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":44,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"75bed381-3f68-4261-9351-1840fa85e0ec","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":44,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"10583031-c3f4-4890-a276-c6d55216cd37","block_type":"box","text":"II-13","page_number":44,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"53019e9d-b769-44bc-99fd-726a7bf84e2b","block_type":"box","text":"NM1026U-5982509-44/232","page_number":44,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"01695c5c-5a1e-4434-aeac-c3a1d3d3013c","block_type":"box","text":"Dodd-Frank Regulations.","page_number":45,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"9b1b6572-35d8-4510-9ec5-18b8f3d3b76f","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":45,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"f5a997ee-80ee-4684-bf4d-216706114f16","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":45,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"e0f24a84-1ee5-4c38-ba57-05cf302261d5","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":45,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"41aa8f4e-dad3-4231-9d60-96633a67b41d","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":45,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"a8622896-6c6d-4f7b-b530-2ab99d5843b8","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":45,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"2c3f3c56-84f3-450c-8189-4421b1523dc5","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":45,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"aed397bc-af7c-4511-9fb2-3ef4dba0de91","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":45,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"d5fa0fcb-fc64-45b2-8b1c-4f13f74b47bb","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":45,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"cf280578-c1ed-43a7-afad-b8d409632610","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":45,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"6d1b5ed7-dd01-4538-938f-358bac2ccb0b","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":45,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"e68a3fe2-bc37-496e-b06c-ace8b84dc222","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":45,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"ab1442ca-ddf6-407f-867c-aa33fa726a5e","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":45,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"f769d82c-0a82-4427-8238-156422115617","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":45,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"b71f80f6-b466-495d-9291-6f999582ec95","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":45,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"ac73ab69-9860-42f7-8e00-3d4e3fb74563","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":45,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"7dc99a1d-6f87-4e20-a9eb-b8092bfcd576","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":45,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"a9df86df-df9a-47c2-80b0-408768470995","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":45,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"6da05ba1-c80b-4ae3-847d-cba16b76ebe7","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":45,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"9f0be39e-0adb-49eb-8110-0b7c103c2767","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":45,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"892f5c8c-2121-4639-8c2c-6d8464cf1e91","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":45,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"71cd2f13-0ffb-4d74-b16d-c3c7d9e7a87b","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":45,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"9eacd756-6089-4742-a2af-104db263471d","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":45,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"49e9269d-4d29-415f-95e1-c4e819ee4cd2","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":45,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"4fede891-9afa-432b-9cbd-79d84f1373c1","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":45,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"2dbfc32b-f7dc-4ca5-9e73-8a22864b7080","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":45,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"838e9abb-99e6-4bc9-a58b-7ce8ccacdf06","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":45,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"eba66610-d016-4554-a55b-67febc422733","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":45,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"a0375efc-181a-49cd-bd05-c2eeeed18128","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":45,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"0aaa4c4e-7eb8-46a8-8d71-3c8865dfddcc","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":45,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"edc1042a-5797-441e-94c9-316681c4165c","block_type":"box","text":"member.","page_number":45,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"72e79db2-941e-4f6a-9058-2da0d1b0b13d","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":45,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"c55afabd-1552-4b84-b7d4-aad448c45985","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":45,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"8d443dbc-8d63-4243-bb2e-9f48a236ce48","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":45,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"5376d37a-da23-48f9-bffe-e301ba7d98d7","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":45,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"a4feb8a6-2974-4e6c-88b8-bb737a4e1fb4","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":45,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"7e68af74-1a21-4b02-985b-dc8be01e4c53","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":45,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"d60af855-a0c6-4589-90e0-f5f3e393d421","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":45,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"7f422bbe-64f8-4593-abfb-d27d99e7b677","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":45,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"7e799b92-e6c6-49b6-b778-9a7c7f1884a5","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":45,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"052c6c66-7009-4b43-8958-9adf105f748d","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":45,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"cd195f09-4f39-4207-ad9c-4f7da412f84a","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":45,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"2c775250-d2af-4a31-96c6-376c01703d06","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":45,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"860a0d30-e015-4fba-b4d3-b1c442526897","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":45,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"eed8c078-9f54-4649-ba9c-e609e699adc1","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":45,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"0e1f301a-f97c-4ebf-a9de-3b960373190e","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":45,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"c33b2412-16ea-46cb-a800-e62e433c3499","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":45,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"ff8a9c56-03b5-46d3-8c06-4f385031d959","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":45,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"6deb2d22-45a0-4090-868c-e16695c12aaf","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":45,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"fed1a2b4-e3f8-4c62-a323-8cd5da62cbe3","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":45,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"3658dedf-70ae-4f25-9b40-139a1817e7eb","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":45,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"c490905a-59a2-4f21-9534-c4915f6785ab","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":45,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"3b396872-39ba-4534-8665-124f53829fda","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":45,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"67fac4f6-96f3-47de-892d-c94f6e7a983c","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":45,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"13f02649-6507-427a-8896-0bbfecd6a7e4","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":45,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"cf60df07-bcd2-471f-8008-8c75bc35f09b","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":45,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"89b9f4bf-6fdc-4ddf-ad07-fadd5a9a9273","block_type":"box","text":"II-14","page_number":45,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f02a26b3-37ee-4911-ad6e-7d38c7316165","block_type":"box","text":"NM1026U-5982509-45/232","page_number":45,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"972222ab-752e-4215-98a9-3459627d69b2","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":46,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"c879478b-b265-4bd2-8fd1-c65b4a06d043","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":46,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"58fd106b-f221-4964-9036-23dcd8995f99","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":46,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"aa154d99-1ee8-4f15-bf50-05ddcb5fc248","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":46,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"675655b1-7893-4b4f-bf40-d73538fce8ed","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":46,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"9fe8ffbd-61ea-47fc-b0b2-3ef7f8d3f8dd","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":46,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"6891909b-ac56-4ce5-9504-37ca65ac2009","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":46,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"c75b3f9a-197b-4291-b622-4a74bc05f363","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":46,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"561b2399-c5f4-478e-a512-239bb3de14ac","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":46,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"4c03561d-2351-43e4-a8b9-5a39009f3426","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":46,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"ec4138ff-bf03-43d2-9579-68062ffe36b9","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":46,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"86821959-52b3-43b0-a169-cd11469bb345","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":46,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"f8999f73-99e5-48f0-9d50-d78e25ae914e","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":46,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"fdaa1fe4-ec0d-419b-a4c7-23d008784b32","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":46,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"a51f7b5d-30b1-47c3-a028-12e6a21ea342","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":46,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"4cfe2cdc-e3f0-47cd-a068-816ef4cc53e6","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":46,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"d6877554-14af-4e3a-b566-58b68c4534af","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":46,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"17e0f8ea-0615-4842-82f3-78d7ea285d18","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":46,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"73c59914-83b6-4aa0-a176-d6e6ca94a608","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":46,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"58c062ca-49b4-4f59-b37d-e049ede13a80","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":46,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"10bbc8b1-12cf-41b6-a55e-9bc8382f275a","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":46,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"581383b4-7ce4-4df3-9e9e-fde792b152e2","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":46,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"a4ce532e-b60d-41b2-9d91-b6b6db23c41a","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":46,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"1a26ebca-6463-4b11-84b4-3789a5496f23","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":46,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"937af6e2-8da3-4d15-b58d-158936de684a","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":46,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"a2db9089-f919-4946-b8a3-0220e8dfb8b2","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":46,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"4c44e7fe-7267-4b96-8b7f-668edb62983f","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":46,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"36301417-f911-4630-9eca-3914838ffb97","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":46,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"e1a915d4-a730-4af9-b019-0d635d9fcdac","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":46,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"0a7997f7-9364-435d-bfc7-75290458974f","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":46,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"35c5d80a-5d20-4088-8085-4a6b7e4ab5af","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":46,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"5579bed2-6c00-47ab-819a-b7122ee3e748","block_type":"box","text":"collateral received under such contracts.","page_number":46,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"bc9f0e4d-0cf4-4e95-b78d-ad23e45f72fe","block_type":"box","text":"Risk Factors in Derivatives.","page_number":46,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"a830d521-9088-4f33-b3e6-a7d95f895136","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":46,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"1501da61-dfc3-4804-bc8c-79a8c161a32c","block_type":"box","text":"Correlation Risk","page_number":46,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"ef49b04f-a0a0-4a1d-aff5-3ff9b31d3950","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":46,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"4a1221a1-2dd5-475b-8069-eb4b1ebd2f34","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":46,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"b022d627-e83f-4686-817a-d5ecf2933fb8","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":46,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"dc8a15aa-8264-46a7-9b73-075a7dd10c6b","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":46,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"40f26641-aace-435f-9b85-a2649234dba4","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":46,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"da3dbeb8-4704-4a07-8c19-a635660370d7","block_type":"box","text":"Counterpar ty Risk","page_number":46,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"4ce7f4d5-4f01-40a1-9091-2f8765621084","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":46,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"6cf5f571-5387-4dbc-b454-8ffa71f19fed","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":46,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"082853ff-cbd9-47f3-acef-10f3d5bd615f","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":46,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"4056b3e7-98bf-4f61-9eee-3f7e0ddd7d56","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":46,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"c929f8d0-4fbf-43ec-a8b9-6014431e9dce","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":46,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"25af8c1a-4d97-48e8-9e09-edf688799ce9","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":46,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"75f0765f-2fff-410d-992b-eac9caa30b98","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":46,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"75e2fefc-ea79-4227-9459-60073fb4d529","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":46,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"0f0b9429-b7fe-40c9-bc13-405615836f76","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":46,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"df0ad231-b3df-4324-8f43-40795d37e147","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":46,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"a2ddfa23-9607-4e1e-9f78-8410b6df17d5","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":46,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"7ffc06fd-bc1f-4be2-a2af-5976400acf30","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":46,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"0ac39252-b6ae-4e88-89e9-0514dabadca7","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":46,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"cd2405b1-6761-40da-a2b6-3d36e2730125","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":46,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"cf8982bd-1d14-4dc4-9a08-2d181ca21eca","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":46,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"6bc193e5-7ecb-4450-9535-9c20f66e3979","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":46,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"1043284c-9028-4e88-9332-6651f4494077","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":46,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"ac1763bc-b7a0-4a47-a5c3-4f78b1e15120","block_type":"box","text":"II-15","page_number":46,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"36e0bf66-60ab-4117-b0fc-0e1eaefa052f","block_type":"box","text":"NM1026U-5982509-46/232","page_number":46,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6e3c0162-16b8-4cf0-9914-c82d61abd729","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":47,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"3b506267-604e-4147-a013-39946e7a74b0","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":47,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"b40a18b5-2741-4971-aa40-2cf09287621c","block_type":"box","text":"by the clearing member.","page_number":47,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"54af91fb-9698-47bb-ae6f-f12eb2b7ad5d","block_type":"box","text":"Credit Risk","page_number":47,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"107f46d5-ed7f-4986-91f6-6747c5a001ac","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":47,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"296600e7-f583-4d2c-bf1e-ee52d9fe4ccb","block_type":"box","text":"honor its financial obligations.","page_number":47,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"d1d5b9f8-501f-401c-8850-502d5e52a571","block_type":"box","text":"Currency Risk","page_number":47,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"d54f7152-c3a6-4a2b-8ef6-5b74e88c423e","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":47,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"7ef1b60c-16fc-4137-ab48-f2a28e1817b2","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":47,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"67890f63-28cc-4f47-ab7f-98b8889844ae","block_type":"box","text":"Illiquidity Risk","page_number":47,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"ec41dd29-a5c8-474c-9655-1f4423c0fa81","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":47,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"30debb1d-d443-4caf-a52b-c1e5824334cc","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":47,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"db1da3e6-a3e5-4fea-a27f-5a13e2ff07e4","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":47,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"4d5d78b8-42a3-4ad8-90f4-807777854e34","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":47,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"d511657f-4062-47f5-971a-550369ae018b","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":47,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"4f50326b-0f76-42d5-80d8-ca77e898338d","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":47,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"c67c38c9-1fb0-494d-9926-60f374b90a36","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":47,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"c3ad31c2-cebe-44af-95b3-1dd2888543de","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":47,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"447a148a-17fd-4aa3-8e33-3afcd12c7218","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":47,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"d6221536-9e47-45ea-b474-f859df87e459","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":47,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"2dcf3a74-74a5-4ffc-a6ff-d20b74a47cc3","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":47,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"517b83e5-5ae7-4e85-8a80-f3aada19c7c7","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":47,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"573fb988-3080-4bb3-ac3a-44425945b799","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":47,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"c063110e-5be3-4651-b3d9-0e677f98ee6d","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":47,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"dd1bc6ad-f82d-49f4-9624-1aa1f2babaa6","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":47,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"ac929436-6f6f-4bdc-9f9a-1ab03f995aee","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":47,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"eca21578-6bed-4170-91af-4b4e0c40011e","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":47,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"1d1beb72-d20d-456c-9508-2e3027c5d740","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":47,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"5b9dc278-9a03-496e-aa19-486175adcc27","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":47,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"bb528758-5ca0-45b5-80c5-aa914cf45c81","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":47,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"a4b63883-a3c9-4206-9f0a-80cd119b038e","block_type":"box","text":"may be disadvantageous to do so.","page_number":47,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"12a761bb-b64c-488b-84e3-e195db2140fb","block_type":"box","text":"Index Risk","page_number":47,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"6e82dcae-4a34-43c9-ad90-d2f1a6e752e6","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":47,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"d9cd3a9a-958d-447c-90ee-688146f8adbf","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":47,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"e225d17c-1f2f-49b3-aaff-6706be15c8e4","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":47,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"dd8e31ed-b81c-4938-87ae-5e46f0df9363","block_type":"box","text":"Legal Risk","page_number":47,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"24a4b6b9-3c71-49a6-b756-606775094661","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":47,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"d70feab9-aba0-4418-869d-783a119faf4a","block_type":"box","text":"or enforceability of a contract.","page_number":47,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"b94fb95f-e779-4b90-9ba9-83db29582ff2","block_type":"box","text":"Leverage Risk","page_number":47,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"c87b5a8f-a732-415d-92ed-8047c826d047","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":47,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"1b132874-74b8-4582-862c-c0a114d63254","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":47,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"66f65791-5115-4d14-b215-756f5754a368","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":47,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"07c0a2b3-a593-4f16-8a26-b9cd564f2384","block_type":"box","text":"Market Risk","page_number":47,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"e46dbf4b-d34c-4164-ae12-7c89d1e834ca","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":47,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"f1e83675-7edf-4ed3-8baa-84d814a633d4","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":47,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"3a3a437e-be75-4015-afab-07895ee8294d","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":47,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"4f8ad1a4-5535-4ffd-b22e-ee8d66c08562","block_type":"box","text":"affected.","page_number":47,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"f0e23d26-df00-4e17-8ecd-d4b6d54d1659","block_type":"box","text":"Operational Risk","page_number":47,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"10b08625-5a2b-4fb0-a81b-a033a2a2a5d1","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":47,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"9b01a30d-be3e-4d43-bda0-2c9a81ea030a","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":47,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"5482488e-5df5-43df-b91b-14b2d6fc96f0","block_type":"box","text":"Valuation Risk","page_number":47,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"56f642af-6e96-47a2-bc8a-6a88021198bc","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":47,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"e4eca164-7260-4726-aa69-19bb68aa69a5","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":47,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"2aad6fa7-b65c-419e-8ce4-f36d82954a0a","block_type":"box","text":"complex instruments or quote prices for them.","page_number":47,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"0663eeec-9961-4af6-a762-27d6b22ba94f","block_type":"box","text":"Volatility Risk","page_number":47,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"bf3e46f8-37ce-4f61-b5ff-4f3c861578e2","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":47,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"50011c15-4bfe-47e0-b396-2fc4144f2f23","block_type":"box","text":"Types of Derivatives Transactions.","page_number":47,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"41d11310-44f7-4dd0-af3c-a3ba5085c376","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":47,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"49f5919a-5f12-4e4b-8445-d5225bad0ebc","block_type":"box","text":"including the following:","page_number":47,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"c3694089-9171-4e45-a289-d1f4a320a52a","block_type":"box","text":"Futures.","page_number":47,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"51a1cfe0-9921-47b8-9ad3-cbb5155f9ada","block_type":"box","text":"II-16","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"78e83a02-1b40-45a6-9eaf-77e6433c29b6","block_type":"box","text":"NM1026U-5982509-47/232","page_number":47,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"760d91ee-a061-4dd6-9d4d-13e618c0d7f5","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":48,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"be8b6e86-0bdf-4724-a0d3-6424004e142f","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":48,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"857e4c3a-814b-4815-8c81-c11e6579e808","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":48,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"e27ff39c-77a0-4811-8e20-be53dcb78574","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":48,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"33795544-1f93-49f9-8ee0-3839ed6725f3","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":48,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"4db96adf-8222-46ed-9485-a67bc96459ee","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":48,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"8003fede-911e-4ccc-ba67-0c8657dc0619","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":48,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"34b445be-c8b4-458f-b62c-b7b6a2c0345f","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":48,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"b0e72251-a313-4049-b242-a791017b7e6a","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":48,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"9ca72cf7-c003-4cfc-9f97-138d6467a68f","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":48,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"108198e8-32d1-43e0-bc5c-428b29968aa2","block_type":"box","text":"of the futures contract.","page_number":48,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"c0289ba7-c535-4f9b-a64c-7a0565544569","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":48,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"72389af1-f80f-427b-bbbf-c079a23081a3","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":48,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"9a2fbf52-dfd7-4c37-88ed-d5bed61d5f5d","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":48,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"18701b29-6dc6-4764-bbe3-53e49fa5fcf6","block_type":"box","text":"relating to the futures position.","page_number":48,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"c306ebbf-5f45-4c28-851b-8155bfd67e56","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":48,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"dff40d71-2cb8-4b25-bf10-f4916a4bb4b2","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":48,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"e48f79b9-250a-402d-be86-3e7a73e843e3","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":48,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"b97ffe91-db97-4fe2-8aad-02506b56594f","block_type":"box","text":"Regulations” above.","page_number":48,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"5894ccfa-7887-45e6-b0e7-a7d655c4e497","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":48,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"81285453-72ed-4343-ada4-f4b20a4609a1","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":48,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"1598fd04-2e91-4a2b-bd34-dc13a8a0004b","block_type":"box","text":"(","page_number":48,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"a47c58e9-38e8-480c-b938-d03ddf849762","block_type":"box","text":"i.e.","page_number":48,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"3282cd3f-830b-4e59-a471-78e936f3c9c5","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":48,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"3545de9b-c1b4-444c-aa08-6bd76fffd7d5","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":48,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"3d9a6594-3a90-49eb-a347-1657533f97fe","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":48,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"8f4aa5c2-2579-4d73-8218-f09cd4d1e522","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":48,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"225b9649-a09d-43bb-a4a8-4a5d9528bbdc","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":48,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"5583ccab-4f57-4efd-a1d1-2edfb6994694","block_type":"box","text":"Fund intends to purchase.","page_number":48,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"6fa8b098-8ba2-4349-b8f0-7e1c0a815c74","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":48,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"76308904-102e-4cc0-afd6-b8d394f48d53","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":48,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"29af6fd3-48e2-4814-96d2-f09da0f73b42","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":48,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"ff05aa24-535f-4a12-a02b-7d785f7f6e8b","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":48,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"6293cb20-c44f-4cec-ae76-674583bf73c9","block_type":"box","text":"illiquidity.","page_number":48,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"c516a2bf-b537-4ae6-8559-81003f59de95","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":48,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"c8d5f3af-e972-43bf-bb5d-550538ea6a52","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":48,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"c54c8570-acf7-49c1-abc9-d14647f7faa3","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":48,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"b0786a5e-3f0e-47f0-9bad-9f0d1ebc901a","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":48,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"11b91a3f-9427-45af-b175-5dce1bc86c5d","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":48,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"8f1253dc-3c82-41ed-80f5-6919477faa68","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":48,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"1f5ac1ef-3bbc-4de4-a82f-8aaa17703830","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":48,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"d9ee1617-4f47-41ac-827b-64341a9b8382","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":48,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"97061d1d-8b9f-4506-acd3-730ddfefb9a0","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":48,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"3e86f8c4-db1f-41d7-acbb-fe4c7c339b42","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":48,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"63a18f08-9f04-46d3-947b-27a1eabd61a6","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":48,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"06be4105-5d14-4c53-ae86-c0c17c2bc46f","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":48,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"c8bc1e27-9a54-482c-aa33-d7622d85b16b","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":48,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"5e69aedf-9d6a-4213-a535-862d5a0be72d","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":48,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"1a97e67c-27dc-4267-8b2a-20ce2285f2b7","block_type":"box","text":"Swap Agreements.","page_number":48,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"e27378b5-c470-4fe4-ac9b-0f31781f67f1","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":48,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"2906eb02-5d1e-4aa6-9e10-565f2fca7691","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":48,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"24be4cab-bf59-4858-85fe-442a9029b7b8","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":48,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"3b506499-69eb-4f5a-81a5-4895bbf4e535","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":48,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"87498b2b-a1f1-4db2-9738-2f83a9d6c890","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":48,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"00585f7f-4656-477b-95fb-02a57e9b36ce","block_type":"box","text":"a “notional amount,”","page_number":48,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"5d9c5da5-d7a3-47a9-93f9-e322d3231aa3","block_type":"box","text":"e.g.","page_number":48,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"26dbf1af-0d26-4c87-b117-7dab88dff993","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":48,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"f8bfce17-d160-4127-acdf-c484c768f950","block_type":"box","text":"II-17","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b5bb8d02-f8eb-4e36-a072-55cc52b437cb","block_type":"box","text":"NM1026U-5982509-48/232","page_number":48,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6adc1886-98c3-42b7-adc3-aaf621d71a4a","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":49,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"94ce1909-480a-4486-8cbc-872771e1632c","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":49,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"b8faf6ea-e808-4033-985e-c0b7eae234c6","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":49,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"5320faee-03ef-4eee-b631-1d5e1eaacab4","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":49,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"c8e75602-03c7-4e1f-8d67-069a562442a9","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":49,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"024aca45-d341-4be0-ac59-46aadbfeaacd","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":49,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"cd7551fd-d5a3-4280-a477-1ce31a2ef814","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":49,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"06e0f18a-ca25-40e5-8ed2-c26a09187d5a","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":49,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"28685d55-31ef-4055-92a5-08f9189c8efd","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":49,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"21981a52-9f07-4c2b-84a9-bec2d39c6710","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":49,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"0de86996-1079-464a-ac85-35baa9a50576","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":49,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"dbf38b71-6343-4c52-8860-9bb677e9fa6c","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":49,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"ca270c3a-39e7-42a8-87f7-2fd9a7f5f9b7","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":49,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"686e6fe6-ea69-4ebb-941d-5fd32698a616","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":49,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"9e443e5a-663d-42ec-840b-93d4fbcc2a1f","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":49,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"3c3c562b-5fbe-4a31-91d4-a23f5ff61912","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":49,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"df7f9e14-518d-4ec4-8c2b-d04c3302ef08","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":49,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"ee577655-b091-412f-80f4-f79719a3c7fd","block_type":"box","text":"index CDS.","page_number":49,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"0659e204-fd37-40ea-9ba4-e770d812d835","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":49,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"28d5c34f-c39d-42e7-8cab-6578ebc7a3d9","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":49,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"43ff99ec-7942-49a2-9ca2-443baf64deaf","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":49,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"d0d20f27-4e6c-4baa-b057-e30be24e83e2","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":49,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"5899d816-8f54-44f4-add1-a073253a4b5f","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":49,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"30638ace-d4e9-4597-b81e-7743835fa4d9","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":49,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"c4d45d9a-fdb2-4c7c-92d2-65cdf97e7931","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":49,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"e6341b65-dd57-4a2d-bd54-ef32ddf66e0e","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":49,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"9e5ed6fa-0ac7-427d-9d43-34242e4c1331","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":49,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"b60359a5-e275-4511-ba94-f86b6949815f","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":49,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"17600cfb-bde6-49d7-aa46-5e13398ee082","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":49,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"58349ba2-7b7c-4fdb-89ed-c68708995933","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":49,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"4c76bd56-5df1-4438-8c0f-a062a22ad0aa","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":49,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"1e8026eb-a016-4658-ad37-26efa5f3da00","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":49,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"56f71d47-8cef-413c-bda3-74b94ffaa3d2","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":49,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"3894f5bc-ce5e-46c0-8499-64da9b5a880c","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":49,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"b5880953-0ca8-4ef2-9447-0e2c1bc76828","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":49,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"782137d3-012d-4723-a537-f7d61b1bd545","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":49,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"29b9b7f0-dce3-4643-88ff-cc0f59cd12c7","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":49,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"4d672cc1-8807-4657-b88c-4f82f9a7aa38","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":49,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"b7da4ef5-bcbe-42d8-b89c-adafe366a669","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":49,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"d7fd4884-08d3-4351-b78d-99b3d9e63cfa","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":49,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"c3ced4b4-f693-45d1-a244-6568f7f23872","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":49,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"ebd4d7eb-bf3f-4286-90fe-50bee4135da1","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":49,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"d01d14bc-1744-4353-a204-4eebf04549ac","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":49,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"11358d78-0198-4c09-9c79-dbef5030a22d","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":49,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"9a9cd82f-c9fa-4a41-b765-5fb58d7a5067","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":49,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"63e40aa6-ecd7-4173-8c9b-86f7a48f270e","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":49,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"4a0012ee-1e86-4b30-aea9-cd4da217756e","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":49,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"d87bed57-fe7b-48f4-921c-5bad5fa13591","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":49,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"a52d9365-86e5-4645-9a68-0c989a9136e0","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":49,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"038db54d-9e4b-4e9e-8ace-d898b9abfdf3","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":49,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"49cd905c-982d-4bcc-8126-2d1b51386850","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":49,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"d7f78e2d-7bd2-4a43-bf93-5420c971148e","block_type":"box","text":"conditions.","page_number":49,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"a5e31fb1-b1b0-4455-b911-c7fa23739307","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":49,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"e5f40b0f-d65a-44e0-9fe1-76c7f84c2abc","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":49,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"8bc41b78-7fcb-4010-8b62-f1ef0be9bf80","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":49,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"70431dda-1f90-4408-a709-bef230ef654e","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":49,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"c6f444c0-b14c-46b4-a4f8-fd9d0be66df6","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":49,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"ab8b1a8d-41a4-46c6-92e9-8e7ce6a90d55","block_type":"box","text":"II-18","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"be8a8360-a7be-4b0c-b938-3a70652a999f","block_type":"box","text":"NM1026U-5982509-49/232","page_number":49,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cc6989ac-3c57-4061-9dfb-e4ead2e19ab8","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":50,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"c9ad280b-f2cb-486e-be88-f75dec1e5c5f","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":50,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"f1f14344-3be6-49f8-8866-aa97bae3085c","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":50,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"f3710bd6-8de8-4caa-bd88-6da09928e7af","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":50,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"a6ce4e77-a0f4-4382-b478-e6167546284b","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":50,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"fa140c4c-f9bf-41cd-b63f-b9bbf1e01470","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":50,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"896ed76a-1c15-4f01-a3ca-f6815981d06f","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":50,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"c26905df-7c70-4896-9dbd-cfb9301146c7","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":50,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"90ac1d2e-419c-48b8-84ca-1c66599c20dc","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":50,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"efb1e7c9-1414-4d89-91d4-7132d4a628ce","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":50,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"e46c2f8e-e352-4160-b433-5871bc9f8c10","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":50,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"9ef23090-2976-42a9-b20f-a3486e47ba9d","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":50,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"17013602-0472-422b-9ff9-9e167e95ca64","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":50,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"c8e2e0f7-7586-4651-aa3c-11d21d0c2b0d","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":50,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"0bb116f9-eddf-4f6e-9c78-6541e45248f0","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":50,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"a336b3d1-5028-4edc-a893-e9fddb98933d","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":50,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"d80bd680-28a2-4fee-af60-53e350fd1e3a","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":50,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"5e1c4c30-dcea-44bb-b078-d09ba499d47c","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":50,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"bcc496ad-7cda-43c4-a708-b85a497f6dc8","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":50,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"0ec42315-4ac7-4706-8b41-a5857880bc58","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":50,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"0a0fe584-f010-4ba8-8a5f-b50aaed207c7","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":50,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"042a4ecf-1d16-4591-ab6e-64d52426e247","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":50,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"5166da31-1e9c-493a-bd84-c02ec07ac30a","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":50,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"cfef8804-9241-48f8-ade1-7eebbd1ace37","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":50,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"0577409e-a605-4852-ab3f-ef3a59845df7","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":50,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"47e57880-368c-4255-965a-99fb91f858e4","block_type":"box","text":"cleared interest rate swaps.","page_number":50,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"1d1182af-08f5-4493-af8e-048e17500b3b","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":50,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"64e46654-1f29-457f-8aca-51cb4702d8c8","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":50,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"2eda889a-2f0b-490c-9164-aeac95f09ef2","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":50,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"dfb3b869-686e-4944-afbd-ac1ee4deb861","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":50,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"1ab76b96-6469-4bd0-b94a-d401b74a4038","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":50,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"111fc6a2-9600-42f5-b1c6-692fc2396ae7","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":50,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"54d5dfff-1c88-49be-aeae-cfd0d9609ee4","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":50,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"3634988a-8dfc-435f-abc2-98a36a9b3988","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":50,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"2e355af3-881b-44a4-a2d6-6ea5fed9bcad","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":50,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"71650f4d-1f6a-4ebf-a3d7-19dfa3de25af","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":50,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"902dc856-ad31-41d7-8078-ce4d5077ff47","block_type":"box","text":"or variable interest rate, index or asset.","page_number":50,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"700df336-6caa-48df-b0c3-71b55a1e3a5c","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":50,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"85070eaa-6692-4aa0-a720-f269ad2fe241","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":50,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"f428e99e-f53d-4f1d-8bce-91eb0d63a5b8","block_type":"box","text":"such interest rate floor.","page_number":50,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"fbdb7ddd-a86d-4493-b4cc-67c1cfaf8006","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":50,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"b64ea6d7-0901-4f75-8554-afef0235d92b","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":50,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"5be25c05-b4c6-4847-ba20-87f3875b934c","block_type":"box","text":"such interest rate cap.","page_number":50,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"761dc4b5-0be1-4455-98a6-6cf4897f0e8d","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":50,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"c48dff6e-7636-4409-aee0-1c30270abe8b","block_type":"box","text":"commitments to pay or receive interest,","page_number":50,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"40f75415-e850-4a0b-a50e-1d81d9c81fee","block_type":"box","text":"e.g.","page_number":50,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"42dd04f8-0950-4162-aeac-8603273710dd","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":50,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"bf4b9b1e-fb78-49ed-8942-5d350e8ee46c","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":50,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"15aaa8fd-d507-451a-b7bc-5daada555b23","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":50,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"4ac1ebde-60f1-49ae-82a8-476890f891a1","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":50,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"6920bace-9f30-4832-b446-8f4e22d256fe","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":50,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"ad818fcb-65d4-4c72-a07b-468cc8f05845","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":50,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"9cdd84ec-e5ce-4022-9eaf-1f4edc6a2545","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":50,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"eaa193be-418f-4e16-bd8c-a6560906d606","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":50,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"0ed8127d-3c85-4286-9362-da2a6571a4af","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":50,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"5792caef-40cc-4b92-82f6-202ea8c52e2b","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":50,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"e499b9c7-7d5b-4733-b9f4-d639dee54eb4","block_type":"box","text":"II-19","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cb73f83b-ed00-4a9e-a493-39c35c037abe","block_type":"box","text":"NM1026U-5982509-50/232","page_number":50,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1a660a0b-7238-476d-83c4-21323e92e1fa","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":51,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"f821481b-e97f-49a0-a993-fd69c0b0a2b3","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":51,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"7491deb9-a74f-4e18-8fd7-3cda8ba86b08","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":51,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"25f882cb-cae4-4225-ba14-ceafdad09b79","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":51,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"4cf49349-4007-421a-b80c-28dd5ed1c311","block_type":"box","text":"Total Return Swaps.","page_number":51,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"acbdd707-397a-4daf-9ecd-bd6b2d5ac1b6","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":51,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"035b9405-1464-4179-b5b7-d03c9025a2e0","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":51,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"bc1e60d9-2c11-4316-b451-2e8ae7f5a8a3","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":51,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"f95ca04c-26f5-4b28-beb8-6434ccc71fd9","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":51,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"168bead6-2914-420e-879c-bdb0de24ce50","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":51,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"d825767e-cc82-4c87-b981-a90b45484e23","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":51,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"9ea9a554-024f-46c1-ac46-890e0fee815c","block_type":"box","text":"“contracts for difference.”","page_number":51,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"abc25dd3-c4ea-4d39-8fa7-78b3fbc5c3e7","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":51,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"f0a0dde9-b2fd-4f8e-8b75-5dbcb626f053","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":51,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"27ce7469-6431-4b24-b407-7e647386b962","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":51,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"67a4a7e1-1898-431e-ae6f-2ff2073d7f76","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":51,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"fa26d040-ce2e-4b9f-afbf-bfd4bd4b52ca","block_type":"box","text":"the notional amount of the swap.","page_number":51,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"30f8bf66-f3b9-49dc-8425-8e7d5bef9481","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":51,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"78458f08-182b-4111-867e-04d9ba0e3583","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":51,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"9f93f5b2-ad22-4268-9c52-310342030db0","block_type":"box","text":"Options.","page_number":51,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"17c9111c-de28-4f60-8ecc-f1d5700187bc","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":51,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"0c9979b0-9bbf-49f7-bc29-ab60f16f75b3","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":51,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"6729ede3-546c-4f2d-88b1-2fd9558df9ee","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":51,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"bc68f97e-d882-4fb5-b8b1-32d990908345","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":51,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"81d46364-9517-473b-9857-083a8e3aa1be","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":51,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"a72267f1-4a51-4923-8273-9f4cf922549b","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":51,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"e29baff8-7a4c-4252-ac7d-d5c3ccc1f259","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":51,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"1b736b71-994d-4849-b3cd-f351cb8b019b","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":51,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"8d8c9d92-ffce-498f-986a-cab736c4021c","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":51,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"296e97c7-8bc2-4985-b506-6861322b30f7","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":51,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"6512c694-4cd9-480e-adbf-2b75863b142b","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":51,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"1635e61f-d8c8-4d38-bb07-48827a4c8eb8","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":51,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"b48ec12f-08b1-4e0d-9356-137e227ebad3","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":51,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"0a8a843a-b21d-4626-8f61-3e2016322362","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":51,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"554da235-7cc3-426f-a8c6-71c399f76e7e","block_type":"box","text":"OTC markets.","page_number":51,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"6596625c-04fa-48ac-a48c-47680a2ea22d","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":51,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"ba8b75ca-c870-4eb3-821e-f5ba1c723efc","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":51,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"b0896da9-02ee-42e4-bab9-b1a5dcc95602","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":51,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"3596edaa-a019-4a5a-bf5b-325142201dae","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":51,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"761328ee-3dd4-424c-ac67-7cb1644dcc86","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":51,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"ad7a4194-f5b4-48f5-8bbd-3b690cb09f1f","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":51,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"d3a2841a-58ef-4ed0-9497-14facfd8e68c","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":51,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"edf29925-e0ef-4494-ad2e-b396c47439f4","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":51,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"a47c26ad-c3f5-4c7c-8863-66bddc3b917a","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":51,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"61982921-485f-4691-af01-a8cc8095e8d1","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":51,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"6786ccf2-744d-4997-ac57-1b9c16cc24a6","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":51,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"2345353c-c659-4f93-a8dd-7242646be4a4","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":51,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"00b5eadb-6e84-4005-becc-92a023f78b3f","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":51,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"6f06cdc9-db36-4598-a5be-05f869dbb2b0","block_type":"box","text":"terms.","page_number":51,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"de8ec17c-e643-4c8b-a2be-0976c9532b50","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":51,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"35d94807-309a-4a1c-a258-bff238bde2bb","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":51,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"f24eb817-53f4-4c31-b11b-0da393b4c445","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":51,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"8b5a70d2-4950-4ee4-a643-40bb826e9ba7","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":51,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"7d33e055-4948-4e00-a801-fb7122d63135","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":51,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"22b905ad-a257-43c8-84ad-e28ae5028540","block_type":"box","text":"II-20","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"103c7ad9-8268-4df1-bf27-31d3e6b6e497","block_type":"box","text":"NM1026U-5982509-51/232","page_number":51,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dea1341b-1cc9-413f-9954-8d3fe8e30988","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":52,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"c9482d00-e633-4e54-b58f-eeaf1e0fe86b","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":52,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"6baa7e0e-2bdf-403a-a907-a9383610cdbc","block_type":"box","text":"Call Options.","page_number":52,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"a8ba99da-fed2-485b-bb0c-66fc19fb0598","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":52,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"97c535a2-e0ff-4529-9a8f-3587f22a6e99","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":52,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"16323a96-d170-46cb-a48e-2ed038a5971b","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":52,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"f150877e-3b02-443b-819a-e5d500ad0ce0","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":52,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"6bc92ace-fd05-4785-9077-8b6e3f817bc3","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":52,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"f6249249-b716-40ab-aa06-383ab22ffa9a","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":52,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"4c161cae-4e9e-4918-8fbe-e499ef01087e","block_type":"box","text":"of the option.","page_number":52,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"da6b2c24-8a04-49e6-aece-e3ec129b54f0","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":52,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"b35017fa-6d23-4339-a4d2-c5c07e23903a","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":52,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"95163dee-3cd3-4939-a2cb-e0f07db0c980","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":52,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"fc944a48-ed7d-4c01-8f04-090fb4342b83","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":52,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"1bdff820-3081-468d-a0fb-bb4cb0b53ba3","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":52,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"efa75725-7499-4e39-a502-3ee283762fed","block_type":"box","text":"A Fund may write (","page_number":52,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"df468837-7732-41fc-a3fc-3e64d220181e","block_type":"box","text":"i.e.","page_number":52,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"81734d46-3a95-464e-bfe9-1f4302cda388","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":52,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"e1ac8266-cbb1-4973-b438-da4ee7d37bcf","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":52,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"bbe7896e-cbdc-418f-bb85-9a2046584803","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":52,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"515cd09c-acab-427f-b7a8-c3a54633fcca","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":52,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"bece0181-34c8-4ff2-9c45-35bcf7238ac1","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":52,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"cc6020c3-1db7-4a74-bbc5-2dadb47b1ad6","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":52,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"dfda3b55-5313-49da-82a8-92bd96d0b47c","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":52,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"986471fe-5668-4fe6-abc3-6faa8263fde8","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":52,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"677389e9-bf6f-4648-aa7a-3d2d4435eec3","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":52,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"c3fa78b1-5ba0-45ba-9f53-6edf0a418640","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":52,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"5316043a-b503-4e10-9cfe-236fc4552aba","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":52,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"fe20a67d-2a5c-4b86-a08c-45aa31a70385","block_type":"box","text":"A Fund may write","page_number":52,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"1ef266aa-918f-47d8-864b-7196054bf46b","block_type":"box","text":"(i.e.","page_number":52,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"2f412073-baa9-4fcd-bcb4-c2a89c72877a","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":52,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"bee4b209-7060-47a9-a68d-9f7d7df85a21","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":52,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"98159a39-973a-4f70-bd8f-c7aef7c3c458","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":52,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"3633a8df-9f06-4761-a4ff-45dc05fab775","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":52,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"e6b90925-e3c6-4266-bd7d-9dd4902d8b86","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":52,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"66066e18-c766-439e-80df-99486d012a36","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":52,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"97241737-a3aa-4cc4-a385-759c826995e5","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":52,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"d6146684-e04d-46c3-8987-b43921d9370f","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":52,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"1a135b0a-4b27-4834-970c-f001129be6d3","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":52,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"272a3129-eec3-4373-8cc6-3421f1b451d8","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":52,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"22813554-0177-468e-a3b1-15fc0178c359","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":52,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"c29b0bd7-7f4a-48f8-bd80-6c3b15f73c33","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":52,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"fdce9055-7a75-4e40-85e8-8edc10697459","block_type":"box","text":"Put Options.","page_number":52,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"4ae69820-9df0-4c18-bf12-e5cb6c2ab08e","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":52,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"4fb47fb6-e07f-4ae6-b0c4-3a8a7001dfd5","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":52,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"3507a762-bac1-4c7a-9a44-7be2218ce33c","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":52,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"fb27a61e-6bfd-4a71-aa20-49202907f9a3","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":52,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"60426266-a410-44c5-8a55-82a587320b52","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":52,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"3f7612cc-a644-4fe6-8957-a7c12f2c33ec","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":52,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"f4ae1f44-c182-4000-ba7a-429551432152","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":52,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"d23fc260-a6fe-4024-8626-27b9e1e60cd5","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":52,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"b17d724a-3c3e-4660-a343-b447113368a9","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":52,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"e56b2baf-dab7-4834-b6cc-6b8a323ba0dd","block_type":"box","text":"purchase uncovered put options.","page_number":52,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"51605810-9547-468f-b70b-1628a2b4b086","block_type":"box","text":"A Fund also may write (","page_number":52,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"9d811abe-f70b-4980-aac3-91fc52150e8c","block_type":"box","text":"i.e.","page_number":52,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"788081b9-e5df-4f74-a80c-91ea6fecaba4","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":52,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"01f1eed4-cdd7-4c69-a283-bece1437c0c7","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":52,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"15eca30f-43e6-4b68-9e94-289f4f14654d","block_type":"box","text":"A Fund also may write (","page_number":52,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"6637fe3f-84f4-498d-857f-db8bf100f0d2","block_type":"box","text":"i.e.","page_number":52,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"a485692e-bf33-4b28-8085-6f0df0bc0bc6","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":52,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"8e053107-9eca-4858-b36f-8cc475ae2bdc","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":52,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"17b601d1-b118-4341-bbdb-a7f432c7916d","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":52,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"c2d58f6f-d5b5-415b-9d67-d9f20bc99255","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":52,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"3b42ad7d-6f96-4719-8d6c-730ac64baab5","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":52,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"8cbe9cb6-62f0-4d43-a7bc-832e663c7fa5","block_type":"box","text":"II-21","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cc755d15-c93e-4a11-a9e3-11286d998556","block_type":"box","text":"NM1026U-5982509-52/232","page_number":52,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0cd7adcd-6243-45ed-8f79-16908f99bd32","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":53,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"f8cda823-e7b3-4cce-8361-eba493b84dbf","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":53,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"d2b00686-2a7a-4aa5-9234-83c3fa332dc3","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":53,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"cb8b9e69-5062-419c-88e9-aded76bbf004","block_type":"box","text":"the exercise price.","page_number":53,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"d62acbc4-2ce0-440f-afe2-c33b92631b8a","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":53,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"1a36b844-2c95-4f55-9b54-a2114443ec42","block_type":"box","text":"The following information relates","page_number":53,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"b0aa6fb6-4d35-44a2-b63a-d98b966cff15","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":53,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"53714650-f012-497a-a7d3-4907d0fdd6f5","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":53,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"ce2c7f15-d704-4cce-8d26-b70444a65182","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":53,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"cbb5d64a-d58f-443e-9ef8-7390daf9f55f","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":53,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"51608ca8-57bd-4427-a087-35b29076a8e2","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":53,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"4a3fa43d-77b2-47f0-870c-b6810a2834d4","block_type":"box","text":"market in order to maintain its “cover.”","page_number":53,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"11e271b7-bb3e-46b7-885b-114543914805","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":53,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"0a5fd336-0419-45a2-8a04-f7d595eca0b7","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":53,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"4fb0ac39-6052-4a56-a97d-a0af4042ca60","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":53,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"9fe69a1b-b5eb-4097-b1cc-52613252e699","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":53,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"d1146222-dd42-4629-8665-9474d28f3e48","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":53,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"8cd1647d-043d-425e-a4d5-d925415b97d7","block_type":"box","text":"and incur transaction costs.","page_number":53,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"49fccd7a-2f46-48f2-a158-5f3bf2a15c7b","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":53,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"f3710bae-e1f6-4f11-a114-c3e85f063429","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":53,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"5a061fb9-cee0-4ccb-9b0d-a51b28b8e07a","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":53,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"56ca5e37-fec5-4548-b784-f8fb3d431ce1","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":53,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"45d871b6-069d-4b0c-837c-a5fb8c7f4b74","block_type":"box","text":"i.e.","page_number":53,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"9fab989a-c8e9-45b9-b999-dace2a21244f","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":53,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"d5b2c03e-db6d-4057-a408-6d8276541909","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":53,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"75c1edd9-046b-4213-9ee9-e67af78b5bb1","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":53,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"1de803aa-e75e-452f-80f7-8ea0b8d93868","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":53,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"8488f19a-6b67-49bf-8935-e57c4d799cdc","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":53,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"a5a20dea-66c7-48a2-bec1-5247fe8185c9","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":53,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"89138ee5-4321-48e7-9f6f-b6fd42fbf88c","block_type":"box","text":"required, to be cleared.","page_number":53,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"13e5569a-aa1f-4257-8981-b13ccd335812","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":53,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"376d0c3d-7069-43dd-89dd-80bb0f9a7f3c","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":53,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"462ba9d3-2f22-43b6-b9d0-b2e6d958d83b","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":53,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"2653e960-df76-4a16-a453-ca209bd4d14c","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":53,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"0ce9368f-a597-4c13-a3a3-824af1aa5e73","block_type":"box","text":"Derivatives” above.","page_number":53,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"f64be644-6e45-4ca6-a92e-a2e0381b4feb","block_type":"box","text":"FLEX Options.","page_number":53,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"d0a2dcad-2e29-4baf-aa10-6c0486c81c91","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":53,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"ab16682f-531d-4d3f-bc0f-aedc369432ac","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":53,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"2401e32e-bdfa-4cc0-b893-1bd68c3c4c65","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":53,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"44dbe8da-112d-4a1b-a2e0-4f17d03247c1","block_type":"box","text":"exercise prices, exercise styles (","page_number":53,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"3dded911-bb6e-46ad-a9fb-5ef68dade48f","block_type":"box","text":"i.e.","page_number":53,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"0adb079d-db71-4c75-9ef4-1961624dbbd8","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":53,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"48d19d0d-aa7d-4e84-862c-99f0d352c8d0","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":53,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"923fec1d-8671-41cb-b45a-674e26f1c8b5","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":53,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"130bc66d-7b75-4d8b-9967-b080ae3e1257","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":53,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"36e00882-7ee0-44f4-9368-50aae5b9b7c4","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":53,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"b4369cac-7491-4745-aeee-b386d82bb473","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":53,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"203cecb7-5c42-4fb5-b478-afc0f7e7e810","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":53,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"34d65815-d7cd-4748-8be0-f2ea823f23ef","block_type":"box","text":"FLEX Option’s expiration date.","page_number":53,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"81c63bbb-7077-4e08-a4d5-5f36ec57aa1a","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":53,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"3e53fe7e-2535-4e11-bbc1-2fdd2ddeb7b5","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":53,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"39b19273-744c-49fd-a271-b6515e495668","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":53,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"f6553299-1c06-4898-b1e0-9bc3e6405881","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":53,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"115e6e47-e560-49f8-9c11-e2bb772711e2","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":53,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"8ce771ee-4ea2-4b5b-9c8b-514f53bfda58","block_type":"box","text":"FLEX Options contracts.","page_number":53,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"c6b75ea0-98ef-4eda-b457-13200b856d1a","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":53,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"569b1e2e-5b2d-4347-bead-74c26e89d085","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":53,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"bf43ad61-7069-4545-996c-d37fd802a7e2","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":53,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"7a11a859-e4b7-47bf-bb90-fa71e551ff42","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":53,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"63c926c5-6ea5-4cc3-bb25-4e56bd0f718b","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":53,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"2cd9242e-59d0-4ccf-a018-92ee0a91a3b8","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":53,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"3986529e-30e3-4950-853d-6699d2a5f82e","block_type":"box","text":"II-22","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4edb72db-c460-4dd5-941f-44afda1bdd81","block_type":"box","text":"NM1026U-5982509-53/232","page_number":53,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2abe7406-9379-4151-a7e8-1ab0c0f35207","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":54,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"c8d3436d-6c25-492b-b940-1314f7fc9d89","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":54,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"f036caf9-cec1-4e70-b4d1-1bd29acc1e9d","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":54,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"aec162ab-29fb-42c4-9489-e6402ce9c948","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":54,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"57427e59-0bd3-4ccc-a656-7f1f429b10b9","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":54,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"40b92502-b673-4439-bdae-178c04d9801f","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":54,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"b8f656e2-527c-439e-b9de-c4bda39dbf31","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":54,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"9083fe27-d3e7-471e-ab52-6ac55471cbdc","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":54,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"9714e224-5600-4b26-9fba-5baaff81edfb","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":54,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"847311fc-482f-4f60-89f7-940c03b384c9","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":54,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"b1a67f0e-d0c0-4fe4-97dc-fb7695e89423","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":54,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"c90a9234-2a0d-48f7-ae8b-0cfb473c97f1","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":54,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"bc53c73b-7ba4-4da0-b6b7-9f18f332f1e7","block_type":"box","text":"expire unexercised have no value.","page_number":54,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"789697e2-09a0-4098-a7aa-2ae5bd115f0e","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":54,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"8e13f866-eeb0-4da5-bfcc-0c32ce417a59","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":54,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"49d20b1b-a316-42fb-a7cf-0c3ceec68429","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":54,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"3c012adc-2d16-4dee-86da-c33b11856fb1","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":54,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"c10b1c85-c830-4272-abef-737a6063ddfd","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":54,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"4c737dad-f265-4ba6-a2f9-227108c0da8c","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":54,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"de02be13-ea2e-461b-bf71-2c391de48e16","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":54,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"a73d892a-f73d-4ae6-b486-20a345ac23a4","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":54,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"2c26ee2e-84d4-46e4-8a96-25214ebacd56","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":54,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"e0809379-873c-463e-b1f3-e2b27d76e0f0","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":54,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"749244ec-5800-4b33-822d-c7907ba44f1f","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":54,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"1c564a6f-7eba-4966-af55-006017368ffd","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":54,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"0a7dd996-c2a0-428c-a9a3-09f67d7b5aa8","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":54,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"f32c45ff-3222-484d-aeb6-878c2c178a99","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":54,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"b86d6336-561b-4c00-9be9-e4ac383b3a80","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":54,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"8f2c111b-dfab-46e6-b006-a89ea50218bb","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":54,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"717e0177-aeba-4bd1-91d7-6007d1660ab1","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":54,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"6f9d3f2d-b6da-49e7-9122-f24fefdaf7a2","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":54,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"c5ecd23c-bd0f-4dea-8544-d1b9a0a7f7c6","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":54,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"17d29537-8133-485c-8069-9c6b460b3c4d","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":54,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"a8a0a254-93a1-48fa-bbe0-10d28ec44561","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":54,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"dd1e2a1b-e272-4eb6-90a8-6e3feff5d6ea","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":54,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"8f799727-4f1a-4e04-9bf6-ba2d99cc6a41","block_type":"box","text":"Foreign Exchange Transactions.","page_number":54,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"1fa7cbb0-ea50-45f4-bf3f-93e57d87b50a","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":54,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"9cb03bb5-894c-48cc-876d-8a7a2837c1ec","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":54,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"297ce257-62f6-463f-b5c6-44d156c828b4","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":54,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"78a7ca87-c47e-4d9c-b263-538bf0ee6f01","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":54,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"d916e388-c9d5-49ab-a927-0f6213658a57","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":54,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"457e5428-4be8-4663-bc2f-4a78c8e3ab63","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":54,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"91aaab01-7064-41bf-b356-5d28302c710a","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":54,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"8bb35b7e-3aa8-4d1f-bf27-c9857310f600","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":54,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"1303e558-6537-42cd-ac5d-5bdb5ca09e0a","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":54,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"701244ad-eadd-4b09-860a-d90050e955b8","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":54,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"b9193449-558f-46a5-a43b-259cb391e04e","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":54,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"b44a4118-47b0-4f43-a276-9ad952e3ab70","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":54,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"a5ce242a-d917-49a8-b501-8e17dbf7adb3","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":54,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"bde5868e-3c91-4795-bb14-1fd720462bf2","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":54,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"6e50a63f-6fb8-46c8-8fab-b2afed330ae6","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":54,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"c836658a-c428-4a54-8ecd-125fd9eff945","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":54,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"0459151a-15a6-49c4-935d-23584bf07fd8","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":54,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"b6aa364a-19c2-409f-b2a7-f56e9774394e","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":54,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"bb9d5173-8ddb-4289-b0db-960c6af70eb8","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":54,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"1d922492-94e6-40e1-835b-0115666367ee","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":54,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"5436bb9a-2cf2-4950-b9d9-62a398637642","block_type":"box","text":"II-23","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"67a5ede2-d7d7-48a1-bf62-06e38fa6aaa7","block_type":"box","text":"NM1026U-5982509-54/232","page_number":54,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f523137a-bacd-4ae6-b9ba-5da5fb00a52f","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":55,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"c468acb3-a298-4374-9483-1fc0b6861bc8","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":55,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"e477ceea-e073-4800-99de-9f0ee90feb38","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":55,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"b8bcdc1e-0611-4b5b-8dea-3c5f2114c3dc","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":55,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"87a68db6-825d-40e2-bba9-0414eb5504ed","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":55,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"90c7c97b-1ef2-47ed-ac12-50c6f29f6402","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":55,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"672eae15-23ba-4a13-a8de-d0d64acc3f7b","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":55,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"18949bd5-9baa-491a-bbc9-fff8300f6832","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":55,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"1d6a407e-eef9-457f-80f4-e412e169da13","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":55,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"866bde09-b7f7-4565-9f9b-b723743e9afd","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":55,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"a81fedd3-d84c-45dd-b275-263cb0b320ad","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":55,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"617bdff7-ce71-434f-b4c7-4f31223ef802","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":55,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"746d14de-13a6-4c03-b9cb-c39ad5d80c7e","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":55,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"d8df848a-1516-4b63-a6fe-40e3bbad20ba","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":55,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"3b80f480-ffef-4232-a696-35656060839c","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":55,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"932175f5-48aa-419d-852a-91fac60f2919","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":55,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"5990c7fd-4564-48ba-9374-17243204267f","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":55,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"4637c509-3014-42e6-929c-a816131d31e1","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":55,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"d498c005-7951-4d0b-bbda-4627897a407e","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":55,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"8a585e55-24e2-4e10-97db-88ee29e061be","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":55,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"fda4b0a5-1166-457e-a434-1706ec7d53c5","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":55,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"91763ed7-4277-4025-8be1-7fe95afe66a8","block_type":"box","text":"involved.","page_number":55,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"e47d35f5-d7e0-477b-9257-b259ad85bf75","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":55,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"434490e4-22f8-4e35-8625-8028e2308ba2","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":55,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"029b8c4b-88a6-451d-92b8-af087d68077c","block_type":"box","text":"denominated in such currency.","page_number":55,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"3dcc7fba-341d-479a-9a72-4844c730586e","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":55,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"377d8be7-f793-467a-ba14-9014dbe028f3","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":55,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"f6149d2d-7178-40e2-ae0d-f56c6c41a86e","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":55,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"53b9a778-17f6-41ce-b790-617666e5a8a2","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":55,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"e04bc206-d5f3-4da6-9869-0328a3c66b96","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":55,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"be9468ab-2199-4481-b11b-a1e7c0cfb7ac","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":55,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"d98804a3-db4a-4d00-a93c-f0b612f7188f","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":55,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"dea7efca-d965-466f-b315-03cbf836d5f9","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":55,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"38ba5928-98cb-4816-909d-1a3a4e602380","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":55,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"108098a7-8362-48ef-8239-0fa86f51b524","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":55,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"3eb16f8d-be02-4afd-977a-799b92c16ecd","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":55,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"6cc6e11c-1aaa-4e55-b70b-e441cd1b1eae","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":55,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"f5a86c51-4598-4341-b7a0-fbc651a8a9f5","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":55,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"b9aecf5b-e04c-4324-b551-0529f6e822fd","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":55,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"06a7911d-6f70-4642-af92-31d5758bd9f6","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":55,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"e348e0ec-7e5d-409b-b81e-181ade59dbcb","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":55,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"b373858b-2849-4d2a-bac8-bc06a94805cf","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":55,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"7d349e93-cba5-4053-8a96-a8f3695800b8","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":55,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"2bb65411-5f46-4bb5-ba9c-102330159a40","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":55,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"71ba23e3-8cb5-4294-ba0f-b6501ed22969","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":55,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"df2215c3-d873-47ee-a06f-4193f34e352d","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":55,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"0d22ee7c-d482-4425-bfb3-221448a230fb","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":55,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"a05594e0-4264-4675-9573-648c41c689f9","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":55,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"9cee107b-9a64-4ff9-8b4c-d459ed865492","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":55,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"a7884440-9bd7-4d8b-aba5-c3e9b102a487","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":55,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"311b8ed4-0696-4dd8-98cd-6fab44ef95aa","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":55,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"ed146338-6d5b-48a8-8629-0d892d3d7ae4","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":55,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"1818d1f3-120a-4756-8e52-3e87ccfd4919","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":55,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"b597a4bc-ebe5-49a6-9e9b-62f1cdd8f737","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":55,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"e441c7b8-c475-4791-b6fa-116e52c86e55","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":55,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"62575fdd-ed03-45c5-a5f6-2a4b02b42674","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":55,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"741b12b7-88f3-4d72-8ac8-46d02e0cee3f","block_type":"box","text":"II-24","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7581c88f-28b0-4a0e-aafc-029afbaf9d7b","block_type":"box","text":"NM1026U-5982509-55/232","page_number":55,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fd2e7ecc-08e1-46d2-8443-76bfde26c8fe","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":56,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"d7972d1e-fcc2-452e-abae-bbff9e7d41a6","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":56,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"bba6bf26-b97c-4a3c-91bd-86ac3abbf3b4","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":56,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"fba23b61-faa6-41ff-8faa-105ca8f7ecac","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":56,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"8b77f807-d958-4434-9df0-21cd1dfd6bb6","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":56,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"d5d20bff-1701-4f90-8745-88db21908efa","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":56,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"84ba540a-97a5-412e-8f5d-2c40ba35bebd","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":56,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"4a29a960-baa0-471d-a1e2-28d319be6e32","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":56,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"65088daa-f66b-405c-b5a0-4ad5878bed76","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":56,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"df3fdff7-0884-4b07-a098-31b79dba1f30","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":56,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"8b054eb8-ebc1-40e5-989a-60dbb2ea3849","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":56,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"fa3be470-6036-4305-b941-8d00bd63880a","block_type":"box","text":"traded.","page_number":56,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"c6d4fa99-b8c5-4144-a099-04ad42ddce9b","block_type":"box","text":"Currency Futures.","page_number":56,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"2e3c36d3-31c5-4e15-a7e0-46b8a089ecda","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":56,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"1f3a8db3-d28f-461f-9e08-ce55125047a4","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":56,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"ed67e602-bb80-4aef-a426-e8d0321f3a0b","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":56,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"9496e1f1-46d8-42ae-a3a3-1f0e6a947f05","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":56,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"fa897418-9f0b-46d1-8038-3e3473805dfc","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":56,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"b18ce917-598d-4661-9216-fb798c0a6d9c","block_type":"box","text":"Currency Options.","page_number":56,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"e67e6c29-c0e4-40a2-bd61-7860069da49a","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":56,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"dbb95af4-7928-40db-8248-fe242435bb63","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":56,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"f4460b1d-9ec1-4b78-8418-9687e71d4228","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":56,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"22b7d7f4-11c5-4fa4-ac05-a986f16001a3","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":56,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"2c3ed4ca-13b1-463a-94b0-1cf180b90825","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":56,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"fd95ec7d-16ec-4c23-878d-a9ad000586c4","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":56,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"f711172c-fd87-40f9-b0ae-323a67f5beff","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":56,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"304bdc19-a82a-463b-9f8f-3e48d3d4534e","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":56,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"0b948621-f3a1-4b8b-8782-ffbc3a14ceb7","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":56,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"5f887b23-99ab-4fdf-a1a8-606c7e249def","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":56,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"dc4de305-5153-4fe4-803e-17e3fba9ad8f","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":56,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"59decec5-e317-4965-81de-22621d2f153b","block_type":"box","text":"Currency Swaps.","page_number":56,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"db70183b-f0b0-44b0-9192-4ad5ad9f73aa","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":56,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"68b48f7b-999f-4e7f-9bfa-4f0d3edccbd9","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":56,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"931583c1-606b-4710-96a1-b78e74e1e3d8","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":56,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"6b13c7ee-32cb-4464-9b66-81e425107fb9","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":56,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"f7a9e1ce-eeb7-4826-a5e8-a41f496ad742","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":56,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"56e9ec1d-1099-46b6-96e0-4b2297ab36db","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":56,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"1939bd7b-90e0-4855-80ce-8dcd65fb3206","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":56,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"6244699a-b40a-4fab-b114-31b7ef932497","block_type":"box","text":"Distressed Securities.","page_number":56,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"947de980-4f55-49c7-8905-e584e7808c12","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":56,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"e8a79f3e-c039-4eb9-a23d-cb91a26ba63e","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":56,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"0adb56d3-72b6-4266-bc50-4bae850c2ce0","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":56,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"2aedfad9-2e1b-400f-ad65-1cb0b3dae2e2","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":56,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"e84980b4-cbd5-4e67-8690-2e5bfb7a1774","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":56,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"b88f5daf-4ce2-40e0-b784-5b382a54368a","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":56,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"e39921c9-79fb-4e87-9cfe-b60b1e61f557","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":56,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"10563c59-e6ce-4999-a9c8-3e2675baf3e4","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":56,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"85044c9f-3e34-46b0-b1c6-e80496019a56","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":56,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"752aae5c-91fb-4348-a52a-60c8e31dcdab","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":56,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"cadf4e16-8053-49a6-8e5d-4a3b0159c9ab","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":56,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"d9471ff8-2ce8-4cdf-999d-58ae01e2852a","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":56,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"8f4a3e99-7d2a-4241-88ff-f2866629d0be","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":56,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"873c4ecf-91ef-41b2-bb87-a4ce6fabe506","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":56,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"12841b02-c337-41a4-865a-f79d49c0db90","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":56,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"0bb8a7b6-736d-4c57-8411-976db6b2f68b","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":56,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"8210b43b-0aa9-436d-a683-83171ff018c0","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":56,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"b5c8bcbc-f743-43fb-a9d5-7f575e07e608","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":56,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"3c61180a-9395-4f0c-bea1-54f70a05600a","block_type":"box","text":"satisfied (","page_number":56,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"060d524a-1e77-4ba1-94be-5c2937a04c78","block_type":"box","text":"e.g.","page_number":56,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"45b87100-ea1d-4632-9754-03f9cd6ed786","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":56,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"1809d067-4af2-4d8b-a722-f92187b0ecaa","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":56,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"8380905c-229a-41f3-b01a-29c1e9a62b38","block_type":"box","text":"II-25","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b3ef426b-cc0c-4687-8af9-bdc7dc3a4aaa","block_type":"box","text":"NM1026U-5982509-56/232","page_number":56,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1cbff305-1a68-4a16-95ca-2ee2af2c4183","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":57,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"a632ea04-5743-4e89-8a0a-f853bef2ee72","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":57,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"db95eeb5-a681-4438-81f2-2c6e397a8dd9","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":57,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"d970e69f-e449-4aa1-a0b9-924f7e2cd021","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":57,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"002eb6a5-5521-45c0-81f9-a3f724bd80c2","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":57,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"c198e35a-f54d-4f30-898c-ffeb3ef83259","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":57,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"604a1295-d7a8-413f-a7f4-8ce5e16dfe2d","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":57,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"0f52958f-52cc-4ec2-8953-f6d2259092e1","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":57,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"f9b0b8b0-d6d0-4e95-88b9-0850cd0e3555","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":57,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"79be8e15-4043-4020-b17f-5948b68bf591","block_type":"box","text":"affairs.","page_number":57,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"e63e46c8-3328-46ed-84f6-737494b6d643","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":57,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"26ee7055-bc0b-4861-ae8e-9e096118b953","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":57,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"a46fcdd5-3980-4733-9100-6c821506c63a","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":57,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"53a3fe49-d747-4cbf-9bc1-dc62316c6500","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":57,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"96384c9e-62a0-423c-9a7f-2811ec8c02a8","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":57,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"ce71ba0e-c886-4a3b-9604-3da49a18ee73","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":57,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"9b64100a-754a-47f2-84e9-c0514e6379f0","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":57,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"07966fc5-6c05-40ee-80d2-bbdc9062ef49","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":57,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"b036fe7d-7968-4552-a4dc-41f509c1b997","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":57,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"8a81ffa0-2ae0-4cba-9759-5a9c01db736f","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":57,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"56f979ef-d8fa-4a21-a0ec-78698058e536","block_type":"box","text":"Cer tain of these considerations may affect a Fund’s exposure to cer tain companies or industries. While Fund","page_number":57,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"62c5bf87-68c9-4a1f-bee5-577616868203","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":57,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"d3fb0ac1-9738-482c-9816-23b6341f5be6","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":57,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"04fb5393-5a08-48bf-ba0c-1c4bd97d1091","block_type":"box","text":"Equity Securities.","page_number":57,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"7db38ded-599f-4e5f-9664-26085e7ce54e","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":57,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"960f9b06-c776-45c9-8d38-243101ce44bc","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":57,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"9b276b0f-96ba-46f7-be15-6e9eb51ca7f2","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":57,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"533bab2e-c6de-4068-967a-1d2c36389f7b","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":57,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"ecd2ade4-571a-4d74-9766-faf1458028a1","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":57,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"b88ce9d0-5c65-444c-998c-b481be7133bf","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":57,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"f54d103a-786c-48bc-b8e6-155f23a91669","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":57,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"ab57c4bb-352c-4dfd-8949-42d8d682887b","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":57,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"fedd1d0a-cc02-4a95-90c9-2c96c458d285","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":57,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"a638ffc9-b7fa-444a-aaad-ef0e7e75de52","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":57,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"fd1fc0b2-4760-4aab-b6ec-e4dde9291776","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":57,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"d6d4989e-4dbc-45fb-b7dd-86ffb6215f36","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":57,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"2388e150-027e-4d00-bb51-3264bccc43f1","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":57,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"2d734f3a-81cc-48b8-a677-1611161a92b6","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":57,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"3cdd1c2b-885a-4673-ba1a-295a4bfc2f90","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":57,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"8a87e4b9-4140-4ac3-a7d4-a0188a47ac36","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":57,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"21738c06-a911-410f-9b60-9f72ca21c92a","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":57,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"bd1dcf27-b32d-4c9e-af16-b05e9e5629b8","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":57,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"1959d6e1-b09b-4b08-b8b7-ff03a0387505","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":57,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"c512a425-bd1e-48e3-bccc-3c019db8745a","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":57,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"50e4fb14-8cc8-4adf-9811-ec12670b3607","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":57,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"71b9274b-534f-41da-8ead-01f101338368","block_type":"box","text":"initial public offering.","page_number":57,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"64f3dcca-5bbd-48b2-9c17-c77cc7ac93e3","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":57,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"4c95146c-08f2-497a-96df-3e68a16c0383","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":57,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"c8f90cb6-efb2-41d5-b1dc-16b5534219b0","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":57,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"7c441155-60c6-4bb5-88e9-4f5f38229627","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":57,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"ec27afb5-d23f-43b8-a941-3519c23574e8","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":57,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"ddf62c15-75d6-47a4-951a-7a4096f0c0bb","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":57,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"50381512-aed2-41d4-9598-7c0ab6dc8d6b","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":57,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"990bea24-4dc9-4876-89f5-74c9ba060cde","block_type":"box","text":"more established companies.","page_number":57,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"2161ba05-2e2c-44cf-9e1a-df2ae0e75ddc","block_type":"box","text":"II-26","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"00fcd479-5003-4a3f-905e-606998a43276","block_type":"box","text":"NM1026U-5982509-57/232","page_number":57,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"08dfa9c5-c1fa-4599-ae40-beaa923130ad","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":58,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"96e62c5a-7557-42fb-a9a9-8395315c21be","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":58,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"b66aac2c-f7e2-4e2f-8103-42f42dc8e57a","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":58,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"8fd441a9-d365-4c22-9730-9ac6028a447c","block_type":"box","text":"below.","page_number":58,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"36b2d13e-e251-4a70-826b-72fd5c8faae0","block_type":"box","text":"Real Estate-Related Securities.","page_number":58,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"039fca95-5272-45a4-805b-0298b0cd699f","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":58,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"480eb774-811d-4328-a3c9-3d2f12eb8806","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":58,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"b5b7a058-1ca1-4387-b54a-952179bccd14","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":58,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"a3d0216f-d743-49e7-adfb-5cffeb6b023f","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":58,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"1ca7d4cc-f4f3-48e2-8ab5-c0a3d3b50ff0","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":58,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"2cb7cc3b-7452-4291-8464-5db45e421fef","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":58,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"b578526b-94f7-4e26-a21b-97f7bbee1f8f","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":58,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"98dad6f2-2235-4235-ae43-b6cc38edf8bc","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":58,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"f6481354-a479-4116-922a-876ca01926a6","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":58,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"102cf5a6-3ed7-4c1c-80df-aad98948452f","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":58,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"b4fab9ec-e0fc-4c7e-aeff-d6bcdd7c41eb","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":58,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"ea05b77e-9338-48b7-9085-bf91b13b3653","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":58,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"cbdf9173-3271-4f89-8152-c9fc661dba72","block_type":"box","text":"type or in cer tain other respects, the Fund may be subject to cer tain of the foregoing risks to a greater extent.","page_number":58,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"baf9e691-eb80-4ac2-80fc-7dd60b76f031","block_type":"box","text":"Investments by a Fund in securities of companies providing mor tgage servicing will be subject to the risks associated","page_number":58,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"0a213908-db3d-4127-ba77-d82bd25d951b","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":58,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"0d710e2a-d226-4232-b1da-72b3e889e609","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real proper ty acquired as a result","page_number":58,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"a0939dc6-2200-4a80-b02a-be5821cc86fb","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":58,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"2ae7f5b8-0e2f-4169-905f-a314c29536db","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":58,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"04156cad-877d-4bb0-910a-08e3ae461946","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":58,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"686861d2-5b45-4e4b-aa02-c59053b450de","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":58,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"606f8815-665d-444d-a7a1-b29eb70c46ed","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":58,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"e497019c-46e6-4075-af65-3380ef7ca9a2","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":58,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"6d9798dc-00db-4abb-87a7-62fa7540d522","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":58,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"12fb5bf7-9581-4b0f-9493-4b70aa28ba8a","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":58,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"012ee43e-63fe-422a-a5f7-e7173b296688","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":58,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"6792e4be-25e3-42e0-b8d4-cb9a5329c0f3","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":58,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"3ddb975b-8f49-4b86-8379-daf907fa6b92","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":58,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"060b4393-bbec-4d56-9a75-8584072aa3be","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":58,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"88c7acd1-c109-4a69-b5b8-1c8a23c48fbb","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":58,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"cb370c5c-67ff-4270-a0a0-7defde667104","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":58,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"4393f0db-0cfa-4d89-9bec-8c3b46be39ab","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":58,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"a9c8ff25-2b02-428c-a4a7-a648f6d2383c","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":58,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"98439bf3-c850-4244-887c-4004dedbe9f6","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":58,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"43494347-3201-406a-8d30-fd06c123622b","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":58,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"39c00acc-663a-4902-9c19-0c0c9675f95b","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":58,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"24ff3811-638b-4eb4-af13-5b1f68210a67","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":58,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"866d7495-dba4-4af6-8af4-fb1d8bddbce1","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":58,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"480b2ce1-bfab-47e4-b4d1-0da2c598728f","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":58,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"ec11941a-e5b9-4914-9457-f62d21f54af4","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":58,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"52cd908a-257f-4388-8465-b0a43906a9e9","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":58,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"516723a4-67a5-499e-9914-ac9cdd5b1fe3","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":58,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"0710f44f-055b-4e66-b31e-0663abbe1832","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":58,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"c4b2bc75-c8c1-4caf-bea7-09a5b611a4a1","block_type":"box","text":"cycles.","page_number":58,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"a4443776-0752-4ef6-9979-57e5d9414bd8","block_type":"box","text":"Tracking Stocks","page_number":58,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"8ffee5d8-1cf4-4b03-b7f5-0a49ef5eeb68","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":58,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"a50325b1-0a6c-4015-ab3d-0e78ff1c7c11","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":58,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"d1f963c6-3bee-4e54-b9f5-8273484786a4","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":58,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"6782c342-e0ba-4d07-8987-39a7ab9d519f","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":58,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"49325a6b-a395-4f60-90b3-697150e1bfa3","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":58,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"5213de30-c3d2-4178-bd2b-8120535c82ce","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":58,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"8f5e73d7-8a97-431f-9eb9-7978a09d2cba","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":58,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"ea5d2aa3-24af-4cef-b35b-0d9c34a94cff","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":58,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"02ce0b26-a546-462d-b8c6-f017844af4ff","block_type":"box","text":"II-27","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"635a0b7c-49c8-4a6f-9ebc-d45f70b55349","block_type":"box","text":"NM1026U-5982509-58/232","page_number":58,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8f31c659-7b1f-4006-aca9-4c5b665f0859","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":59,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"5d261147-235d-4098-b564-a2e9f6df1a0e","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":59,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"45a87bda-e319-4b3c-949b-94a67ab73080","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the per formance","page_number":59,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"b19f0e05-c593-402e-aaf4-1418059d82e6","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":59,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"586e4b04-8a4c-4b97-92d1-22edec4c2222","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":59,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"9a7d4385-5469-47ab-8190-219d9185fd48","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":59,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"386e5f89-8eed-4e3f-b433-89371f984ae6","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":59,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"1e20247f-52dd-4921-95db-a3e8708e8cd4","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":59,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"b9c67409-e39a-4508-b47c-e92e9bb0c231","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":59,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"2635a03a-ad88-4470-9164-3965d2568c6d","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":59,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"de5aef32-566e-4d1f-8ab4-d378b84815f4","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its propor tionate share of any fees and expenses borne by the","page_number":59,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"9cd90c54-12af-4f68-8854-0caf5c04106b","block_type":"box","text":"ETN.","page_number":59,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"30590bfb-45e3-4fee-91bc-d3f19e885089","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the per formance of the reference instrument.","page_number":59,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"c569a608-2863-4c29-8197-7d35d0395f05","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":59,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"05e367d4-2388-4125-93bb-2dd9e4be1993","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":59,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"0d6f6ab5-3c40-4b9e-b15b-bb67796486a0","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":59,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"9affa987-f1a8-4357-8c65-0443e3ba9311","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":59,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"07f48bc5-c2b1-41f3-9229-f6fe2fb1e424","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":59,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"54ea57ff-2bd4-4415-bbb6-95cc9c440b73","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":59,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"24074961-0fa3-4a5d-a75f-18d7a89199e1","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":59,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"6266213e-ca9f-4ec0-9571-ee095ce982b8","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":59,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"be40ec5f-2048-423d-9a7d-69768c2565d1","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":59,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"49498b06-e18a-4e2e-89cc-0cddc05f2160","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":59,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"63b0fcb2-ecd9-485d-b755-70ff9b3d424e","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":59,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"146c5e92-7999-422d-b6df-a5b2158468d1","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":59,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"e87a5f12-8d69-4ab4-bd63-c218c0090c43","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":59,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"0a401de1-2f27-45d6-956e-da1ac4e23d61","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":59,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"9b780f77-3634-4e6b-aff2-51a20bcf2a3d","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":59,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"993015d5-4e27-4f5a-84e9-33d708d9bacd","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":59,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"e43f8a81-a1ca-434d-88df-316c31bac391","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":59,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"d1a780db-51ae-45c9-824e-bd01b5673085","block_type":"box","text":"Foreign Investments.","page_number":59,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"b2bba4f3-9b14-43fe-9bf6-6780302fb020","block_type":"box","text":"Foreign Investment Risks.","page_number":59,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"3fc1be28-a729-4942-bacf-31a8e0b454b5","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":59,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"21acfc46-3ece-42b9-8cc5-b7f28297d566","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":59,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"5eb0dab2-82ea-4973-bc62-a67dba904ef0","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":59,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"d28b5c2e-d131-46bc-9c65-85a58adb9642","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":59,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"ea7d2de8-a5cb-4506-88d2-92a32888f0c6","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":59,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"59595064-c55b-4991-857f-7ebd18a3f685","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":59,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"11e15cdd-f115-468a-8df0-077584c23415","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":59,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"188b2047-849c-40a0-99e3-6a2180ae5bb7","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":59,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"aada29b1-bcc9-409c-bed6-4435c5677f7c","block_type":"box","text":"benchmark index.","page_number":59,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"3253954d-9284-46f0-a60d-3dda8e1f0693","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":59,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"47246add-5007-45ed-a9b7-fe788c6ee511","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":59,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"2b2ca5e0-198d-41d0-81f4-b56eefb13976","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":59,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"05666482-0dab-4010-a835-f8c1882825d5","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":59,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"d03e58a2-4d80-4353-8a44-a98959fd9607","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":59,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"d7d3c5ec-377a-43b6-931e-c4b75ebf075d","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":59,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"e61efbc6-5037-4891-8f60-168e45dfe69e","block_type":"box","text":"securities and zero-coupon securities.","page_number":59,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"6d66f7e5-c52b-42c7-a761-4c05826689f6","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":59,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"e6dd6a91-791e-4177-ae3a-bd52ad85f450","block_type":"box","text":"taxes.","page_number":59,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"e1ada2b6-c167-4109-a35f-7dcf2ef181fe","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":59,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"dab9555b-1f55-4d2d-87a3-fcb51b947c7d","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":59,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"aae2b66a-d030-437a-966d-d1afa7607df4","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":59,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"e5764f20-52f8-4bce-a391-5df8af16462f","block_type":"box","text":"II-28","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2d661884-e7ca-46a6-979d-bc2eebd25db0","block_type":"box","text":"NM1026U-5982509-59/232","page_number":59,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7517b090-21ad-4015-be8d-feb4c92aef40","block_type":"box","text":"underlying security (","page_number":60,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"cf5787de-dd3a-4892-b93f-eefeba979448","block_type":"box","text":"i.e.","page_number":60,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"c9b876d2-d4bd-46c8-a419-5865574bbd7b","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":60,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"797d3188-e2d0-44d5-b810-e074b2686a18","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":60,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"58656b6b-853b-4922-a1c7-4ce7ea6fa990","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":60,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"723c32d1-406c-429e-bd3f-94484c27c05f","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":60,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"84aa5a45-d560-47cd-8d61-d4355780758f","block_type":"box","text":"Foreign Market Risk.","page_number":60,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"d44b6aa5-1fe3-4068-9013-e5fdb6e2a557","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":60,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"efd97784-4431-47ad-af03-ea46e6a838d9","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":60,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"ecadfac8-6a1c-4301-9270-2f32bfedc82b","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":60,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"3bb49ecf-3d91-4f78-b7b6-fe6a5589931d","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":60,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"b329caa9-42a6-4e57-b389-1c561539bcb2","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":60,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"4f72cfae-9dc7-4df2-94cb-d40eb6d66678","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":60,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"a660dc2a-145d-495f-b7f7-c117105b8f0f","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":60,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"53f34320-fcf7-4d57-b569-a14614e2a6f8","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":60,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"1103f778-3310-4964-8af5-ac7d63a574f1","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":60,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"8d2346d5-0503-46da-9057-b9b3c7ce298e","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":60,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"b73c0509-86c1-4a60-902f-6621716f67dc","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":60,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"18b8619c-8940-4fd3-9652-d1d9930a165a","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":60,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"78d1830a-0b6f-42e2-a95f-3a63033c5f94","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":60,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"a463ff3c-bf68-44fa-a8a7-030b044c6275","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":60,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"3813138d-78ff-4044-bd0d-7f1ef3fb2e6f","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":60,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"ceb8c2d6-0e72-4658-8fa3-2957e21d09f3","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":60,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"d43c0e39-eefa-4a5f-814f-de1562bb6472","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":60,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"4350926e-25ff-47a3-bd13-bf69f681318e","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":60,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"8387f6c3-e146-4510-b274-0fa735e8c6a5","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":60,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"4314eed5-0440-4bd0-867f-dc98ab2c0927","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":60,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"731f5cf3-68e2-45ef-bf7c-abad404529c1","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":60,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"914bdf94-bf14-4be1-8d9f-7188589c4aff","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":60,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"02466090-1480-45f4-8d5e-7a7e815182cb","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":60,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"f421d15a-2260-42da-8278-da5bbd4b613f","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":60,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"058b0348-4d20-460c-9900-39442ee849b9","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":60,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"92d4eeef-6efb-4eb3-add5-4eae38b2e90f","block_type":"box","text":"Fund’s operations.","page_number":60,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"2fa60d27-635a-42af-a031-4d0e1ae6e3d7","block_type":"box","text":"Foreign Economy Risk.","page_number":60,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"fa36e141-e6c8-4624-8abf-f7dbb736ac4b","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":60,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"4c9d7bb5-78f7-4053-b003-760529d792c0","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":60,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"416a146a-da8f-4679-adb8-0d6b865f3ac7","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":60,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"361e04bb-2a9f-4841-bcce-799896f51670","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":60,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"41016e57-d1dc-4d81-a767-acd7362af615","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":60,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"0cd13e3f-b78c-4ad2-be7e-85cf85d0ec24","block_type":"box","text":"measures.","page_number":60,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"f87804a4-cc19-4940-abf7-dac894857580","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":60,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"8e1c99b1-89c5-4132-a293-ea17a4dd5f73","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":60,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"a9edcc5c-5e05-4321-bf61-be2fd785bf1e","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":60,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"1edf106a-62e4-4674-8819-66315b096aa1","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":60,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"011a47d0-9663-4790-b21d-81cac7eb1cb5","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":60,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"74d940a5-66d5-4d9e-a08f-ca78178d4ba9","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":60,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"1149739e-e719-4a0a-8d02-41fdf0eb9639","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":60,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"c5f59488-f4bf-4e5a-a080-20ba6b349016","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":60,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"6e74ab89-d864-4f3f-aab3-11a1bf6bcaaa","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":60,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"d23a8986-1c61-4dc4-9903-a9096bfe6c12","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":60,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"b6c4b104-24e9-42a7-aff6-f9b65d5b0af2","block_type":"box","text":"United States or abroad.","page_number":60,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"4d260f9d-7a37-4d51-915e-0ff8eebe6964","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":60,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"2d9ac0dc-0848-4485-871a-e7ca9d6ef803","block_type":"box","text":"Many foreign governments supervise and","page_number":60,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"91ec0731-6d24-403c-9423-12b4eaec11fa","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":60,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"35bb7e45-1068-4528-963f-03c9d4b62684","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":60,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"7bf539ad-54c1-47f0-be07-3cdee24a6253","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":60,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"82b4c9a9-29fc-4b43-8eec-9e3e29f4fd7c","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":60,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"68b625da-a183-424f-98c9-148b146a6602","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":60,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"186f50ce-4978-468a-b1f9-54dd34700c25","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":60,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"d32b3e44-156c-44ea-a68c-80daf7d3727e","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":60,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"b972482a-b85c-4f04-97b0-1d078b4ce2ed","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":60,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"493be3a0-3257-4e95-8390-b6065808bcea","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":60,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"5b524d82-6318-4bbe-960c-5b8550ca628f","block_type":"box","text":"II-29","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d07117c8-831b-43c3-bb09-6df969bd1b8c","block_type":"box","text":"NM1026U-5982509-60/232","page_number":60,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"845b87c5-30c5-409b-b0b2-df38ef87bd6d","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":61,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"ebf8f8ab-462a-4677-bf67-638f37c329ff","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":61,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"faa89146-ac07-46b5-961c-955cf0932d9e","block_type":"box","text":"investments.","page_number":61,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"bf691bf0-49d9-478e-8eaf-8aa9a33b9c04","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":61,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"dd42d350-690d-4554-887f-e9ae780ef412","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":61,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"9be619c8-4312-4819-9db0-98178eceaac7","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":61,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"1968b10e-a886-430f-a44b-37338d7a2580","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":61,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"083bebab-5a17-4c81-b6b8-0fdfc1e0f09b","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":61,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"3b3b9c03-9e12-4879-9c10-3572d57e5262","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":61,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"753627ea-5f6c-4834-b8c5-73101f411b6b","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":61,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"bdde6256-52fd-4ec8-85fd-c0b807b026cb","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":61,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"169da711-4ee1-4212-ba12-e3f3bd3d91c6","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":61,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"db8f0d48-20aa-42d6-adf3-d069bd3a50f4","block_type":"box","text":"States.","page_number":61,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"68c3e085-49f4-4238-ad17-a3def40460c4","block_type":"box","text":"Publicly Available Information.","page_number":61,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"abba51eb-2634-4de9-8404-c0c3c0ebac8f","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":61,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"0cb65522-17e2-405a-b061-6a6eef8cd438","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":61,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"5d815ab9-06d6-4135-9e26-4815815f1d5f","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":61,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"517f8d5e-6d6b-4bf8-a78d-f35c8bd38c12","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":61,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"5209c9cb-49e2-4163-881e-2e53c5864c94","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":61,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"1be0643b-9760-4892-8e55-a651daeaed1f","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":61,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"83c0ee9a-0c27-468a-815c-0ddd3f333341","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":61,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"e707b686-3b22-40a1-85e2-4a92281d61a1","block_type":"box","text":"United States.","page_number":61,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"6592934c-b40a-443d-8dd2-f1a33a3e0da7","block_type":"box","text":"Settlement Risk.","page_number":61,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"d87d600f-debc-45b1-ad68-8c72b4fdf547","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":61,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"77ffc389-0208-4b21-8dcf-6733e997d6a7","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":61,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"870bb204-bf65-462b-b4e8-055d3d03e1ca","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":61,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"c5578e50-6569-43f4-953d-36bfba08c246","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":61,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"d97e7277-2b49-4c3f-8c5d-3cde3c6e25aa","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":61,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"6893e213-a55d-421b-b0fc-4cb77be59b5c","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":61,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"6c99be90-e800-46e8-9b07-1113fd125f54","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":61,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"b320da3f-c35a-4fb1-9818-c168e92719f3","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":61,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"7f950a38-5972-418d-b14b-1139039143fd","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":61,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"8b0fc36d-c404-4c6a-b6be-7565e97c5201","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":61,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"8bc92c75-decc-4de8-8434-abe9ae40bfb0","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":61,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"a9605e32-e76b-4050-84bf-44b4b7f79a5b","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":61,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"8edcfe9f-d45f-4cab-87c3-03518283f2fa","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":61,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"c23fad19-8473-4ac6-b5a0-71262c39824c","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":61,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"c6f820d6-62d1-41da-89e5-1acf8e228348","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":61,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"4a387f8c-c072-43d7-a6f3-bca89154aaed","block_type":"box","text":"Sovereign Debt.","page_number":61,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"8a70a856-a7cd-4bc6-a06b-cb16170065e7","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":61,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"fa09c732-f7a9-46c2-bf28-6b63562d5ae5","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":61,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"98fe2621-b833-45ac-b3d3-e8abcbf4102f","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":61,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"63b234cd-723c-4024-a8fa-254a25472c32","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":61,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"d9a7d582-5c6f-4f57-9038-860cad6a64f0","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":61,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"33c49ff7-6b46-413f-b157-f3891384cd16","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":61,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"88ff96e5-b3a9-4cb2-9c1a-b0a383300361","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":61,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"47149a41-e348-4f5a-8c9a-4cfb933b0231","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":61,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"89359ed8-e253-4eb6-aa84-7a0ffad202c2","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":61,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"1a92b2c6-88f4-4acf-87a4-9e0a1670e757","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":61,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"34c49848-e407-41b4-948e-51ae16f59f55","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":61,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"8399cdb3-749b-434f-844a-aad3dbcc8da6","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":61,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"da0278e4-f17f-4581-94c2-c913e0efcef5","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":61,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"1d303892-171d-4215-a9c7-1a7132ae0482","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":61,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"51d828e6-3ca8-478a-81ba-4547efa34c6f","block_type":"box","text":"debt.","page_number":61,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"938d92bb-af93-45af-97c8-446ce32394c2","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":61,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"698f2641-0575-4af2-96ab-06bb6416aae6","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":61,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"3d76a1ab-892c-4903-a7bc-bf121f3eaafd","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":61,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"a2732bf7-0f53-4ea2-b0d7-6cd366329093","block_type":"box","text":"II-30","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7b979902-3276-4468-b8ea-8c5cea45e9ff","block_type":"box","text":"NM1026U-5982509-61/232","page_number":61,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9e77a517-8137-4f98-aa77-eb1113c76c9e","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":62,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"8cd331ab-db91-48c8-b7e1-0b82dc644048","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":62,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"b21bb0ec-36dc-4571-9ae6-1d076f790653","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":62,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"242a0a51-5135-41e6-a04b-2093fcd135d6","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":62,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"e1eb3be3-ff6b-4751-8cfe-74ca92ad5aaa","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":62,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"fb3e36ab-0b11-49c9-ae6f-b55c703401df","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":62,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"19068a51-3c82-4aac-9aed-d12c4c425ebe","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":62,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"5563a4c6-e2c1-475d-89ec-9f204e39ff8b","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":62,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"e9f4cb1b-8f93-4360-a153-4444195c8e32","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":62,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"aa9c09bb-dd0a-4679-9d46-d6ba0bdb1c93","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":62,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"b6cdcff0-d44f-48b7-8e81-d1112a6311f3","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":62,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"8fe544bd-3ef5-4c96-a9ce-6d351ea9501d","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":62,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"cef3c3ba-c62e-4453-8218-58acad708de7","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":62,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"8770665b-cca7-47de-9f78-8f4d2958b30b","block_type":"box","text":"in the Fund’s net asset value.","page_number":62,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"6e3a92df-97cb-424b-bda3-f6d5b18632fb","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":62,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"87e1a2cd-bea4-4cd2-aa39-557846dcfba0","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":62,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"8bca2c6b-3314-4f3e-81df-c9b99307840a","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":62,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"242e4bb5-6927-421d-a3e7-b5a070947fa9","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":62,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"e72fda90-802b-4dbd-8cbb-9a4c3f3ec35b","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":62,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"ae9ebac8-2057-480b-a153-da5050495bf6","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":62,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"eb1d4b4d-9af7-4380-894c-37653d6cb47e","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":62,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"605aa175-3611-43d2-82fd-d4280fdeece6","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":62,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"a3da440c-45ce-40fc-b922-e24dced5f436","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":62,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"897d0e36-337a-4f11-953d-f6a302336bfb","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":62,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"7c9f867e-d363-4801-b932-451803582fbb","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":62,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"c307feb7-8d84-4ab9-b684-788c85cbf8e9","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":62,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"1c04f874-e58a-4e77-a7fa-8a08972fd57c","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":62,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"35358516-995f-4b8c-a444-8fd752f380f0","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":62,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"221c8a1b-96b9-40eb-b1a6-0e88b3338a9b","block_type":"box","text":"Fund may invest.","page_number":62,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"67525c25-b7a5-4608-9696-6232967c1028","block_type":"box","text":"Funding Agreements.","page_number":62,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"b3494688-94e5-4861-8baa-02f658857187","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":62,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"2f3b96cf-8464-47dc-8da2-b9e9beb68ca3","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":62,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"5f57471f-5ca7-43cd-a090-5aff5f606be1","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":62,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"fad13e70-da32-4727-8e21-236941625b6e","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":62,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"b711279e-3b85-442f-a0d0-d70b88c6d4a3","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":62,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"230bc8fd-3400-453e-8e28-94e2160bf906","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":62,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"5ed0d0fb-9c5b-4ef3-afe6-ae9f09d7bf6d","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":62,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"65229149-589a-4427-9d5d-088d0d0512f3","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":62,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"a0fe2c1e-1ab5-415b-b3d0-77c5718f4b65","block_type":"box","text":"Guarantees.","page_number":62,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"58907e92-3a61-43f8-a3b9-5de6e9bf4659","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":62,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"14c2a8ba-dea4-4012-98a9-d44627592bef","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":62,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"3b614e7e-d8b8-41e2-b5a0-06768595d447","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":62,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"1c83eebc-baf8-4569-9fdf-c0b465a99480","block_type":"box","text":"Illiquid Investments.","page_number":62,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"64333478-eb7e-4f31-b226-8d98de9f9653","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":62,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"faea6af5-3e54-445c-8072-808f4d271eea","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":62,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"0de50266-7989-445b-8506-aedfed831467","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":62,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"6b9c06aa-2519-4fb9-bfe1-3c2961bf5900","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":62,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"2573e0a2-759e-4cec-8cae-79cfdae73e93","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":62,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"85c2c2a0-a904-406a-a23a-189977014b13","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":62,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"271cae81-6670-4d4d-9133-73861577701d","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":62,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"8a80adcb-0ae8-48b4-b23d-7918c802fe14","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":62,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"3e551426-7394-4d1a-ac15-d956f6aa14c9","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":62,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"83a8bacd-0345-457a-acc0-26939651a4ab","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":62,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"0f418ffa-faf5-466c-8ac3-42375e62c338","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":62,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"e37fafc5-e109-4480-9844-8a3c60260abe","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":62,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"d00d8c2b-ae07-41e5-b8a5-ab3c356ec2ad","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":62,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"a1527a03-5c95-469f-ab43-0f0f49d68af3","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":62,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"36d6f37b-6369-4285-be13-65cd7599ca98","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":62,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"26ac4a9c-393c-4c72-9c5c-95a504fcff63","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":62,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"db7e6132-5858-4632-afc4-23e8b5b1f162","block_type":"box","text":"market oppor tunities. The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":62,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"5cf019d8-708e-4e29-988c-f63d37754a31","block_type":"box","text":"II-31","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"eb7aee12-9575-4d11-9162-750ac66a722c","block_type":"box","text":"NM1026U-5982509-62/232","page_number":62,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c45cf848-420b-42c9-8d8d-48f00a6c98b1","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":63,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"4ca92b0b-0cc7-4f74-b7e8-b0fade1c4c6d","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":63,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"8621f821-6835-473f-927f-27e4702dc578","block_type":"box","text":"Index Funds.","page_number":63,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"1f2f8fe2-4f68-4c9f-becc-7317a3558721","block_type":"box","text":"Cash Flows; Expenses.","page_number":63,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"a8ce4106-3375-4569-b9c4-0535e369155c","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":63,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"e483c424-2b4f-4061-a3b2-410e62dff587","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":63,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"b5f5ff71-1764-4c35-a564-05bbb72b9807","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":63,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"de2c1ed8-3d00-4895-8c80-a2e598f5d05e","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":63,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"fca0c058-e503-450d-9efc-7cf5fc5f247f","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":63,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"33639a83-1cb3-4667-bd96-961240d3e858","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":63,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"77c80d61-71cf-4509-800a-338dfba7bd3c","block_type":"box","text":"(","page_number":63,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"953668b2-586d-4202-81bd-a577f00c1718","block_type":"box","text":"e.g.","page_number":63,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"db5091a9-8cfd-419b-be91-fd55718de843","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":63,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"7918f8c5-9e1b-4d15-b7d1-c43a578c8cd6","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":63,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"bded265f-fd94-4f1c-ace3-4befa675ce29","block_type":"box","text":"par ticular security as an investment.","page_number":63,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"470f27cd-09c5-407c-acf0-ef14b1293c34","block_type":"box","text":"Tracking Error Risk","page_number":63,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"9441238b-69f7-4e20-b80c-755a3a86474f","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":63,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"24c8c425-e7a9-4f19-8e26-8aa69352fa9e","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":63,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"db5c5908-1e17-49c0-b527-b9122747c011","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":63,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"e6895720-c6a1-4e65-a3f6-e620ea628c33","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":63,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"6478f409-c899-4a1c-a753-e15adf2342bd","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":63,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"b1d65dd1-dd15-4ab9-a04f-55488597a829","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":63,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"fc46e294-3886-4fc0-8bfb-5adb56f66fac","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":63,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"fab453b3-b5bb-4d6e-bd36-f3abafbdece5","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":63,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"1bce6e7c-283d-46ec-885e-5a58a7fe11ad","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":63,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"82912968-e016-436b-a75d-168ec752b389","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":63,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"b4b6c9ec-bc19-41fe-aaa9-d50bcebe14b6","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":63,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"c7945b35-75c6-4a14-aedf-5d1cc7141d3d","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":63,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"0c8db28a-aff1-4bef-9317-4a816f57a9be","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":63,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"66d411dd-7297-4962-95e6-b1166c17c538","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":63,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"95ce4c0b-5fd6-4d2b-9842-987bb1bfb307","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":63,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"b3d04169-6c32-4575-80ba-0623c154eb54","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":63,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"c7999cd5-4187-4144-aa08-7c8a4a946ad7","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, aler t the index provider as to the alleged issue. The","page_number":63,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"b70d2fcf-fa3e-45b3-b1ec-bf03b5a43d7e","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":63,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"a7d0da63-8f5a-460a-a292-b7eceeb4f7ef","block_type":"box","text":"the rebalancing of its index. 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Bloomberg has no obligation to take the needs of any par ticular Fund or its par ticipants or any","page_number":65,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"0276b9d9-f84b-4ea0-aea2-5715377deb79","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":65,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"9e9e3dcb-2bf4-4087-bb76-ff9c72f3a134","block_type":"box","text":"ICE BofA Indexes.","page_number":65,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"f991d162-3674-4ab5-935d-63835d8385c7","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":65,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"3f34ff6a-6ac8-4153-a927-44832e071a1d","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":65,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"254874ad-e1af-44d2-88d5-de90db541428","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":65,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"2cca12ca-343d-4239-9cc4-f37a7dc90c2c","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":65,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"6a56ad54-4af9-4ef6-9664-4005199c3355","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":65,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"906ed820-9f3e-4b87-ba40-989f333feaf5","block_type":"box","text":"completeness, or otherwise.","page_number":65,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"e838f8b1-e0e7-4d8f-8379-31b3d0b5d6db","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":65,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"66339b74-4a50-4a2e-90c6-e6e30d21b8f4","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any par ticular Fund or its par ticipants or any other product or","page_number":65,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"8192d6d0-25c7-4729-82f5-7f1406fda8d6","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":65,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"64c4fb57-bd42-42af-ae61-ca2ce632e223","block_type":"box","text":"Indexed and Inverse Securities.","page_number":65,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"3ee7f445-d75c-4d6c-a4b4-8ec20bf07d49","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":65,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"5d40ed9a-54d7-4105-bf4d-9d3aba46b42d","block_type":"box","text":"par ticular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":65,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"26aad10d-b8b9-4bdf-a585-e0992b6cac4f","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of cer tain securities also may be based on the","page_number":65,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"df13427d-eb9d-4a59-8a7c-45c438bb0b63","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":65,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"b04dc947-24f8-45c3-a76f-7a5b2d328dd4","block_type":"box","text":"be subject to risk with respect to the value of the par ticular index: that is, if the value of the index falls, the value of","page_number":65,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"2800c2b2-f831-44b4-8d1c-7d71d931fe8b","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on cer tain securities may also be","page_number":65,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"98518608-579d-433a-a04d-005338a5fd31","block_type":"box","text":"based on relative changes among par ticular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":65,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"df14c62a-6089-4f83-af5e-ac634688d9c8","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":65,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"bda8ff0b-d6e5-433f-94ea-fc27e6dcf67e","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":65,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"50d000b2-c611-4e11-9417-4984bf0450d4","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":65,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"798d99f3-74cc-415b-bedc-8ba979cb36c9","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":65,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"bcbf6274-73e0-430c-88bf-bc67e5ddcd73","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":65,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"f72d3bf2-3b3b-4f55-a1e8-2354acca3608","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":65,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"8303f2d3-de26-4065-b11f-4a193f38b884","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":65,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"40d8820d-4df8-4c31-a02e-81d65fa24bdf","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":65,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"bc295e0f-efa8-4094-af3f-3e4335c7108d","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":65,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"4d00ceab-ede4-4ade-b860-230b75545d63","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":65,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"1afe4146-6a8c-4226-b0d1-1746bc758bc4","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":65,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"ddd2fdb3-e45b-4f31-a88d-24f1a3bb1c9c","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":65,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"e9110837-9503-483e-af94-747e0d472be5","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":65,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"67b28021-fa9d-43cd-b4eb-3ee40b78b513","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":65,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"fda03f11-20b4-4a95-a864-785bcc341dd0","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":65,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"9b4ac039-80dc-42c9-adf7-90a4dee1349d","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":65,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"5cfe09f2-cf3f-411f-b97a-8883610ff86a","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":65,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"300c7bdb-984a-4d9d-b537-ece741e4b8a4","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":65,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"9e76ccf2-08dd-4b2a-a2d1-abf37a05c7d6","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":65,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"5db791fd-3c80-4bf9-bde4-d7224e9a1cdf","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":65,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"2e4313ed-62dd-4a14-b0d2-0428f9a6e910","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":65,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"690853ff-74a4-4a4a-827f-847938337610","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":65,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"af0c413d-76aa-4c35-919a-9b5260000106","block_type":"box","text":"Inflation Risk.","page_number":65,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"b4821867-8845-46a3-a21f-681cadbbdfdc","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":65,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"82a7d8e7-7ed8-4397-95d4-83df9f330bf3","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":65,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"514a4555-41cb-475c-b04d-84ce59833b9a","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":65,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"134a34a4-2b52-4a14-a19c-2124084ba1fe","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":65,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"d261194d-6ab0-4ed0-b577-2e621263b26f","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":65,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"ee6216be-d28d-4c3e-b3fa-38b528181cf5","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":65,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"cf17b182-41cd-4198-bfe2-6a5075a2f84d","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":65,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"288e91a4-b39e-4cdf-90fb-274f8b16e59c","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":65,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"2775435c-a496-42ed-bddc-e4b540fe0d82","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":65,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"6b5b9a8b-3d4e-4771-9f61-60be6fdf2bf6","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":65,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"56742034-ae35-493d-9f1f-cd33244fc3e2","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":65,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"c18b0b72-72b8-4f80-9a9b-dc13611236d9","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":65,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"28b2afaa-0275-4a3b-ae01-9009d09067c9","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":65,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"71668463-3e57-41b6-a9bd-a08b9f546d55","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":65,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"0bd05fb4-de47-4e44-9d1c-fc7b013ebfbe","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":65,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"5600e615-af45-4ea5-b2c2-e0414fba4958","block_type":"box","text":"II-34","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d7ff1439-404d-4045-b721-d4ab93c1a0f8","block_type":"box","text":"NM1026U-5982509-65/232","page_number":65,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e3efaefc-fd8f-45f3-a265-d3d6b4aab612","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":66,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"dc74af8f-d9c4-440f-99a5-da12762dc985","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":66,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"502e104c-9c82-4d50-926e-33624a12d241","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":66,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"803bf3a5-c10e-4ff9-adeb-f79192d2aa1b","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":66,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"33f55893-27b2-4fd7-98b6-62d5c7fc4dd0","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":66,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"0ab2c4e9-5868-48ae-99dd-1dbdb8b55cdf","block_type":"box","text":"be available for very limited periods.","page_number":66,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"9055c855-924d-48f4-8b8c-a428becb8daf","block_type":"box","text":"Investment in Emerging Markets.","page_number":66,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"35b28064-70ec-4cab-acd0-5edfbf50b7f0","block_type":"box","text":"General.","page_number":66,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"dbee364a-c22e-4f65-af2c-ba7430dc7e65","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":66,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"6d439a1c-6794-48fb-9644-b3a71d150e23","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":66,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"53339d99-c742-4005-b1a6-3d0be0ea6767","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":66,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"51bf2185-95b4-4e40-95e8-69f0fa111fd7","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":66,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"e7df2400-90aa-4e9e-8087-9346a3c2f707","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":66,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"749b4451-8225-4c34-9d2a-19737b373ced","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":66,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"0320bbb2-1f32-49e6-86de-31af5c77a3f9","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":66,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"a71234b9-e475-41c4-b5f8-8f5347570a34","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":66,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"f2f1d133-dc77-46a7-ac61-141d638881aa","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":66,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"81815ef9-20ba-4cce-973e-048661787920","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":66,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"3de76baa-daec-4076-95e0-09819198d1a0","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":66,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"1b0269c6-1e41-4c99-93c6-977b6e223825","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":66,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"38bb1ca0-9378-40d1-8d61-6bfcb2ba5e8e","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":66,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"f9ea8113-5813-4059-9944-aa57800d5957","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":66,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"2e892a3f-75c7-4966-853a-ee3347632ce1","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":66,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"2449b48d-9dfe-4641-a2f6-9ce03d76d26b","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":66,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"e9c78d36-3b27-4cb7-8a1c-9602a2151873","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":66,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"8c710799-8aa6-48a5-9760-76db4863f69c","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":66,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"8741d7cd-9f49-4aa8-b509-1ec544233297","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":66,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"3ba75c2d-663c-46c5-8433-ee659cb896a4","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":491,"width":767,"height":11}},{"id":"023a3a0e-1ea3-412b-8607-c7dc36576851","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":506,"width":814,"height":11}},{"id":"a829552f-8a03-4f4c-b0ab-e2dc989a77e8","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":66,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"6a8ca864-4507-49d9-910b-b94a4ce4e82f","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":66,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"ed5e92ef-a255-4bbf-bdec-a8ea8478e52b","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":66,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"fa6f839a-727c-45f7-bc22-63e8afd1bdd0","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":66,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"06e9db08-b416-4de2-b328-9c904044ab90","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":66,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"832201f0-6b9a-4681-b576-f9dc60c79a41","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":596,"width":838,"height":12}},{"id":"5c4b0110-8450-4699-8c10-142e302e1c6f","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":612,"width":788,"height":11}},{"id":"a2f6da36-7daf-4571-ae38-8bbbd10a3029","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":66,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"c559658c-b777-44d2-b93a-63eab0c4eb7e","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":66,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"046e96b6-6d5b-4e6c-96c8-8f40f113fa05","block_type":"box","text":"volatile than investments in more established markets.","page_number":66,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"c18060fc-4ffd-4cd1-a468-f6b3cf792d3a","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":66,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"5084f9da-28af-46fb-96fd-af2514632b67","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":66,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"f2e4b468-7c28-40de-b517-3a2935e9243f","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":66,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"cae705c1-f21d-474f-95e8-732860b111a7","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":66,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"b40a644d-5c32-42ac-ad93-5d3018d55fdb","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":66,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"cc4928a5-2a3e-454a-be7c-79917040a17b","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":66,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"23eae0b0-b55a-4827-9217-4c7ef705ecac","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":66,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"8139d17d-30cb-4afd-bcd4-597d0abd69b4","block_type":"box","text":"acquisition or disposal of securities.","page_number":66,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"9ff55531-0c5e-4a08-a962-9fb8ca6d0436","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":66,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"8351a91d-0ba2-43bb-b714-b441f4219039","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":66,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"f7c0a91c-29e0-4276-9586-a203c49aa93c","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":66,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"c6e5d799-b718-4ea4-aac7-70cf8891b1ab","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":66,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"e8e4998e-f058-4459-835b-209b8ed38a32","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":66,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"cf1b5e1e-0f57-4ba9-9375-653708428892","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":66,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"73b19edf-b52f-4d56-9465-71c8f6531943","block_type":"box","text":"II-35","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a2e355d8-15bc-49cf-b538-84a19971cf1b","block_type":"box","text":"NM1026U-5982509-66/232","page_number":66,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ba92a653-37aa-40b9-b61a-5c9dc512d518","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":67,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"d9d1bc64-cb37-43f8-aa5c-afa88870aea6","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":67,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"adde15a2-8a84-4b92-bac4-e8e40160f202","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":67,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"2bc1f38c-904a-4cf9-8dbd-3d9413f0ba08","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":67,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"b4238f67-279c-4935-a8c1-f292bd69ad7e","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":67,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"533f7232-4baf-47ea-8404-c798aca7f076","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":67,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"c0c5e2e5-6df9-4451-b0db-fb1b255dc76c","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":67,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"20023f0c-cde4-4172-8ef6-90c12610f9bb","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":67,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"32ada052-1994-4ab7-9e9e-db248d4bece7","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":67,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"8ecd70d8-4056-4efc-a7c4-ce91ce03b733","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":67,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"bdc57c9a-2c1c-4427-98b3-ec3563bbd83a","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":67,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"6dbde7b3-a2ac-4cec-87c4-533e53afc13a","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":67,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"e0d62dda-b3a5-4f42-91cf-fa56a81b3f30","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":67,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"6c416ebd-1b65-4d85-a326-4716c04a58e8","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":67,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"98367424-c094-461c-80c2-45ed14fcbb37","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":67,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"d3cd07c4-d4cf-4aa1-85b6-9cf1d3155dfc","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":67,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"4c744e97-9fb7-4ba1-9900-db4b094e74c7","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":67,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"2b4a8176-66f0-4994-8ffc-90679cda9430","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":67,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"fae170c3-fc93-46b5-b5a5-6f3979eb9c3d","block_type":"box","text":"per formance of the Fund.","page_number":67,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"1c50f4dc-c4c2-4338-9a06-37bcc16174d4","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":67,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"51acce93-4bfb-4a93-99b7-d055d3c875c7","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":67,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"221fe7f8-3330-4dd0-b0a7-86a07147f2bb","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":67,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"96c803c4-e6e8-4d9e-bdc7-f0f4126d2e0b","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":67,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"f3869963-d184-4a53-93cb-def42f314a5f","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":67,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"548caca2-6a13-4918-a34a-d40cb6452851","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":67,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"0c4fda02-349d-40cb-9445-af2404a12773","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":67,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"ebbfe63e-d248-4f68-a00b-b3e6e1937edd","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":67,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"2cff141f-8691-4460-8a81-ff0a32baa1c7","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":67,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"f5c6ba6e-530c-47b9-a043-236e4f1636e1","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":67,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"f42bff4f-2196-42c1-b062-c34ddb39c8f2","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":67,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"f772c50d-7daa-45ab-b97b-e627a4ac4eac","block_type":"box","text":"affected by a variety of factors.","page_number":67,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"2fceb850-1cf0-47fd-84f8-49697d212edd","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":67,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"db4f88c7-4e08-4030-ba8e-5837a94ee15c","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":67,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"cbafd602-8690-4df7-9355-76f27501d05b","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":67,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"679f2546-a92b-4956-97bf-e8ff39be0105","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":67,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"7e56e2b5-581e-4fc2-ba85-21b6c0e8e55d","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":67,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"1a04bccf-65de-4cd3-a2d3-e42f3a40738d","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":67,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"ca389580-5677-4ab0-812e-9950a5f5b8a9","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":67,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"66ee9a85-de97-48de-a1b0-020d04f8f542","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":67,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"e323664d-a953-4090-8226-378ab852f553","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":67,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"f52a7118-1a7b-4bf7-8a02-47fbb860da06","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":67,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"9d5c7344-8b03-40a1-ba50-2b32abf007f7","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":67,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"5f2722e8-ac04-4c0d-bee8-ca8a8e732a81","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":67,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"0701efff-4277-4c57-9961-136067a26953","block_type":"box","text":"nations.","page_number":67,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"1be2eb50-afdd-4190-ac96-879682f51872","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":67,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"403d1c5a-710f-427f-88c8-bca7aa10e61a","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":67,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"5a5ffd4e-3b93-4084-8b28-309d39f57481","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":67,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"c63249fd-8468-4436-acb1-8d8283475378","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":67,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"8b32da5f-0d2d-4ac4-a470-5552c92cc89a","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":67,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"19609408-1975-4760-823c-cd0fa831d37a","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":67,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"aecadbdc-4e7d-4fce-b9a5-be80b9bf8ee3","block_type":"box","text":"market Asia-Pacific companies.","page_number":67,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"07b3beb0-8985-4842-8caa-fad9defa6385","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":67,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"96c02428-9252-4d3b-9fd3-98a906545243","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":67,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"bb286b24-5dc5-4189-bf56-36198d84320c","block_type":"box","text":"services for such securities outside such countries.","page_number":67,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"8e09d7e9-8563-4001-b5de-c7cef993b734","block_type":"box","text":"II-36","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0c9532dc-6f28-4c7d-9907-4eaadb27f31d","block_type":"box","text":"NM1026U-5982509-67/232","page_number":67,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"44e152c9-8db4-4005-a40a-0234d44bb34e","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":68,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"38363cbc-ee59-40a4-a371-56a0d4b6a9ed","block_type":"box","text":"to commercial banks and foreign governments.","page_number":68,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"44d0bfbd-a59f-4899-8297-1ae81d39d50c","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":68,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"f5efaac1-f39f-493d-8d20-f3e73375f025","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":68,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"d6137e27-fa99-427d-8a86-c19f72e4d496","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":68,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"5a662f08-2e4a-4460-812c-758172ad6a26","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":68,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"6fda4eed-c028-4d22-8460-b09f187c4fcf","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":68,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"fc3d7623-bb3e-4d36-a2fd-38103c80386e","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":68,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"81604f7a-8845-4222-a468-5ff5fbac9e1e","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":68,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"655a1c56-64e9-43de-bf2c-76e8bf0fd854","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":68,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"7ae2fab7-fdfc-450d-805f-30abe069ae24","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":68,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"61c9aa30-44c2-4be2-befb-e38f3ee8c9d7","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":68,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"f62201c3-a0d2-4d69-9323-c4b2b9fc7a70","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":68,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"716e3906-9d02-4daa-9acd-613f816a302d","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":68,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"61abdbf9-96eb-41e8-9fcb-f5f789c2eacc","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":68,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"d54eb6a7-1e94-411b-82b4-734d99292589","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":68,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"a017b2f0-b417-4458-a01a-77674d158e03","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":68,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"422329c5-fae4-4197-afe2-93cd01f55729","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":68,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"730b5ea3-0b37-4416-aad2-57dd251a84c5","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":68,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"a8227394-0075-4d15-bd6f-81d170d2c142","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":68,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"48acb0f5-5569-4d86-9f14-49c4e8e0898f","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":68,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"a510ece8-2291-484e-b91e-1b2d2d7f00b4","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":68,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"9e1cc962-99b2-4ab1-8b78-d8e9c8889a65","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":68,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"528426d8-67b4-4b1c-a910-277b343f98f2","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":68,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"e0a50864-8dec-492c-a84f-1fba7a3c6b06","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":68,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"b67240e0-d0f5-4877-8712-fe445a9bb07b","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":68,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"fef73dc1-4654-4205-957c-50c6720945b6","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":68,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"dd099b4c-9cef-41b1-adda-079b91106a79","block_type":"box","text":"investment at that time.","page_number":68,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"dc3a678a-393c-41ff-a794-4b9539c66cea","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":68,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"42fc7adb-d208-4faa-8880-19ae61ee79ae","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":68,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"1d3777cd-4b7f-4450-8b99-3685ac8f587f","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":68,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"c321b2e8-4895-4848-8b34-61f4a6207064","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":68,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"b30d0259-f58f-4c54-aadd-8ed66feff324","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":68,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"94ea0e5c-e6f1-42f2-bca3-d1e0e8d6d391","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":68,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"e3e54469-77ed-4784-b10f-161c03759a6d","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":68,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"be0bebdf-95c9-4180-bc0c-e5758f8042ca","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":68,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"7c130b27-9b40-4616-8d2e-61118377e440","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":68,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"0d391210-8cfa-4c8e-8d9b-1a8e0e42e1fa","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":68,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"afcf10bf-45f8-4186-8355-f09e7de46689","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":68,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"2fe27678-4b36-4682-b519-926f120aa67d","block_type":"box","text":"government).","page_number":68,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"b41803df-f5da-4964-9357-28c57832880c","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":68,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"8e6ecf68-7729-4b9b-b2ff-058a7e0b46bb","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":68,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"d9944ee9-67c6-40a5-97b4-f3dfb712d070","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":68,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"fedc0458-c9ee-4cab-b533-0893496bf2d7","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":68,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"36905874-8d4b-477e-831d-cc71ad100372","block_type":"box","text":"foreign banks and other financial institutions.","page_number":68,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"9d7ea963-89ed-4388-9fa7-acf0f44ea139","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":68,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"9c48fa96-6d8e-4aa1-b528-0ca388ef039a","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":68,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"8911967d-1e16-4cdb-b634-e6dd8059cd0a","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":68,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"2e2ab853-8c9a-4902-9b74-66fd27c1d8e6","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":68,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"adbc0e56-c700-444b-808a-2be70ac6c150","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":68,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"b1f3a62c-feeb-4eff-ba22-5cfcce343178","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":68,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"a0b5ad82-b0c4-4b16-8922-52f7d5b8e7f2","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":68,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"2e12fb2b-a1f5-4a59-8bd8-c606f9c9a82f","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":68,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"e6bc85ab-08de-42ff-98cb-3729cb5fac53","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":68,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"a9621207-7875-440e-b53b-f355f1c84428","block_type":"box","text":"II-37","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"53023bc1-02a6-48b1-9c59-097ca9ba5554","block_type":"box","text":"NM1026U-5982509-68/232","page_number":68,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"304fc394-f3f0-4ada-b85e-e41e110f6818","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":69,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"8927e32e-6d1e-4f16-b358-94f1509f126e","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":69,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"8a74acd2-6409-46f6-aeda-438479adbc1f","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":69,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"f619caec-756b-4b53-b61d-3b716ff4e661","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":69,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"5afbd630-4773-492d-94b7-46be9e0edf52","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":69,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"bd2b8af1-e767-4e9b-8d21-4c4ef542a8cd","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":69,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"90d76d27-ca56-437f-9a06-1114c9781edd","block_type":"box","text":"foreign securities.","page_number":69,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"ebcd1502-241e-47cf-884e-65e7a5d6e354","block_type":"box","text":"Risks of Investments in Russia.","page_number":69,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"f7a3894f-01e4-4a18-9483-2ff3dad470d8","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":69,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"339eebf2-0df0-4c48-8fb5-1eac8ac7f5a5","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":69,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"225c3b77-9e78-49ee-aee6-fe41020c3b21","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":69,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"b1314a26-c65d-4b63-8675-40bb4abf70db","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":69,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"fbc2d432-473f-45ad-a41f-85571d6bcfbd","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":69,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"29ff9a58-d33d-4e50-8345-c22d19514d19","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":69,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"c8ed90d9-c12c-4e72-8722-ad2523b96aab","block_type":"box","text":"developed markets.","page_number":69,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"25c66b27-b3a0-496f-9e6e-9eb9fff27e3b","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":69,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"256ffb37-1ae6-4c6b-8bb4-1c612c26d400","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":69,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"6a99b5e1-d5d1-4aa9-909e-9ca21f8f14a4","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":69,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"1b673012-a37b-4873-aa48-e230bb698e0f","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":69,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"60288f8e-9449-4b03-9f64-6e92590ddb4a","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":69,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"303df06b-dfea-4325-b40a-93593130144e","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":69,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"f3c20719-40fb-4ae3-8dea-dc15d4ba68a5","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":69,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"a5599fe2-aae5-4522-931a-9bfa74a7da47","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":69,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"01b8c493-2808-44d9-9f90-55e5f6f9aeb6","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":69,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"322144d2-158c-4dc2-87b6-b14ce1377c0b","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":69,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"b38c4cf8-e48b-4463-9f09-11c98b9ec313","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":69,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"fac3b7e8-4588-49a3-9a16-c32595d81cc5","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":69,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"8dbc5da0-8331-49cd-9c54-cb8418f1fd9b","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":69,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"2aa18120-d496-4ad1-9702-d90fa6c5e404","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":69,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"e8e78d84-aa92-4a07-a3fd-4399eb6ba45e","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":69,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"90c46c12-9a9a-4ba6-b7ce-812beb23bb6f","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":69,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"a01459ba-2912-4aa6-93b4-2fb2e54d1c9f","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":69,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"b3f88a47-b701-4ef2-821d-3dfbee51db33","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":69,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"c5ef060e-c86a-4594-a256-677f4acc7891","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":69,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"626ece02-8944-46b7-a39e-8c70cd95ea6a","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":69,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"098e8eeb-6e83-4823-85f5-6b86359dbbff","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":69,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"f63b740b-0d41-4adc-a68f-06e1383013d2","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":69,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"8e0e29d1-e881-490a-902f-c6e2bb98b45e","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":69,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"fafd3f16-8630-4f9b-8b84-c7d7efd0de46","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":69,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"69f53960-e687-4632-af7e-9d1dfaedd3c2","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":69,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"4f314acd-9ef7-49b0-9efa-5fffecb5eb32","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":69,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"182f3d4d-5d3f-47c2-89ac-8c640fcc307a","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":69,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"14974cf5-a852-44b5-b2da-b51c4c8026e4","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":69,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"db3c19c8-96f6-4134-95d3-98740015bf72","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":69,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"ceee6073-498d-49c6-9dc3-7f0a9f86a3b3","block_type":"box","text":"sectors globally.","page_number":69,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"26744b1f-48c8-4332-a9a6-52d5cd0aa99d","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":69,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"d5acfabb-f777-4202-8db0-87123c171bbc","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":69,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"867702d0-0703-4916-81bf-8eddc827621c","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":69,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"ab6d0629-1163-412e-8aa0-ce0acca7ac2a","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":69,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"9657e73e-50f7-472b-88f6-14b7ac84da78","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":69,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"c7edb613-4dc7-4eff-ad71-22d212184518","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":69,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"9ea94eb2-3e55-4c07-bf07-dee3da1e80af","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":69,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"a1146300-0a41-49f1-a17f-a01c703e014c","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":69,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"08efc946-c2af-4553-9717-b8147a6c9466","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":69,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"b02b746b-b33e-48bd-bd22-2d80bab79e4a","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":69,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"e84f0ebd-e55d-4be9-9726-40b6a187d69d","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":69,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"b6ec1e96-db80-4288-8511-69b16fbf8ffa","block_type":"box","text":"II-38","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"863f9409-6000-4d0d-a9e7-9613a9a08cb7","block_type":"box","text":"NM1026U-5982509-69/232","page_number":69,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a24d927a-69a1-43a8-a0a0-15775c0d2d07","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":70,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"4c081e23-9def-443b-801c-1b98d3110111","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":70,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"cca08a90-2fd6-4879-86d9-e1569c759cff","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":70,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"2bd37ec8-78ce-40bc-a610-42cb3517a871","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":70,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"6a4579fc-fe27-4c6d-849f-f66783a3a7a1","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":70,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"b785d672-c318-45a4-8c36-b8bffc5be663","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":70,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"65862457-3db1-4b34-897b-917cf4755fea","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":70,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"81344530-6a4b-4355-a8a3-de9e10b9a7d4","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":70,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"72fc3c5e-bb34-48df-b7b4-24b48b976f53","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":70,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"7b1f12cb-85fb-43b9-91fd-ba3375f14c49","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":70,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"2b4db373-8762-4970-a630-951c70c86cd3","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":70,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"e2cd490a-4bb0-4bd4-a387-a4646958bee3","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":70,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"4654bea3-b4d2-47f9-b525-b1947607f6e9","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":70,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"a8ead08d-8710-4d91-b7ad-49b176894d9a","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":70,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"78e6910b-6391-4154-ba57-b8e7ae3aa056","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":70,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"651293d9-df72-4c98-baf1-726b9ba2a915","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":70,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"b1f1cb99-96ea-444e-9a4e-50cc8012767a","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":70,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"bf766df2-7293-4f90-a87a-b8dc28e0b3b3","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":70,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"ed50cb6b-f158-4037-8d10-906cde339f36","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":70,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"a1bb85ff-1c1e-4466-9fb6-f128c76ab964","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":70,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"52988579-1beb-491a-8c71-7e2a607a2cae","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":70,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"c7fa4ad8-1a8f-4a71-9c56-ae5dc61a1165","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":70,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"24a43251-8c03-44d4-99eb-29a7d6c03ae3","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":70,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"f0958113-9874-401a-8994-bc125efa8845","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":70,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"709a7be4-92ac-40c6-85a6-9b0e46655753","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":70,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"990ed8bf-c9e6-4f45-a578-b88918575266","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":70,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"b98241b7-0c92-4aa8-a1ea-5039ec0f42b6","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":70,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"5f49c0f3-7121-4797-950c-8e411a60eedd","block_type":"box","text":"impacted.","page_number":70,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"f0721f81-7a33-41df-8654-8177e7f1d164","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":70,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"57f79cf9-3447-4a47-8c55-f5d719f72f9d","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":70,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"8fe4a344-1ce0-43fa-9d84-23cdfea750e0","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":70,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"98493289-117f-4170-9040-4972955205ea","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":70,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"9bd6d678-1d7e-4b5f-96ce-75cf0b6ee77f","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":70,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"1a84686f-00e5-4851-84ed-034e3e35d15c","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":70,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"8019f90c-6f88-4fff-af3f-2bb059d481ca","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":70,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"615f373e-2cf1-418e-931b-2fdc4f55d8f1","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":70,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"9126a122-98ed-4485-b0b2-dd91c8993e7e","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":70,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"6bda722d-0976-4c66-ac07-e7e3899ae671","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":70,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"77bb4614-f7fc-48e0-bb21-565ba5610e9c","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":70,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"5c100968-4714-4a28-bc9b-29ac243c56ea","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":70,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"d6867d2d-55d5-43c2-9707-656e66f2445a","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":70,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"66575d9a-72ba-48c8-9d02-0d6b6287f100","block_type":"box","text":"economy.","page_number":70,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"75df6456-de96-44a3-b119-a5472c9c7d17","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":70,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"b6fc7da9-2958-446b-8855-bd34d6729eda","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":70,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"d6e75bde-f692-48a9-909e-e58a22736f5a","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":70,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"642ab8f6-773b-481d-8bf1-6ee8191bb324","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":70,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"b25314a0-663a-4c9f-981d-dc754a38aadd","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":70,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"d25c85e6-0073-4844-a516-c5fd9bdd2bd7","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":70,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"98ee3d9e-6908-43b9-b9d0-1e81deed2c8c","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":70,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"2b118de5-e792-420a-bb2b-bd02711c5f87","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":70,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"3e1f9c21-69cb-4192-86e9-9f52d720761e","block_type":"box","text":"typically the case for investment managers.","page_number":70,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"7268cb24-de61-437c-958c-5b0421a6392f","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":70,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"4edb4fdc-6f5f-49f7-b998-7fecbb49667f","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":70,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"acba33e0-464f-4c50-bd53-5012807f8f9e","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":70,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"f704be73-7a0f-46c0-80b4-3b34ce5e728d","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":70,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"07a16a42-82ec-4ade-a078-5db0b492f266","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":70,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"5cfc546b-3e7f-4de9-8b7a-458324392dab","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":70,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"96813abd-fd57-4910-a0e5-35eb9c261b56","block_type":"box","text":"II-39","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"88198779-fc4a-44fc-9d99-56ba02aa7a55","block_type":"box","text":"NM1026U-5982509-70/232","page_number":70,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a02e3e79-a857-46e0-8c5d-7b9f3b7944ef","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":71,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"be57c573-0a0c-4eca-b098-03c263ece2a1","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":71,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"087f15b4-c444-436f-890d-105f30f90602","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":71,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"4b30c869-663c-46d5-8aaa-dc0f55909a96","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":71,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"61a487cf-3d30-4034-8cd0-16f3647d7864","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":71,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"01acfe69-a047-499e-a19c-12b1016b6cb0","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":71,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"4976dcab-7b3d-43de-b253-c489b3466b3d","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":71,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"30b6973a-8ff0-462e-bbf1-819e64e1c223","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":71,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"9c4ef429-bb33-4ddb-bf3d-fd7b6b06417d","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":71,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"779536bc-d36a-4043-8bf9-3071ee6cc7f5","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":71,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"6a4dbe0c-5843-46e2-ab03-0a188ac76413","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":71,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"6c6a9f2a-1730-4fed-ade8-32e044550b9d","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":71,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"d2fa1b18-16d4-42a4-a574-47b747ad73f9","block_type":"box","text":"will be indirectly subject to those risks.","page_number":71,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"f87cdc09-c2d4-4e4e-a14a-495f2471eeeb","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":71,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"eb02e67d-ea1e-470f-b52a-f8f67e10324b","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":71,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"84069f9e-4066-4830-b423-68ac5ee7f490","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":71,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"e374346c-469e-43da-8f80-eacfdaf5e92c","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":71,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"848ee808-b79f-470e-9da7-4badde4586e0","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":71,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"9838af0d-63ff-4669-9065-4a3edc0eadb3","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":71,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"1664f818-8025-4f7c-ab73-98972e0ae4d1","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":71,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"7adfa902-00d6-42bb-b595-939d48af4312","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":71,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"4a1ad3e2-9f99-45d0-a46d-54950dc87c8e","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":71,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"67170f12-f7a5-4a4e-af8f-f9d29c5e396f","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":71,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"0c725b39-1f05-4065-8290-c5db587773d0","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":71,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"3493beba-6f94-4da1-af48-83f3ea5c27c9","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":71,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"09a4f17b-7654-4aff-ada9-73aa0c9b8150","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":71,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"0ae54349-1649-4bf1-ab29-ba0a74692170","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":71,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"ad37fb9a-b020-437b-a239-1e5fcd8d305f","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":71,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"10fffe9d-f52b-437a-8c0a-186c835f2f6f","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":71,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"597fdd8a-32a9-44b7-aeaf-231587672ef0","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":71,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"711c79c3-e3db-4a81-b3bc-809a6c0f22b6","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":71,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"cc29e316-deb3-4739-898c-77dda7611d9a","block_type":"box","text":"impact on a Fund’s investments.","page_number":71,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"255f4ac5-9be3-4a37-b8ea-e9eec3057bc7","block_type":"box","text":"Brady Bonds.","page_number":71,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"6d8160d6-aac9-4c91-83a5-02481f86eae4","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":71,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"ff611b7b-a550-4496-b673-edd12b82c4aa","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":71,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"b362d2c2-a713-4e05-a08b-e996358022ac","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":71,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"1781894e-1a38-4959-be95-3b55e6d9c844","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":71,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"30c3acb8-1b4e-4cf8-93c5-150a413a7820","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":71,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"b2a88ab0-02ad-4189-a057-a0462484f536","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":71,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"fa7e4f00-8774-48d4-a0af-ea2893a35f41","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":71,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"c6c724bf-781d-4fb9-81c2-ee0faffca4ea","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":71,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"cb6a7204-42aa-455e-b811-894050cf6f7d","block_type":"box","text":"Venezuela.","page_number":71,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"adaae569-351c-41ad-a18c-a9d4144c4c8b","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":71,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"b6657851-4bd5-440a-9e89-f610a5ed785f","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":71,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"b275adaa-b182-4cb5-ab3e-e0b06027668f","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":71,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"c6ab1711-09d5-4b86-8869-3325e274cc16","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":71,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"b1be536a-d5ad-4041-9bfb-70c7df4267e7","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":71,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"e23f4cd4-95d2-4980-b96f-09e8e8a57351","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":71,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"bc63b1bc-1d42-4106-8c85-b5dc54a45584","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":71,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"2e3b3725-cd00-4689-9801-d2d74e680797","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":71,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"a51303f1-2cfd-4312-a8f8-2ce45e92dbae","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":71,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"150ba52b-1a26-47bc-99bd-2150642fef94","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":71,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"d2b3022c-910d-42c9-8882-9f0e6d5c50ca","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":71,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"4bf61743-92c0-4f74-a294-778442ec7127","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":71,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"825e05f6-a214-4d04-9fc7-0dc8aa7479ac","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":71,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"441304fb-e080-4ecf-a51e-8a1c30009d4c","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":71,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"89abff45-2da2-4c70-ba0d-c5b3445e72cb","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":71,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"4c31b0dc-5a7b-4287-a451-781e1963b4e5","block_type":"box","text":"II-40","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"65e05d08-0a88-4c1a-83b5-747282201c6f","block_type":"box","text":"NM1026U-5982509-71/232","page_number":71,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d535ad90-947e-44df-a7cb-51f48820e836","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":72,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"57f89ad9-d718-41d5-aa12-c3110377a4ae","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":72,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"fede7946-09f0-41ca-a538-2aee7d0dc141","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":72,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"187a94eb-73e3-4801-ba5c-d47b51decc99","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":72,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"3ea9ae69-3a99-4fb7-b104-59d09e669f82","block_type":"box","text":"China Investments Risk.","page_number":72,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"50e453c2-6004-4c81-ac0c-bf0a1c57c667","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":72,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"2d34b47d-c8bc-4c8c-a7ac-15ab868d3366","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":72,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"d04f88c3-1b21-4d79-b235-002bdb8c1c80","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":72,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"eff33bd1-bf10-45b3-8292-f5fd029cac92","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":72,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"fb38d303-c9cf-4f91-b100-17ffb63b198d","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":72,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"c86c5fed-d6b1-41c8-a017-bb3f51084901","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":72,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"ad7b0b20-0e5a-4df7-b7f5-b7bd7f9e2575","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":72,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"fa5b9945-f9fc-4fb0-9242-0c5ea4aabd02","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":72,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"abc3f26f-3049-40d7-b8bf-fa3d2af6da2b","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":72,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"878fa905-3b90-447f-b2b7-e4557c3a4a66","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":72,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"a07490b0-393e-441b-9b60-469e923b385b","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":72,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"d4b500d8-6f82-430f-8f77-8ce85d113ba9","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":72,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"735409d4-6164-4b42-9b9e-9c0282025dfd","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":72,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"71d5ce43-6543-4ba6-be8a-a05ddb9b88da","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":72,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"53cb0be6-d3f8-4ada-8a62-31f923ead1f7","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in cer tain","page_number":72,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"09e39d2a-4931-4def-a258-ba78264ecd88","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":72,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"e5864fca-e2a2-4f62-b4fb-1fcc8b68eb3a","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":72,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"c39325dc-001d-4b01-9393-a835fb17cbe4","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":72,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"d660dadb-8a63-412f-9c2c-25f4d0901364","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":72,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"2a08556f-3446-4a0f-b0b9-87bfca597365","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":72,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"07e1b863-f868-44b0-8746-442571872c39","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":72,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"ca17ddb4-4c18-40b4-85d6-e4921490866d","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":72,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"55e17609-08eb-4256-bf69-0eedee3c0000","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":72,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"6e6ba7dc-97eb-4027-a163-660bc9844f86","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":72,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"3a6537e2-a58e-4151-93c5-da16cf7f65c3","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":72,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"be4513ea-7f32-4dc3-9aa2-969bdabbebd6","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":72,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"faebebb3-9a65-4c40-a359-9f86d58a0df4","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":72,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"89c64e32-f4a8-43fb-8f8c-4cc3ca591577","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":72,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"bf0dc311-8146-4107-8a44-3962d7ec9446","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":72,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"f0df0669-f38b-411e-b81c-09007f2fb062","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":72,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"5ddbe544-dd3c-43d4-bcba-54f480dc0aee","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":72,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"d4d0786f-131a-4344-b8d0-6edbc35a2a5a","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":72,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"94a124c6-62b5-4df3-a867-04e2a9484e75","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":72,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"791fc8d7-3658-4e41-96ff-6c6445dad5e0","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":72,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"f0033c34-4ce8-4ff0-9229-1cb0629d7ea4","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":72,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"07bd77c7-9d3d-43d3-add8-5d0ebd621a40","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":72,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"c070a818-220f-4d8f-855c-765be7b27a83","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":72,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"b2ca365a-783c-4865-96d4-44c35a81ec46","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":72,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"2f9f48b7-beaa-42b2-92f1-46db4e18eba9","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":72,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"1dcc1249-3976-4ccd-b544-82244efd5f25","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":72,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"1ee2a6f7-cf66-4e09-aec4-e09ebae7abb5","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":72,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"c91797b7-79f3-4fbc-9a49-a262d3e06212","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":72,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"6b5bafb1-fd15-4d15-a89d-1192dfa052c3","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":72,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"4a22a642-de8b-47c8-8e54-9dcd4801c103","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":72,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"8597b4d7-c24f-47f5-a067-28f5bf17d83c","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":72,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"2dacb555-c824-4ef4-92b1-f29b846044c3","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":72,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"f056d4ba-6682-4da9-a63e-eedda810f7d7","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":72,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"d9cf2c5f-f0ce-49d3-87e7-ae8285bee244","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":72,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"c67d6369-f54e-4944-b19c-5a8931915bbc","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":72,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"79caf94a-04c3-4853-9be5-72e58ad9dd09","block_type":"box","text":"sub-custodian.","page_number":72,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"d436ffce-2158-4740-8718-913ca2401ef6","block_type":"box","text":"II-41","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"66539236-94c6-4385-95a2-afc221652081","block_type":"box","text":"NM1026U-5982509-72/232","page_number":72,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f1d4fda6-22c7-4432-adb0-a611a78dc09b","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":73,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"a1592d25-3498-4a5c-bdf5-b2c62994ce6e","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":73,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"177f0824-d953-42da-beec-00e1ddd586fe","block_type":"box","text":"on investor protection considerations.","page_number":73,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"68ce0177-9d98-47a5-b69b-9a77e539c228","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":73,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"7e0aac74-5af7-48d0-865a-f037fc5643be","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":73,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"25eb5ba6-6214-4250-a97b-84bf553d1668","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":73,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"e959f44d-122e-4263-b7a3-7954dd9b22a4","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":73,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"bd079e17-da49-4c7e-adfc-d868bf0b6400","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":73,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"83febf65-35d1-4b78-95b6-b415d0c7a6e0","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":73,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"77882ab3-c8d4-438d-a459-220b40aca20f","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":73,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"02323744-57a2-49d3-88fe-ff0ed2a31c72","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":73,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"62339801-0a59-4307-95d3-fd7a11b0597a","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":73,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"3c79cef6-553d-45a0-bb9a-e5cc6fb625f1","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":73,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"a76e2121-25e2-4417-8f3b-913f07119877","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":73,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"e781829b-4415-43a9-bc3e-3d6783ac7ff5","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":73,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"edde5324-95bd-41b9-ab64-6d929851127a","block_type":"box","text":"accounting firm.","page_number":73,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"eca4b995-5862-4eb1-afd1-ecbd5cf3b509","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":73,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"5f7efd15-dadf-4ba8-b80d-6b912ebf13bf","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":73,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"10f0ccad-491d-42d1-baff-0f9b4cb2c1e8","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":73,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"e8bcd262-3b7b-4ad8-8d42-5597b20a209e","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":73,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"e89e5374-d899-47d1-bc3e-6fe446fbab67","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":73,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"bbbc996f-56de-432d-938e-a440b7d9cee2","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":73,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"184ac65c-69a2-4843-9701-044d36b7525c","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":73,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"51999dee-d0a1-44ed-b8d8-34ecc237402c","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":73,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"4146c44a-931f-408e-ade1-e16779f30012","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":73,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"de20c440-85f7-4eac-befe-44a07f9d2fc9","block_type":"box","text":"RMB (“CNH”).","page_number":73,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"8b600438-1f64-4a4c-a6d6-2bdb02379e2b","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":73,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"05a619e0-5a94-4fac-b05c-494c5d8b89ac","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":73,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"615f4739-4f95-4a0f-9a7f-db094addb632","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":73,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"d14381fa-5a33-430b-b2cc-2ec6cc37c404","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":73,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"540e9648-9c08-48bd-9d3d-8c3bdde62961","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":73,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"f911c18b-3e44-4c56-bd25-0a0b0bef057a","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":73,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"9e13f827-74af-498b-b19b-675d84739a7b","block_type":"box","text":"represent equity ownership in the operating company.","page_number":73,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"927c6e96-fb84-4bdb-85f0-b0714817edfe","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":73,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"302bd17d-f0ae-4b90-81db-af170c9b6d18","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":73,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"3a070ce9-7edb-4c3d-bfad-a934317dda6d","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":73,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"5aed38f5-c5c1-417a-b5e3-f645aa0417ea","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":73,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"da9091d0-5e23-47a2-a63e-c13f4f475d8e","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":73,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"363eb2fa-d8e2-496c-ab59-6f17a8964e99","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":73,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"d71c40da-bad8-4c37-89b9-0b0572cfc58f","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":73,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"7736bf38-2fc8-4282-8fca-b6c656704bca","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":73,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"f03ddc3e-6de2-480e-a5fe-e224b636ce86","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":73,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"0d55f5ca-122e-41d2-987d-4f6417616b2c","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":73,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"c741dc97-2fae-4217-b03d-1bad706ec687","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":73,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"2a7eff49-1f45-453d-8340-f5a8b6f41bea","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":73,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"e957704e-dfcc-4e70-8012-b764c8488b5c","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":73,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"f2a5b2a7-ca8e-487f-9958-d3d6ed19181c","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":73,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"67bcc3e1-d589-413d-8a94-b2e79d0500ce","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":73,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"2a85d34d-b252-4410-a98f-d4eac6df0bbb","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":73,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"9091a9dc-20c6-4e4c-b089-e69f1bcfe901","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":73,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"07bd38a5-1af6-48ef-ae41-c7b8c771f5e4","block_type":"box","text":"losses to a Fund.","page_number":73,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"b8b826b0-5546-473b-93c6-f79a72bab195","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":73,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"494929a5-6bc5-4f09-ad75-bb284c0162fc","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":73,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"2e77af05-6929-45c7-93b7-b20e42a7bb6c","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":73,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"526459ef-6078-4d0f-abd1-d7f8952ac2d3","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":73,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"3dc3c8f8-8dab-4f63-8d0e-bd7d59803a4b","block_type":"box","text":"II-42","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4c82b5a9-ba7d-45ac-957f-b5046073f701","block_type":"box","text":"NM1026U-5982509-73/232","page_number":73,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8c7e84e5-7b94-4f6b-8cdd-f187efa6e5f3","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":74,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"d43bbfb8-e8ce-4c76-893e-9405e181ced2","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":74,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"cd327368-471e-4f65-aa0d-de0b0f0f1f25","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":74,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"c388fdf2-9748-47b1-a451-f1e9d9b1f61e","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":74,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"11657346-8308-4a0e-bb63-cde9ddf52ebc","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":74,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"d5c67ff8-ff05-4fc6-829d-63d422b7ff25","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":74,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"efd43e85-086d-488e-a487-6bb7092cf3db","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":74,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"04bb3355-27e0-4d30-91ef-e7699feabf65","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":74,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"89ae8aea-bd83-4e9f-8f3a-09f343a7d0d0","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":74,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"06cbec71-84b0-4d0a-bb4b-2a6ead6f2ce2","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":74,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"06082649-529b-4ae8-b418-b623acda7555","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":74,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"f68cf4e0-5ed8-412e-befa-ef9c4c9d5c22","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":74,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"5f067b10-f12f-4f03-8cf1-7574f1cfb357","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":74,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"5478fd09-9040-4150-8178-71c395b3deda","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":74,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"01bc014a-65d9-4f30-b940-0f4671e5f558","block_type":"box","text":"such companies.","page_number":74,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"b7d1121a-920d-4943-8576-c887702f9d72","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":74,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"c7222509-6b8e-4cc8-84b1-eeb34780b1d2","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":74,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"b5634269-87d7-4e1a-8a2a-23b3a0d737c3","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":74,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"ccf3ce11-37c2-489d-8a20-8ad38e8c166b","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":74,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"4cae5cd9-efc5-4a9a-9e39-b6e21a1ace60","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":74,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"f70d934b-6a20-40af-b7cc-f582f9acb445","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":74,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"1d61f896-4967-4015-b61e-8b1292746bb5","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":74,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"daf2cb9d-3d53-4645-aef0-fb959e707630","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":74,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"62ccacbc-33f4-4ebd-a478-8ab29c265803","block_type":"box","text":"standards.","page_number":74,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"7066c2d6-67fe-4bc4-8a89-02eb58c80fc4","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":74,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"12b39efe-c278-4eb1-a20b-c4dfdedfc2e1","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":74,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"d3cd2b12-2d47-41c7-a12a-657248eff4eb","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":74,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"e11aadcb-9f38-439e-8ed5-9625f2e329ae","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":74,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"5758d8ce-ceed-4018-8a22-f5035821a1f4","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":74,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"f1bc2a9a-3856-4324-8c3e-db7d213fa08a","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":74,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"35774d0f-f3a2-4117-8d52-0da23cfc078c","block_type":"box","text":"General","page_number":74,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"e889f439-4382-42ca-a9c7-990a0350678d","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":74,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"7b3245d7-b2f9-43c7-a7f7-408a6b046b3e","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":74,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"b59a7a8f-9728-4966-b69f-596541d3c1b2","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":74,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"e72b502d-6524-40d7-97fe-b06198cc9628","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":74,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"53d1b300-56cc-4f42-b577-077358934751","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":74,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"836ffe31-3ea3-482d-8d38-ce6e974eed9f","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":74,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"a24760df-9964-440e-8c12-80a58cc413e4","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":74,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"cac34325-3624-4c19-a24b-24aa378926b1","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":74,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"5c85f17e-3a66-4feb-a25a-f82ed2a47d45","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":74,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"8de4bba6-92cb-4d6c-82f8-9179dcb77db4","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":74,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"722a9e14-a0a7-407e-8bb0-8f7fc30905d5","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":74,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"1f58e9d7-61a5-4a47-8c16-ab08ac6909ce","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":74,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"d980adef-0958-4c8d-8306-ad21ed596e2c","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":74,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"8c256ccb-dc8f-46ca-8c48-681fb1a7305c","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":74,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"3abacc52-e8e4-4d28-9722-5165fdfd9dd6","block_type":"box","text":"company established by SEHK.","page_number":74,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"f00e35f2-a16c-4eb1-976e-f16fb4c7da81","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":74,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"1750959e-ccd2-4eba-885f-f8bd444e882d","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":74,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"256ebf8a-7618-44cb-acbc-fbff3daeef59","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":74,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"cc7d1c74-45bc-4fa0-91d4-6c2f5125caa0","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":74,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"ad0387bb-1d84-4754-b1e5-07c85898825a","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":74,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"1483df56-448c-49a4-8a68-2dad96cdb5f2","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":74,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"d7b94fc0-6a50-44ea-89e4-f39e65968032","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":74,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"c36228f5-1ff3-4c8a-be6c-94535c893a21","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":74,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"c932afdb-975e-441b-8650-e08939d568d6","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":74,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"ffb0bc3f-5703-4bbc-8251-d65daff936ce","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":74,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"56d04b68-d4c6-4572-8865-32e1ea63715a","block_type":"box","text":"II-43","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e2ccf1ba-04fd-40c3-ac9c-c7486f76cbf4","block_type":"box","text":"NM1026U-5982509-74/232","page_number":74,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0d3bd55f-1dfa-4366-aebd-b43aca4aa26b","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":75,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"5d6d824d-886f-4db4-8889-c2e9f564792f","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":75,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"6aa94382-a91c-4731-b566-cde2538dcb16","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":75,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"0261de73-7bb5-407f-a7c0-e32d16a6bae2","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":75,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"87c46c90-af58-4358-b61b-4b1b9228c264","block_type":"box","text":"i.e.","page_number":75,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"0e699d5b-91cb-4ca5-9a42-f158381448d3","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":75,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"20e8ff24-8c0b-4836-bf93-60137a9b1f19","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":75,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"30d5864e-d111-4107-ad08-ae2bbfb11d01","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":75,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"74139214-b918-44ee-9f9b-0b4547289c59","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":75,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"6a9e4fd7-ef9e-436f-806c-aea3755d543d","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":75,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"ad6086ee-81a3-44b4-b6fd-2177679cd5e6","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":75,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"1ba8eff3-c578-48a2-9459-a8ab96695a23","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":75,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"8dcf4ee9-1e93-4424-9a6c-e96c2bf64dd3","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":75,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"ebc53326-85c3-48b7-a703-4559c753ab43","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":75,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"72d4b5c8-1f27-4378-ad86-4deff1e9d174","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":75,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"83ab333d-b909-4543-b8ff-1f5ed3c5f21e","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":75,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"720b7031-ea1a-4b61-8823-11a3fcbf179c","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":75,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"5444f586-c386-40f5-8cc6-098522aff6f4","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":75,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"99dc302c-12e3-4c8d-9c06-456a3ee607e4","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":75,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"86ad9255-dcdb-45a5-8056-1ec077a51924","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":75,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"9a2a4e19-4f58-470d-8b55-c741398fb1ed","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":75,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"45bb07e9-2339-4e84-baf1-4c4059f6f8f7","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":75,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"cc2e2d1a-71cf-4e16-83b1-ed0a98a76211","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":75,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"c8badc65-9210-4a3f-afce-be4674d28543","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":75,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"35f0e9f7-9e6f-4c16-9813-85031b599d8e","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":75,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"707b72f2-7097-42d9-b1cf-c2d464914ec2","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":75,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"8cca6da2-3ba2-4d32-927e-b831706e79ec","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":75,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"22f5ebea-7015-4313-963c-aea6ba3b0a12","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":75,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"6e7d4482-39db-4402-b761-6f74704cbeea","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":75,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"15041a64-70a2-4ad7-bd3d-ef0d95d94eef","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":75,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"888a93f8-b7de-41ce-8849-0b16bb1ff485","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":75,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"7093892f-d262-4809-b46e-21d3437dcf40","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":75,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"3f501d73-848f-4748-aa4c-c9835fbdccf4","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":75,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"95dafff1-72fa-4acd-9033-22dd22696bc2","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":75,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"659f87fa-6821-4176-b3d3-7bc879238cc2","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":75,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"9e361944-7059-4cca-a3a0-7a2011aadf53","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":75,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"e9d93bdd-370e-4d4b-8a87-2f922223f0bc","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":75,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"aacc2b64-1cff-425b-a6b0-96fcde49ed98","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":75,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"34c90233-051c-4c77-89c5-bf58f6afee7b","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":75,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"77d1b9ea-d35a-4014-9781-dc26c3e1cba6","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":75,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"99034e3e-d424-46ee-91ee-f88f398d5056","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":75,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"bf97455d-663b-49a8-b0fe-fb14d3cd0eb8","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":75,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"d33ad6b0-ff8a-4377-9ea5-80765c7636c3","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":75,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"355ae7fa-d047-4456-a58f-f938369399fb","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":75,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"6812d966-e72c-40b6-93fb-f74c742030a1","block_type":"box","text":"PRC.","page_number":75,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"c0fcad42-7ad3-4122-8559-38e464fc1b15","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":75,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"9b02f304-8424-4c01-8145-2d01a8a99e85","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":75,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"74575d5d-191a-4f45-ab91-46ad69560d58","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":75,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"f275894e-ebe6-4b54-be27-987eb6169c7b","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":75,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"fae5f300-10f2-4ae0-97aa-591077d63da9","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":75,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"75da758b-9ca5-485c-8ab4-dc757e68de1a","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":75,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"dd6946c5-a381-401c-97a9-8ade715e2beb","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":75,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"110eb36d-1bc3-426f-9d7b-9cb34c9fca8b","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":75,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"f80de359-5465-4301-a269-d0dfa2dbc33d","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":75,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"6ba91594-8c41-4dda-a395-1dd8c4af7540","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":75,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"872efab1-1471-4768-9758-40a6fea03d89","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":75,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"6c4b11b9-9e71-4dd5-bca0-c5a239b8cc23","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":75,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"5daddf17-84ec-4055-939a-03dcc9afac94","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":75,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"452d1b27-fe35-4c7e-9eeb-db5efd736d35","block_type":"box","text":"II-44","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"13bdacb7-318d-4daa-a623-e8435ea3c5b4","block_type":"box","text":"NM1026U-5982509-75/232","page_number":75,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dd75c717-7ee4-49ac-bb78-560503a25462","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":76,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"a4e5241b-e549-4744-8f1b-c2143085ea9b","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":76,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"2126a8b1-8e32-445d-9055-e106d7b9ace9","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":76,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"1aab3d7c-41cc-4cc1-b7c3-8298c99cddfe","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":76,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"0a4a75a2-8bd5-44d3-a810-9672cd5d0754","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":76,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"28ea0252-19d4-493b-84d9-bb3fb414cfc5","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":76,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"cb03f295-baaf-4776-90d5-426b960617f3","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":76,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"3ebaad06-4380-4d69-ba61-f4794a621928","block_type":"box","text":"Suspension Risk.","page_number":76,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"3aab96d0-0b78-4d3f-aa70-8eea0864702c","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":76,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"dc9e1af6-88ab-47d5-8a53-1bd5b21dab70","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":76,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"e63b5e33-dff5-4d56-939f-7987a179b3ef","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":76,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"c6e1be08-faf0-4a77-9b3f-2972e018564f","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":76,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"68a759e4-b74b-47ab-a341-7bdff58f81cd","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":76,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"61d30d7a-3cad-4f84-88af-0eeb65d0bd5a","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":76,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"1cce1ff8-ce46-48cd-9c04-699ff8b2e300","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":76,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"44fb848a-1dba-4330-8bf5-3b8e367d204f","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":76,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"e1929c3e-f4e6-43e2-bde7-da5156db9e46","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":76,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"9a36d7cb-e3b0-4d46-a47c-99eea2ef903b","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":76,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"43cb2717-65a1-4266-b04f-4fc46e84cae6","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":76,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"bad12972-a783-4035-989b-12cd9cf929e5","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":76,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"8997e290-d97d-484d-8d06-5e946223b7c8","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":76,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"55b9cffc-bfdd-45ac-a71e-0c6e173376da","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":76,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"6311e98f-961e-416d-a297-56b2c4188086","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":76,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"b81f8228-f75c-4fbb-b706-359007c8ee9f","block_type":"box","text":"A Fund may invest directly in the","page_number":76,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"12c95395-6269-49b0-bd3b-8b3c186be92f","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":76,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"4ed42925-6242-4fa5-a240-e5674a410eaf","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":76,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"487a1f34-8ceb-4a5a-8e03-ac7059fd76ce","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":76,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"25bb0f8f-8679-481e-853c-4dac1500e97c","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":76,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"0c6b52cf-787c-4eed-b196-d76931e7b88d","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":76,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"65ca3625-10b3-46d5-96f2-99d5677ea629","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":76,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"a0d6fc7e-b5f6-41ff-89c0-d4b883cbed5a","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":76,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"8dfc9c0a-993b-419d-a99b-571564579e77","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":76,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"1407fe93-395a-4cce-b764-8f2a79c68380","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":76,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"109cbbd0-99af-4fe5-b9f6-974cb83ff199","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":76,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"7673997a-dfa0-426b-940f-484bc5bb6560","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":76,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"06ffb2dc-bc56-4fd5-a32c-ba498ed0139a","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":76,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"60998847-dcdb-4127-9ba9-d005f23a0319","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":76,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"d41fa44d-9184-43f0-9201-c0f7e2a13bcf","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":76,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"bce66854-333b-4f17-83a5-956c0d80c103","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":76,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"71d89c24-4df8-4d36-8883-01049f93bf5f","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":76,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"9faaefb6-4246-4308-8c1e-c900d4528578","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":76,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"ae448a08-75d7-47bc-82a3-cb736dd1c779","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":76,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"b2381d15-e450-4364-a0ba-a11d9a08b9f0","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":76,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"a9ec48e3-5c3a-4726-878a-15a84a25f95c","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":76,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"72d4d4f8-9e9d-422a-b02f-3f3c337a192b","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":76,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"8a254611-8293-46c1-a5ba-92c30cd1373f","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":76,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"3ce893e0-f6ab-4403-947e-116dfcf6d7a9","block_type":"box","text":"i.e.","page_number":76,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"fce89af4-e6a3-4441-91cf-7cfbe119a875","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":76,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"31103871-1e61-4562-9f98-80d9c54264b4","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":76,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"493d5e0a-9051-4d41-8d38-87461ef5a174","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":76,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"4fab7b92-1059-4689-9290-8f4919c09134","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":76,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"97ed334e-380d-4425-bc5e-21108ea5825b","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":76,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"c30510f0-e77d-4875-9d82-c5c58755948b","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":76,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"f12a6d8c-a41a-4ff4-bb18-e24d0b95a0c9","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":76,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"63321dbb-4ba1-4d7a-a424-228e5ee35f9d","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":76,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"ec59d23b-3359-4da6-a0f3-8729ea87fa36","block_type":"box","text":"par ties.","page_number":76,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"fb744c64-3b2b-460b-b317-9fd810cb6613","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":76,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"aeb0661f-f4ba-491e-8e52-8e19a4bb1a5c","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":76,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"ee976a25-076a-4953-aff4-489732879dfa","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":76,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"ea93d8ad-619f-47f0-b4bf-5a19051aa10c","block_type":"box","text":"II-45","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"36f1691d-db55-4a50-b55e-ba14b0bee9d1","block_type":"box","text":"NM1026U-5982509-76/232","page_number":76,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"67b43289-8fe6-4a6b-8a04-23cd446213ac","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":77,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"29549f91-9bad-4dea-af9c-e3975e03d95f","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":77,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"ec22dd99-50a6-46ef-bf3b-18221119f4ee","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":77,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"fcdfc127-d4c7-4832-bcce-3dcc695d4a06","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":77,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"a3bb2553-24ab-494b-a5fc-b562ea3cf376","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":77,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"cd692986-41e0-4d01-835b-1c0cd5f9cd1d","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":77,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"73b94ef1-283d-4bc3-a4ea-7bee7504d332","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":77,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"5148c1eb-541e-4d08-97ae-caa2fa28367c","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":77,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"7f2684d6-fa2c-4bc4-8fe9-1c6544b8f8d8","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":77,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"84a1e065-813a-4b8c-a8c1-9c074f0e2663","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":77,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"5f99d523-abde-484e-99cd-172b492a9cc4","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":77,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"43e8480b-5582-40ca-b1f0-a98e182ff54d","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":77,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"a1d13fd5-de76-425f-a869-780a81c9efb9","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":77,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"df04b53a-7ed0-43d8-90fe-3ee3c438f90f","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":77,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"918a18e7-bc83-4adb-94a3-65061e0acac7","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":77,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"f0cd9ab2-bae2-4693-b29a-60e0b0bb4d0e","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":77,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"563790f4-7013-4d11-980d-f8568857c99e","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":77,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"b50c0920-9375-465b-be85-efdfc12bb66d","block_type":"box","text":"per formance.","page_number":77,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"393256b8-b528-4bae-ade7-b2be2f210784","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":77,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"ce901680-a273-47ac-8807-fff70b0cc0ee","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":77,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"84b6ff4e-c532-4184-b87b-bc6970a2fa10","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":77,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"6492473e-f9fa-4c64-88ad-561b9caf392f","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":77,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"573c009f-774d-4718-9f09-984aaacd3aaa","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":77,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"1dc8368b-0922-40c2-83b1-ce85783c8d64","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":77,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"86fe8d6d-2b67-40c3-bd84-260eb73b985d","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":77,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"e3810040-9bc5-4507-8f2c-469aacfb94b7","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":77,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"b9f83bd4-18fe-48f9-acfc-ef59dbd1d6ee","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":77,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"061fc19c-51c9-4fb8-bcd3-1bbb4b5f9236","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":77,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"3f3fde5b-4520-4eb1-a8d7-a4acff88bc8c","block_type":"box","text":".","page_number":77,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"ac576f12-6448-4f0c-ac31-bef9cb7b403a","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":77,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"f1314df6-ba8f-45b3-b06c-276909df401d","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":77,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"6172b235-5d85-4200-9da9-da84185c0a0b","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":77,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"f7db2a70-3fb0-456b-abba-7966615887e1","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":77,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"378ee5b6-8185-4904-8386-acb122414801","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":77,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"2233135c-a4a2-4355-8083-366028a97309","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":77,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"de1015be-3664-4f1a-a093-514f85aa8376","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":77,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"229e0d9d-3c46-4886-b66a-b1d8e8e59e9b","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":77,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"b87babd6-e1df-4b64-b8bd-026d0620c131","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":77,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"92433ae3-f1da-42bb-bb53-7d513ac26e16","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":77,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"7a5474ea-89b4-4824-9c70-26ce2376cb60","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":77,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"bc31cd49-d01c-4f8b-867c-0d78158a5f5d","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":77,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"08e610bb-0818-47fb-bf3e-0d50491be466","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":77,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"ac386859-a508-4ab0-ad67-ec1a7b72ab26","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":77,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"08085fb3-3d37-44aa-af94-be2d38ad8d91","block_type":"box","text":"without notice.","page_number":77,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"ab3ce070-7131-488f-a212-6d68e4fa17c6","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":77,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"a0ccf4ce-eea2-4f28-9bb1-dbe8a5d47c9c","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":77,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"32a6cead-3879-40fe-90ca-b89e01f91dc2","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":77,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"54301c03-b29a-4112-a917-c3aa03c93ac8","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":77,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"844fda7e-e9d6-40d4-b724-ba3ed2c6a168","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":77,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"d900612c-a376-4d3e-86b7-2e080947263b","block_type":"box","text":"December 31, 2027.","page_number":77,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"02f7aa00-2afb-4fb1-9229-34f3290d01b2","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":77,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"d71ce6bf-ba17-4c86-b3ee-01471d481b6b","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":77,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"c0010b9e-ad5d-42be-ba1f-08c891a3a1f5","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":77,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"f0dce9b3-4c7d-41e4-b4fb-a41d29fec55d","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":77,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"f0e9bf80-4266-4d3e-b30d-61cf61c00420","block_type":"box","text":"II-46","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"db31c398-2452-4a87-8a34-c93927089136","block_type":"box","text":"NM1026U-5982509-77/232","page_number":77,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"52e7b9e8-1cbd-4400-8ec5-816126b56e8a","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":78,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"cba041d7-55a9-4c0a-baff-0e385eff2bf6","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":78,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"bdf1f11a-54f1-488a-becf-d6049d90032a","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":78,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"1abdb0b6-037e-4e2b-9a39-af3d72a60d21","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":78,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"4a737cbe-bde9-46b7-a76b-fae6fa814824","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":78,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"8f4e0f34-c5c2-4b4e-9b58-91cf53c1c05c","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":78,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"4c3f4bba-ffb5-4ed1-96b5-01291c09bcd8","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":78,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"9be46a1e-70bc-48f8-8e27-543170bca891","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":78,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"b4ec4eeb-83b1-418f-8d19-61c0ebed47d8","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":78,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"a69ec81f-1bcf-4260-9a8e-6cea97d4518a","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":78,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"4713f257-81f3-4452-a660-31533884592a","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":78,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"e09fb4a3-28f0-432e-a779-cc755fc76191","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":78,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"207d8f58-f125-4c80-b582-b2938f66487c","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":78,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"0b329e13-6bd7-4ec6-b988-44a480819db3","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":78,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"db8b3291-20c8-4108-9eac-91d2c4f0ed65","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":78,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"84ee2119-39c2-490e-8237-913f042b5418","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":78,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"708863fb-44c8-40c9-b786-1e01f21971a3","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":78,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"22b84919-fca4-482a-9d44-b1bbae842e2a","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":78,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"e56d2812-f043-4be1-a4c8-360a17e14111","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":78,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"b7b0fe41-790a-464c-b570-f090a1d670ee","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":78,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"0abf9082-4f58-41c5-a5d9-27420833b765","block_type":"box","text":"the PRC in notifications.","page_number":78,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"4103a00e-bb48-451a-9bfc-81577b015e08","block_type":"box","text":"Investment in Other Investment Companies.","page_number":78,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"4e50887f-a960-46fa-8222-9798bdab3988","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":78,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"9580b29c-dc85-4d52-a6a6-524876f3f45a","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":78,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"a6fc8650-2f62-4f5d-a083-9fb893b1b01c","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":78,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"197fd81f-b6c7-4e72-824b-d44437499faf","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":78,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"e3c33da8-41d8-4332-8a49-de044d1ec08a","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":78,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"9731d399-b49f-44ec-94f2-2a8edc655615","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":78,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"f084b89f-a148-4d6a-b684-e292da1b7c07","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":78,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"63198daa-9469-47b9-acdf-7ba55a60df43","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":78,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"41488602-df5e-41f4-9b54-72f86b341067","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":78,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"7fa2c474-1852-44b4-93ab-eb3b4abc69f0","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":78,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"0322e4ae-e8ab-417d-8fb7-5c857265efd2","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":78,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"d33afecb-517b-45fd-a9b9-c0625bf82470","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":78,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"19a0b0ff-975b-4743-ac09-3fab586a9e12","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":78,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"01562b36-43c1-41c5-b1ce-afd6d7c103bd","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":78,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"4a13cea5-4b06-4dab-a283-b89d64c53308","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":78,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"107ca913-0e75-4704-8b29-54f018f49e6c","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":78,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"2d9eb49f-3509-4f2a-bd79-8c22aa05218f","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":78,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"7ada3398-2208-4fe6-a5ab-f03be295c404","block_type":"box","text":"subject to cer tain conditions.","page_number":78,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"59dc0c3c-31d5-430d-a987-564c575d744f","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":78,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"57b2f1bc-8749-4b5f-bfd3-9f19d70196f2","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":78,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"2b81eb2d-24ba-4a30-bf6e-68f3ca90ac9f","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":78,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"91a5ccd8-af2b-4a60-bc24-37eaadc2fcc1","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":78,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"2e0027fd-02fc-4e67-bf48-9e96bf054855","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":78,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"8347152a-c9ec-44ed-bb39-1fd6e06483f6","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":78,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"80348a36-0dff-4f27-9ec3-db800d946b6d","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":78,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"ff7d42ab-53b5-4762-a4b9-59c6edd1f4b1","block_type":"box","text":"loss.","page_number":78,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"c569d16e-af39-436c-af5a-ae24233e2e52","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":78,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"669f2f4c-8697-4043-b1c9-c3efcdc3a9ac","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":78,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"6e7e0baa-b747-48d7-90dd-88c8058a8b86","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":78,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"99fc69fb-b1da-4277-805c-30dc1fc8fd63","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":78,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"ddadc9db-a146-47b4-80ff-d598420e4e7b","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":78,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"fcddbd7d-847b-465f-91b2-9f7860b00cc3","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":78,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"a0fab044-837b-4c14-bba5-de2c91b3dbae","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":78,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"62935a2b-0557-494a-adf7-ca1522f3ae1e","block_type":"box","text":"II-47","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"35cf1899-e86c-4fa7-a6f5-a9a8d2bcd2d5","block_type":"box","text":"NM1026U-5982509-78/232","page_number":78,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f6788223-304b-4a9b-b333-6fbdd5c7fa2e","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":79,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"f76e4bb6-247e-462c-8068-38e53ece31fb","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":79,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"013de463-bd95-477f-adf0-b8d4d626bbb2","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":79,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"aaeaf2ef-e61b-4045-8b4f-b1fbc18c7981","block_type":"box","text":"assets.","page_number":79,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"35e8b7c0-bcc2-4464-9dd8-98ff76ac4066","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":79,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"fbd44f49-95f3-413a-b82c-b720b6dfa94b","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":79,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"27e5708b-eb70-42c4-a17b-d8693dd39430","block_type":"box","text":"e.g.","page_number":79,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"2809081d-25c6-4b55-ad89-a6b8c01d0ba4","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":79,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"1fbbc521-4975-4651-8c7a-def44fdebb8a","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":79,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"c1b4a223-fa41-4d0a-bb95-97d23770f3d3","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":79,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"9f005dbd-7d5d-4c92-99e2-eaaeb3fc8b3e","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":79,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"9e4b1289-2dd5-491f-899e-af25215813a3","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":79,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"b10d7c50-d9dd-45a1-abde-bc5996669167","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":79,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"c1c44691-7443-45d0-90d2-d27248943a9f","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":79,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"ef78265f-aee9-4217-9491-0e4e976f6630","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":79,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"017f5c85-18bd-4ccf-bffc-560fced5536f","block_type":"box","text":"countries.","page_number":79,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"fd566d15-02a0-4103-8f8c-f0c652c5a48a","block_type":"box","text":"Issuer Insolvency Risk.","page_number":79,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"514a30c4-28a3-4738-b901-a4af0ec68841","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":79,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"148ad8b4-36a4-4ce8-90e4-5696df74c477","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":79,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"d57e5df2-df62-4b63-bcc6-f16b52a7d5a4","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":79,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"da43ed3c-fa47-435a-aad2-faec96651b65","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":79,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"df824d90-2c98-4f75-93d8-54666be4a99d","block_type":"box","text":"issuer uncer tain.","page_number":79,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"92a781b7-36cd-4ea4-b891-043dae9616c9","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":79,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"f3bd0016-e9dd-4755-adf8-0f3f302925b1","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":79,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"36d157fe-59e7-4c39-9bd4-3413cea6b66c","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":79,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"6ececbe7-69b6-4757-9fb8-a4b009cc2e7b","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":79,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"1d9fbd58-7211-4286-9935-c4ab01776bb1","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":79,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"e1648f23-10d6-4e2a-a74c-43635e643b29","block_type":"box","text":"eventually be satisfied.","page_number":79,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"c4cb294b-2228-4400-8e09-ae3b68b43735","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":79,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"53774700-2643-4c88-a562-82c113ccb426","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":79,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"b3f147e9-8ee1-421e-b794-4a9294c80f85","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":79,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"c8062263-c3bb-48e0-a427-0706b1d55a2f","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":79,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"8abd18a0-1b75-4234-bcec-3c0c2d73e6ee","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":79,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"77e396af-c469-496e-b433-1bdd942ff463","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":79,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"89d0cacb-8831-4f54-bc3e-1b3599e8df94","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":79,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"09dcd1f3-79f5-4e3a-9d5d-a4cd2cf70b49","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":79,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"147a6af2-b09d-457b-adcb-229c49e40d6d","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":79,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"e28ef209-49bf-4077-bf66-14486970dcd6","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":79,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"647e0cb0-8967-4c36-801c-8a9ed7b5fe58","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":79,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"cf7c802f-4adb-4e58-8c2b-07b1b3a9d10a","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":79,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"ab7321e9-36ce-442d-942a-e553ef4bd5e3","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":79,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"f3a15a94-3d62-4b89-b5c5-e31951d6f1d1","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":79,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"4e128fc4-9a67-4121-952c-5208f16cb89a","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":79,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"1202da34-3c4c-4447-89e6-c507b0a5ca3b","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":79,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"b8da5507-5b14-4eb7-a0b6-e861cdf776e3","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":79,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"1025c5b5-5ee9-4c5d-97e8-842db01faaf3","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":79,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"72e110fa-1997-4a1b-a090-000a3334bc76","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as par t of a","page_number":79,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"ddd6266f-04da-43a2-915c-c6e3051448b2","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":79,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"58e21401-50c2-450e-bb14-e28d7bc2bd57","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":79,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"c909e0de-4187-4d81-bb6d-858c24188268","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":79,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"774441d2-46d7-40e2-a8c9-8157175880e7","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":79,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"a4856677-5953-4f71-8ef7-08a464355730","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":79,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"cdeaa4ce-01a6-4f12-ac18-5a975eb51e4c","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":79,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"ee411578-f66a-45eb-be01-c49093460f86","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":79,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"298f72ae-d103-4995-9c04-eb8b08c5153a","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":79,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"8dd1461f-3d10-4ca8-85e3-dc3ea71b2ac0","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":79,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"4b56af61-59d4-48df-8d91-eece981ec049","block_type":"box","text":"that assumed generally by an investor.","page_number":79,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"2f8a2f84-4c5c-4d95-9b48-840cbb97413b","block_type":"box","text":"II-48","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"30266cdc-2efb-4538-a894-823995220665","block_type":"box","text":"NM1026U-5982509-79/232","page_number":79,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a34dc12a-012a-48b5-9d0a-41d347354b19","block_type":"box","text":"Lease Obligations.","page_number":80,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"fe1ce765-e76d-4661-8004-f22b47642434","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":80,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"f5fe1cba-a629-43b1-a68f-561429488930","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":80,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"06003e42-bc54-4d7a-9004-39eff661bbff","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":80,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"de745af2-20e2-4108-a271-5ee5165c7428","block_type":"box","text":"Life Settlement Investments.","page_number":80,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"789813d0-a4aa-49cb-8edf-e03914a145e3","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":80,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"1be94811-56d6-4a07-9a22-88d23ab6636e","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":80,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"45451cae-30f5-44b7-b57a-2c69e40ffeab","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":80,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"50f10e06-8542-4e14-8351-2d3de2e1fd01","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":80,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"f5478229-1e6b-42f3-a908-c8b927071d1a","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":80,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"fd9d702e-8661-4ead-8f21-31c92d43271d","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":80,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"7914ef27-f693-49e6-8abd-a2afe74aa6f0","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":80,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"3f39544a-b6d5-419a-b690-614731113cb4","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":80,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"80b1b1e4-189e-4d90-b94f-260e8bae8833","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":80,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"b60c3de8-6f50-4e88-9128-7bd97a6e0717","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":80,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"4dd06c2a-679b-41d3-a4e3-7c2a11218bdf","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":80,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"a0d14c08-f560-47e3-b724-cccf7f5c2954","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":80,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"d3363811-1c85-4fdb-9e6b-cdf325241b2e","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":80,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"a4580c15-d710-4d2b-8d5a-7b4c33632b18","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":80,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"94ede246-834a-471c-af17-78198157313b","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":80,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"95b569ee-6636-492f-ada3-23ef13669fc7","block_type":"box","text":"Liquidity Risk Management.","page_number":80,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"bfdb66a7-eaf9-4f06-a7eb-fb932700292a","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":80,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"db40bc91-d343-4e08-9506-93904286c5de","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":80,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"a92df5e3-fcf4-4d6b-abc4-ffa1db16b2ce","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":80,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"8cf7ae5b-f14c-4aab-929a-16292c59d798","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":80,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"3ea589dc-cfac-45f7-a4bd-8593815958f5","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":80,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"acaac452-06e3-4f8b-bc47-47cfccec2071","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":80,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"e664f2e4-5a6e-455c-92cb-1d84339ad3e0","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":80,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"16b062af-31e6-41e8-a7ad-5ae9700ec49e","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":80,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"3480a0fe-0602-4360-8e86-0bb92326c496","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":80,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"0df834a2-eb40-4e08-ba85-b51a86c1a225","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":80,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"0c8a9ecb-e7f0-45b1-9621-b5fdabc3d942","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":80,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"0611ec23-060c-4cbc-a95f-670030374e98","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":80,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"15d07c1f-6af2-4ad5-9d38-8205be0a8cdd","block_type":"box","text":"Master Limited Partnerships.","page_number":80,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"ec0d8039-fee1-4252-9980-3785013729a7","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":80,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"7098ad32-2c21-402f-a790-1904baa2c0b4","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":80,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"aee76e8d-2400-499c-b6d6-5444d04eb473","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":80,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"ea00482a-3b44-4d80-91ae-35f488b4773e","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":80,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"4fa098ba-7572-4525-9706-f6481ab38773","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":80,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"1e62b056-309d-49da-aacb-3c8cdba54aec","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":80,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"9e3ca1b5-a04f-491d-b963-f94cf244abc4","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":80,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"97630a87-b235-457e-bc5b-a306f7235663","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":80,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"5e10104a-2fce-415d-9179-25231bacd0c0","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":80,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"ce5a5aea-af3e-4485-9b5d-ef1aecd0022b","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":80,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"5a3e5b08-2a81-46ae-aa0b-69f57a938328","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":80,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"398e7595-3cd5-4cd3-8e67-27da15d32eb8","block_type":"box","text":"in the par tnership’s operations and management.","page_number":80,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"2135d870-edc8-41fc-80a3-2a03ff4d34c3","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":80,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"bd159d5b-f1e9-484d-9455-cdce87a1a0fc","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":80,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"7d55d776-fb8d-41b5-bf6c-c5e50ac849cf","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":80,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"06acd56b-ee48-4893-bccf-a6fb0b9c06b8","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":80,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"489f6b3e-c213-4ff2-a94b-ad527e294ca3","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":80,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"714660a5-985c-4fc0-9cbf-c716162e3284","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":80,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"c8260bfa-fe81-4c3a-b343-32f0649400e4","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":80,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"57e05a4d-7014-400b-87b5-4e773ec6fb58","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":80,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"fe676ef2-3f35-4187-8c01-60c07ef6e9d9","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":80,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"614fd001-2f5a-432d-9442-badcddc2de92","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":80,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"52a782d0-1e92-4f07-b6ab-db99c4237ccf","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":80,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"3b3aac92-118e-4954-98b9-e61b2d5467ea","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":80,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"1a423651-6153-4ebf-995a-ad6c7fcf51ab","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":80,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"c8746eb5-dbc4-4aea-9e4d-1a1c38bf8cba","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":80,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"e2e4894d-c7c8-4b9b-84ca-2ace49385449","block_type":"box","text":"II-49","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ce4221a1-8b51-4475-a49c-d3bb7187ff56","block_type":"box","text":"NM1026U-5982509-80/232","page_number":80,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fc2ad4ed-21b5-40d1-bdf9-6ffdfd8b52d0","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":81,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"257168dd-aea5-4d3b-aa4b-0250e4586f36","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":81,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"e34c9f64-5556-48f0-8822-a61397804cfa","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":81,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"b47c9027-162e-4a0b-999b-58cc5316242d","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":81,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"19bb211b-4f05-4d4e-a712-add0cd3c0e86","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":81,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"724ac04d-1e1d-4ca6-8bcc-78c93137afda","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":81,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"edb54078-e3a2-486d-b39f-007eb2e663b2","block_type":"box","text":"Merger Transaction Risk.","page_number":81,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"9e806936-0cc8-43fb-9299-091fbe8740ed","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":81,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"76239d22-3af8-40e3-b250-90edf6c3f419","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":81,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"0c9811b9-79b9-41f6-94ce-3810f4d8671a","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":81,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"eddfa387-144f-472f-a09d-17cf6005a13d","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":81,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"fd9499cf-a87f-4b4f-8074-38e7e70d9698","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":81,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"09bede91-c6cd-4aba-995a-b73f2784c9a1","block_type":"box","text":"the Fund and may lose significant value.","page_number":81,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"b8d8d09c-3af6-4f37-b324-d2c7bc9a5055","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":81,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"55843de1-36e1-4ba0-8551-d5de091ed525","block_type":"box","text":"Cer tain","page_number":81,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"36bc719a-2e52-4ffd-8449-7e56183a9ead","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":81,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"fa760bd7-ee02-467c-8813-e41ae51f76cf","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":81,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"e1536edf-089b-4698-b449-3aa1408add5d","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":81,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"1585477b-58e2-4a0b-951a-3b300906128d","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":81,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"c67d25ab-8fdb-4f4a-88e8-b440e623928a","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":81,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"e9840864-1406-49cc-949a-f69ecf87caf4","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":81,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"d3f77299-84ac-430f-b451-ecaed3d939e7","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":81,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"24037927-2200-47f9-8220-3108acf9b0e8","block_type":"box","text":"branches of domestic banks.","page_number":81,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"06f640cc-fae7-438a-a38a-73f342e8008a","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":81,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"4ff6d156-5e0d-4ebd-bd86-17813fa2be20","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":81,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"0cb3a51a-d73d-4cad-983a-367681b12a69","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":81,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"c902a3e3-ae3b-4b8d-b92c-8313420b7587","block_type":"box","text":"paper of a foreign issuer.","page_number":81,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"4b9f8f97-8d26-44be-9eba-0f9239c34587","block_type":"box","text":"Money Market Securities.","page_number":81,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"3f178b37-f9c9-4242-b797-84f67dc87f6b","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":81,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"7cef90f5-8752-4bb8-88d5-feebddbed23e","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":81,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"9a9b1534-3fb6-419d-a238-1daf298e3d9d","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":81,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"3b3ef3ef-dc8f-4015-b6cc-f8d81219b2af","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":81,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"1e93784b-ee22-4fee-889b-b5196cf6f888","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":81,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"2aa10b5b-f571-4a18-b067-27a0c3b4abc9","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":81,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"b34bbc4b-c2d8-4074-b629-a8ca08be20a4","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":81,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"b7c31717-6b9f-4fb8-9abe-7b35386da799","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":81,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"8de80482-4c7c-4015-80fe-a41f4c478f31","block_type":"box","text":"agencies;","page_number":81,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"93f10d61-8d72-4f9b-84b1-3924b584afa4","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":81,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"a352a431-4391-4ac1-908b-76d587f49531","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":81,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"40b40121-be6e-40ae-96b1-147e56df82f5","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":81,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"07eadd41-81c3-4c46-9ead-f230687e59c5","block_type":"box","text":"obligations and credit card receivables);","page_number":81,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"96ad8740-6379-424f-b3eb-05d9d57f07af","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":81,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"5ba5993c-5ea1-4cfc-9ad8-bcb644eca01d","block_type":"box","text":"authorities and related custodial receipts;","page_number":81,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"53c92dee-f9d3-414e-ae80-1145e29b58a6","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":81,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"7f642641-6264-4662-b79f-4b6b484dcaac","block_type":"box","text":"agencies or authorities;","page_number":81,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"f8d943d9-bd35-4748-81fd-bc59f39a50ae","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":81,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"929b474b-8b5e-4550-bdea-1b591b7b4cf6","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":81,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"ea27cd7a-4a70-47f7-b56f-6c1c77b1c6f9","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":81,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"29739709-e39d-48f3-ab94-c03fc81fc0df","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":81,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"c6669e9c-e23c-4224-8973-303b908d60ac","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":81,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"0655f92f-0a4e-4c51-a51f-22ef0a0a0fb0","block_type":"box","text":"States;","page_number":81,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"16c62ff2-5887-4642-b402-da34f683e0e4","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":81,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"529950c3-3e3a-4b40-9a58-ee60db6697f2","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":81,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"51135a04-dedb-424a-9a51-648600249d9f","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":81,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"946ab4a4-6145-43b5-9c28-8611e681b7cd","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":81,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"96ad645d-6c0d-4048-89c2-cdcba9565c8f","block_type":"box","text":"II-50","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2e774c9d-4334-47ac-8a49-a7096586f1f7","block_type":"box","text":"NM1026U-5982509-81/232","page_number":81,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"533cb571-8f11-47be-ad18-e373c180602b","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":82,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"45e11df2-4815-43dd-aacc-3453babcf983","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":82,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"099d60f9-f65e-4000-99c6-e7ef9cba889a","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":82,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"89e52219-1d0e-4cca-a4df-10937f3840a9","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":82,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"da2cf09c-c98b-4504-8c82-2e5ada926463","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":82,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"8cda26ec-a571-4db5-83ae-4cac69f1be4d","block_type":"box","text":"States.","page_number":82,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"6980dd07-dab1-4c11-b79f-c05d363f5100","block_type":"box","text":"Mortgage-Related Securities.","page_number":82,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"47fcd68c-9860-4371-b910-b6e18a8250c9","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":82,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"ab6ecd8c-c5eb-44b7-bdcf-106525521757","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":82,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"d6e051cd-32e2-4c24-8731-0068268cd9af","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":82,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"fdef66f0-32de-4ba0-91f8-0bffafad98df","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":82,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"322722ed-b618-4d84-8bcc-6d2c3a0bcbe0","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":82,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"9c85deb5-6147-4ee8-bdf6-91a00597782a","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":82,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"2531ac2e-774a-4896-9ad3-d1cc1fc4ad1a","block_type":"box","text":"maturity or specified call dates.","page_number":82,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"d7db0e10-a7a4-42e9-be3f-b598989f9192","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":82,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"47a30c38-46a6-4971-9db5-61aba1900f8c","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":82,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"6e17de4d-ee7b-4269-af4c-15ab04a5d762","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":82,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"f94dcdef-1b15-4121-89ff-4a026b5a3783","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":82,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"b9dd0dbb-4d0e-433c-aa94-68323878f901","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":82,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"27d49c2a-e825-4200-abde-b6cb0a2023c4","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":82,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"0bcfec8f-7504-4db8-b19b-1f924622f259","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":82,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"41bf110b-e2fc-4988-a28f-3720a7629381","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":82,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"6dcd1f55-3157-4eda-8c4f-7486604305c3","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":82,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"3c7478ee-b990-423d-897f-d45f3aef7b3b","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":82,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"0dad08b5-f39f-4270-b951-349eb98e1bd5","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":82,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"85ce65bd-bccc-4cdd-a603-d23aaed89b52","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":82,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"f95da2e1-4215-4680-b6c8-4df4af60a9ae","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":82,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"ff2323f4-25b6-42b7-a410-e38e0093344b","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":82,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"9c3fbceb-a50c-4239-941f-a361973b7cef","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":82,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"eefaca4f-fd70-4012-9433-45b13314a315","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":82,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"ecde1dc6-2007-46b3-8055-b907fbef3291","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":82,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"3791ce0f-ff07-4a53-8efb-d6329c733451","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":82,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"8a9b2657-2ab6-4e35-81d2-43de3fc76db9","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":82,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"065a1988-7d58-4269-b79b-4a3992e93445","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":82,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"9071d3cb-ca0c-4995-9970-0cd1d734031e","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":82,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"a1be7677-0264-4434-825e-caef1d8ec34b","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":82,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"33346aee-5956-4b31-85e1-bed0bf4c0030","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":82,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"1001bf18-563a-4910-82e5-b4c9b1918720","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":82,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"e9f19e55-d0e1-470a-bdb8-5811732ee006","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":82,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"f73186b6-7913-4cd8-aaf8-93abbeea5f54","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":82,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"2cad9203-405c-47f8-972b-172404a9bd6a","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":82,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"fbfb6ac7-fd7f-4eb5-88ad-8c6f6c8e7ef4","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":82,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"29bcaaae-5c52-4893-bfdf-d14ab22d54e7","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":82,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"a2dac600-1342-4b87-b7fc-e51bfc21c38a","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":82,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"8b5f5741-f5b9-4f5d-afcf-39bcf4b5a6df","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":82,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"7f553fd8-e2d6-43d4-acb1-105e814f3760","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":82,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"3fdb0f01-73cf-4952-bca6-b4b5c2278123","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":82,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"4f467afa-5184-4943-92ea-0ea917d73f09","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":82,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"be6c3703-641e-4d48-ae33-66b557ee3537","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":82,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"9fd92bfd-0988-4d11-85ac-2b633ccdf0eb","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":82,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"7c3ea192-993c-4a95-be25-ed125c3e3d23","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":82,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"7c37b98f-c573-42e6-9544-134d811476cc","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":82,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"70d82113-b0f3-4827-97ac-a002e6d8cb6d","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":82,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"a6a40c85-a4cd-4d28-8da7-7bb8b86e96f0","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":82,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"6c96f4d9-3ebc-4bbf-9d8f-a445b8d6ea13","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":82,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"60ce1ebd-02ea-401a-85a2-26567dfb873d","block_type":"box","text":"II-51","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9eacc7ba-d604-4846-ac6d-14efd7f9edc0","block_type":"box","text":"NM1026U-5982509-82/232","page_number":82,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d8a4b48c-e436-489a-8a1d-ede4b0113fa9","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":83,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"83f8345a-e6ec-4f2e-82bc-d0c3d8076118","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":83,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"61516dff-9900-4640-8854-ddf125f8d852","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":83,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"08fa07d3-a551-4635-b073-07536243113e","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":83,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"e89689ae-e98a-411b-bed6-9ea6e19723e6","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":83,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"5acba1e1-ac79-4f46-b1ec-344cf7c376b8","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":83,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"86c6a3e2-8c94-4dbb-b3ee-bce564069de6","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":83,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"0d46e24a-7349-45d7-b088-00515eeae442","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":83,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"d077d64b-7da4-4108-83f5-26c75dece473","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":83,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"bf8d7ed9-f999-4411-9340-35f5755c60d9","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":83,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"9046dd09-a6f9-42b9-8fc1-bb65ddcc43a5","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":83,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"49c310c0-3328-4e68-9bbd-37800595a95f","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":83,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"049f92e6-1805-4dd5-b0ad-a49db8f38f52","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":83,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"e6268c49-b9dd-4a38-aeb5-a22253b97ae1","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":83,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"0a9790c9-692a-483f-a110-8c2af4a5c663","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":83,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"0fa231ac-370c-4d2b-be0c-e271c4e76d91","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":83,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"f79a5fc5-4a81-44e2-aa3e-8caeb2ce5079","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":83,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"7b1fcafd-eafd-4287-af0c-72d748a39030","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":83,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"d9a22817-c032-45c4-a538-bebe7e3eb0dd","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":83,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"e4cbef78-a895-41a2-8258-9b015d8a38ff","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":83,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"00ebc1bd-dc0b-435b-b143-b1e4e304f9a8","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":83,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"14f317d9-5e33-4aa4-b2db-0294adfed670","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":83,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"4e06f991-d599-43dc-9886-9fd75c128106","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":83,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"bbdb3394-9941-4224-944b-7f8d4e3a9aca","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":83,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"74a2704d-779c-409a-8a24-cf0212d5607b","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":83,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"750a4c5a-edab-4bae-b7a1-636dce3551a1","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":83,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"2a4d7089-f0b7-46e0-81cb-59db4ecea500","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":83,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"097d088a-aa10-4840-a3cb-4a21116c4a35","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":83,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"2af30980-5ce3-4bb0-9f05-ea5846729e39","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":83,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"43a04677-ddfa-40e6-8b46-2dc491fba28d","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":83,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"8ac9b9b3-2285-4416-b0ff-55d8585a1333","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":83,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"1a539174-2720-48d8-86df-915a59560cf1","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":83,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"01946c26-20ff-448e-89e1-c6a44fda8ce1","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":83,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"2b993a81-0786-496a-8aa7-cdf01fd64eec","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":83,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"421eebc2-3524-4f81-824d-2d61296faf92","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":83,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"530e7e4a-32de-4b35-8ed3-a9938f561d42","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":83,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"2a59535e-0c13-4928-9a8c-e06a75e00bcf","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":83,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"d637cfeb-4da8-4248-a34f-5262e196430e","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":83,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"e7502b49-ccf2-4364-a657-ac8987282b0e","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":83,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"f6c90ba1-c1a2-4486-b941-47d31f256edb","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":83,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"082cc215-6313-4d9f-8fb9-847f6112ab23","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":83,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"0abeeebc-2505-47c2-9c03-d34c7038d8df","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":83,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"c5a2b904-6f2a-4eff-9a53-1259dcb29f6d","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":83,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"b359eb64-bf56-40fa-875a-3e633995a7ba","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":83,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"efb5cd2f-4ac4-4d3c-8f15-3c2d3cac5a0d","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":83,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"f17a8e7e-ad90-4092-adf6-3b95e0247e35","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":83,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"8c294b9c-c6be-47a7-a7ec-0e5b47358e85","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":83,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"4fce6d0c-093b-4956-ae4b-fff2cf079572","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":83,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"7811c91f-1d8c-4109-894c-7415b870b539","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":83,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"50bb0e33-f897-47ef-9d53-ed3cefad0945","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":83,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"3651b0d9-f029-489c-8e95-da9ce066f86f","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":83,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"ea3bd66e-b433-466f-889f-852c72076588","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":83,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"30b86193-443e-4447-b766-f02d7ce43705","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":83,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"83465816-379d-4460-a021-9505bf04c4aa","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":83,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"096503fc-e1ec-4c16-b848-a4093feefb8d","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":83,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"ec1527b6-db9e-4faa-b7a4-1acfd731fd72","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":83,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"bfc27b22-18a9-48b1-8b77-f6737f56f909","block_type":"box","text":"II-52","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"becbc480-c029-40c0-9b8c-314f2c3abde1","block_type":"box","text":"NM1026U-5982509-83/232","page_number":83,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"554dd83f-ebd9-431b-bfe0-4870b6bf36c5","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":84,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"00975fb9-1a16-44ce-8b9c-05b72d93e642","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":84,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"aff7fd65-fb59-440a-8d2f-bb75d07022bf","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":84,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"79011599-2558-4dba-b429-c1a148cb1567","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":84,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"7665fd34-5cbb-4c64-81d1-8a51ca8fe1e1","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":84,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"9eadd82b-8288-4f7f-8f10-6237afb67e35","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":84,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"e28125cb-7371-4371-b993-6d5d5215439d","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":84,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"b3e02953-1b44-4b24-99f3-e0356bb6839b","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":84,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"17148457-dbf0-4240-988b-08d381d87326","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":84,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"c2ba24a3-d426-447d-8ca5-454a06fdc447","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":84,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"b0886dea-76db-4b52-a1dc-9ebf9191e759","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":84,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"7d56c20b-5d93-4aa4-a6d6-ca4bd66a0aa4","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":84,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"0883d512-9992-4f68-8d72-fd6324955034","block_type":"box","text":"of principal because of the sequential payments.","page_number":84,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"78071150-ba60-4e2e-9471-2355a7a2d3aa","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":84,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"4530099b-efe1-4278-8938-209d2c485d45","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":84,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"20bf9ee5-ea74-459b-a47a-f9ad34cdfdbb","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":84,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"05f1f22c-6462-4414-bd23-223b923668c0","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":84,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"1002fb74-75f2-4d65-8778-4dc31b47b1b7","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":84,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"8d44f3cb-daa1-47f5-9413-d4597c3ba49c","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":84,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"497eac7d-f2f7-4ac1-b369-e862f5617152","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":84,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"667d3bb0-b4c7-4dc4-9d7d-7b06b8181132","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":84,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"5eb584c4-4d3c-43ee-beab-a478610b1d96","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":84,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"61a5839b-60a6-43a8-b8fc-6bed45b5366d","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":84,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"4a307643-77fa-4dd5-a812-5b6a0bcccf64","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":84,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"7cb99eef-18e1-424b-90ad-024703a1d378","block_type":"box","text":"securities of any single such entity.","page_number":84,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"404dcb1e-e9cf-4e8d-9684-c7ec4e7bebb9","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":84,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"b2d8143d-beac-4be0-aab6-4bb6f369b238","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":84,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"59e48e16-50c8-4f6d-8335-e48e0a9de26f","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":84,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"c008b71f-e156-4c4b-8a49-792d853014c1","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":84,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"ba04c32d-e644-4fe2-b8e1-fb487a8de74d","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":84,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"dd74a26e-3dd2-4679-959e-4eda285cbced","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":84,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"8fad09ac-4567-4037-ae7e-8e9e7b35590f","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":84,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"8bedeb29-1779-4821-b48e-f6c218a54027","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":84,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"6717a277-c3f3-4ff1-a99f-30abedf42311","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":84,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"12de4c28-7286-43df-83d6-ed0fce944af4","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":84,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"8ca98665-bcb9-46c1-86fe-61d3f6f88dd7","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":84,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"96a7652d-8d2a-46ac-ab56-9b630ffcc79c","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":84,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"1a363857-3987-4428-ae73-37b791c64332","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":84,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"3d08fac0-47df-4419-8109-77fcc47e46ae","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":84,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"d8deee05-31be-41d2-ae97-8ff9da92194f","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":84,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"c45d6f00-44eb-46bf-831e-fc000f90d115","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":84,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"d3d1bc45-bdbe-4b68-82f4-7ad7795743cd","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":84,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"27e52fd9-ce62-4121-a0e1-e41d5cff09ac","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":84,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"fb6554e0-2245-4a9f-8157-dfef1689d81c","block_type":"box","text":"classes.","page_number":84,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"750b311b-2313-455b-86d3-2e54759bb7ef","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":84,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"3410291e-5760-41ce-a2e1-2c37e087442c","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":84,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"f1ba18c4-3d3b-47f0-b753-b45c25b6ef6f","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":84,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"17e14ac7-9ed9-4b86-9126-d5da7361a274","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":84,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"65736c94-ec0e-46a1-bc41-549d2018e5aa","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":84,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"3a298311-3c96-40e3-8430-ee3a0bdf6f69","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":84,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"988b1b15-0122-4448-9550-a38d1a75c7cc","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":84,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"15a0044d-17c3-42b6-98c1-eed809668386","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":84,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"99b8284c-fe3b-4766-bf84-e2689033b220","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":84,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"3dd4a0b7-9857-49fc-adc5-312d8bbb564d","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":84,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"2348f3ab-cb81-4280-b7f7-c30f2111022b","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":84,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"4086e986-2494-47a2-bb41-8d22f954eb06","block_type":"box","text":"to a designated benchmark index.","page_number":84,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"0404dead-709a-4fe3-aa1b-35918ae5d4ad","block_type":"box","text":"II-53","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"76789341-cc77-4b9e-83ac-d421a10c1460","block_type":"box","text":"NM1026U-5982509-84/232","page_number":84,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"07217652-300b-47ee-b71d-b931c522dd86","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":85,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"a09e044a-d675-409d-bf07-88e4708ce63c","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":85,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"7f192362-1093-4920-9522-e54d5f3ecbf2","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":85,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"c5b7834f-2a75-45ed-b4b4-1ebc9c3eed5f","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":85,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"46103ea3-0927-4393-a687-ddc1e96d2649","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":85,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"f23f6d25-534a-41b7-be45-8032b855038c","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":85,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"39daeee1-8866-44d8-b0bd-8d9ea096c023","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":85,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"f3cde398-c0e9-4032-a606-f505da5a7b6f","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":85,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"4139a012-4840-4e32-94bc-2f0c7b6d2945","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":85,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"d8b1af72-83d1-4607-89ee-73f44299d562","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":85,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"6bc557a0-c3b0-40a3-8dc4-6ce4e35d0431","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":85,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"83b26b4d-f158-4a37-97a1-fd4bfbad55f8","block_type":"box","text":"CMO Residuals.","page_number":85,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"af557b2f-8836-4270-8703-5e82871b8665","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":85,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"7be7175f-2483-4396-8699-b55d6183e946","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":85,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"f6fbb100-ff4d-441b-9a68-9bcac4a049eb","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":85,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"903b26cd-99a7-471c-8de8-c28bbef8fa04","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":85,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"e1c6caea-9b93-45ad-90cd-ceb4872f5f25","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":85,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"1c9f57dc-0221-44a4-95d8-8762789cbc47","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":85,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"89d0c7c0-b4df-4781-9fa2-1e5cc7d4aa4d","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":85,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"44ff7c26-8fa1-49fa-8064-5a8e08400ff6","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":85,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"e8f5159b-a71d-420a-9a52-37aabcaff15c","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mor tgage assets, the coupon rate of each class","page_number":85,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"aedb0dd4-103a-44ce-99ac-cd5df752b281","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":85,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"4e674356-2d9a-4a20-a12e-d1193b3e767c","block_type":"box","text":"mor tgage assets. In par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":85,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"07101e9f-6b78-414f-847b-7734aabc710d","block_type":"box","text":"related underlying mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related","page_number":85,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"2f9aaae1-f78f-421b-96a4-48560673fd4f","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":85,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"dcce97b7-38bd-4769-8c60-62a172b8f6e2","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":85,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"6dff480d-28e1-4ec9-ada6-6bfce42d7335","block_type":"box","text":"interest rate adjustments are based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":85,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"e64ed011-f884-4204-a0de-c451183e7b2f","block_type":"box","text":"a CMO residual.","page_number":85,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"f4513445-abac-49b0-a224-f037912ace61","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":85,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"49d06eec-3226-4186-8dfb-d4afc32aaf10","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":85,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"75ab0299-176a-4dfc-b040-22d934a9adaa","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":85,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"b4a6c72d-efd7-4940-b20f-727ec80e25b1","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":85,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"5bd9e167-e3df-4d91-86f6-36eeba60ac67","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":85,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"eb2c370f-d873-48d9-9aa7-e6d087b9eb0c","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":85,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"bea90f0a-cd00-4dd1-b558-62b0e0bc3d03","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":85,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"a4b0e065-5814-4b9f-8868-76f52cb51d27","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":85,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"acebf986-74d0-4a71-839e-68875c2885b5","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":85,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"52b28582-9239-4259-bf2b-75e54621c903","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":85,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"d7be9137-a556-4b18-857c-957086ea682f","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":85,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"cd724ba5-0446-463e-bd04-51d7d041fdab","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":85,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"961d7008-51b3-4d7c-8e65-200185d3b379","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":85,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"311ba974-3900-4996-9847-517e7631ad47","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":85,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"24ac1f38-f1d7-4f09-b8c4-5be25f2aa3a8","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":85,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"77f40b5a-c8ed-4724-9e2a-382ef3e30e71","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":85,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"736d9040-0b99-4e8b-aa17-23d474aa857b","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":85,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"e100e260-3e41-4c12-b7c3-a8cd37ddd628","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":85,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"0063e7bc-f382-4e64-9c69-1cd7f2ccfdf5","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":85,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"547813cf-3e06-4ba1-8d5c-5caeee2806d0","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":85,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"c5cfe34c-1ae9-4513-b7a1-2dc6ec4e1749","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":85,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"8d2a362b-346f-454a-8f63-495e49bccc0b","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":85,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"3d5559d7-a790-4862-bdb8-936b6757f255","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":85,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"391c98d5-a846-440e-9021-240d36485230","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":85,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"8818cfdb-d440-471a-b041-40b0ce2f3246","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":85,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"6214d634-23ef-4c2c-b9e9-b9cffa76ec43","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":85,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"32461631-6216-42bb-8dae-39b73a04dc14","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":85,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"3d56ceb3-1512-4144-afa2-0eb1c515cb44","block_type":"box","text":"Tiered Index Bonds.","page_number":85,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"212d11a7-c537-482d-a361-583c3dcd51e1","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":85,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"b2335128-48e3-4bb8-bb96-00a9b93ce571","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":85,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"653ff343-ae40-4187-bd91-369cc0f6629a","block_type":"box","text":"II-54","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c776ef12-2ae4-41a6-8ce8-ac4147ac6bff","block_type":"box","text":"NM1026U-5982509-85/232","page_number":85,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8e7e9438-f3de-4d99-ab3f-6279bb7a1669","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":86,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"99354fc3-fc4e-4e8b-bd2e-8cb7ef41f633","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":86,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"f48e6859-1cfe-4a78-9b49-bf9ef4e62232","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":86,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"56192462-8496-4904-aebb-34fd838c6a46","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":86,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"e40e3fe2-9c8e-4fb3-86dd-10da0c34c71d","block_type":"box","text":"that of a fixed-rate bond.","page_number":86,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"9e4e3939-7970-4d8c-9dbb-62c6cde81d11","block_type":"box","text":"TBA Commitments.","page_number":86,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"5f7a512e-1e6d-4eb4-88e2-d65f5a8d8c09","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":86,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"0b2a178f-6511-4d4f-9162-64eb55b12944","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":86,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"4cdc3569-d692-41f9-81f6-1d04115e3104","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":86,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"6d654e40-2221-4c0a-a5bf-081099f97c99","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":86,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"cdad0308-b00e-4ba5-8062-38b8b599797d","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":86,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"b55734ae-dae2-45b1-96c6-9a852e671c56","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":86,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"2ef67dc6-8b2e-44a0-b450-95d52340dcf6","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":86,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"ef84275d-9238-4cb5-895d-3e6a3b66b016","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":86,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"c63d276d-5df2-474f-9674-4fe0d5c82a79","block_type":"box","text":"below.","page_number":86,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"96870ff5-661a-48ca-859a-ab25edfb616d","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":86,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"d6cef0b6-d38a-4a73-a256-173534fa1d8a","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":86,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"9989ad75-242e-43dc-970b-be8bff63fcbc","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":86,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"2c227813-dacf-483d-a29b-51a3617d0a7c","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":86,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"5eefca06-6cfe-40b3-bc62-336409f8b202","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":86,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"d74ca20e-de1b-41fc-8d84-a47df54f139d","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":86,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"a4f10a7e-63ef-48d2-baa4-873b3f9f54c8","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":86,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"16f90517-ad51-4b6a-967f-7ac5378da7e8","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":86,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"7959cc8f-8207-4f2a-99cf-c024b959c90e","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":86,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"49150972-2d07-4ce6-b3c8-70eb33be61c4","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":86,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"7a5e9e46-0478-4d48-ba8b-fee72ff1160b","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":86,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"83bbb618-b61f-4fad-8a3b-f4d8394ca611","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":86,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"973e67f9-c511-4504-a7dc-b8b107c03d91","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":86,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"8daad81d-3abf-40c9-a83a-37e3880c1aa4","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":86,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"1efba995-e77c-44b4-99af-ee3bb1bfba81","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":86,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"bbdb4327-073f-4b80-9188-8d4edd91aa39","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":86,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"6d2756d8-efe3-4a82-8e39-b61883bbf072","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":86,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"eab22cf5-07cd-4d71-a88a-673338621558","block_type":"box","text":"securities in the forward transaction.","page_number":86,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"854d5439-6f80-49b4-9d1e-31daae14d84c","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":86,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"0d3d738e-8aaf-4ebf-84dc-0e8d9d0f44a2","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":86,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"1074cf6d-d870-4e10-bea2-43f565e48748","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":86,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"aa6dd134-5d66-415e-bb9d-aa1035bde155","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":86,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"db62306b-6df2-4cdd-8c90-52e194286e91","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":86,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"b9d552bc-2d22-4276-a521-f7254eb68037","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":86,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"567fbfba-7aba-48a5-a245-103684685db9","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":86,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"5e90eaf7-8c51-4fc0-9224-c946a2a3a38d","block_type":"box","text":"securities (","page_number":86,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"f396f110-c4d8-4f19-b3b5-ad5c6411c455","block_type":"box","text":"e.g.","page_number":86,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"7e59a0a4-24bd-4c3b-a41c-6736524f6358","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":86,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"d5e0d21a-e624-4f0b-9724-1adcb1ce250c","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":86,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"ebe62634-c1ff-47fb-9f7a-1d02fc00e37d","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":86,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"e2f7aaa2-bf99-416c-9d3a-7a8a481b22ee","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":86,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"9cb66427-04c5-4c4c-9f9a-e254e841c7ec","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":86,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"e7d27c88-9d4b-4539-887e-4fca6b1011e4","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":86,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"2ac7b520-4291-48af-b75c-c2a41d89e638","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":86,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"b9814012-f0f1-4c06-8887-8f5c0b8d847f","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":86,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"da47a37b-4133-4bfc-84d8-54e5fb251017","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":86,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"1f09bb94-6b6b-4a21-972a-71804007d074","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":86,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"cd542ac5-3aa6-4b82-81d4-f31b826c1ad5","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":86,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"ff303c5f-2479-4bb5-b9c8-c5cedf5ea1e5","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":86,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"4f2f97a3-aa99-4706-b442-021a87f2c0ca","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":86,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"9ae769e4-15b9-42a1-a019-167adbbb3286","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":86,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"07ac1985-3ad4-4da7-b4b6-135286e774be","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":86,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"902f4f46-6897-4677-acab-7a903210807c","block_type":"box","text":"Municipal Investments.","page_number":86,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"66e77429-b426-4f49-a6c4-63b0cb419bdd","block_type":"box","text":"II-55","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9c9faeb3-6b12-4577-b465-6f65b5b6032a","block_type":"box","text":"NM1026U-5982509-86/232","page_number":86,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"22aa63ff-2f7d-4a10-bc6e-855c10711ba6","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":87,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"a0643225-ad3a-4f59-bd56-ac2687e892de","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":87,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"776acaf0-a6dc-4b91-becd-16aef1e7b8c5","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":87,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"25d9173b-e15d-4f68-95b0-2882e5ca3d2a","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":87,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"03c21724-3478-403c-b496-cc10f3bde579","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":87,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"e8b0a633-a7c1-4d31-aaca-0039a395b322","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":87,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"7c4a5d38-a21a-41b0-a4a8-c0283e8dfdc8","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":87,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"b8605f74-0915-4ec8-a058-16bf6441a046","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":87,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"440a58e2-7de6-4736-a139-4cd2044c741a","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":87,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"3e638ea1-8e28-407b-8a09-6460482bf793","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":87,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"af024d40-d369-4da4-bc38-ff2f68884736","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":87,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"40266c8e-007c-4afc-8cc6-9eba15221674","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":87,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"a8b8ce0e-8ddb-4c3b-a9dc-9777dbf2d2b0","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":87,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"5c2f2d4f-39a4-4dd6-b29f-486c1759b743","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":87,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"bf13a479-a17b-4c51-b1d8-4f6b8967ba2c","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":87,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"18f14946-e8e3-4e35-9c7a-8ba9f80c3784","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":87,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"cd77d933-bdce-4a9a-80bc-a4f27c78dba9","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":87,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"06955533-5f3e-4a3d-b195-c1e792c7ff19","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":87,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"51abb369-8349-4516-97f1-c07f99c969e2","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":87,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"0bcc4ab8-037f-4c5c-95ff-dc4a4a66f6f1","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":87,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"92f5a2b7-b9c1-4e66-8e26-6456f761a418","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":87,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"02a738f8-3eae-4c9d-9735-71989b45df89","block_type":"box","text":"The risks and special considerations","page_number":87,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"e1cfeab9-8e78-4cf4-a6ac-46404be23ae0","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":87,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"31a97132-2dbe-47d4-bc17-85fb1e657f69","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":87,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"b926ecba-200b-43b4-98f9-04b14ae971fb","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":87,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"b0776d03-ee5a-4efe-88c4-535046a2ce16","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":87,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"aa00d88f-b2b7-4d7f-86d8-1f68f5cc72a6","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":87,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"c83feaa5-7685-45a4-83ad-b522e804c4cf","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":87,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"b4c17ec3-9e0a-45d4-889c-ed6ace45c785","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":87,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"13816e8b-1a36-4cb6-987c-4fb0600ccb44","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":87,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"391c58f4-c5a5-4f19-97b5-755643b5355a","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":87,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"421426d3-efe0-4daf-a18f-ba63521e9f70","block_type":"box","text":"II-56","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"129591a2-6cda-44d1-9f4c-4e8d8ee401c1","block_type":"box","text":"NM1026U-5982509-87/232","page_number":87,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f9cfea8e-6dd4-47e5-8a61-3754599a748c","block_type":"box","text":"Description of Municipal Bonds.","page_number":88,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"3c43e3c9-0e1c-4648-ba1e-35173e607f60","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":88,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"b52bce32-caee-47d8-8598-7f329619003c","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":88,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"58be5b56-0689-4c02-8c3f-c280b33fca40","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":88,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"2763705c-e48f-48a0-9a9d-5c3c8225ee36","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":88,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"84194166-0270-4ff8-b51c-67ed6ee69319","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":88,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"297bde79-b51a-49fc-b941-0f438ef38c6c","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":88,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"98396ec5-7703-4b42-90db-b9900d5d268a","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":88,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"5fe71ade-868a-4814-8bc9-739f1e010237","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":88,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"39822ad6-8601-4d6c-83a8-8d1b66be1a38","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":88,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"58d52035-2821-46ac-a057-bd0c09c34a51","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":88,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"46f2e0b8-bc30-4925-9747-e20507202f07","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":88,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"b35254d9-7a6b-461a-a7ab-c94b2e5ee618","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":88,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"59777095-0257-4d45-9d76-3670a7227669","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":88,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"401d72b2-2466-4811-a59f-6ffaec3b9b49","block_type":"box","text":"General Obligation Bonds.","page_number":88,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"e9df627b-7db6-4b77-8213-fe8e85845457","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":88,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"d18e5f99-02c6-4f16-bb9b-6f37faeef60a","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":88,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"189f2759-fc8b-415d-9f15-32b1e58e22c6","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":88,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"4de26e88-3073-42de-8946-d2cacaa5b3b3","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":88,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"51015507-dba5-43b0-ac28-ae1639c77acd","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":88,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"bfa19cfa-7d3f-4b81-94b5-94dabe53365d","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":88,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"44cd88c0-8e55-489c-bd25-208710f7a354","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":88,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"0d16cbdd-22b9-4a7c-a66c-5f65f5d58760","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":88,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"a2681b6c-af5f-4d5b-8e3e-7c9c79f68d49","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":88,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"f356f876-6121-4a92-8193-d514030ff6a9","block_type":"box","text":"Revenue Bonds.","page_number":88,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"d4c849db-8bba-411f-8609-1f95a61e83f6","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":88,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"156c1c1c-53da-4136-a1c8-71905cc43187","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":88,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"47f2280f-70a9-4ebb-ba1d-b44fe090bf14","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":88,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"d0cfafcf-5c25-4158-837d-9ee498259503","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":88,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"5b381049-63a0-48eb-9fb1-6ec01124039d","block_type":"box","text":"viability of such facility or such revenue source.","page_number":88,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"df3f9242-c482-4a08-800b-9ce89291480e","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":88,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"7d6bdc2b-b91c-49f7-a1cc-28833e31daca","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":88,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"a34911cf-1eda-4b38-8241-5aac627ed9dc","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":88,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"850c37c2-8ab5-4365-850e-6603ab1b0d68","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":88,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"8c7a1e35-fd37-40a2-8a3e-9dea07b6b6a8","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":88,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"8b96ba9e-3b65-4581-bde6-7785d9950243","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":88,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"73e4ebe7-f15a-431e-af71-0fb5f828752c","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":88,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"b1458fb3-6813-4b31-a865-3cae7cb908db","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":88,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"e3b73d42-a8e6-4e81-ad03-8713ef212fcc","block_type":"box","text":"PABs.","page_number":88,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"828adb58-cb3c-4b08-b39f-2d1e64aac34f","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":88,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"a6b0fcb2-6393-484a-93a0-3c527d430bea","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":88,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"61a49635-b485-4d39-9079-fe1e967cede8","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":88,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"aceebde4-0459-4e47-b7bc-5ffa87a9c290","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":88,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"ce7aed3a-785c-4369-a22f-87ff0f38b842","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":88,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"76875828-14ff-42cf-8411-26b949d6329b","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":88,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"aace46d1-a3d0-4a48-961f-3bf262cc1735","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":88,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"0953f94c-3f20-499f-b99e-2b2d8b247002","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":88,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"753e842a-6d9a-45c7-b7dc-68bc7895693c","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":88,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"68d9d9d3-ca86-4243-97cb-092002bc6dda","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":88,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"59ae5d0f-5b49-4029-8d8e-f970657d2007","block_type":"box","text":"the par ticular facility being financed.","page_number":88,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"c7f39af2-fd2a-4b9e-b3ca-aacf31763640","block_type":"box","text":"Moral Obligation Bonds.","page_number":88,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"72bab70a-5921-45bb-b2e2-368bad8d9a59","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":88,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"246f6e8a-954d-4ec6-9694-43ef2293e1a0","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":88,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"fb3c299f-d8ea-4921-baf8-04dfdb7adfdb","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":88,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"0fc185cb-a34a-47f5-9c67-83c82b1ea5bf","block_type":"box","text":"that issued the bonds.","page_number":88,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"93d39aaa-8f4e-4886-844d-60a7fbdf480e","block_type":"box","text":"Municipal Notes.","page_number":88,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"f725dd41-503a-4263-a8af-24100c46ef45","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":88,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"5acbb87b-d5a8-4c18-82f7-bb8a739e560e","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":88,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"37e820d5-13f8-48e2-9713-632da8499be7","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":88,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"49881151-6b68-414e-b8cd-4632a9437285","block_type":"box","text":"II-57","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aa424902-3c34-4a52-bece-a288ba66970c","block_type":"box","text":"NM1026U-5982509-88/232","page_number":88,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e45b50b2-50a6-4fd9-84ad-c082333906bf","block_type":"box","text":"Municipal Commercial Paper.","page_number":89,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"f6df4b22-0a0d-43dc-8482-ec905818f98b","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":89,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"12da3150-72ee-4c74-b824-57151bf4aa5c","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":89,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"b0285b69-fdca-4c24-9ce6-71ed391e33cd","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":89,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"78576bec-d9be-492d-b085-c1d7ad8fae0f","block_type":"box","text":"Municipal Lease Obligations.","page_number":89,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"4925f858-b4df-4e3e-83c9-a4a92a3bb286","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":89,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"685c962b-8e4e-4405-a552-5bde46aaacc7","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":89,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"9f0bee4b-42dc-4013-845e-2d8f0bbb8a39","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":89,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"9fa73e33-fda5-43df-a1c4-7352ce2b1dba","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":89,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"94bef4ce-752a-43a6-8164-39c403a62fe2","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":89,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"94e15bd9-4653-44ae-b2da-70c2fd135f37","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":89,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"b9758bce-5382-40d9-ab74-b4abb0508215","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":89,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"9bf1b03d-7c58-4b88-8403-631e361d7e31","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":89,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"56bdc271-a89f-489d-be2b-ddbbeb2ae65c","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":89,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"91dee122-97cd-4db4-9137-964d6f69ffae","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":89,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"e544d234-da6b-46f7-bdff-752ab5fa1926","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":89,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"a84d73a4-5191-4a58-a4f4-a088a16b1a17","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":89,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"0ff4cf21-bcfc-4d25-b454-5cbd31191c63","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":89,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"a5e0549d-a24a-4b4f-91dd-512a954ba507","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":89,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"57bd5bde-92b7-498f-a248-37d6ba705357","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":89,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"f1a4e67e-c665-429e-a3e4-8c975ea8aaf2","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":89,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"9ade78f3-697f-4063-9550-262c8b34ff45","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":89,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"91113813-4558-48ae-bf98-23c7a84dac1c","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":89,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"f7fdcb38-e798-4382-b16a-af63e984165c","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":89,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"ecbec293-d1a5-45bd-b1a4-ae0700b92fc5","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":89,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"7c69807d-778e-42d9-982e-df9d3d845998","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":89,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"e4807ec9-2109-46fe-94af-efc44933096b","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":89,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"5e32eb5e-ebdb-42d4-b999-efc983f98748","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":89,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"13248dee-1dbf-4e87-ab06-2ff88d4dabba","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":89,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"7ee0d4fd-7cde-4558-bf55-dbc1beabe898","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":89,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"6e96e008-e0c7-47b8-9539-c67e48d6e756","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":89,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"9f245509-970a-495e-b579-6afaa00c1055","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":89,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"2f535253-b1ab-479b-a857-ef7dfb305e01","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":89,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"36a7d6de-abd6-44a3-9d22-490fe5b47005","block_type":"box","text":"Tender Option Bonds.","page_number":89,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"2e16bc3d-188c-4b68-b534-17ab72ac8542","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":89,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"63f51d48-547b-45cb-b395-dc2d7c5fbc89","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":89,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"af4f5262-5362-45d1-977a-fe441fd63053","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":89,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"49d85117-5e6b-4fb0-893d-f49d3bf39ac6","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":89,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"23f8fa6c-215e-4a40-bd54-d0cb72b792a4","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":89,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"3249a35d-9fa2-4d84-b9fe-8f1e2301bbf4","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":89,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"d0ac1dab-ee21-4880-937c-89466026098e","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":89,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"03c0e73f-8cc6-4b03-949c-3c01803d6dfa","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":89,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"9c789ed5-15a8-4f86-a6f4-cd88a45cd175","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":89,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"016a645f-7d60-4ffd-b893-11206b4511fb","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":89,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"e900d89b-ff33-4cb8-96bb-e7fdcbbac6ec","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":89,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"6dcd92e5-ca82-40c9-acb5-f0f2f4be8c36","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":89,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"3432e420-43c3-45a3-8d9b-e6084574c25d","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":89,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"76cccc7c-c544-46ea-a2b8-6ebb93848f4a","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":89,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"0eedb7e8-9a30-46cc-984c-e210a3596403","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":89,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"2e23de18-8104-4d09-a031-5d5586038e1f","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":89,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"18df67cf-dc93-440b-8258-7e9b2306258c","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":89,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"7fd85e4c-a870-40f1-859a-3286d6aa805b","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":89,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"fdb8acda-e077-4747-8cb7-cd8754eff3ea","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":89,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"4199a55a-fa85-4ac2-a734-152226e39e20","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":89,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"0519fe08-60ca-436b-b5a7-a9ea8fa785d9","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":89,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"2a4f96c3-d2c2-4b67-a09f-9fa193ca5c58","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":89,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"a6b3dcb5-2348-4884-90aa-0268761d9b6e","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":89,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"307db5c4-2499-40c9-8a35-43ef7a5bf71b","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":89,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"84fa2a29-665e-432a-a2ad-ad816c1f27a3","block_type":"box","text":"II-58","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"de9c220e-15b1-46dc-a0d1-92af4dae4fa0","block_type":"box","text":"NM1026U-5982509-89/232","page_number":89,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"69921602-83e4-4c78-9bb5-c5d072d9f3e2","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":90,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"b82e5e0d-1c39-467a-94ac-9a3d6a682ce2","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":90,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"3699bb61-3cf6-444c-859b-02a94f6fea40","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":90,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"38f4c264-0a03-4d3f-b696-f54dc1ddfe71","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":90,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"2b400b18-befe-4342-a926-9f82c1cc30d6","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":90,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"994e8d05-a798-49c0-a912-e87d8c9dcf2a","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":90,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"411c6e1e-09d0-43fe-a4c0-53cb4aed53c8","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":90,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"c6ec18ef-adb4-4078-835c-f4f342d90105","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":90,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"7c220658-bf83-47dd-8f8d-d1d8fb068fcd","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":90,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"8500dab3-7614-400a-95c2-f10679cec8a4","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":90,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"2586a9d0-08ca-4270-a7f8-a76cffde8f96","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":90,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"da746cf1-0e48-405e-af2f-bd7606d1d6b3","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":90,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"9f0368e5-a16e-4ef7-b971-fd76cd07799c","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":90,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"835d0fd5-59a0-4319-8608-3cedca9e64cc","block_type":"box","text":"issues.","page_number":90,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"42c10441-9a36-4185-91ab-aedbddb376af","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":90,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"71caae57-6752-4f33-a122-f01e088dad7c","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":90,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"f17a80f6-9940-40d8-8ec2-9f20c0578ed6","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":90,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"eac69732-76ac-4429-98b6-d4ca2c3b8ee6","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":90,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"67a97593-30c0-42a1-8101-6962c1017974","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":90,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"d6f6d7a3-296d-4fe7-b9ba-d931705a0a84","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":90,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"b138d04e-8758-4c63-994d-699cd2ba3ef3","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":90,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"28609ba9-2b7a-4b5f-b063-f24ff690f4c4","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":90,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"05ece148-3d8d-42bc-b38b-a3a5f773d199","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":90,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"570968e6-76cf-4421-8029-e5cd7f898d56","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":90,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"5e8bc4f0-43ae-432b-a179-6a300941085b","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":90,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"9fada4b7-bd96-46f5-ba71-aca1b057e747","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":90,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"5c8aa6e2-2e10-4789-8394-a5b3f994637d","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":90,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"bed20955-f564-4266-9da5-703d4d22c368","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":90,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"580bb122-6bbd-4e02-8913-e72d890c66d4","block_type":"box","text":"i.e.","page_number":90,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"a8adc494-ad7e-4413-9b06-6b9e717fe155","block_type":"box","text":", the Fund). In contrast, in the","page_number":90,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"4d6b697f-3cc5-4982-82da-2e86e7d0140f","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":90,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"420356f1-33e1-4bba-9be6-44a2d68697ff","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":90,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"c1a23449-0620-482b-87eb-3cbcd636faa3","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":90,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"a5822233-e8e0-469f-aa8a-d4a93b370e17","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":90,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"d40405c1-7f28-41a2-b0f2-0b06595bb927","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":90,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"1c9506c5-2125-4471-a5c0-d77776d58c12","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":90,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"0f06e529-24e7-4a9f-b3ba-b8ed7b6d7169","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":90,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"75467848-d058-469a-9e30-ff21646077c5","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":90,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"bce892d5-4131-4aec-91cc-18b71d48ef34","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":90,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"83a28150-9b09-4d3f-86c5-70861984512e","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":90,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"356b977a-7f4c-4452-801a-698f8b63a783","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":90,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"854e0165-b4a3-44c8-854b-361f5a4f7ab2","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":90,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"b88a4f67-f7ec-40a3-9e99-a3853b03be85","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":90,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"1cf0ee88-3328-456f-84e2-71563c833ecd","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":90,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"56e3fdc8-f065-4251-b51a-1691570c7846","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":90,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"bb4e54ce-ec82-4f36-9fd1-dd72f6bbd89a","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":90,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"a2dbb763-892b-4861-97c2-1755b462407a","block_type":"box","text":"Trust.","page_number":90,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"66559a5d-4766-4f23-82bf-30eae41f1da8","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":90,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"a199d995-8e03-476d-9359-d98d900fe152","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":90,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"94f8e145-99e3-4c8d-9120-a016dd82fa11","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":90,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"cf40d7ca-b87d-4a9e-81d2-da65ea608aa1","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":90,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"5fa7c529-f7b4-45b8-9317-d0476cce3da4","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":90,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"79adf9a2-00ea-42b7-8fb3-3a0a6850d69c","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":90,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"e731502a-f720-4eec-b43a-44b9e8b4231f","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":90,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"e8da9287-d895-4dfa-9482-02ca86a759cf","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":90,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"6dedad93-f4b7-400b-9d00-7d25d3da7773","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":90,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"7e039cf7-7c1b-4bb9-aa18-609cd2ab3276","block_type":"box","text":"II-59","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6bdc92e5-d42b-46ce-b88a-a3bb18e11f42","block_type":"box","text":"NM1026U-5982509-90/232","page_number":90,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8b4e76bd-8d0d-448c-918a-e8eff911bc62","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":91,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"b1bf77fe-d5eb-4cc2-b485-f692559caeab","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":91,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"75a49554-b3b9-44d3-b360-0c24f12e934e","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":91,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"8c4c69f6-a74f-434b-a9eb-4ef48cfbaaa8","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":91,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"ae7b4e5a-7271-4f99-b043-b6397eea5a70","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":91,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"359358ce-fa40-4418-8286-10babef20fb0","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":91,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"52f9481e-d6c4-4e32-bd91-458f64c48319","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":91,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"c7f7e0c0-c03c-41cf-ba42-da6151c0850e","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":91,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"128b796a-bd9a-4f76-aca3-163f400ae758","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":91,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"efe0d1e9-b5b5-4b1e-8f52-764b469b5bc2","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":91,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"f8387509-37c9-439c-a3e1-79999ca77dcb","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":91,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"0c1a15c2-54e3-41a0-af26-b0eefbdb276e","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":91,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"64ab948e-e95f-4170-b9bd-eb3ebcb83497","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":91,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"1da64ea7-6327-4273-b015-4680116ae7ff","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":91,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"8506124e-75cd-44ce-8195-624ef9dbc61d","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":91,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"06e8bfe7-d347-4f0d-91e0-8af4a777c5cf","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":91,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"8887a2b4-7002-4c7a-b3be-6f1f06c64a28","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":91,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"357e0e48-3a66-4c4d-864b-9c1a94e8563c","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":91,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"670e8fdb-66f1-43a4-a5b1-63fae8c9fac9","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":91,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"2d8c07d7-e5af-480e-9cf3-76e6dcecfc13","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":91,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"b7a03b8a-fc84-475c-9978-989cb3e3898e","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":91,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"32ddfe4d-3280-4d14-a66b-7cc2a9b41f78","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":91,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"28bd5a93-f2b1-431d-b79c-c22e7f941ac3","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":91,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"a0f66e25-b9af-475e-bbb8-734cc1f9a13c","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":91,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"3f107b5b-6598-4724-a9ad-a4a2500df245","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":91,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"323448f4-a90e-4dce-a725-b5d863ca3e9f","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":91,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"a3544658-fb7b-405d-9780-04fd3c41fbbf","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":91,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"b8468f8e-5967-4152-b04e-679a25721ce7","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":91,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"998b538a-77fe-4338-82f2-6bc824cedc92","block_type":"box","text":"i.e.","page_number":91,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"b4532a6f-63b2-42ac-9a96-01e2f5f0576e","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":91,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"1e9db366-315e-4c1f-a1b6-3af35af24137","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":91,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"e4789b43-3d98-4096-851a-5528e6b41003","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":91,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"b80e8e93-afcf-467b-9354-a03dc06bf9ef","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":91,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"8af7aea3-9776-47bf-bd7a-740f78f215bb","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":91,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"ff82dd00-00a9-4b9f-ae83-5666e27180d1","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":91,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"d9a5f204-a4d2-447b-87f8-f23f5114ff67","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":91,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"c666c65b-1b03-4aab-9159-3b381af5ba6b","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":91,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"e891b3f6-8a00-433c-9ac2-04229ed7f0c5","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":91,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"b4b128cb-d980-4c90-ab4b-248d527017ca","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":91,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"abbcd64b-9749-460f-b02e-0703ae15d0ee","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":91,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"084a0d7c-bfae-4743-81cd-d0fd2044ad79","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":91,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"f2256187-4530-499e-a929-a02d490df5ee","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":91,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"c2185098-fbcc-4b89-a5da-7a8ca4a02035","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":91,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"1b6cb0d7-6944-402e-9a07-21cc71bd8372","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":91,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"5cb34a7d-7505-40ba-b1ea-39c1852d3b6c","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":91,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"49e53dce-d4d3-4c96-98ed-7b87ee19dc39","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":91,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"0b2b7198-213b-4681-ae8b-d7021d579d66","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":91,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"59d258b6-8223-483b-8a7e-77ab36fcfc3f","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":91,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"d45d6f20-d10e-431e-a9c0-6569ad855b47","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":91,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"c20f58dc-8ed0-413a-b91f-e997d41d6c33","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":91,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"11a921dc-5871-4bb2-b1f4-c62fa982f127","block_type":"box","text":"market is not yet cer tain.","page_number":91,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"f8b93078-c634-48d6-89c7-0f8ae43da86b","block_type":"box","text":"Yields.","page_number":91,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"7b5546b9-c9c9-4287-9236-89b2c53e202b","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":91,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"d2361492-14ae-4007-aa8e-b72bb96a8190","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":91,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"9f169f1b-4429-4ceb-a014-58cf122630ae","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":91,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"6f07d998-ba11-459c-8450-ff947af984f2","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":91,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"286414fe-1721-46a4-aef2-0a83b9e0a548","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":91,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"b9984e6c-fe87-4d89-88b5-0fdfae512f9f","block_type":"box","text":"II-60","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ff71944a-d665-461b-ad91-ec55e33996ce","block_type":"box","text":"NM1026U-5982509-91/232","page_number":91,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"945427b4-933b-44c6-b7a1-9147ac83c82e","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":92,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"2310492c-00a8-42a0-97b3-45c0c41839d9","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":92,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"561ab6f1-95b7-4323-ac3e-083da57e5bcc","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":92,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"d1d51238-4758-482d-ac4c-ccbad61ce7ce","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":92,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"23cea90a-eeb3-48bc-85da-7d70622bac90","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":92,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"cedd9e24-72df-4fbb-84c8-1ecfb8f5f2b4","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":92,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"1046c038-3a54-4a8c-b5f3-53692d64e289","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":92,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"475100cb-861e-4eed-b038-dd6cda6f5680","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":92,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"604367a8-28ec-4f7b-a2fc-f75066d6ee6d","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":92,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"c80df29c-34b8-4071-8b90-ddb22d4134c0","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":92,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"62864fd0-1183-4349-be22-faca64d62eae","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":92,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"e17f6cf1-0d27-43b6-acfa-7ab0e37e68f4","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":92,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"d78c771a-710d-4ed3-89f1-2936c7e9f890","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":92,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"ca756697-0f10-443e-b902-a19d14f8bf59","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":92,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"25a91621-5f69-441e-bf40-db6bd9ba758a","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":92,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"e1a72248-af22-47e6-b539-28f056b06601","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":92,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"884f96e5-1282-4293-9e58-6f1d5b5040c4","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":92,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"4b2e6c88-4832-4d57-813d-7a99ce4299de","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":92,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"ed844250-5e5f-4aca-a577-c5792ea41210","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":92,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"dc677b96-083a-43bd-94f5-24b17d2b9509","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":92,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"7a3567f7-bee0-4c64-a862-bae2e084c461","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":92,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"6fe9c709-2c2d-4cde-bc3d-49a3f9e83e91","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":92,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"2a6ff921-bd1e-4dba-b9ca-e6980cfec4df","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":92,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"5ad26714-c2c8-4a3d-a668-f2ec7f8e8089","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":92,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"508223ac-ddfd-4f58-a4cd-eea42cd82622","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":92,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"2d42e3f8-36a2-4ced-b881-68b86cd06187","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":92,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"1231df79-3334-43db-8ed1-76b365572969","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":92,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"2b14c43b-fd7c-4843-94bf-043ffaa238de","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":92,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"4e11bb5b-39f5-45a0-a4ae-511742957b3e","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":92,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"f40dca3d-c038-48a2-8bf6-af20e7e9025d","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":92,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"0045337b-4db2-4a1b-90b2-1b2e571789da","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":92,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"019d8f73-ad56-4f18-a713-46e3b6f3cfc9","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":92,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"ae246743-085e-44cb-ab07-e24af1491775","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":92,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"645b696b-5042-44ba-8f2f-d891582b6905","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":92,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"1762d536-8658-47b6-8fea-82f2846b7426","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":92,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"b43216e4-706f-4f4d-afe6-58c101864a5b","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":92,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"136313ba-9950-4b27-9ca1-57820ff5645d","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":92,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"ee077abb-da5a-4843-80ba-1c9f422d4143","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":92,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"f7689b62-a17c-46c1-bc22-597a49904eb0","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":92,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"99ec652f-4707-40b1-aaf8-3c2a4a16d7ac","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":92,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"8e9ab9ab-b342-46db-a02a-bd471c4b70d6","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":92,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"14315e6d-1791-4c2e-ab0d-43bb062782b6","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":92,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"69ec5bc6-fefb-47ed-b190-a514acf48894","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":92,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"a93ebdbe-e01c-4553-80b0-01c199249b86","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":92,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"e611f535-c6ca-46a3-960c-0ab8aeeae445","block_type":"box","text":"Call Rights.","page_number":92,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"8915f0be-6d1a-47fd-a29f-6e9e43407f56","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":92,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"e74e670a-6300-48e0-af2f-1717689d6819","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":92,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"68f23138-4fdf-4c8e-be62-0c982fe9b51f","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":92,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"25cc56e7-863f-478d-9109-dfae483c215c","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":92,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"44e5bf1e-8078-4302-863b-e98ba8bd73a0","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":92,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"c18c4dc5-9fd7-48ea-ae57-a6b57b181d14","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":92,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"28a20b1e-17fe-45a9-add7-d9e5770bfd1d","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":92,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"f8e038fe-b3b7-4142-9eb2-d422ed4375f0","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":92,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"dd1f5504-970c-4b2e-82e3-37b21754f7e7","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":92,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"f727cbdf-b316-4722-bde1-15643cc9b85c","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":92,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"9f1a03b4-0fdc-4f68-9407-13365a8084d8","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":92,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"7dc99c9f-e0ac-4004-b9bc-b18a54362ca3","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":92,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"9056dced-9bef-4cd2-9f31-d5d44999e40f","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":92,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"42690508-dab9-4ddb-a73d-3435bf0fcc77","block_type":"box","text":"II-61","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0a041b7d-b36d-4031-a0db-1cf2f616f5bf","block_type":"box","text":"NM1026U-5982509-92/232","page_number":92,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7c25f9f0-99fa-4445-b179-a3b1c21d2eef","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":93,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"ec452a7f-7fc7-451e-948e-2921b9cd3d9d","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":93,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"dc591954-bdd4-4dae-9b71-fe4aa60bb4d8","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":93,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"e1fbdc40-4e69-4ffa-a2bd-d087981fc31a","block_type":"box","text":"i.e.","page_number":93,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"d5b00aac-e02b-4b99-826b-9725f8290cc1","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":93,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"4464d13c-e6c3-4aea-aa54-763e621e8877","block_type":"box","text":"rates).","page_number":93,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"a8905a32-de21-4cba-9d3a-a508d0414477","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":93,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"40973ccd-6c8e-47d0-ac09-97582363984c","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":93,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"3f4cf298-a4e5-46d0-b746-682aa0751071","block_type":"box","text":"e.g.","page_number":93,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"fe0a40bf-4389-4aaa-8411-1cedce3cd509","block_type":"box","text":", an exchange of fixed rate payments for","page_number":93,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"4a8847c5-11a1-41c2-9a38-b3ade7c05aaa","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":93,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"a34e33f0-dca8-429e-ac0b-b356fea712e5","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":93,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"bbb59599-e615-4a79-b9b4-ac4f4d7436f0","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":93,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"6b087686-2f7c-43ae-a3d6-a3980d3ca8cd","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":93,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"404f9a10-6bba-4701-a28d-b6c6e4abd402","block_type":"box","text":"with the same attributes as the swap (","page_number":93,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"7ada0f04-8103-432c-a260-5e594c6d5c05","block_type":"box","text":"e.g.","page_number":93,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"40411e95-1e04-469f-9674-876d10fd6d03","block_type":"box","text":", coupon, maturity, call feature).","page_number":93,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"2975507a-009b-4237-9f0c-e6ffd7b355dd","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":93,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"8869e5cd-16df-40a8-a9d5-aacb552ba7c5","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":93,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"135f01d2-09c7-446a-b16d-e563ad60fa7f","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":93,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"48413eb9-e1b9-406e-b657-a1d48b6313a7","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":93,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"a532fe81-ba4c-42c6-9eb5-c87ea8b55cb0","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":93,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"7706de62-c751-4bf5-adc9-ce42e19a6684","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":93,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"cedc1fd7-05f0-4d46-8482-dfe6c711772a","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":93,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"127625dd-5f91-413c-94c0-2ae869be0132","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":93,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"0174f429-31df-4bcb-858e-6fc927bdc03e","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":93,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"3a924afc-0bcb-4550-bf58-35f1c5ef4cfe","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":93,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"b9ec2f30-d664-4bea-84b6-e7c5ab81e899","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":93,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"09514966-95cb-445e-992e-ecd3bdad6489","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":93,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"a5c11b98-c622-44e1-9467-1796e41629a1","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":93,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"bb3bb5fc-2d69-41c7-9b18-6be32959da38","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":93,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"8b697562-d444-48b3-a6c1-08c352e74f75","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":93,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"1cab23a0-7b3a-44d2-b910-4dd52cccd8a4","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":93,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"f4eb8290-1465-4922-86ec-834ecc7bb898","block_type":"box","text":"Insured Municipal Bonds.","page_number":93,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"6ea5ee03-fa43-4207-8f0a-a3c05da0310b","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":93,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"9f020c1d-f68c-432b-8df3-a20131c6c9f1","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":93,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"5811c08c-c1ee-43e5-8b6e-da296606e23b","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":93,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"98924662-1a6b-4620-ac54-bc5a2b6d63dc","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":93,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"c7dc9257-4276-4121-a310-615a1cc5da1f","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":93,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"241a5ce5-1809-496f-bf29-f3edc15d695e","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":93,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"cbf266f0-f4fd-47b5-b8a5-723bbe9ab8f6","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":93,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"cc087e62-daff-4183-96f0-8095476c888d","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":93,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"1a0634ff-8103-4a1a-a826-6087dae4ab02","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":93,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"f555bd23-3985-4b76-bb56-247b97b700b9","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":93,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"ce379969-5ca2-41ad-9983-526777a2e899","block_type":"box","text":"bond could drop.","page_number":93,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"9ce550a2-7070-4176-b62c-e3e294ba18b9","block_type":"box","text":"Build America Bonds.","page_number":93,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"d61e3b3b-ef79-4af2-8484-bcfdc763c63c","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":93,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"95f2e791-81a7-45f0-b7b6-25f4ed25b45c","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":93,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"6a7561d3-0b76-4e66-9867-8a84c2c2d81b","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":93,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"45f0e0d4-3978-4eb4-819b-a6144a221ac4","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":93,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"d2b73a91-e145-4ae1-9a80-2d87d4f61ef7","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":93,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"4b26cf94-b5f0-4ad3-9d36-a7d1c4cda779","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":93,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"1a3b7b2c-ce56-4db9-a1eb-459c6baaa1c2","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":93,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"9c6c68e8-328b-4660-a633-46ef2c416823","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":93,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"5275cb97-f11d-4f5c-b3c9-d145e3ea6e0e","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":93,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"85bfde07-8d2f-4b6c-baa1-9cc37eaf5919","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":93,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"4d1b2d8c-9777-404a-a06e-4976a70c411a","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":93,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"193e99b7-b24b-4793-9d1a-6621913666b9","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":93,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"62f0f619-c47e-4aff-8936-c7928da9ef3e","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":93,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"6953b197-2094-4ba1-9841-3edf25a45e4b","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":93,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"7a5ea739-5513-450a-84ef-8dc245913e5b","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":93,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"12c04586-d504-4c19-8abb-c1a7b8c93a7f","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":93,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"7376b62f-5a54-4541-9271-cdec026513a7","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":93,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"e7c42bb5-2322-4bb2-9575-6202057184d8","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":93,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"80c1a1fc-8c4b-4553-9cbb-06f7eb549e68","block_type":"box","text":"II-62","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"62559699-c222-4c89-858b-4bb8c196007a","block_type":"box","text":"NM1026U-5982509-93/232","page_number":93,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"909bc94a-5525-4bb0-9e98-1ddb8c6c4325","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":94,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"8613be85-556c-4bf7-bd03-123519964cf8","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":94,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"108ce0a1-1a0c-4728-8ac8-730e91c72564","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":94,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"86c60d35-36ec-4f0c-80b2-b9fd604ff29b","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":94,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"8bb51f50-67d7-49b6-8de7-fac1745836d4","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":94,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"07989758-38d0-4ab7-acc7-6ebf0c59f352","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":94,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"1fb373d5-72c4-4147-9a6f-f106831a919c","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":94,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"c98e9ef4-2784-4a1a-96aa-ba6397ac73bb","block_type":"box","text":"their face value to the sponsor (","page_number":94,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"8e0d30ad-6c04-4e5f-9742-06d6d33a45d5","block_type":"box","text":"e.g.","page_number":94,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"b40e152e-d7eb-4605-95d9-4269bb3806f7","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":94,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"38903988-e545-460b-a5b1-266ed7cd320a","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":94,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"ef8f94e6-1d57-444f-900d-a7f3270570c3","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":94,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"d2b012b9-3333-4fda-abc1-02b70a212d03","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":94,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"464993f5-ba59-46ea-9ad9-e972b7cae330","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":94,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"52b29f76-c55d-4f63-95f7-2da57953ef29","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":94,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"14e07480-56a3-459d-b486-9f8328bce9fe","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":94,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"99f07254-05c5-4c39-9b4e-f35b31a61aa1","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":94,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"00061899-5659-4ce1-84f4-b5ef4b723b69","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":94,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"2fb68ca6-2fcb-45d2-84a1-d55709ad68ad","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":94,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"57d4481d-030e-42e4-9a38-f9d9063770ce","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":94,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"c707e176-eef2-430f-bfa1-2d01712b658b","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":94,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"281bacc3-172b-4e9a-b796-0bec7a75916f","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":94,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"518953bf-f194-41de-ad5c-290a1f26fdd9","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":94,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"acdf94b5-dba7-4136-945e-4d2a94e07bca","block_type":"box","text":"such opinions.","page_number":94,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"5783ba5a-b0ad-473c-b5d2-69acb819c7b2","block_type":"box","text":"Operational and Technology Risks.","page_number":94,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"064233af-7a8e-485c-83bb-310063d1d653","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":94,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"f0ebe469-0f4a-4cc5-a8d0-a6a17697271b","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":94,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"4f9f749c-6a53-4be2-a71b-e12fff8b17e0","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":94,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"4d8b907f-a826-40d0-8467-4c27f72969c9","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":94,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"f9bddd2b-f50a-40eb-b58a-ab450aac468b","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":94,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"f078c07f-e6c5-4adb-a9db-7a66b200cd1c","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":94,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"a9665728-0349-44c6-b61a-9d933f5480e6","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":94,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"eaf41fa6-035a-4dfa-84c8-24cd082290c4","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":94,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"62ca5b16-6946-4c00-9037-919683102585","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":94,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"f433370c-74b8-4eba-ad7f-1bc9b65c2bbd","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":94,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"5b40e581-8f95-4d73-a073-86d9c3ebe8fe","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":94,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"d542315e-3bd7-4f23-bbca-ed02e9091cda","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":94,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"a6490ba3-b4b4-43d6-9109-a740ba6cd9fd","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":94,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"d79a4df7-4967-45ce-a998-85b9e69b7ba8","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":94,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"6194d188-04bd-44c5-8a94-9e98b3a71daf","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":94,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"a46c51a6-40b8-4601-82ba-c57e91908f17","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":94,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"b71fe565-777d-4a1c-a796-ee509119930c","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":94,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"e687235f-4cd9-4db3-9a70-7c1ca970b587","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":94,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"9ca29189-1312-489f-9a3f-a06aa3e32ce6","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":94,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"6d81383d-98ec-4efa-a691-1edada8d0910","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":94,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"b65714ed-32c7-47b2-964c-cb326e4acc32","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":94,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"8cf76ef3-4347-498f-be13-fa1b7764cd25","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":94,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"dcaffd99-b792-4831-81bb-8e8ca807095b","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":94,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"83355b83-9419-408d-9c08-b4520a83ba57","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":94,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"ad333e39-15d2-4232-9c44-159b2f5dc86d","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":94,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"219f99f0-0eee-4685-8b43-5613ebaa7c12","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":94,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"99650ec6-cc61-4075-9bb5-565e31d12974","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":94,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"29c46f46-c6b1-4b54-8274-9261251190f8","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":94,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"20c2ae79-0de7-4af1-98ec-abfd2f4e4c83","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":94,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"3232bc85-8954-4f26-9daa-b5355a139057","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":94,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"a829ae76-4526-42be-b14d-e2e240983fb4","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":94,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"1a7eb638-3985-4755-ab4c-6da828345bf7","block_type":"box","text":"infrastructure assets.","page_number":94,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"12ae7fe8-8e36-4e97-aae1-b633fb526eb7","block_type":"box","text":"II-63","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8290175b-dbaf-4610-bde2-74b07cf75bf8","block_type":"box","text":"NM1026U-5982509-94/232","page_number":94,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"28eb7fe5-dccc-4990-9473-1c1839ddc0fe","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":95,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"4ad42fef-e63f-4f70-8e84-a6e25d24f0de","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":95,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"2df16938-3127-47e9-b59d-b4026129dbe4","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-par ty products","page_number":95,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"b1c12aac-8a0d-4ed9-a39c-a86f3c623d2b","block_type":"box","text":"or services.","page_number":95,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"5e16a11b-c05f-426a-b16f-110f75777ab9","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":95,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"e503edcd-2a2d-4f7f-bd5b-3ba5dbffc400","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":95,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"66a18079-4258-47fd-9c3b-21166beffca8","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":95,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"35a41f45-dfd2-4282-b3ec-098305d53a6f","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":95,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"0e06fad1-a1bc-4c0a-9e8f-d5b944fbdc3d","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":95,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"1092d5f0-1f3c-4104-bd6c-77216e7699f2","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":95,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"b6cc53c8-f257-47e9-a742-925b5af36929","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":95,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"667e545a-1d7a-4a1a-be91-b9eb2e2f5c0d","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":95,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"afe8646c-b519-423a-bf1d-2e783f07ad6d","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":95,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"e74e9640-4ad7-4037-af34-40e53daf1242","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":95,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"51ceb408-8cf5-4de9-a066-633e10fe56f1","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":95,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"c74432d0-03a5-487e-8b7a-0ce14505c651","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":95,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"6a7e663a-9170-4fa5-95ba-ccb4c1456a84","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":95,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"5fbf0094-16e7-47a2-829d-15f269bbdd14","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":95,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"c2ede19b-8ee4-4a72-a233-cd82331ea051","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":95,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"25e99bb9-ffb2-4d62-a5d2-ca5820642213","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":95,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"b610623a-6f11-4501-a831-82722efc29a7","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":95,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"59a486a8-927d-4837-86c5-f1d31415ffe7","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":95,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"272e1133-00bb-4c92-a9df-d54a5894ff65","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":95,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"b5b6cc74-5581-4664-9aa5-30a4c37d1772","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":95,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"16a9590b-265a-4394-8e71-29e29ade603f","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":95,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"8bf2a621-c02a-426f-9262-844d59985d2e","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":95,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"ccb0105d-b8f0-45c9-be0b-7de4f2f87180","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":95,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"635f78e9-f85b-4a8a-a15e-bb68d85009f3","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":95,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"b2151688-862c-43af-9002-0b759213b015","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":95,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"738a2a29-0182-41b0-82d2-460bf65a16d2","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":95,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"2ffa7495-c3bd-4589-9598-9af47b301f38","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":95,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"fd489925-5329-48c9-8c08-5b25e1243367","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":95,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"f6c4abb6-4917-4fca-8111-414efa6af7e0","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":95,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"02b6b692-4b70-4553-94b1-0a6b2c9a5cdf","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":95,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"772a9d36-9c61-4d46-adde-29912aa9d281","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":95,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"c5e1f147-251b-44a5-84d2-fcbda57d4987","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":95,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"70a4e50a-5e34-4d1b-9d72-0036148002de","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":95,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"95d6adba-9a40-47a1-8567-9c212f634bee","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":95,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"0b678b58-82f2-4091-9596-5b703568ef5f","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":95,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"56b8ed6e-dcb5-46f9-a0ac-b56237cb90a1","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":95,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"17ef0dd7-4738-42a9-949a-43cf620e77bf","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":95,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"2ce11b71-91b6-4206-9caf-daacdfc5d8d2","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":95,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"993a8014-b730-4406-87eb-11ec37c8e159","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":95,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"f11d4319-9ae7-4477-9c43-f9ba19c0098a","block_type":"box","text":"resources to monitor and implement required changes.","page_number":95,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"0187c647-83a8-4cc8-b067-da3f3de94ac5","block_type":"box","text":"Participation Notes.","page_number":95,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"c31e5a3a-9be0-4492-b84d-e51b4c40142f","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":95,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"aecb7666-5e26-43ea-95f9-074c1c5fa5da","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":95,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"b34c5f35-611d-4a99-8655-e911990d959e","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":95,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"52f96cce-247a-4c04-8293-7688950ead1e","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":95,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"41b01a8e-8423-4e9d-8fd3-be685e78530b","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":95,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"888778b3-db27-4c7a-baa4-7883aed7bf2b","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":95,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"42f15eab-9a38-4a39-ad7a-64337882199c","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":95,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"6e2471a9-52eb-4204-a6ad-6e21443f71a8","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":95,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"4b1fa0e0-9b19-4e0f-9b6f-7179a3bec180","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":95,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"921765b3-83d5-472e-97bc-e2355c65fe57","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":95,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"64ae1336-3267-4adf-a3c5-fb6a5d7513df","block_type":"box","text":"II-64","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"30a3f2e2-c75d-43cb-a96a-0d4a913f0fe3","block_type":"box","text":"NM1026U-5982509-95/232","page_number":95,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fe272331-430c-45a8-a4c6-045a68fd8b99","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":96,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"e84877db-a020-456c-bb7c-94427b085c0d","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":96,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"380131ea-5d26-4729-8d1d-c7d2b7e822ca","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":96,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"65d03494-ff01-4535-a78a-742082e4d76c","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":96,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"172f956a-27b4-42b4-acd4-b0d16fb90935","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":96,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"00512a47-aee3-4210-aca6-e04d1b4f8d37","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":96,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"d22f8f39-db65-40e1-a15e-f7eb7f26eeba","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":96,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"1be0c0cf-75eb-4888-abbc-4ec317499b90","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":96,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"f809cf74-ca3f-4cde-81fc-e231175be9a3","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":96,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"ce8e10ca-0b47-45de-83e4-6ff576664b9b","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":96,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"8d5b5e47-e9e7-4340-ab75-1c32b221ac1c","block_type":"box","text":"Portfolio Turnover Rates.","page_number":96,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"9ed52403-3dee-43eb-beed-16482bfb766a","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":96,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"4fcb3430-5a69-4ccb-a70a-547615cdc195","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":96,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"f5c74707-106b-4e2e-9812-5459efcd605d","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":96,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"c567fe0a-3e31-4c85-982f-29ef9fd7f5ab","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":96,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"af3bd913-cc09-401f-8bf5-4f9f3aee796b","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":96,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"e585b32f-8bab-455f-b6e5-abad509db702","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":96,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"cc6d9139-4913-4f49-a417-01c012fa4313","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":96,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"21c84187-cacf-49a3-a781-20bc05ffeccd","block_type":"box","text":"i.e.","page_number":96,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"1bf2b266-d968-4495-88ad-7a57a1d89582","block_type":"box","text":", 100% or more) may result in","page_number":96,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"fc04d0f2-c568-4d9a-989f-8dd60eadd310","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":96,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"e250377f-d631-4556-88cd-ebe9458b562f","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":96,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"2d84354b-c092-4786-8a63-9716f1bead45","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":96,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"436d9a4b-7b25-47de-bf1d-3aa12a15ecce","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":96,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"53cd58b8-d102-49c3-a6bc-f31482522a0e","block_type":"box","text":"Preferred Stock.","page_number":96,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"5a51858b-0bc9-4f9a-9f8c-61ada9d75f8a","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":96,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"68e907d1-8fb7-4eef-8edf-fce2c6164aa0","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":96,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"4333a50f-5e9f-4aee-910a-40eba0201b4d","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":96,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"25e7e49c-728a-44b4-b288-15203ae116b0","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":96,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"6f75154f-e155-41ad-aa1d-135b998b79ff","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":96,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"59014e16-2021-4d43-bd93-8c26bd4ff6ef","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":96,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"ca6acdd1-7557-428b-924e-15440f35a2fd","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":96,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"54807ace-e812-416f-b2a2-bc2338ef4f4a","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":96,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"45eded97-28cb-4df7-a052-50b21d052a5a","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":96,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"20ccc10f-999e-4ac3-95cb-c63b070b7321","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":96,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"d999015f-ae7a-47c9-967d-12371264573f","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":96,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"14c5b736-0dc3-4b7c-a1b8-34094b186585","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":96,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"3c6a11a1-ce3a-4bd0-9656-849ef6ccd9d5","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":96,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"0fabeed9-2fe9-4e1d-8319-b2f6fb88cbbd","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":96,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"3301f501-3170-4743-8278-d61e1d917ed1","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":96,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"9adde8a4-25ff-45ae-a32f-a014d9dc8436","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":96,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"84f3e8b6-7721-4d7d-80eb-d9b698b6810d","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":96,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"d9613401-3acf-48b7-9065-9742d9bf6585","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":96,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"513baf96-8d0c-4933-8e53-6516d7dd3ffc","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":96,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"9e4ea80e-2de0-44a1-8529-36d928d25ae0","block_type":"box","text":"Trust Preferred Securities.","page_number":96,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"4992e31f-bf63-4e72-b86c-0aec1ff745a8","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":96,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"13226b2f-479b-4495-a955-dbc9df99787c","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":96,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"aea4ddeb-72c8-40d8-848f-129a516b52b4","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":96,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"00abcc73-23bf-4e9f-bf51-9b42c5bd458f","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":96,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"78d134e1-a796-4f78-9a88-b3dbc328d969","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":96,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"3366ca23-7703-447b-8f7d-147c16b63e88","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":96,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"f12c1d27-d15d-4ad5-94bc-eec102c422ab","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":96,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"83d16de4-1be4-40b2-b455-975c9efff0b6","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":96,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"e8745543-355d-418c-b6ca-00dd97e5efda","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":96,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"753572d7-f6ac-409c-b0a7-7c50eb9dfdfd","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":96,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"0a3a3f90-7eeb-451b-bf0d-f2be4310791e","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":96,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"4f1b2874-5502-4c8b-a273-e48fc7bd650c","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":96,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"fe3d1152-4fe9-4694-92fc-18bc913ffd5d","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":96,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"23e1bb7f-e8c0-45eb-83f4-ad5670eb70aa","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":96,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"200d42ef-af74-4ff6-a03e-91c528d26e36","block_type":"box","text":"®","page_number":96,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"2a4c615d-f66d-4a9d-afd6-d8e841e313e9","block_type":"box","text":"”); monthly","page_number":96,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"e766e5e1-37c4-4136-8722-332e752f3766","block_type":"box","text":"income preferred securities (“MIPS","page_number":96,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"543507f6-ad7e-495e-874c-edaf10c6a445","block_type":"box","text":"®","page_number":96,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"a74623e2-c04f-4a5a-a0f1-af10af273851","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":96,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"dae1de6b-d992-4d21-a360-da84e73e11e5","block_type":"box","text":"®","page_number":96,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"2fe46f26-3d20-47b4-bd22-f247b3d3167b","block_type":"box","text":"” ); quar terly income debt securities","page_number":96,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"40924111-5210-40f7-8ceb-174277d60323","block_type":"box","text":"II-65","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1ef24ac5-8420-41a1-b924-2631d4ed0219","block_type":"box","text":"NM1026U-5982509-96/232","page_number":96,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b4391e1a-c857-41af-9700-0a82ed29629d","block_type":"box","text":"(“QUIDS","page_number":97,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"17ed69a5-f107-48cc-9878-1f1dfb5c18da","block_type":"box","text":"®","page_number":97,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"37cc13c0-40c8-4c15-91c7-e8888825732c","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":97,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"f412c23c-cf4c-4f65-854e-fe15e14203f3","block_type":"box","text":"SM","page_number":97,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"bfffa2a6-7a88-4e31-907d-af8e53e0fec3","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":97,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"80f2cdd1-b560-49fe-969e-305c1afacaa9","block_type":"box","text":"®","page_number":97,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"b296ac42-94d0-4dc6-bb3e-862b79fbf3d3","block_type":"box","text":"”); public income","page_number":97,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"b2b0ef14-0d1e-4391-ad09-d2004219c5c8","block_type":"box","text":"notes (“PINES","page_number":97,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"4a2fb86d-eaf3-4c4c-9b63-55232b1e3183","block_type":"box","text":"®","page_number":97,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"b42f6ee9-7c2c-41aa-931a-c52692e8ab6e","block_type":"box","text":"”); and other trust preferred securities.","page_number":97,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"eb01e962-c6df-4c08-9c04-dec4b9a7f0d8","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":97,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"de6112b9-0183-4d46-8cce-f985220a41c2","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":97,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"2fe5575f-1754-4921-975e-8ad7c37b6e1d","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":97,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"e31e7b08-4cb7-4e91-93c3-b4c57a1f5af5","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":97,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"533cfd99-a1a5-4d4a-8a14-1e8e05033cd7","block_type":"box","text":"regard to whether all payments have been paid.","page_number":97,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"09f4369e-e56d-4a53-b151-a5793ada5645","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":97,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"2814a067-d706-408e-8b6d-5ea97bfcc478","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":97,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"f022a535-5125-4f53-ba2e-becbcb499fd4","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":97,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"7bc902fe-9f15-4c55-a664-c401d6c85b6a","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":97,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"54a28d7c-ccca-44cf-bdf8-57832f331309","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":97,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"f9e7085e-3201-4d1c-ad85-5ef9ec6177db","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":97,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"159ce1f4-686d-42e3-abb3-0de6162b5043","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":97,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"d5f1ac37-570f-4806-b506-fc50f5eaf0df","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":97,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"36e4bef4-6334-48dc-a791-98f7e6269acb","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":97,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"13201ef3-5484-4651-bdcf-9cbbc3f74824","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":97,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"da312adf-dbad-4a54-be41-64c6c8bd72a8","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":97,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"76a98be6-5a1a-4d89-81b6-c530798bdf0d","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":97,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"c2d0fbbf-6e66-4599-88e1-e972901dc77e","block_type":"box","text":"debt securities.","page_number":97,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"838734ec-a397-4ae7-8c1c-1509cb7a0928","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":97,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"d8f0b9f2-3e51-41e7-82c5-96f75da19a5d","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":97,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"d2eae7e6-c095-4caf-b89e-0e27c368585a","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":97,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"a5a1da58-d3cc-462d-b969-34525b7ffe25","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":97,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"a8121c3b-8ebd-4543-afcd-ac3f7b06e477","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":97,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"0bdd412f-947f-4bac-8443-c4658cc881f2","block_type":"box","text":"i.e.","page_number":97,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"85f521a3-c7cf-4702-a463-3cbd68de864f","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":97,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"918d2718-c011-448c-bbd1-eaa6781c5174","block_type":"box","text":"buildings.","page_number":97,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"429e25a3-9bcd-46da-b631-038c3a3375bc","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":97,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"6e986fea-8ee9-43d5-9036-21251d949221","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":97,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"b32933b5-f605-43fa-890f-ba0c905f6151","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":97,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"e67ff178-43d8-4d6f-a916-2d04c113fe37","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":97,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"673325e0-38dc-45df-a7d2-efbe39168289","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":97,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"876f06e3-0e92-4198-a205-85744d6fdf56","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":97,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"2fe2c5ac-7c31-483f-aefa-16bf7031876b","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":97,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"d266ec82-74a0-4ddb-8037-1766c480f4d5","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":97,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"ae7e0c69-aa53-482d-b27f-c55c38ea5c70","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":97,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"d13927e3-43b4-4ff5-b452-c8506d72e510","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":97,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"0d820a0f-042c-43d8-a3b0-3a62def95157","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":97,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"59ccc076-880c-40e9-ace5-3c21855c7765","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":97,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"4eb5d152-2c19-4ac7-9327-43d4fc0fd792","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":97,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"db731448-e038-47b4-81be-d4926f60febd","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":97,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"1e395edc-5680-4dc9-bfd4-87619962c134","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":97,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"82f6c9d1-4447-4752-922c-f64d0ff75e09","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":97,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"ec4a8639-92c1-4334-87c5-85bb67aa2707","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":97,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"25d56acf-1298-4fb4-beb2-9a11d0257a45","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":97,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"1327e532-d8fb-4429-953b-636253ee7a30","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":97,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"05436d61-81a5-4b87-b573-06e55917b190","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":97,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"5699a600-9625-46eb-8972-bf9214277b34","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":97,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"c3dfc1b3-f6bf-4a70-b488-bd903a0ade57","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":97,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"1f8fa007-84d8-41ef-9554-0e2c9ebedf9f","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":97,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"941283c1-a600-4b5f-9682-8509061bd69c","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":97,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"375031d2-66b2-42dd-9fa5-6729f61e5d40","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":97,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"1c47d653-d254-4eaa-99a2-bfd713bae533","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":97,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"a5cb96f8-7cf1-4ab9-9e51-d967d6b62b77","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":97,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"1aaec856-8bff-4de8-8909-a9351fa3b10a","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":97,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"0dea561b-5dee-45d8-bf95-992be7127a7d","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":97,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"e2dcbbb4-899e-4d34-bac2-8b7dddbda879","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":97,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"b9925a82-4b7b-43bd-9408-58fcee21a3e1","block_type":"box","text":"II-66","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"acd0fc61-a15f-4f06-aaf7-2e8471cc5e2b","block_type":"box","text":"NM1026U-5982509-97/232","page_number":97,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"68cea369-8262-4984-a87b-262647a2042c","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":98,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"70ac8e07-048a-4382-aca9-d4e8ed5a6539","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":98,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"dec235a7-1df6-4d72-a026-92cfaabd3a0d","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":98,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"2eff7788-7464-415a-8273-164f75815ee6","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":98,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"b616b38b-b5b4-4c4d-aa3a-31f0ca5d4fc6","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":98,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"116d41c9-b55f-43ae-8a72-16cbec39f424","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":98,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"9a335bb6-99f0-47c4-ba0a-a9e4edb5f0b6","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":98,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"6764db26-c236-410c-9dca-6f6ba08197b3","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":98,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"316573f2-4e51-4150-ab16-77d628ac9ba3","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":98,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"4f26682f-0d9b-4dac-8984-f044c36946d0","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":98,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"97b111f1-12a3-4372-9a88-f8a52c9ebcce","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":98,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"b6c9e275-6dc2-4b42-9af3-381e2765dad3","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":98,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"89c7a060-564e-4a26-a99c-56e927078add","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":98,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"a5f5356d-c796-4798-852b-5f97e30b6a1f","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":98,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"e2962b09-70c9-44d1-bb43-84a2343d54f7","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":98,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"78b0cf94-fb81-44c5-abe4-dbc241fc835b","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":98,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"cf4dcba7-1f79-4bf3-a3f6-9ecd57050a37","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":98,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"fe2c6b5c-b504-47f0-9a9b-54dff8cf96f6","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":98,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"a1598571-6312-438e-a617-3abc4e352c88","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":98,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"1152d73d-3dc6-41f7-8a47-dcab7db0bcdb","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":98,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"fed33915-15bc-4fcc-83cc-01913482d84a","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":98,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"1853e1a5-60ca-4cfd-80c9-ec7abc7d5713","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":98,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"07e300d8-e210-442c-9afc-0938b933aa0c","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":98,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"f5951946-5bdc-4afe-a11b-0eb7b3d2d065","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":98,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"f9680a8e-4adb-4714-9193-d1dbbc83d562","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":98,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"3d6f3d14-fa71-4f73-af19-034186546aa7","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":98,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"932a1e93-3325-4cd2-9313-bafa78ccefc9","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":98,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"62278e7e-78d6-4f07-83ec-444c280a140a","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":98,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"57c0eb11-f707-4a27-a54a-12c046743b28","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":98,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"0fe268f9-6771-4bcc-91a7-971e0df56525","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":98,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"c661e1b1-cbff-4de2-a6ff-351fedd0d533","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":98,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"828ed85f-6bf4-4df9-9eca-996cf1aa2346","block_type":"box","text":"conditions.","page_number":98,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"cf730921-ba25-4d24-a3c1-56fce938e2d6","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":98,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"379e6b3d-b794-4a67-b12c-d28acf575bd0","block_type":"box","text":"a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":98,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"d16f4779-2aef-4e58-bace-0efbb217cd4a","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":98,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"0654dcb5-42ad-40eb-82f7-009a201b0476","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":98,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"c6c54fa6-4061-4ac0-a25b-f3949f834c0c","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":98,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"882831ff-fc8b-4968-b13a-54a2f03884af","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":98,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"8c1c8e36-ebdd-4e99-852c-4759ede9fc54","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":98,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"8ded18a8-817c-49c0-97ea-65e8012bc6c5","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":98,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"fcf7239b-581e-4ef4-9642-480438815c3b","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":98,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"d8130ade-6cfa-4d7a-89d1-1b166a59d09d","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":98,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"ddd0cc98-45bc-45f9-b491-38fd02adb4de","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":98,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"a50ffa76-4918-4178-a94d-67a286b4a7ad","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":98,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"72085f45-346e-42cd-bd3c-4c4d04621f36","block_type":"box","text":"affected by such events.","page_number":98,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"eb204f1e-5493-42e4-9b4e-67146d986512","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":98,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"349ab584-7ed8-4735-866f-45fb1cf799f2","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":98,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"94da37e1-bfb4-452c-bcad-30787f132a87","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":98,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"e7f2f4d6-8cba-498d-8b9b-93bb0bcbf7cd","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":98,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"2e00da46-cd2f-4c0b-86ee-f84ec650d093","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":98,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"b960dfb7-4371-498d-b018-102e949cb539","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":98,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"a5e21d68-e2ec-4062-9856-ce9397e4affc","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":98,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"666a5231-1d50-44c3-b8c0-2f38fc658092","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":98,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"a75cb2c6-d565-4291-92ac-51860cd62774","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":98,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"20ee3cbd-e38f-41d3-b7d7-0bb659f52b6f","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":98,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"d7b2b1b4-9b91-4401-b3d6-8f0113267cd5","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":98,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"c31e0bde-f43f-4e0d-bdd0-c4b3b0605cdf","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":98,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"e87679fc-58d6-420f-a42c-5cfb44ec60fb","block_type":"box","text":"II-67","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ed5a0406-41b8-4805-ad29-b5ef0141ac57","block_type":"box","text":"NM1026U-5982509-98/232","page_number":98,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e24b249c-a47c-4e60-a74d-029aa1692a0b","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":99,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"c569a51f-2606-41d1-bda1-9620a3ec6c0b","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":99,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"b9d090f8-38c1-495f-b9a8-a76a01414c55","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":99,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"b894fdbe-37f4-49fc-8fdb-fe71c5efb2f6","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":99,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"7c5b779e-d0e2-4fd2-9a8c-353aa8ec8410","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":99,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"45bbb052-ffb2-4712-bf0c-ee6b7edfaf3d","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":99,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"c97fb273-fd88-4d20-8f17-b7a13834ff13","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":99,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"2006b367-3e80-447b-b7db-0dfe0566dca9","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":99,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"d1fb4a81-a829-41b9-99cd-2024698e57fa","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":99,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"255c1dea-aca2-4113-8042-95d5259eff6d","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":99,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"c1e71258-39c7-4f70-be13-68b0221a0eed","block_type":"box","text":"investments.","page_number":99,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"04bfdd70-39a4-4787-8b33-0dc33fa1d0e5","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":99,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"7c24b6b0-5448-47e0-ba6a-07fe0ef4f739","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":99,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"93558aea-3912-4571-a8ac-e33ac0329925","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":99,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"356e6c5e-74b7-4194-b5e9-8df45126422b","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":99,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"a8fcf8d1-362e-41ab-a2e6-fe17c87ae26c","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":99,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"bfa5e8af-58fa-4817-94fe-5368d7ca09e5","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":99,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"098c072d-60ac-40a3-ab90-c1c49e39fe7d","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":99,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"e40e7866-0789-4660-9d62-9d04b2f0fb8e","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":99,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"5429ed75-77e6-4418-a24f-f2c4eeb90417","block_type":"box","text":"Legal and Regulatory Risks.","page_number":99,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"8d06a982-aa22-4f14-a129-578e26ddeb86","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":99,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"f5a64a76-5aee-4f37-a532-92694153111e","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":99,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"a5d47c6c-0b1e-440b-b4f3-0956d9b2705b","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":99,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"54f08fca-9727-4da7-b6d3-8686089483bd","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":99,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"a273c4d0-26e4-454d-808b-925df1108060","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":99,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"5d1ea7d1-e303-454f-a9f5-fb2753ada923","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":99,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"bb7d6647-d181-4a00-bbe0-9c2d82ebcd37","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":99,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"af132dea-0c73-4ccc-bfcd-cedd18fc612e","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":99,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"210af800-bd76-47db-8eb8-410f13318169","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":99,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"9bd483d7-0a39-4245-8e0e-cc3b4535c759","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":99,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"0fa04ecd-c5f5-416e-80b3-2fd3ddf488cf","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":99,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"4a7cca1f-39cd-4a5d-aa85-a640b3c6ea28","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":99,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"25a8b737-6ea3-4bc6-8a33-bd6fc4bb6530","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":99,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"0db66303-f958-4909-bc34-92aaf6ebdad0","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":99,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"7112b52d-8dc4-4e58-9227-0d1e9041a0d1","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":99,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"6ae322e4-91d4-4b78-94f7-8fc580eeeacc","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":99,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"d78bc2c0-6494-4274-8a3c-e8ffad520628","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":99,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"d6bab944-2251-4a16-b9c1-bad1f5b06428","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":99,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"9e79e3bc-290a-4011-af49-98fa1debde2f","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":99,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"e8f25788-4521-4270-8ef7-34b12d7fa0b8","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":99,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"5e6ed624-5d38-4683-8ca8-c67c47224a2d","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":99,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"60199e08-a68c-4cc2-93b0-6e5ed8f45c3f","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":99,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"8174a50c-2d3c-4c2e-bfea-47ce3bdd0bc9","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":99,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"40267220-2936-4046-9620-fcc38aef96ac","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":99,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"85dcfca4-24e4-4570-915b-5140abd83496","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":99,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"7bd300e7-ee2e-4ce8-99e4-929dbe0891a2","block_type":"box","text":"Geographic Risks","page_number":99,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"fa405d29-c0df-4def-a50a-79c72b6561a0","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":99,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"1873772b-916a-494b-8a1b-2a314a3b54ea","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":99,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"c731c436-3622-448b-8d34-cd93f4e36b93","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":99,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"97fb1326-afda-4211-a131-9393beb47443","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":99,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"0880ca14-cc7a-4f3d-a7d6-01784c71140d","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":99,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"51ad4f23-be4f-4521-a502-0cf31d04a0ce","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":99,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"9b1e7e5d-cb0e-4624-b7f5-14bede1a3b6f","block_type":"box","text":"Fund.","page_number":99,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"c38418dc-e16b-4943-9147-344a57fe4404","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":99,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"6cbcc0a2-4cbe-468f-b06e-f328f148d21c","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":99,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"b1ae0da3-b540-4593-8ecf-61cba9e588d7","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":99,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"97d3e3a5-30f5-4798-a50e-6746631e13ee","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":99,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"4502a7e6-dc66-4fcb-9566-c1e77353269f","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":99,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"6b6cb6d6-480d-45ea-b94a-c34e356a28fb","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":99,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"bd9efdd6-75cc-4e44-9363-0bae5e49c1a6","block_type":"box","text":"II-68","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3ba84f1d-24ee-44c3-bc79-1b97dc7b06d4","block_type":"box","text":"NM1026U-5982509-99/232","page_number":99,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"adb6b0db-2bc6-4652-a7cb-768a778a4349","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":100,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"92d7ae2e-4aea-4ff5-9085-5d31fd124305","block_type":"box","text":"imposed by a regulator or by counterpar ties or otherwise may adversely affect a Fund’s per formance and/or net","page_number":100,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"ba490da5-70f1-465f-abd9-fa6313d922d3","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":100,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"e5952653-acab-422d-ba41-522bc24d6ae9","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":100,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"d162b910-c4f7-4038-8937-494d5f167c5e","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":100,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"a4b430e7-8a14-41c2-8aff-b44d9c0ad255","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":100,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"084994e7-6d5a-490a-bde8-592021e87afa","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":100,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"5b2e5ea0-9d39-44e3-b762-55be89858bc3","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":100,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"b7bbe8b6-84c1-4a3d-86a1-caf85ee3c359","block_type":"box","text":"transition away from LIBOR led by regulators and market par ticipants as a result of benchmark reforms, LIBOR was","page_number":100,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"b1c8a3c5-b846-46b9-ae02-120dc7379605","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":100,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"2ce63e02-08bc-4ca2-ac4e-588e78c7c1c3","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":100,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"f8be97a1-3b8a-44a5-98d0-396c3d42a86f","block_type":"box","text":"e.g.","page_number":100,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"e3c19180-657e-4754-9820-b9819410e098","block_type":"box","text":", SOFR for","page_number":100,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"a34367a1-12f9-41d7-94e3-45b17ba7c8ad","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":100,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"0e6b7edc-64ed-4672-aa7b-846ce4443a1f","block_type":"box","text":"associated with the transition may remain that may impact markets or par ticular investments and, as such, the full","page_number":100,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"170a7be5-7624-4188-8044-1aab85141cff","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":100,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"f0205e16-67b7-4d64-8de5-b00d68ddf026","block_type":"box","text":"determined.","page_number":100,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"97a95d16-37f0-4694-9295-5fb7abd7bb7c","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":100,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"ad5d80ab-b687-4a73-ae12-fea5592cf7ef","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":100,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"90ecda22-0259-4caa-8328-b3ad1572f98d","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":100,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"86b01fed-3151-4d69-934d-5a9228447117","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":100,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"0b43fcae-d513-4c3b-b533-59f6c4336cf7","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different shor t-term","page_number":100,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"46733e36-e159-4123-962a-cca1985b3337","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":100,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"228bd0ce-21d8-445c-8469-71ff899cec18","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk.","page_number":100,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"188d4aed-a877-4e8d-9d77-9d14e27010e7","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":100,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"a73e59d6-5f9a-4dc7-beaf-5eda953219b2","block_type":"box","text":"largely insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate,","page_number":100,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"610d00a5-5b31-43c4-b378-a8a1486bbdf7","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain","page_number":100,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"691ba060-6f9a-43ee-bd45-badb58af2c63","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form","page_number":100,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"8c7b683c-6bea-4733-bd63-ce9fcb27f0d5","block_type":"box","text":"in the same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based","page_number":100,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"fcbd847d-8fb9-47da-8ae2-1db3bf58569e","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":100,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"6008a2e0-7ee8-40ba-845a-762a837a8b55","block_type":"box","text":"2018. The future per formance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":100,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"15bdc093-c736-42c8-89f0-40ea730c628c","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":100,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"fa547cff-d8f9-4def-9ccb-6ebd73fdb984","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":100,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"35aff7a2-6f49-4f0b-96fd-ded633417bbd","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":100,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"d9035ca8-05af-4a69-86af-324d933be5bc","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":100,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"9c94f27e-a350-42c3-9ae6-2135d12ad41e","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":100,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"3cdb4954-dd91-4f62-88a0-04709179047f","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":100,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"70c2c94b-29c4-476d-91ff-9a31f2648964","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":100,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"b9859225-ef4b-45bd-89b0-250bafa3696e","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":100,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"517cedbe-16b0-45e7-8326-b24ac1ef81ee","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":100,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"361b16ce-cbb1-45af-99b8-32f0a8d93817","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":100,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"f693cceb-6ba8-4602-aeb8-8943e5b43d6e","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":100,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"f14b4e2e-d97e-4b9f-84c9-01b27a892007","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":100,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"b38ae0d2-545f-4c85-93b1-d58d10479609","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":100,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"76273fca-e03d-40ab-86f5-daaa0f96cb65","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":100,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"6b92a851-9b9c-442e-a733-8797801294c5","block_type":"box","text":"consequences which cannot be predicted.","page_number":100,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"c7c68d56-7136-43cf-b065-c1962737f192","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":100,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"5098eda0-9d45-4216-a542-bf262cf825ed","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":100,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"7337ae7c-42d2-474b-9cb5-47904c7ca9ae","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":100,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"47d1ce06-6742-4db9-9dcb-5ece944234aa","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":100,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"1dea0e0f-cd27-4477-9054-1bc71680f546","block_type":"box","text":"term of the agreement.","page_number":100,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"fae87401-0e5a-4c91-8207-df35f8392149","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":100,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"cfd9077a-46da-411c-b107-cbc22bf85c22","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":100,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"3c55e2a6-3415-49f3-94f5-0de3dcb724fd","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":100,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"be27dc89-454e-4af5-ba13-c6716901ec12","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":100,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"ba5eab89-36ad-4b80-830e-5ddcc1988e3b","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":100,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"19a17306-6bcd-4055-a316-2d9fe053c723","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":100,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"c1a05cb0-4089-42ae-a020-01655ef152ca","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":100,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"7ed50433-68a3-4a33-b1ce-1e6ab9f01946","block_type":"box","text":"II-69","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9bef1875-bd7d-419d-a281-7172346850b5","block_type":"box","text":"NM1026U-5982509-100/232","page_number":100,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4e1e03f9-f0a7-45c9-a990-13ca4652bcde","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":101,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"e3d27d1c-6188-4716-9f70-7cd3699e0321","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":101,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"169e1200-c405-4eae-86b9-15937876f867","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":101,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"27784fd7-b46e-47d5-a2f1-4478437c43a7","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":101,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"ca328826-b06c-4e53-8cfc-ed25eba57513","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":101,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"33a1068d-66bd-40db-9002-02c2a6723321","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":101,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"1f3a4c29-3965-440d-b1cb-55e897a697cf","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":101,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"ca6b59be-ad52-4c0f-a742-9d7310600b10","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":101,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"6a54da7d-5751-44f8-8806-c559a60e96d1","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":101,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"fdcda417-6f3a-418b-bf9e-bb6e2fc092a8","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":101,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"c51b6161-989c-4d42-878a-43413aee6d8b","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":101,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"cddf50eb-a3dd-497e-9b0f-fdaec36311f0","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":101,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"7ddc40a2-7cfc-4a9c-b2de-dc852688e552","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":101,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"74e353bd-a06a-4817-b8e4-03402087d8d2","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":101,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"03608353-6ade-4d42-b74b-64aa8a9d51ba","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":101,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"b4bc264f-7f52-4e81-8605-da53022651e9","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":101,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"275c78e2-e345-4950-bbfc-a1e5558acad9","block_type":"box","text":"or by another authorized securities depository.","page_number":101,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"1a5d1138-9c8e-49ea-b37f-5e84bc8fa6f7","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":101,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"5052ec7b-2a02-48b9-873c-0626c25b5b01","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":101,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"57c194f6-f48e-4a30-aa16-3e321f4cddca","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":101,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"a91f4960-a6cb-46e7-8e57-b83e7629db91","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":101,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"ab50f8b9-6980-40f6-990d-f47278b5eb58","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":101,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"181199fb-9c9c-494d-a180-03c2c2f9227b","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":101,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"76e1feba-9f92-4ffc-9d93-650b2c213a12","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":101,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"776ccb7b-2c6e-4b88-8681-fa971bca5bf7","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":101,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"1487b775-cfd0-41ff-a57c-1bb36a35417c","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":101,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"f827353a-27d6-4a81-bcc2-a47c8e9b44b7","block_type":"box","text":"the repurchase price.","page_number":101,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"d931963e-e38d-479e-9516-8f48d2503f44","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":101,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"80541f58-3f3f-4a8f-8945-1911931b3dec","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":101,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"18f673ac-6ce9-40f9-b93d-c5d7f564c4e7","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":101,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"6f7bac46-6ce6-4e09-871f-4a9c18a41a33","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":101,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"b11f5a37-68b6-4299-aa11-b92508ca9914","block_type":"box","text":"strategies without the repurchase obligation.","page_number":101,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"a1885707-689f-485e-9b50-dede6f3135aa","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":101,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"0285bd09-6c5a-4bb2-a09c-c3792672b4a5","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":101,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"a6e58166-d5df-43a9-964e-cfd53726bc78","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":101,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"db9d1312-76e5-4be1-8125-ad87969b1eda","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":101,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"5dda9890-fff5-4da5-bd57-5802e68ede53","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":101,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"37bbb91f-4f36-483e-ab23-6e71d880bed1","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":101,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"119805b1-1993-47e2-8408-1efdbcab9557","block_type":"box","text":"i.e.","page_number":101,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"37915c31-4c0c-429b-b088-7a92fc48934d","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":101,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"0a4547a2-17b9-445a-aaa0-901254b16f61","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":101,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"5a94212d-419a-4226-9635-4e66d594b677","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":101,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"01dd092d-ffa4-4473-9fff-79e8c6aca8c6","block_type":"box","text":"and income involved in the transaction.","page_number":101,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"5593dd1c-95ee-4a80-b8d9-02f4c21419b3","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":101,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"cea02401-4989-429a-8f98-6a98494d4355","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":101,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"a01ca46e-1ccf-4284-a135-994e984e8c5b","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":101,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"2299c377-047e-4701-8087-d66ef74603d9","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":101,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"ff1a1092-ddc8-4b4c-ab0b-f47e306ab216","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":101,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"229012a5-bfaa-49d0-bbfc-9744e6aa1541","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":778,"width":783,"height":11}},{"id":"081a2565-b473-4a3c-87df-23960f5b522f","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":101,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"9cdde9e6-39c3-44c7-8f92-b6254d540031","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":101,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"472465ae-0a0f-40a7-9366-852117dcf70e","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":101,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"42e10e27-2101-4902-a2b9-d7e1fb27017e","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":101,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"848fd6b3-f53e-4924-8819-78fceabac1a1","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":101,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"41e2dbd4-a63f-4b52-a4d3-432e9e221b7e","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":101,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"9ae20aa2-32ca-426f-a680-1b7a75a1eea7","block_type":"box","text":"Restricted Securities.","page_number":101,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"85d9846a-d408-4c65-a079-1e225ba65f25","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":101,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"069b44a1-c659-4625-8e9c-7456ce830bdc","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":101,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"1c4be63e-22ab-4130-b7e5-5da364ad3aef","block_type":"box","text":"II-70","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b95216be-d1f2-42ac-ab38-ee6279f4f9ad","block_type":"box","text":"NM1026U-5982509-101/232","page_number":101,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b43fb2b2-4519-4444-bf88-f1ba528cf155","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":102,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"25f0f7bc-cf01-411a-a46e-d053675df0a7","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":102,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"3ca7c59d-8c17-430a-b250-7a4ff8cef76c","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":102,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"41e755dd-1bd8-449e-ae75-cfa13bfeee5e","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":102,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"d1ac0147-84c5-4bc7-816f-3900fddfaf8a","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":102,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"29062c4b-6e2e-4cb6-8894-cb446fb9a60c","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":102,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"f6bd95c3-f567-4d19-b7f1-40200259f700","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":102,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"d5fcadae-0ead-4888-8774-2dceab0fd70b","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":102,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"63800185-7fc7-4368-95d1-47edaf5fc955","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":102,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"d715e5a4-235b-4a04-8521-6a913b25e79b","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":102,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"ea52941f-702b-45ba-8c5c-aef0a04c5a9e","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":102,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"676b1d30-6cf6-422b-ad61-a234c8678fb1","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":102,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"f3287ce6-8be5-48bb-993d-92793293af99","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":102,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"60bec52a-1050-4804-9ca5-b4c41247b1b3","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":102,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"05fbb311-75dd-4500-a72a-40f7b7e66f3e","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":102,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"f4cf6759-2c04-48b3-b778-37e21490a734","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":102,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"98a55465-c9c2-42e8-a95c-f287f7249377","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":102,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"91821c15-27ae-43b1-b70e-e0c2f54e31fa","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":102,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"c16c25a2-c61c-4309-afd0-22bd1fd9a707","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":102,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"f05992e1-83f2-4311-9d2e-bed4e23af9b0","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":102,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"a3abdafb-893e-4a26-a00c-3b1c44caf3c3","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":102,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"b52820ca-0d62-4205-97cd-1ec0c01bd1df","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":102,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"68499dd5-b54b-47c1-a3ce-fe8a5158bb26","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":102,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"6f55ba88-ff40-41b5-9753-5ae2a24fadad","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":102,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"2e5ef1c0-492c-4967-88d6-e1b099dd4915","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":102,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"0874db18-6772-44f1-b30f-badcc54609d0","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":102,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"bbc6bad0-146d-4c13-9b99-67e13302a809","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":102,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"15654ffc-0f54-4149-b3ce-b7e0b8d47680","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":102,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"a68328d0-472f-4624-a026-4df0eb10a3ce","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":102,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"08ff24a8-b38a-427c-86ea-a07a0f56873d","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":102,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"c47e29a2-d560-4ea4-9ce1-d401e8d148cd","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":102,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"e86f64c5-af3a-4223-8380-5836b41f9d56","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":102,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"8d142891-916d-4f6c-844e-4a88f86db851","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":102,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"f70208e7-5925-4dd2-be07-c0df192949a9","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":102,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"4f312105-7eeb-4ecf-8612-d1670b12e709","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":102,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"1968cebc-1d95-4815-ba20-12fd96ad2295","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":102,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"61f267df-9254-4a8b-aed6-0d56bdb46277","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":102,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"fd0d193d-0d90-4463-9d3a-19004e7b858e","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":102,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"a5a3757a-3d35-4d6e-8f71-924ba87a7c64","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":102,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"bb695ec4-f5ce-49bf-9075-7d7eb872d85a","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":102,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"5384c6d8-5755-47ad-a881-d6d7e0a2a4ae","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":102,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"691bd25d-218a-4520-8cdc-5a892a0a5ef1","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":102,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"81208917-0941-4a24-8d73-f1ed929d7215","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":102,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"46e50962-143f-4703-abc9-2612fe91d9cf","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":102,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"8c1105bf-0760-4cf0-a259-d84bcd5f2efa","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":102,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"7102215a-ff30-41da-8b3f-c0408612b80b","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":102,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"c43df7b9-f30f-48d9-a4c3-03d3440d4d1b","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":102,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"dcc761b9-25c3-4365-839b-b1c4db8e0a11","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":102,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"83cca707-589f-4756-b564-29a8f77ad116","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":102,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"9d8103c9-6dc3-4608-9324-2c830873ba59","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":102,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"ea8addb9-9950-4ddd-9915-ba1b1995ccd4","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":102,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"731cf2ba-9b4b-4ab7-bce7-8baab3a81223","block_type":"box","text":"especially as that Fund grows in size.","page_number":102,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"4aaea1c2-1b87-4f44-8a84-aab738cccb94","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":102,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"9d123962-4f6b-4644-aac3-3c2df899b444","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":102,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"6806ec9f-d9ca-4bea-80a8-691b524bf12e","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":102,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"559bc10d-d59d-493a-96e9-da631ac39bd6","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":102,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"76c618a2-ba4b-49c1-bcf8-7698f27592ae","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":102,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"f6ba981c-0b6d-44d1-a687-86052a461311","block_type":"box","text":"II-71","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d9b734d5-36de-443c-a96c-91f7cebd1f0e","block_type":"box","text":"NM1026U-5982509-102/232","page_number":102,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7a04fb3b-8ea6-40b5-b07f-70f22e2e67a6","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":103,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"b2ff6a43-d544-45d1-842f-413ad82889d7","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":103,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"6cc85c71-e76a-498e-88df-682c52e8997a","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":103,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"6a1de339-50ad-478c-80d5-2a1762112bca","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":103,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"a7982b53-f5a9-44b8-a547-ba4705c869b5","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":103,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"75e66ce0-4dcc-4704-9de1-4bfffb77f404","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":103,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"90acf949-ca8d-4ad8-a655-333095a4f569","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":103,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"d2467006-5118-4a55-b032-d60ece77ff25","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":103,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"f4e99d5e-bc23-4190-a877-b7d72d1907be","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":103,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"88b94a73-4917-499e-9c78-c4866a040343","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":103,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"dcc62769-9513-409e-860d-c2913fbcf062","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":103,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"f6d59214-5447-41d8-a3a6-2b3011a11871","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":103,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"980771f3-6b30-4068-8ec3-a69b2527063b","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":103,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"998e960d-5ee0-4cd6-a69a-0e2280099172","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":103,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"e4d90f72-8e46-4b86-9f26-5ef430234600","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":103,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"3a8a1246-49a5-4b03-8c4e-38d1020b9f53","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":103,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"4c6ef0bb-a987-4739-a02d-ad3f8d875f2f","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":103,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"95e04491-bb57-440b-83c5-6fd3b190947f","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":103,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"de26e095-25a1-44bc-81ae-da26ebe5b284","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":103,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"e6841bc7-440d-4261-af43-1f8d13ca299a","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":103,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"99126a33-b250-4b84-8bea-802a858275c1","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":103,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"6addd7b0-5bbe-4557-8ab1-cbe868a5293c","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":103,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"c4a463f4-bba3-4ede-b5a4-23f7c0fa8889","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":103,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"a6925dd5-8069-45c0-b020-4ebb1f26af6d","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":103,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"a2fad961-b475-43ee-83d6-ad21d09eac56","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":103,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"a278a827-33dc-47a8-8ae9-c810c7cc4f73","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":103,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"fbb1b630-c1e4-4c62-a026-c05ffe8a4af9","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":103,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"dab86bf7-4dad-458c-bdee-952ca1da5be6","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":103,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"d86045ed-1010-4ba7-8da3-9e9a9a690d65","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":103,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"55034b15-5074-4902-8979-559c9396a4b6","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":103,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"0de7a506-3438-45d5-bd06-15791c7dd6dd","block_type":"box","text":"similar financing transactions (","page_number":103,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"699167ca-6df6-4c64-935e-d157a9c25438","block_type":"box","text":"e.g.","page_number":103,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"328daa73-383a-4a5a-bdfa-c2b1d65852a5","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":103,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"0bf4c234-4b60-4f46-bc25-53a229700298","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":103,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"eb2d845f-169b-4370-af0e-373b86e527f7","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":103,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"ae6ec251-81ff-4674-8849-aafc6b0e3c65","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":103,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"0dfee88b-a82f-4298-8965-9e58f8925b25","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":103,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"3c17d287-70bb-43b1-bc16-754a6177138a","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":103,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"ee85db02-5037-4a1f-8177-b597e9da7c9f","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":103,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"9d0a6e22-9bc4-446c-93a6-7b70764a9782","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":103,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"16c182b0-51fa-4725-8f49-fed95228448e","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":103,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"036161ff-a22c-4586-b0bf-997d8f42a753","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":103,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"83ec7530-e2dc-45ee-8847-256a313d5087","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":103,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"0a6ee37b-41bd-402e-88d9-cdf50843a1fb","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":103,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"00bf93b5-14dc-47de-bf73-e6e66edb92cb","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":103,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"1e0f7f92-ea73-43de-92b6-9f59cdbc962c","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":103,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"f186f5ea-f079-4f1c-8316-840721fcb1ce","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":103,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"3dfbf00f-e7ec-491e-83b1-2a136fe5724d","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":103,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"d6dde9e4-200d-4fbc-8a3f-ed2d26ea80cf","block_type":"box","text":"amounts to be received under such agreements.","page_number":103,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"2859a09a-b128-409b-ae12-268b3ff45d86","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":103,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"8c9697b4-b4c6-45ac-92f9-0dc7d3eefecb","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":103,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"27f0f980-7332-4ffb-89a0-a06267e65cd4","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":103,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"bbe13057-e0f6-457c-be40-57683140e4f6","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":103,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"e6f1834b-715a-4731-b908-0ce8ceddf1ad","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":103,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"fe162a9d-4150-4ef4-977b-62cd810c8158","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":103,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"882ad1bf-11d7-41fb-bcc8-3ff478f466ea","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":103,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"486e78fd-7aa9-4016-9b4f-374e66b7aaaa","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":103,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"000a1c25-917b-49c7-94a6-5142f936e29f","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":103,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"cbde00ea-edde-4fc2-b4a0-8155d7038f31","block_type":"box","text":"II-72","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"86fb0502-4bb2-4cc8-9721-8800ebeafc72","block_type":"box","text":"NM1026U-5982509-103/232","page_number":103,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a857b92a-d68a-4de2-bbbc-d5f110f2e6f3","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":104,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"3a8dc30a-83d8-4b5d-b728-08187bde639e","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":104,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"82286dca-7520-4ec0-bb17-d029d4c0f13c","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":104,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"3eeef8e5-e056-439d-84bc-74d91b793bce","block_type":"box","text":"Rule 144A Securities.","page_number":104,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"0e1e056e-9e93-45a8-a5ae-c473ce627279","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":104,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"ae9b89bd-6323-4280-b8cd-88c5e4190233","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":104,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"80ae38b7-9176-4565-80d4-7dbacfa21522","block_type":"box","text":"Securities Lending.","page_number":104,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"e08f494c-108b-4933-885e-d9d74d8d859a","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":104,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"1cce6763-47fe-495b-a563-f444123e865d","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":104,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"5bb665ee-c70e-494c-a9dd-da7d6b2df898","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":104,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"7e19b156-9320-4343-8ee7-9cd0a60b3586","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":104,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"a5aa1a99-676f-4de7-a86b-18e476b7257c","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":104,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"1810704a-a276-47e9-bacd-3be17d35e443","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":104,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"508b5279-c500-47b5-943d-ec0d0048a121","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":104,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"af400655-c593-4cb1-93be-19f51a8712fb","block_type":"box","text":"the securities were not on loan.","page_number":104,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"b0726073-1fe3-41f0-aafb-14172484220f","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":104,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"aec441f7-c02b-4e81-a089-5e9a2f2e0679","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":104,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"152bfbad-cfbd-4dac-9d31-b959de519e6a","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":104,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"bee23415-8648-4ef9-ba16-7a826d01020e","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":104,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"24b55cb1-01ba-41af-bf92-172c2ba7d8eb","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":104,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"84e94f09-b5ca-4951-8d00-f623f4666408","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":104,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"04aed519-a1b7-4777-9633-8aebca28a413","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":104,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"1da7aa1f-a17e-444a-8f7a-712456f4e2d2","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":104,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"4afb4a7c-dbca-4b5f-ba2a-c37c6ebc33e3","block_type":"box","text":"i.e.","page_number":104,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"72dbc44a-4b2e-4c6d-97b4-2afbc62bd047","block_type":"box","text":", the risk of losses resulting","page_number":104,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"a2b5d4d5-edbd-44e7-b89d-c795f1094d94","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":104,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"0becf2fa-0ce7-464e-9f54-e7cc020bc10a","block_type":"box","text":"i.e.","page_number":104,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"29442358-8c8b-4010-84b2-0c69651776c3","block_type":"box","text":", the risk of a mismatch between the return","page_number":104,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"e6abb2f4-9f8d-484b-991c-c349703d040f","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":104,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"221486fd-4e96-43f4-a0d6-9bacf0f4623f","block_type":"box","text":"i.e.","page_number":104,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"1e8ae6b5-574e-4ad8-85a3-a383df227cf5","block_type":"box","text":",","page_number":104,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"3dc485bd-878f-49a1-beb4-680ebb99734a","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":104,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"fb8249e6-575e-4adc-babe-5c9f70772ad1","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":104,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"43ff78fc-955c-45d8-9542-91b80c3c80be","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":104,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"4650ca04-4f2f-404b-a083-d77b694dcb5f","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":104,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"c6beb21a-1891-45b4-be36-73b8885f9fee","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":104,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"34d8436f-f758-486a-b186-bcc0abad31f5","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":104,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"82fdd968-5f37-471c-8c79-995106875d8c","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":104,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"4298fefd-fb86-4cb6-9ec2-1053f5f5d0cd","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":104,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"fb518a9d-bbb3-4fe7-8487-a3eec900b56c","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":104,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"1dee6df8-f070-457b-8193-7c24c8d97007","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":104,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"24afffc7-0f05-4dde-844b-dbef2aa8a50e","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":104,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"f9c911ba-ff38-4536-aa12-68ee5839c212","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":104,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"331e82b2-9ec2-4237-81f1-7c540e603b61","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":104,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"5c9f675b-868d-4e20-ac00-a9d336e405fa","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":104,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"998963a1-373d-47b7-a05b-cd6510f35f94","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":104,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"013bc61a-010e-4f41-a99b-a0a7a9e7454b","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":104,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"71c28668-6572-45ce-b257-fce36d9d9340","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":104,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"7cdd0b55-f08b-4e09-92f9-26096882f86b","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":104,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"3bbb2006-380c-406d-bfd1-a9be7bde4a9d","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":104,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"82d7bee1-c59e-4157-8082-6e9c9d951585","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":104,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"0dbffa2e-0765-4612-be41-9df06093c6a0","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":104,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"23834c6b-c2fe-4904-9daa-57c6f879b572","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":104,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"cd29f538-a98f-4eb1-ba47-f50b1826a777","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":104,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"d5a9f19d-ad1c-43e2-a0d5-c7011f265eb9","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":104,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"3bf82365-ee89-4bdc-8e0d-62f18d5744df","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":104,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"151bbb5a-1e2e-4256-a386-6db0d03f4ce0","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":104,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"8148bf87-805d-4d79-a06c-c09a043b87c0","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":104,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"a80b27c1-cbd0-4d36-8afe-c15991fda4df","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":104,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"95a1c17e-1525-48dd-92ff-3186a769f936","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":104,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"c94ee4cb-4b26-4925-9059-df189bf6bcdb","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":104,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"d456a292-a36d-435c-8451-4879c147f5b1","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":104,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"c681806a-7ca1-4ad0-aeba-455b39419b93","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":104,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"89550b7f-6d5f-4b9f-bc3b-a3f5b0567509","block_type":"box","text":"II-73","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"70e2807c-860a-4750-a28c-82c17abdd0f4","block_type":"box","text":"NM1026U-5982509-104/232","page_number":104,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0c01d861-e55e-4383-a05a-76de84bbe630","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":105,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"bee75d3c-de7c-4111-ae27-9af9478ce3b0","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":105,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"d853e901-cd65-4a67-be68-ff771c77d2ce","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Cer tain Funds expect to provide","page_number":105,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"444e3197-7d72-4413-81db-dabbde418c0a","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":105,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"dce4f95f-ce0c-4478-abde-8815d0b3e32e","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":105,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"6230ff34-15db-4558-a305-8c94c677d106","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":105,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"da392738-7340-4649-b80e-9260806c6815","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":105,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"721cd4a7-b251-4100-93a5-d7f097867206","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":105,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"a2707108-c44a-4be0-86f8-9e9fd9b8f5b5","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":105,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"2f043e0d-1e42-4666-ae11-99546d57a1dc","block_type":"box","text":"the current expected compliance date.","page_number":105,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"7f7e4414-3cd4-4854-9665-7a56be5810f7","block_type":"box","text":"Short Sales.","page_number":105,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"8a31e060-7434-472c-ad5d-8d1c977d4133","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":105,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"290785a3-a67c-4437-aaab-40fd928f15c5","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":105,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"82991352-4679-483d-b093-bd3bb449e6ec","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":105,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"c549e014-bcc3-4840-a5fd-badc38f50391","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":105,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"21e159ae-7beb-4acb-9c49-809b2b7a3f35","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":105,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"4bbdf389-c1da-436e-9a39-a632f8d3d466","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":105,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"f89f514f-ca31-413a-a3b9-88ba6d62b4ff","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":105,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"1d1fe5b0-5091-4dcc-93df-63a39c16b167","block_type":"box","text":"securities to the lender of the securities.","page_number":105,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"7bc6e548-8f15-4f90-b7f7-9b3879e0b8f8","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":105,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"2f7891d7-7256-4356-919b-1938a2dcffcb","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":105,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"caaf9088-2ecc-452d-afea-a9d38b1b061c","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":105,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"c22785df-ef6c-4fc7-afe1-5627518654e8","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":105,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"29e3e1f4-687d-434e-9c3f-e7030e289cd3","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":105,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"8a3f34a9-4278-48a1-9eed-3e7704a6420a","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":105,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"c1610573-6010-495e-aa8a-d844a5e1a681","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":105,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"08b0addf-f190-46b6-bb9e-bd95c3cfd01f","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":105,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"a89e09a8-3855-42c5-b507-156be838981f","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":105,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"25545227-2e9a-4d35-97d7-ea34c18a8864","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":105,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"0002d43c-a789-4659-9165-a0a8d635b8f7","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":105,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"40d7732f-4af0-48c5-a6a4-34c1927dcb1a","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":105,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"7b5fe992-45c9-4728-8d4e-cbadddda9d48","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":105,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"122805b7-c0f4-45e5-952f-98788c323774","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":105,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"a8257f52-19d4-4406-ba01-52f459919139","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":105,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"fcf61046-2ec6-42c9-953c-b15825ac1b83","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":105,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"8c5c84bb-88a5-461b-86dc-183526aca3eb","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":105,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"c7edf3a2-463f-47f8-9cbd-9197e316924a","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":105,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"91b5fed3-1806-47b0-9cfa-496f053a79ab","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":105,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"4bd17f55-eb44-4340-b614-3301f5a3d265","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":105,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"6e6da5fd-3c74-4140-a6da-b00f176a1886","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":105,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"f9d27561-0af8-4c08-8019-e79299506cdc","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":105,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"c143bd13-4e4c-4dea-a55a-2de7ba85e1ec","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":105,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"21929d6c-ccfe-4801-af01-21828b6fce29","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":105,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"2b1522e2-3a26-471c-89b0-5f17d945a983","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":105,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"8e020b2a-4afa-434d-b445-c76c49d6436e","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":105,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"bd3a4790-ff2b-4c7b-a161-2e4f1c5f569d","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":105,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"10f16fbe-e0bf-40be-8642-a58976f3256c","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":105,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"ee83ac68-4d59-4dfe-8f73-2532bbfab663","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":105,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"05231552-89ec-4650-a033-af5235775a3d","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":105,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"e7b63a29-e8f0-4373-ac49-7dc9013da0a4","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":105,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"1e3835ed-e59d-4124-8419-36d2160416c3","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":105,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"25c93082-062b-4f44-95f2-54ed56f924c1","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":105,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"2b8dcb43-0e9d-4753-9006-385234560063","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":105,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"a23c6506-e056-489b-9905-831b36daa212","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":105,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"4b3e1030-09ea-41dc-ae13-cece020ddc8d","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":105,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"227532ba-9a72-4193-aa85-ced28c84dc36","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":105,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"f421056c-d66f-476b-ba6b-31506625564f","block_type":"box","text":"II-74","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0c4b1c68-0d6a-4ff2-adc2-83911140b228","block_type":"box","text":"NM1026U-5982509-105/232","page_number":105,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c4aa86b2-e7a7-43f9-85f7-aa4da4b85cb4","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition oppor tunity.","page_number":106,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"202d9924-a809-46e6-9e7e-bbb204383799","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":106,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"3e03a196-1dba-4807-b237-5827b05afa8c","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":106,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"9f42acf1-de22-4235-8ac5-b1aa50eb77d4","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":106,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"f1164894-baff-40ce-bf3f-54f7023cf79a","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":106,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"01058283-7b5a-4a18-8ec0-b146cea7a1dc","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":106,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"2c556a06-edb4-41d2-8122-af3e75394112","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":106,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"4d04b33e-5a3b-40aa-bbda-ceb98882f239","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":106,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"e4062bdc-15b3-49b5-9a3d-53449de2b218","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":106,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"11e66054-c184-4f75-b8d5-bfb449712185","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":106,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"b5860b39-69a7-4ef2-92c3-667f1e667a4c","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":106,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"38c51dad-30cc-4b6a-89a5-af030d76ff79","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":106,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"01a3949e-6e98-4ac4-b9c8-d85f2c12ef55","block_type":"box","text":"Standby Commitment Agreements.","page_number":106,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"c316411f-01df-4f77-ac99-dd244c6f7f58","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":106,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"50a40019-8922-4b8d-9e91-ee94159c8fc9","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":106,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"88d1ee7a-7bd4-4db4-baaa-e8fb148ea142","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":106,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"08476ada-3216-42ed-b7c2-b6568867abac","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":106,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"a70a154e-12ed-4ea4-b52a-026f3f91dcef","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":106,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"9860167c-249d-478a-8233-f17c0104a9fe","block_type":"box","text":"advantageous to the Fund.","page_number":106,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"39097336-6604-4512-af56-dc5eea2f3c90","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":106,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"a44d4b08-5cd7-4fe4-a538-047c90f8d855","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":106,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"9f27342c-fdf7-4c22-8b2a-01e783c015c2","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":106,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"fab7f289-e731-472c-b1da-9c88cdb4c999","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":106,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"cf2a4b5e-9fe9-4c87-b53a-497fd02b7158","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":106,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"362fb3f1-6ac9-4014-b94b-a12740552341","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":106,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"e465c234-e58f-4116-a73b-c346beb49c17","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":106,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"1f948ef7-f0a2-428c-9cbe-a8c58850e39a","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":106,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"6e930ee7-f7f3-46c5-9533-60de63b0bf71","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":106,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"2697104c-2bc5-4830-8273-4e8ed02fc1c1","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":106,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"26eb5c0f-d6f7-441e-819a-b80d90c9d271","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":106,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"d380d4fc-ca09-407a-8bb5-6f093662404f","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":106,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"8db47eae-f27f-4195-8345-5e35e30c6cb2","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":106,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"e5122b8f-89e7-408b-b684-ad3707ad5ef2","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":106,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"d032d971-a43c-453d-bfa4-caf165742614","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":106,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"0b7bc74b-7e93-43af-8ffd-d20089323df4","block_type":"box","text":"Stripped Securities.","page_number":106,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"143753da-787a-4d85-a467-b56b02b470b8","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":106,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"5c7b2633-80ff-4bbe-951d-d1df18ed79a9","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":106,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"ec5d4716-efb9-4d7c-a63b-d2c89ee76750","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":106,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"e1fdcbd3-092a-4bae-9a88-4152dd0dc535","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":106,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"b136e063-997f-4bb1-80be-0b3c8d7ce62a","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":106,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"cc9d4ef1-6e4b-4f7d-bc2f-23b99e6366d6","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":106,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"25a392d0-3e11-4ef4-9fc2-11603e7afbf7","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":106,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"c45e8619-d97a-4b8f-ba8f-0d8de68ff275","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":106,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"eb4cfe5c-cda3-4834-afe3-6e657ec7d5fd","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":106,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"82855588-9eb7-4270-9bcd-fc08237a4dae","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":106,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"3b26de96-3923-4a2a-a21a-b51306b978b7","block_type":"box","text":"Structured Notes.","page_number":106,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"ba4b11fc-72bf-4c7c-97f5-af705811eddb","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":106,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"dfe6d4be-4548-4587-ae47-1387d30dcfc5","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":106,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"9735feb9-ec82-4491-b55c-39cbdc07794c","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":106,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"3f7f6993-0f84-456c-9565-f93259082d95","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":106,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"d069ac3b-88d6-4c56-a4c3-559eabb5d637","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":106,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"b131c679-6b38-4079-b234-21d367670c94","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":106,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"20e3a349-1d7a-493c-9bfd-e9bda1e93baa","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":106,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"6b9d48dc-b023-4791-bb5f-6318a952efae","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":106,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"046353d9-b2f9-451c-86e8-a194956e6e2b","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":106,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"06b42556-553b-401b-a39a-4fdd738622b3","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":106,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"f5bc694d-1cd0-4978-b127-416a7d99d4f5","block_type":"box","text":"II-75","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ca546f7d-4824-40fe-9a51-c8d23e5c088b","block_type":"box","text":"NM1026U-5982509-106/232","page_number":106,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f2f5e2da-db35-4b56-a09f-ac5d13806701","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":107,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"e7b83c78-4e98-4319-beb1-cfa59bc0236e","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":107,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"43b81c5c-828e-4d6b-8303-5d9ab75796e8","block_type":"box","text":"the risk of loss.","page_number":107,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"4042b2f3-8fdb-4198-9ed8-b6b6def552b7","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":107,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"6d18b528-8c40-4586-8855-7f3dd1209b68","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":107,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"91d6d5c1-e2ff-4236-88bb-939260cd7a06","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":107,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"488508d5-bc4e-4c7f-a89f-3e15375e7005","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":107,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"3ee837ff-200a-405c-941a-a9dd63667614","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":107,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"61793666-526e-4360-bfe6-dcf99aba6874","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":107,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"a123f4b8-36fa-46e0-899a-bd2b699a171f","block_type":"box","text":"Taxability Risk.","page_number":107,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"75300207-1f99-454f-be7e-d705ec442b1f","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":107,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"4a52df87-4586-499f-9f3b-277afc5726c2","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":107,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"65e906af-4ab3-431b-99c2-d893c4ecdc83","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":107,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"c9535673-9d2e-4268-a248-0a591cd1243b","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":107,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"13e232bd-ae0d-41e3-bef8-b6b53b6de728","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":107,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"5fab7407-a44b-4bba-806a-56c00c6f8fea","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":107,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"8dfbd1aa-1159-4e03-8320-375c558de0db","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":107,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"fbef66a6-de46-4e4b-91b3-5afc182e9086","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":107,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"c37cdbb7-3a4a-4300-8fd3-fd5e7d35e6c9","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":107,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"0c794fc1-c4c8-4a1e-bfed-250c2fde44d3","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":107,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"88cb6814-6e5f-40be-917a-9cc3ce1aac53","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":107,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"6f7014e9-2a43-4abe-a31c-96d300f9c94c","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":107,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"2a00498e-4189-4fdc-b071-32f1e888f587","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":107,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"751ea949-42d3-4477-a544-1eb972692f77","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":107,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"cd7438f8-2de6-4f85-9718-95237604d4cb","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":107,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"3b85787e-c208-4cdf-aeff-1f66d9548c35","block_type":"box","text":"the value of an investment in the Fund.","page_number":107,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"92f7ae4e-45de-4641-9964-f294c3844789","block_type":"box","text":"Temporary Defensive Measures.","page_number":107,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"b96bf27b-fad8-4511-a802-006f1e92ee29","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":107,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"31fce77c-9e83-443a-80c0-3f464d4d5229","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":107,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"bd3cb949-5346-49fb-81ad-9025f0056c36","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":107,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"c3bf338f-3009-49b9-9ec1-3def313aa195","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":107,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"e08374c9-b0d8-4b22-8494-f62a716fd710","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":107,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"b3b62874-ef27-4486-ba24-85233c416615","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":107,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"c7506d18-49e6-42bb-b1e8-aa4974fab37d","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":107,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"cf44a26b-a111-4cc0-8386-326e7ede7a19","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":107,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"fbca1060-536e-42c5-b1ad-34e21520b7af","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":107,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"9f73ae3c-0c26-4e99-a7cc-e366f5f06143","block_type":"box","text":"its investment objective.","page_number":107,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"701a82a9-4203-4ebb-aef8-34da32b0d2d7","block_type":"box","text":"U.S. Government Obligations.","page_number":107,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"43458ced-72c2-4c2b-a84e-ecd37e74a84d","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":107,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"dd21b887-6905-46c0-b5f5-9fd239431ca4","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":107,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"2ab036ab-318c-4c23-b3f6-d1aacacdceef","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":107,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"e0fdb3cd-beb6-4575-83ff-32c9c6f65cb8","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":107,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"31eb61b2-e64f-451d-b4a9-2db3b0a02fc3","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":107,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"fb0d881b-e3c8-4c09-80a7-6e88bc4a9a9f","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":107,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"4fdd2dee-eb13-4b5e-9130-895b1db1f6c6","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":107,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"2e69b59a-1dfe-4a83-b8f5-26dd551a6e6a","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":107,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"6dc613b8-77a7-4ad6-abad-9797e44f6994","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":107,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"70d11c5b-e25d-4336-a598-ad5803da3537","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":107,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"bb2478fb-9db2-4f80-8bb5-bc52beb40da4","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":107,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"62ecd0ce-76f6-465f-959a-7e5a92524836","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":107,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"0e78990e-3ec5-4919-ab53-2d9ca7079f1d","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":107,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"2588ec28-b366-4664-a3f2-1adf9f729924","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":107,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"a1a24d42-9d5c-438a-8fc0-66c483c0b8b5","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":107,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"36aaaf41-768b-494f-9766-117e3b0262c0","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":107,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"86d866e0-e5fb-469d-9fc6-7f5c3a59e487","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":107,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"8a81bb8a-880f-44f5-81e3-4a2133f5505e","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":107,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"be079599-8dec-4cd8-8820-6543b4773fc9","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":107,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"73bd5ca1-9f5b-4dc8-8a39-bb7741588df0","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":107,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"b1a9db81-d9b6-42ba-b6f6-6b93084f7d31","block_type":"box","text":"II-76","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5d0a415d-9be4-4b7b-aced-597ed6316071","block_type":"box","text":"NM1026U-5982509-107/232","page_number":107,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f0e5b0dc-3154-485c-8d74-b907ae0e08ae","block_type":"box","text":"U.S. Treasury Obligations.","page_number":108,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"c2d1e117-1747-4bb9-9444-4297f89ab0c6","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":108,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"e2949ec0-726b-4bc4-9ef6-6d1cc46d4b7d","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":108,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"9d0de33f-5591-42bd-b8f5-8c385472aede","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":108,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"5da330da-0f22-4860-a591-14229558cd9f","block_type":"box","text":"that the U.S. Government will provide financial suppor t to its agencies and authorities if it is not obligated by law to","page_number":108,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"abec32db-9b03-4e96-87db-4482bf6405f1","block_type":"box","text":"do so.","page_number":108,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"cc266012-9bae-48b9-9401-65069936d9d2","block_type":"box","text":"U.S. Treasury Rolls","page_number":108,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"8848310f-2ae0-4c6a-b226-b53f65d4fb6c","block_type":"box","text":".","page_number":108,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"e94f7ec8-2420-4b01-bbbd-f532436dcc53","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":108,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"05e38f6b-03f9-4f47-b929-0f7ac1884837","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":108,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"108aeb2f-d1ad-4f90-a4d5-275be7dea114","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":108,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"35c9ccaa-0d18-4849-9de7-a83f0c6db755","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":108,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"7c693c41-c137-4a27-8b66-ba16c9335dc3","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":108,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"2082deae-a54c-49ba-b19e-9d7b18ae98b1","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":108,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"243f79e4-9d4c-42a5-8402-b9f4735ca785","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":108,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"8cce583e-6c3e-46c7-9834-e724bdd137d1","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":108,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"5dab7a30-a8f0-41a4-8828-ce1abe64e1d4","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":108,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"c9472857-4682-44cc-95c9-7dc4e270ab41","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":108,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"2c748614-73a9-4b82-8731-7f853c8d6f1b","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":108,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"acb24405-cb73-4c93-859c-b96505dd7180","block_type":"box","text":"Utility Industries.","page_number":108,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"6f012543-ea4a-4066-890c-19003a0dcc77","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":108,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"520ea31e-44dc-4b79-b411-d99ecd36e221","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":108,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"ae4ea02b-57b6-4939-a4d6-468e98705893","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":108,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"bbc2d1c8-02ae-4080-9e43-2deba6f5f244","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":108,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"7b0f7f4a-21b4-4c3c-9180-a2dbe3d09026","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":108,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"6edeb524-cbf9-44c2-b95b-e9409984bd21","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":108,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"db9c053b-f961-455b-924e-169d4b75c7bd","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":108,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"eba4a0c2-2cca-42da-a876-7c615db83af4","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":108,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"baf634fb-fbd1-4c37-9e98-c60392dbb744","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":108,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"ff9122a2-5374-439b-ba5e-27be17e05fb8","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":108,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"4dbbb399-6442-4a83-aa30-a2e9cf446f25","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":108,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"d4db28da-960c-421e-9bb7-3549358bd7e6","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":108,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"2124e4f6-3257-41e6-b505-a774b8a6e0b4","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":108,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"038561be-9b91-4be7-b125-d300b19e7a15","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":108,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"84a1a092-023f-4645-9222-e82dea8917d7","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":108,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"4c7e40be-ed0b-47b9-b4a8-b84cc50cea5f","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":108,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"f28772d5-3aed-4f7f-8c14-bbc01a3bda37","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":108,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"f9514feb-8f1a-4e4e-aef6-2d32c1c04d74","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":108,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"3184ee9b-2739-4f6e-8d9e-d870f013fb33","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":108,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"cf975991-9b0b-4443-b8ca-de48fe5e2652","block_type":"box","text":"utility.","page_number":108,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"a36502a8-5177-4147-a89d-1e6bc0e1ab01","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":108,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"cb4166d9-3ab8-4982-b16f-e56ef47505e0","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":108,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"521d9c13-f377-4829-9dd9-36d67eda09c4","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":108,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"b5e45e67-2521-45e2-b023-16708c2a4f39","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":108,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"758e6ac1-29dd-4142-a1ce-9ed696a796f1","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":108,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"ce801686-e5cc-4bf0-83b0-25eaefd8da88","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":108,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"9fee7bad-1611-4b36-9b96-d6a8f4ec3983","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":108,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"728c7eb6-bfce-47ae-a80d-33eecaf0ad28","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":108,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"e6204585-3ef4-4253-8831-d469bc85ae3a","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":108,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"125f67d2-d262-4631-ae60-1c2913ae3786","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":108,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"8c0338b7-98b9-47ab-b9f9-9db15c603cea","block_type":"box","text":"continue in the future.","page_number":108,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"17ad27ae-379c-476d-8d66-37174b7be3bf","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":108,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"550b3425-e0af-45e8-b653-a9b49debffcd","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":108,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"cbc8d83a-8ce0-482f-99d2-a10e1ff79311","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":108,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"34f2229e-d959-4432-bbc8-2ba7b3ca44b3","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":108,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"75ac0460-d514-4f27-b9a9-43eaeb3d0b4d","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":108,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"ba608ff9-d45d-478a-aad1-89fb33b35642","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":108,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"e1667b4c-4b64-4a79-b31b-e226177aae3d","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":108,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"f71491f4-1011-4be8-b740-684fbd4afe2f","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":108,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"15f0b8d5-71c1-439b-ba3a-3fe06d54808a","block_type":"box","text":"II-77","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"43f378d4-ec0c-4e18-b2c2-7a80b8ae8eb9","block_type":"box","text":"NM1026U-5982509-108/232","page_number":108,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e0b3fb88-cfe7-4259-8a55-5dc6688c9101","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":109,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"211ee6ee-f6a8-4f57-ac1e-e8ef914dec9e","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":109,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"4a31184b-fe03-446e-9578-87db2cae087a","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":109,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"95bf15f1-beb4-47b1-9d9e-902046f4584d","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":109,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"5b926b7b-484f-4776-a1a6-4d44b5b4e51e","block_type":"box","text":"restrictions on the maximum level of profits of cer tain utility companies, but may also subject these companies to","page_number":109,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"911cbce7-a240-4012-a0c9-21c86aa0ca01","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":109,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"ca600133-b979-453f-97ce-7a48e4618a44","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":109,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"90cd8684-0426-4e96-8046-bf7334b8bc3c","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":109,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"826d4efe-8d5b-4620-a586-e2732089489f","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":109,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"7d29769a-65f0-4b05-b506-e41fb307c48c","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":109,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"e524bbb0-927c-4701-9d46-98508ba26ece","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":109,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"9eda83b9-04fc-437e-ab8d-894d30278f1d","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":109,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"969bf7dc-1f62-49db-8546-a0db71d2f9cc","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":109,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"e2a46db8-2b7d-4a35-92fa-2023a12b3f0a","block_type":"box","text":"ways different from regulation in the United States.","page_number":109,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"aeac6625-e2d2-4f11-8330-0275342c629f","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":109,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"5e6eb31d-91b7-4aa6-bfd1-5e8f7462e0c2","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":109,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"5ffdf291-b304-4b84-a5e6-bac068bbb397","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":109,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"26f067b3-660a-4230-9df8-33227da85bf8","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":109,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"1001fffc-03a2-4b1b-a856-1de234f6a54d","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":109,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"fedca0fd-ddc2-4379-bab5-bc720b1172c0","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":109,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"c80363a5-ca5d-40e6-a0da-20a9a70bc8a9","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":109,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"cd834f04-c174-4d14-a8fe-c38638948dee","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":109,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"e321fa72-cfea-4b83-9c58-4a2422712fd2","block_type":"box","text":"increase.","page_number":109,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"af3e7ff6-3b07-480c-8e00-b27141e71fc2","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":109,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"21dc0f67-8139-4034-81e4-5e0820ee82ba","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":109,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"737350cd-1897-4ce1-9519-3e0e148b71c1","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":109,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"786cb036-d962-410f-bbd7-585923fd687d","block_type":"box","text":"Electric.","page_number":109,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"22bbd64f-76cf-4f63-aef5-0ba7c4ed336f","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":109,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"2dfb9f17-5c65-4a6c-b9ea-54e186d48194","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":109,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"4e3a619b-8080-41fd-a3dc-ecef2515f4f8","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":109,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"2cf92627-53b8-43bd-85ad-6a2efa43fdf2","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":109,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"bf8dbced-3013-4cb8-a5fe-73def3f963f5","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":109,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"f803d7d0-5ee4-4bd6-9a66-f6a5ca66a925","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":109,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"a34fc556-7ea0-4f08-afd1-59df4c4c4a7d","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":109,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"d7daf939-ee0b-4aba-9b6b-da60de1d1410","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":109,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"0430570d-d44d-409e-abfe-72a5ee587f14","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":109,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"2e86d5bc-79d8-40e8-898d-acf022e73fe7","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":109,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"42126bf4-040f-49be-a29f-2c2ea5eb471b","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":109,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"b17ac31f-17a5-471b-89dc-b54f47d54e70","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":109,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"4ab14338-a816-4da5-8ea1-88c9f528662b","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":109,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"d2d2c011-0cea-4507-a1eb-5ad03e6e17c9","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":109,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"0c92f0ca-5970-4093-aa14-7ef310afabc7","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":109,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"5edd599d-1cac-465f-98f1-a12dcd84c9fc","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":109,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"4139165c-d0e6-4ada-8607-604fceac9a78","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":109,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"224c33ad-d9f4-4c94-81cc-f8c42fea0b19","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":109,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"cc9204ba-31cb-4616-98af-6d17fe9b9b16","block_type":"box","text":"and for decommissioning such plants.","page_number":109,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"320c6f81-33cf-4c58-a5b9-d1fa3327421b","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":109,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"c433d8b5-5eaf-4c4b-8014-d2a735a93570","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":109,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"95519d13-9ba9-454b-8b7f-a1bbe83acdf4","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":109,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"d3789432-6338-445e-a9cf-b402333593ba","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":109,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"956af795-6b77-4547-8567-d3cd865cec8b","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":109,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"5783b834-af4e-41a5-b74b-1da92e1aee00","block_type":"box","text":"greater predictability of cash flow.","page_number":109,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"745ec3dc-4b13-4aa2-aaf5-15487ed6d5ec","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":109,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"2f4867c3-8b64-46d1-8bc6-b7a14573b345","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":109,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"25b87ff0-2b99-4f43-b5be-fb2385e90a98","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":109,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"6cb3c503-6eb3-4322-ab57-8f68b52d4228","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":109,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"26afe997-3d13-4fc8-bd34-eca5f2070e5b","block_type":"box","text":"II-78","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2aff451c-2552-4e24-b9df-274e06a9d39a","block_type":"box","text":"NM1026U-5982509-109/232","page_number":109,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"91e35029-bf31-456f-988a-5b953cf2274c","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":110,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"7f022058-e42f-4f22-802d-bbabe2b1aa2e","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":110,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"ef562af3-869a-4245-9b63-db004822f32e","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":110,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"1b380c2e-2e81-4373-84db-3f5b4998dca5","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":110,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"847279d2-afbc-41c6-a99d-78dc8754427e","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":110,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"b8403db3-0cb0-44af-85a9-be568aa711ca","block_type":"box","text":"Telecommunications.","page_number":110,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"3f713065-312b-4f6d-9687-c3b8058b36a2","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":110,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"169b4edc-b700-4600-b58f-463c3029cbf9","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":110,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"9f970ea6-d2f0-4eae-9ed9-09da33a27585","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":110,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"1f481bf3-9cae-495c-a760-3d29e081e78e","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":110,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"5fa1fef1-4004-45d5-aeb3-5f6eccf89e49","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":110,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"02a140fe-a6a7-4c21-a446-26d97b494928","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":110,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"8a100307-c94b-411e-b59a-6852f43c8216","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":110,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"992595f3-18dc-44d0-84bb-73f0dcf5c2c2","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":110,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"fa93dca1-7175-401d-826a-7c104be406f2","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":110,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"077d0982-141c-418b-9492-24225b0d733b","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":110,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"69ef55ce-1a42-4938-b087-8d4d936f4ef9","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":110,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"e26ae8d3-6838-46d6-b128-a120d87d1dd8","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":110,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"7991e4ba-1ac6-4131-91d6-46e2f62302a1","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":110,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"f22074f1-3a96-4a46-87a3-8a01e5684d54","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":110,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"b8ccd1eb-452f-4c4a-ab5c-5463466e210f","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":110,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"cefbf6d2-dcd1-4814-99e2-7888c00250b4","block_type":"box","text":"residential, corporate and governmental customers.","page_number":110,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"b2f954b9-7030-4493-bf36-e43826d79014","block_type":"box","text":"Gas.","page_number":110,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"3b25d762-9355-46c4-9381-d2ffd49e12bc","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":110,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"4e392387-84af-4dd5-ac1c-fa9d90ed8845","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":110,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"72a805d7-f2d9-4eeb-8c9e-6e313ff35d12","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":110,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"c6e761cf-6510-4ca8-8089-2055e6bc4e77","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":110,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"b590d86b-df2e-4470-a74c-6ae1348d712b","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":110,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"c910c737-df5a-49a4-8679-0a5f712b922d","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":110,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"dfbb491c-e3b4-4257-8555-1187abe34d43","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":110,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"522ec6b3-9133-4a50-a2e6-265c03cb2934","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":110,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"7bbace60-092e-43b1-a56c-70db059ee173","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":110,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"6e9e88ff-bb36-45ac-b377-79f4dd26515b","block_type":"box","text":"Water.","page_number":110,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"b44038ff-67bf-442a-922d-0da3d2f94d59","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":110,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"c467414e-913f-4fd8-8b26-69eefc432973","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":110,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"f6c43798-409e-4a36-b8dc-1542eb0ee6c2","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":110,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"eb5219c8-99c7-4c8f-8440-1d960d4244ff","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":110,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"618e8d15-d151-4fd0-9733-0dfe468c4739","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":110,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"37642e6f-967c-4839-a469-fd83f9c062a2","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":110,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"2745bad9-d483-43a6-84c2-94fdd8fd868d","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":110,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"173e1a42-fb37-47e9-8918-82555e9aa953","block_type":"box","text":"Utility Industries Generally.","page_number":110,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"358ff4b9-9f5f-459f-a2ff-7bf273e43ab3","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":110,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"6628b518-d35e-4c9c-95ac-2debd703f026","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":110,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"5ca3628f-3c37-4129-84a6-504d85941b0d","block_type":"box","text":"not develop in the future.","page_number":110,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"1f152cf7-99e4-498e-b312-c2349c56e751","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":110,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"5dbf116f-a68f-4a7f-b3bf-74668f74fa46","block_type":"box","text":"A Fund may purchase or sell","page_number":110,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"f20a394c-7930-48ad-8938-f682f91aef33","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":110,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"0e960d07-3999-4a4e-b3e7-f28d742df780","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":110,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"1b652aee-8b33-4f93-83bf-47006527b022","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":110,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"857a7f83-22ad-48cc-a5e4-f4007b24e2c7","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":110,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"dfde64a4-6ab5-4dd1-948e-ed2e4a03bc51","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":110,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"6212aad5-db99-4bb5-9d68-5fd9ed7ce0e7","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":110,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"ed025866-f226-4c99-8417-7eb4ff9c529e","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":110,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"6bc24ca4-08c0-4e97-98a3-823583dfd545","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":110,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"acf3c214-49f3-4dc3-8d2b-c1aa277997b5","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":110,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"c7a3af40-5ab7-49f5-b79c-e9aadd390b53","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":110,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"72d1847d-be4d-40ff-b9cb-f280e3e67790","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":110,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"b762063c-a083-45ab-aa86-e1ae8a79c4ba","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":110,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"1b02889b-fd28-48f3-8ef0-72b7011564c2","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":110,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"65335d0a-c796-4282-84ff-7804e430084a","block_type":"box","text":"II-79","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c4c72dd8-b757-4f93-8e43-f7e37b08dbc5","block_type":"box","text":"NM1026U-5982509-110/232","page_number":110,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c4f545fe-9222-4e95-af98-cddafcc9eb92","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":111,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"51137ebf-fa69-433b-ba3a-30262b90ac93","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":111,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"9a40338e-d881-4417-b372-2e1813f13077","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":111,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"8e7debc3-cf29-4b3b-a9be-252ddbba08da","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":111,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"531cc2ad-95c6-4bff-b736-eaac6c82a4fb","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":111,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"f96cb85a-3fca-4a52-9a4b-c3d785d7241b","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":111,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"21e8b5cd-880d-4da3-ad69-ec5a47dcf04f","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":111,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"e5dfb0d5-0f6e-4491-990b-d3d93bf70bb0","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":111,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"532d5b36-d141-4e05-b0d9-df73b8339255","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":111,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"479bda3b-3f16-4e36-9a2a-258ccca5c5c8","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":111,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"5db2c068-7a89-41a8-b479-11b87150b367","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":111,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"c716d8a1-d748-4566-8663-1372692b76b5","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":111,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"320c9b3d-dec4-4039-abf9-9e680849bcb9","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":111,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"3c355adf-2bb6-441f-82ed-b4d11028c9bb","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":111,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"fc2f2d57-2672-4940-a622-160ed54091e2","block_type":"box","text":"securities (","page_number":111,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"92b8a29d-c12e-4aef-b979-6f5bae7b7808","block_type":"box","text":"e.g.","page_number":111,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"fb24d656-c31d-4a85-a740-d424cb0c97e7","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":111,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"f51a3f58-b146-4b89-afb7-388491608336","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":111,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"7c848873-a3b3-4e09-b206-ff1fbe1402db","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":111,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"78b6185d-d553-46e6-aa77-c0ac51998976","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":111,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"743fcb48-51ec-4a16-8c78-70bb6bad03e3","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":111,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"0237b621-36dd-4f7b-8fc2-286028928573","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":111,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"fe509eb2-1511-46f2-9a37-ad918c6e5186","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":111,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"1fda7691-a879-42c7-9c73-d28a83ca0b29","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":111,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"dab48d01-fd0f-429e-8eea-0e4ac94c6468","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":111,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"8456ad49-df12-4dfa-a879-e87c8cf90ff0","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":111,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"9bc8a7c2-46b9-46a2-be33-8f197192e02b","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":111,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"e05fc2b7-922a-4bf0-9562-8823b1325c72","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":111,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"18c948a9-e058-4b12-a5cb-648913150f9b","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":111,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"1d05b054-5165-4dcc-aa67-c8a9758d8559","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":111,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"41c4ab0c-122c-417e-a228-e63aab9ab5e7","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":111,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"46cb7cb6-91ee-47b2-8f54-c5dbbc25fc5d","block_type":"box","text":"Yields and Ratings.","page_number":111,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"5d72cdf0-a9bf-492f-bc66-c486893bbffa","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":111,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"e6819635-5dd8-4198-8e0f-04370a4071e4","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":111,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"8bde5a6d-08fa-4d52-821d-d88c6a2018f5","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":111,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"f73f1596-d1df-4752-8ab1-d2a20649c83f","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":111,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"413f9ce8-1f2a-441d-8723-7c1265abca31","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":111,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"3029e8cc-d848-4658-9974-2f4b91ff7036","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":111,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"5190d586-8b2a-4454-bb59-66267d6e513e","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":111,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"07bec20f-bc21-4fd4-8ba1-6827dfc5aae4","block_type":"box","text":"continue to hold the security.","page_number":111,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"f6fe2494-90c7-46ac-972a-d2f1d5578349","block_type":"box","text":"Zero Coupon Securities.","page_number":111,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"d47f3e5e-e8a2-4228-91fa-1631ffe7c8b1","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":111,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"9e97496b-22a2-4cd8-8b0c-5745d545b1d3","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":111,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"339fbe18-529e-48db-b318-7da7daad9ce6","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":111,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"1876c505-12b6-4ab0-aade-b3ffd5d49ff8","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":111,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"ebd40c5a-2f4f-4c1b-a442-f51329b553e5","block_type":"box","text":"security.","page_number":111,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"301d39c5-6655-43f5-86d6-f2dc2eda633b","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":111,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"8e43a6fe-c740-4cc0-af65-4edccd2cfe9a","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":111,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"0dd62065-1c78-483c-be42-65383d08cb1b","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":111,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"143813e3-5b21-4ee1-8fee-57c114c21bf5","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":111,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"12233316-f97b-44cb-a4da-509cc0e83f35","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":111,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"b40fdea7-ef70-4655-9940-96201c331d14","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":111,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"221e3605-a16c-4e63-92b9-881df8a4752c","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":111,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"3f681515-df36-450e-93a5-fe10595b281f","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":111,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"5cf30be5-f15e-49b0-b379-c41cc9997627","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":111,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"07c19eb9-2e9a-4f4d-abd7-7aaf176661f5","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":111,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"058b57cc-b50b-48dc-ba1f-aad63746cdc1","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":111,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"9ce26809-437d-436e-8f73-8a969979772b","block_type":"box","text":"II-80","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1fc10ef6-4e15-49b0-8da7-34570d27c699","block_type":"box","text":"NM1026U-5982509-111/232","page_number":111,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"866827be-f533-425e-a56e-574925bff561","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":112,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"12bb709d-669e-4d4e-a071-fcd3a8bfc98b","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":112,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"8d9b1b00-21e9-411c-85bb-0428ac720c3b","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":112,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"a6bf2186-02ae-42a9-9ac5-64303fe0b9c7","block_type":"box","text":"intervals.","page_number":112,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"2df9fc60-b5b1-41dc-9529-73ecf3a141a7","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":112,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"8113055a-d215-4e7f-b1df-68bdfaa20b04","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":112,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"cce98ee7-336c-4815-b1ae-336c190fc3b7","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":112,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"39079bf7-a98f-4715-97df-29b953884dbe","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":112,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"debd95e8-bf8d-43d7-83bf-d9db63ec44d1","block_type":"box","text":"exposure to zero coupon securities.","page_number":112,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"44bf6f98-1ea5-442d-8526-77eab1183b55","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":112,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"cbb902aa-0970-46e0-abdf-3a13bb11fb89","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":112,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"f1462922-cbfd-4744-be2a-5b03211abae4","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":112,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"1d152539-a04d-4bdc-8236-56dbf060b575","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":112,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"d174920f-4bf0-4c97-a47e-84862ca786e2","block_type":"box","text":"Suitability. (All Funds)","page_number":112,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"62f07845-7363-4a31-bffc-80484a227c76","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":112,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"58eb5aac-fac2-4056-afc6-17ab76417982","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":112,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"f1d28a88-12bd-4730-92a9-1e699b537e48","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":112,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"98f06dab-5487-45c1-9d6b-70fad35b9124","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":112,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"051ddcec-de02-4394-99e7-5cabd8b1ace8","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":112,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"583da6a2-6d04-4bae-b579-52697da3355c","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":112,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"7241cc85-95a5-4329-b271-c5c58f0468b2","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":112,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"7d86b24d-45bc-46b7-8630-554824af58bc","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":112,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"1db167fb-20b5-4c2a-a6d5-963454b5923c","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":112,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"f0393610-87d8-489a-aa21-32d4f0df1cce","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":112,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"a9eebaaa-c28a-4bb3-821c-8c3617797678","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":112,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"1d221abb-d300-4f1a-b6a2-6300fe7e4a40","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":112,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"6244198f-ea97-4d74-abe5-28d2ef71f905","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":112,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"ae2b1652-deb2-466b-a67d-d3f187d8633b","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":112,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"ebf18d05-6fa6-4125-8e2c-3259665f6d26","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":112,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"fd0424df-36b6-4797-9465-ad3da1cace58","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":112,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"e63ae5ca-2537-46df-a751-4b7911792769","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":112,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"3dc77eae-6bf3-49d6-943f-5b728c9e61d0","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":112,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"23a41784-ad96-4854-831d-1f3770e8f527","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":112,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"40958a6d-84eb-47aa-9088-7c2259b4c99d","block_type":"box","text":"(","page_number":112,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"f43f81f9-77ee-4d86-a050-6bef75384092","block_type":"box","text":"i.e.","page_number":112,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"b40d331a-b660-43e3-9d9d-31b4a2bbe4a3","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":112,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"cf78936b-ab10-443f-a04f-718e78534494","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":112,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"23aac7ea-96f6-450e-a854-bd479a9b6756","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":112,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"02cb613b-5863-493d-aca3-89b23fc591de","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":112,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"48779331-8e24-438c-ba32-0ab2262f10bf","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":112,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"833ac92d-e6c7-4165-ade6-f6ea658d6596","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":112,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"8beb8d3a-8b62-4ed2-bbab-617f25c384ee","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":112,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"043d0bc7-e7b5-454a-ac75-f1bd17e4cddd","block_type":"box","text":"regarded as the sole issuer.","page_number":112,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"f1644e7e-2df1-4acc-9dc4-b0ef09d8fb75","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":112,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"3fde51b2-5972-42b2-b654-095201cd2107","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":112,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"c25a26ce-89fe-4a63-90e8-3137eb51e3c9","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":112,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"2f19822e-92ff-46d1-b905-f5ef7343bed3","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":112,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"a9d79772-1ee5-4cfb-a9a5-2f70a53a7f9b","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":112,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"835518c9-70fb-4224-b2dd-c8410da4de99","block_type":"box","text":"75% of its total assets.","page_number":112,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"0c898656-1369-4171-b778-bf6bb5569e30","block_type":"box","text":"II-81","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b66d25f1-791f-43f4-b32c-65bc140f6af0","block_type":"box","text":"NM1026U-5982509-112/232","page_number":112,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e6c85b26-e265-4006-b0fb-56d566a4fa2a","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":113,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"d37754e3-8f16-4c18-a325-e18ef8bcd05f","block_type":"box","text":"Directors and Officers","page_number":113,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"79f9da61-1655-4834-9577-453b93edbf2a","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":113,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"e577c5e7-455e-456b-b03a-f774e2d0c0f6","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":113,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"5f20a668-19f5-4b0d-85c8-df5649eef6c2","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Par t I of each Fund’s SAI for biographical and","page_number":113,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"6ff317fa-6f0c-4c38-bb8a-853fea75c904","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":113,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"38360be6-db99-4322-b126-3310008ff8b3","block_type":"box","text":"Management Arrangements","page_number":113,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"1c51e75e-8219-4a87-bed6-448da4409256","block_type":"box","text":"Management Services.","page_number":113,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"35ebefdf-8e8c-481a-a788-81b8a619b72f","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":113,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"7810c24e-4067-41b6-af95-a24d3750b22c","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":113,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"64bf1b30-c5a1-4ab5-ae1b-ac51710693fd","block_type":"box","text":"por tfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":113,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"c45b25f1-aa06-4a28-a5fa-1aeef0ed173c","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a par ticular security rests with the Manager. The Manager","page_number":113,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"6fb4167d-1464-49fd-948e-c1f8b368a93f","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":113,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"7eae4a23-f39d-4d65-8e07-7d6d2267c6f8","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":113,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"63841673-df8f-42c6-9815-d698b1241b61","block_type":"box","text":"Each Feeder Fund invests all or a por tion of its assets in shares of a Master Por tfolio. To the extent a Feeder","page_number":113,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"20b260be-5def-4fca-9ded-9fa77e4fa051","block_type":"box","text":"Fund invests all of its assets in a Master Por tfolio, it does not invest directly in por tfolio securities and does not","page_number":113,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"be280efe-3cc2-4522-8374-d754dcca5247","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":113,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"7f28253c-9054-45ea-93e1-6f6f32b0ff24","block_type":"box","text":"Management Fee.","page_number":113,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"3e277913-a2cb-483a-ac4c-230ea38029c0","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":113,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"f79fe5ac-b5c4-42a9-9d7c-5f563c7594f1","block_type":"box","text":"the Manager receives for its services to the Fund monthly compensation at an annual rate based on the average daily","page_number":113,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"835c7677-1080-43d9-ae53-cd469e6bdd2a","block_type":"box","text":"net assets of the Fund. For information regarding the fees paid by your Fund to the Manager for the Fund’s last three","page_number":113,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"8017e7e4-070d-47f2-9544-dcef32bcc990","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":113,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"4f0e2e4d-8ebc-4364-9b34-748b4e3fc24c","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":113,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"f8cf579e-05de-48c4-ac03-9781d4e1c261","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":113,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"c7afd3aa-ebe2-415e-ba3c-2b2f9587787c","block_type":"box","text":"management services and to pay all compensation of and furnish office space for officers and employees of a Fund","page_number":113,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"f802d142-396d-401d-93d7-b1efa76ca8b8","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":113,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"22e5933d-bfe5-4b6a-bb55-75e4dbad048f","block_type":"box","text":"the fees of all Directors of the Fund who are interested persons of the Fund. Each Fund pays all other expenses","page_number":113,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"4dc56bf1-9e2f-47ec-9d1d-e4250f1683a4","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":113,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"c4f66ef0-76b5-4ca5-9093-f6060520efe2","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":113,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"e9e82e2b-f7ad-461f-911d-7dc8939a96ba","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":113,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"4d169a9d-c9c9-4e90-a31a-11b3d45190e7","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":113,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"b5a3e544-acbc-431e-83ff-c88297dcec17","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are not interested","page_number":113,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"647efabd-7b97-4d90-bcba-983c0dff0950","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":113,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"603a8ebb-4fff-474c-99f2-c7251a7ef9bf","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":113,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"d9d9fee3-01f9-4f6e-86be-1f99aa84079e","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":113,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"958a6def-f456-43da-bca8-4e468a56c49f","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":113,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"290903e2-37e8-4db4-be84-088fd8ab1125","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":113,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"04c56e90-70bc-4c56-bc06-120c1b488eca","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. The Distributor pays cer tain promotional expenses of the Funds","page_number":113,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"78e3bbad-6c30-4f5b-88c6-f1ebcee72aaf","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Cer tain expenses are financed by each Fund pursuant","page_number":113,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"9ba66a0f-3dd7-41e2-a60b-6d6864dbbba5","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":113,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"9d9c917e-c281-435a-9fa4-56f46b1f5916","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":113,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"b279efef-6e8c-43b7-b5cd-c38a20d6bb85","block_type":"box","text":"Sub-Advisory Fee.","page_number":113,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"1ebcabec-bb7d-43bf-9be1-b5d5549753d3","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":113,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"7645eea9-1e62-4ba0-9c88-7a4c6be675f8","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":113,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"cc7258d1-35dd-4e22-b43c-6ac1fbefe679","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":113,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"bb5df997-e7d1-4fa9-a5f9-0ada9f813fe4","block_type":"box","text":"Organization of the Manager.","page_number":113,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"d7b2d19d-7ff0-442b-a261-c30b0da2fae9","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":113,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"728956bc-a768-43ec-b705-458e46901a4c","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":113,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"9fc0fd1c-5eaa-436c-8917-f6d65f57cadd","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":113,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"a14f66bb-0669-412e-ab2d-22ba2b577904","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":113,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"9148e2dc-98bd-4af9-b171-7d7356dd477b","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":113,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"d557733e-aec7-4806-a6c9-7a7dd37dfef4","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":113,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"64f31bc2-2cb0-41d6-b582-b7f6ae2b176d","block_type":"box","text":"Duration and Termination.","page_number":113,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"433572b8-2511-4c9f-8833-c16b1c894dbf","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":113,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"785a9d75-1533-45e0-832d-69be5760a921","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":113,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"6ce5f45f-f072-4054-b187-18f0b8507411","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":113,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"97d5cce3-0eed-40cd-bfee-4b31fecbb801","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":113,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"31d074a5-d082-470c-a53f-31219d146f8b","block_type":"box","text":"II-82","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f57a66a0-93e9-48d9-a52f-cf60ae5892a8","block_type":"box","text":"NM1026U-5982509-113/232","page_number":113,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cef65c60-c141-4dcf-965f-a56293104509","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":114,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"653faa1d-12f5-40d4-9169-e7bfea155e65","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either par ty thereto or","page_number":114,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"b8af61fe-85fd-4717-8729-ddb125db0592","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":114,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"d0dd02f1-9ca5-4dda-90a4-4f5725e6f18d","block_type":"box","text":"Other Service Arrangements","page_number":114,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"7b0d5d5a-63df-400b-b34c-0eb8e4dd2013","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":114,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"a58fdb2f-7800-4d6b-bb14-9b89ef82ccef","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":114,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"e7244e82-f437-4d3c-aa38-9fe36d566ce4","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Par t I of the Fund’s","page_number":114,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"83aa2726-ff45-4ebf-a604-c037cb9d869a","block_type":"box","text":"SAI (each an “Administrator”). 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For information regarding any administrative fees paid by","page_number":114,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"d5e290f0-6eb7-4529-8941-d97af9bfe034","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":114,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"2a6e01eb-071e-48e0-bd3b-41d059849e37","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":114,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"e3884347-47fd-4c7e-8543-d0e4894a73c4","block_type":"box","text":"that Fund’s SAI.","page_number":114,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"26cfe134-f5ab-4cb7-823c-01594d478160","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":114,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"57e0079b-3661-421f-a757-8fc6e95ab737","block_type":"box","text":"cer tain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":114,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"c830a0f2-1484-4286-b1f3-83de7c3a4799","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":114,"box":{"x":70,"y":271,"width":809,"height":12}},{"id":"bfbc2047-886a-4dc7-9bc2-73d6a726a263","block_type":"box","text":"obligated to pay, or cause its affiliates to pay, the fees of those officers and Directors of the Fund who are affiliated","page_number":114,"box":{"x":69,"y":286,"width":826,"height":12}},{"id":"54805a69-712f-4182-87d9-5a00b8df201f","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":114,"box":{"x":70,"y":302,"width":362,"height":11}},{"id":"e6371dbb-1267-4d57-ad1f-7ff96d100b20","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":114,"box":{"x":102,"y":324,"width":390,"height":12}},{"id":"7bd605d7-64de-4069-820a-d58c72815bec","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":114,"box":{"x":499,"y":325,"width":364,"height":10}},{"id":"5355c9fa-83ec-4401-b08c-d058d447fe42","block_type":"box","text":"Administration Agreement with BlackRock will continue for an initial two year period and from year to year if approved","page_number":114,"box":{"x":68,"y":339,"width":832,"height":12}},{"id":"2d3cc5f0-9f6c-4bf9-bda5-137f2c0dfa35","block_type":"box","text":"annually (a) by the Board of Directors of each applicable Fund or by a vote of a majority of the outstanding voting","page_number":114,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"0c421b34-f5e6-4fcd-96e6-029202675554","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not par ties to such contract or","page_number":114,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"c6b1e6f0-6822-4ad0-943b-a0474d83656f","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such par ty. Such contract is not assignable","page_number":114,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"b55ceb6d-d20b-41f4-9caa-eaf51af3210a","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either par ty thereto or by the vote of the","page_number":114,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"1cb4b9f0-1b3a-4ed9-80c8-44dd49cb5f2b","block_type":"box","text":"shareholders of the Fund.","page_number":114,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"9660341c-b63c-4457-9f60-8e50284f386b","block_type":"box","text":"Transfer Agency Services.","page_number":114,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"6210f95c-39b8-4146-836c-120ded87ac4f","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":114,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"fb034c2f-10e0-478f-9293-5fb7e9576dee","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":114,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"631ad8d8-9262-4d09-9189-42c11eeb48a6","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":114,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"519ce458-9153-46f1-8a34-7473976ea615","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":114,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"373b7b57-e64f-4ca8-bd42-85de3475ab95","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":114,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"bd45eb57-41f4-442c-8752-35f07afc1216","block_type":"box","text":"Transfer Agent a fee for the services it receives based on the type of account and the level of services required. Each","page_number":114,"box":{"x":68,"y":513,"width":839,"height":12}},{"id":"7b9a7ef8-9b58-49cd-89e3-47b8e4d6c5f6","block_type":"box","text":"Fund reimburses the Transfer Agent’s reasonable out-of-pocket expenses and pays a fee of 0.10% of account assets","page_number":114,"box":{"x":70,"y":528,"width":831,"height":12}},{"id":"296fbdb4-ca23-484b-9041-2d49c19e6e9b","block_type":"box","text":"for cer tain accounts that par ticipate in cer tain fee-based programs sponsored by the Manager or its affiliates. For","page_number":114,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"c366f6e3-3592-410a-84da-4055d862d285","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":114,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"f145ade7-a122-4631-8fa9-548f433dfbe1","block_type":"box","text":"by the Transfer Agent and any other account representing the beneficial interest of a person in the relevant share","page_number":114,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"8d24f970-7108-4193-8f0f-29511d1427e2","block_type":"box","text":"class on a recordkeeping system.","page_number":114,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"e7905aca-c7ee-437c-8c35-179bf64c25ac","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":114,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"a5c98f06-d93a-4d08-a10a-ff91d40f0446","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":114,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"1eeae542-7c03-4af4-b878-f52df6fab57a","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":114,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"b9eafc4b-351a-4ffd-b723-4ff24ef96958","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":114,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"03b03a0e-59cf-49ea-a4fc-a102fb29c4fb","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":114,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"3c88c1d2-b2c1-421b-9c15-b330c137d6f1","block_type":"box","text":"Custodian Services.","page_number":114,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"f2f0faf4-9314-4df3-ad3d-1c560e1b8e20","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":114,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"70ed6037-3ed7-42a6-9d9c-381115a81ce3","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":114,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"28e795c2-b5ce-4322-87af-537f95b75e3f","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":114,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"5497e7ac-15b5-46f2-bf0a-f2ec52be26a6","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":114,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"3465d0ea-0b29-41d4-bf71-82224a2cd035","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with cer tain foreign","page_number":114,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"281428af-b483-445e-84ed-1d0b0cf48429","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":114,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"20f13554-d6fe-438b-9348-c93341080586","block_type":"box","text":"cer tain assets.","page_number":114,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"5328b7af-ba69-47ac-b629-770b5add3f91","block_type":"box","text":"For cer tain Feeder Funds, the Custodian also acts as the custodian of the Master Por tfolio’s assets.","page_number":114,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"71890407-901c-44c6-b286-3973fd86c748","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to cer tain Funds, on a monthly","page_number":114,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"b044c747-48ba-4b4b-a80a-e76170892aae","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":114,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"9a39631c-6f71-4c64-8404-06ac1a29a6d6","block_type":"box","text":"credit”) or a charge based on that net amount. With respect to such Funds, the custodian fees, including the amount","page_number":114,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"26765065-e4b9-4804-8963-c25f57bb2dda","block_type":"box","text":"of any overdraft charges, may be reduced by the amount of such custody credits, and any unused credits at the end","page_number":114,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"6d7b5875-bb8d-4532-82bf-89764426ae3c","block_type":"box","text":"of a given month may be carried forward to a subsequent month. Any such credits unused by the end of a Fund’s","page_number":114,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"053e376e-f257-4838-b0ff-f8216d00103e","block_type":"box","text":"fiscal year will not expire. Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":114,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"096dc9ef-9209-45a2-8bb1-f009bb520425","block_type":"box","text":"Fund.","page_number":114,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"8543085d-3a7a-40db-a490-6fe1d65c35c8","block_type":"box","text":"II-83","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"30329e92-b111-4404-9b9d-2cc4e310c6af","block_type":"box","text":"NM1026U-5982509-114/232","page_number":114,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7b7f6184-e278-4097-8a45-955f46c36eec","block_type":"box","text":"Accounting Services.","page_number":115,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"9de780cd-77a1-44c6-b4e8-dcb1bf405e70","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":115,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"b613050e-fb45-4109-add1-beeeff315a0c","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides cer tain accounting and administrative services to the Fund. Each","page_number":115,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"29c64494-edad-4bb0-bbac-219c1598e6eb","block_type":"box","text":"Fund pays a fee for these services. State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":115,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"3c5fb67d-4d05-4645-ade4-5be8be96e8ab","block_type":"box","text":"Master LLCs.","page_number":115,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"216f96dd-c965-49f0-8e08-81c440b83e26","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":115,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"704d9d97-bd03-43dd-8908-822cad46b246","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Par t I of each Fund’s SAI for information on the","page_number":115,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"ec832baf-2e5f-41fb-addb-4eee76b1543d","block_type":"box","text":"amounts paid by your Fund and, if applicable, Master LLC to State Street, BNY Mellon or JPM and the Manager or, if","page_number":115,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"126d9982-de82-4c53-bab7-9b9849a6e4d5","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":115,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"c892dccd-296f-4384-9b76-ff08db2d26df","block_type":"box","text":"Distribution Expenses.","page_number":115,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"7b5d0d61-0db7-400b-b007-a9c7f696298b","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":115,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"b18fdfb0-a513-4c96-aa96-4652c3bee3c1","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). 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shareholders, prospective shareholders, consultants,","page_number":119,"box":{"x":69,"y":299,"width":818,"height":11}},{"id":"6ca41bf8-c353-4fc8-a5ef-0e0159f30110","block_type":"box","text":"and third-par ty data providers upon request, as soon as such data is available.","page_number":119,"box":{"x":69,"y":314,"width":562,"height":11}},{"id":"b73daad7-964a-45d8-935b-451e7f34ac59","block_type":"box","text":"Contact Information.","page_number":119,"box":{"x":102,"y":337,"width":144,"height":9}},{"id":"61120b80-d705-48ed-a78b-d4951b53691d","block_type":"box","text":"For information about por tfolio holdings and characteristics, BlackRock fund shareholders","page_number":119,"box":{"x":253,"y":337,"width":639,"height":11}},{"id":"755a823c-35f8-4cff-958d-86737b14ba8c","block_type":"box","text":"and prospective investors should call the number set out on the back cover of the Prospectus.","page_number":119,"box":{"x":69,"y":352,"width":672,"height":11}},{"id":"e02cbd9c-e57f-4ceb-ad45-ba9672751d2e","block_type":"box","text":"Compensation.","page_number":119,"box":{"x":102,"y":375,"width":105,"height":11}},{"id":"efe7d769-305c-4a56-a3d7-5e250134f3d5","block_type":"box","text":"Neither a Fund, a service provider nor any of their affiliated persons (as that term is defined in","page_number":119,"box":{"x":215,"y":375,"width":672,"height":11}},{"id":"2eb483a0-a611-4310-ada9-6d489aed9e1f","block_type":"box","text":"the Investment Company Act) shall receive compensation in any form in connection with the disclosure of information","page_number":119,"box":{"x":68,"y":390,"width":837,"height":11}},{"id":"2f3a7011-04ec-40ff-a35f-99a70d3b5534","block_type":"box","text":"about such Fund’s Por tfolio Holdings or Por tfolio 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In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":120,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"59f010c9-d4d0-4c25-896d-48f182e701f3","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":120,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"acf531a7-e7ce-4135-93bb-28265373afcb","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":120,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"037d81c7-6af0-4f35-8688-ec0171c78166","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":120,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"673c54f9-be00-474b-989b-4c235ceffe4b","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":120,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"752e0010-43f6-4343-81cd-51c30288d82f","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":120,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"2dee61de-c3df-45c4-b50e-37f83bffa6f2","block_type":"box","text":"II-89","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"48eb15a7-2b66-4bc5-aad5-95e473c04247","block_type":"box","text":"NM1026U-5982509-120/232","page_number":120,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"37b5b606-86d8-4621-813b-2a0e417b6488","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":121,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"5fbd2526-189f-444e-8ae4-ebf18b3375bc","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":121,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"67cd9548-fd18-4b45-880c-1175463e59f0","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":121,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"c6c50d60-182a-45f2-adec-9d880f540b5f","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":121,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"55ffe19c-3865-4859-85ba-cce4cded55c9","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in cer tain","page_number":121,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"e2cb882a-b3b1-4045-977e-3828e97a6d79","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":121,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"2e9bc01a-84b8-487d-b358-7d5c686b62a3","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":121,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"77694aba-b9bf-4fc7-8079-7b8d2e42b2c0","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a shor t position by a Fund may impair the","page_number":121,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"5de355f9-ec5c-471f-a8bc-4fd3c5bc7752","block_type":"box","text":"price of the same security sold shor t by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":121,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"35a98154-51f0-41e8-baf5-82f83ab62327","block_type":"box","text":"purchase of a security or covering of a shor t position in a security by a Fund may increase the price of the same","page_number":121,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"92003652-5bee-461b-bc75-6bbe3c74e10b","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":121,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"6ccbe377-fe91-4f92-b8e1-9700c7c27232","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may invest in or","page_number":121,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"1f1d940f-3381-49d3-b0b9-ce11a06f3593","block_type":"box","text":"extend credit to different par ts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":121,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"09a2a0c2-93b1-48e3-bc17-041fcd0adc2b","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":121,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"662713cb-15e2-470a-ae8b-476d126cac70","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":121,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"ec589234-c748-4524-ab9c-577249552d76","block_type":"box","text":"action) may have a material adverse effect on the Fund. In situations in which clients of BlackRock (including the","page_number":121,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"a3aea2ff-11de-4c4f-ae76-de7f684c8ad1","block_type":"box","text":"Funds) hold positions in multiple par ts of the capital structure of an issuer, BlackRock may not pursue cer tain","page_number":121,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"f9f09b5b-e585-4352-9d41-e1bae768cae0","block_type":"box","text":"actions or remedies that may be available to a Fund, as a result of legal and regulatory requirements or otherwise.","page_number":121,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"d266ed9f-d3b8-475d-a561-d6a92b7213bb","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":121,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"b4e2437b-7c4d-45ad-bb12-6966ab238c21","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":121,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"381d08cb-b601-4b40-8e00-b3c1ad9b8f06","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":121,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"05333c31-bd41-4be6-8c12-af052406705b","block_type":"box","text":"situated holders of loans or securities rather than, or in connection with, taking such actions itself on behalf of the","page_number":121,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"4f3b6c51-4249-4bd9-925d-a7b954ba498e","block_type":"box","text":"Funds.","page_number":121,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"878e35be-111c-40b5-8b0a-1e1edcdc3d8d","block_type":"box","text":"In addition, to the extent permitted by applicable law, cer tain Funds may invest their assets in other funds","page_number":121,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"de55d369-2e20-4b8a-ab4b-565fc4f8363d","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same por tfolio managers, which could","page_number":121,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"a0bb68da-8dbf-4291-b920-181cfcbc204b","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":121,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"1ec2e97c-7bad-4bc4-b761-8385d98974db","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":121,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"f9230e68-b179-4587-961c-f1bfabce1257","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":121,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"e51a6f73-5465-4836-8800-6bcaf461e5f9","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":121,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"017c9692-6395-4e95-a4b7-bbf539c82560","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":121,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"d32c2f40-4901-493a-9c11-699088244d15","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":121,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"cc1f58b5-a659-4cb8-a0b4-0279f4890145","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":121,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"b971d094-8260-4637-9f0f-0209090e60fe","block_type":"box","text":"In cer tain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":121,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"9d606ee5-c182-4d66-8037-2f387a2a03b3","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":121,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"7b9996be-cd8d-46bf-b790-c613690e3120","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":121,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"3a264319-7533-48ad-9ccd-bd33b40be5d4","block_type":"box","text":"based on each par ty’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":121,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"08b8b865-40b3-4a18-9d66-491ed5dd61e3","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":121,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"8342e554-efd4-4ec0-aa19-2992ec5c38d4","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":121,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"767cad89-6a09-4fff-acee-28fae069ef3b","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":121,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"4d25f993-0676-4a52-9aa7-07ac85a4a520","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":121,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"c92b1235-92b9-4300-ab9f-cb298fabe306","block_type":"box","text":"and those activities may have an adverse effect on the Fund. As a result, prices, availability, liquidity and terms of the","page_number":121,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"39109a28-ca1d-43be-afa3-0bd8eacc3889","block_type":"box","text":"Fund’s investments may be negatively impacted by the activities of BlackRock or its clients, and transactions for the","page_number":121,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"ecc1999e-d2bb-4b80-866e-cc5121f7b7e2","block_type":"box","text":"Fund may be impaired or effected at prices or terms that may be less favorable than would otherwise have been the","page_number":121,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"334c25cf-af9c-4dd6-bd00-2760c768a023","block_type":"box","text":"case.","page_number":121,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"eabe9eab-ecf6-4e3c-bdd0-8ebaa2da849d","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":121,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"b1a70d34-b7d5-42ae-8ce9-fb91a841ee24","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":121,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"437f0639-ea14-4ae2-ba33-ca8b0d4cf39c","block_type":"box","text":"manages or advises. It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":121,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"f5c85091-2d8a-40a4-bb1a-88d10de7a891","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":121,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"fcc361c4-e5d8-42db-8e8e-799bb56f8367","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":121,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"b48cc1df-0338-4fb3-b60b-2ab1eacc3ae0","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":121,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"1ebc4e1b-98b4-4394-8143-a371dcb1d853","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":121,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"a8b289f8-a792-4453-ac66-d625634b718b","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":121,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"ddf758f3-7101-4380-bfd6-409ecb5d9aff","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":121,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"0bb53612-5e41-4b2d-abce-c6633eaec555","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend cer tain","page_number":121,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"bf62b525-2010-4519-a27b-d172b1851ec0","block_type":"box","text":"II-90","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"302f0ec6-ed37-49f1-b1b1-7c70618e377a","block_type":"box","text":"NM1026U-5982509-121/232","page_number":121,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e762e56b-de2e-4b03-9e9b-689b679186df","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":122,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"4b62c75e-5fbd-4db6-a80c-94257d4c0b0e","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":122,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"ac4172f2-eb5a-4c06-98d0-f6f8f650d942","block_type":"box","text":"accounts and accounts under its management may limit the investment oppor tunities for a Fund in cer tain emerging","page_number":122,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"d660ca07-b0fa-45bb-a9d2-88d9a30aa8c2","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":122,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"99ae00d9-e64d-4d78-9abf-2641353ae9b1","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":122,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"cb0556ad-dea0-4538-8852-43c2388aa7c1","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":122,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"d2afb433-3374-453b-9fec-aa22671b8498","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":122,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"ae64c500-8a96-4e70-bb9a-a4878832910f","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":122,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"c062369b-4f99-4f03-b427-5e0615819d0e","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":122,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"cc0fb118-0a30-4b9b-9436-2969acee8bd5","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":122,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"cdbed646-1183-44c1-a34f-ff42495237f7","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":122,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"11ec6a3b-305e-40b4-9b0f-c15320d1441d","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":122,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"0b4b3993-d3a2-4f6b-bbcb-67d850540749","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":122,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"abd260a1-913c-4665-aea9-c79556f54f14","block_type":"box","text":"managing a Fund.","page_number":122,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"74ffe58a-bcb0-45c6-a4e8-4cd2d22a2e83","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":122,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"a4c33c2b-6224-4c88-a387-983e35279eed","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":122,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"96ed1177-ae43-4a72-badd-a74384ae062d","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":122,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"b4cdd6c4-ec90-423a-9a44-a639b9329e62","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":122,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"bf17ad30-9e58-451f-a4f2-d033b94930cc","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":122,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"98cf966c-d83e-4196-acef-064c3f403c56","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":122,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"3e3f86b8-90ef-4d50-a05b-97f8af189753","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":122,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"b2589cee-dab2-41f1-94cf-efea06ce94f0","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":122,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"33b98e18-c86c-4652-ac15-3150034e2be0","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":122,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"1d4e3095-7706-4b9f-ab23-0b673fc28233","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":122,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"3e874280-e89e-4a41-82bc-ff88a3f562e8","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":122,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"8377d297-58a1-401c-b075-bdca7eab114f","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":122,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"a38e7d73-bdfd-47d9-af6d-5bc458f56249","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":122,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"9e4244de-06c5-41d5-a215-56449bc228bb","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":122,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"51ac6a8c-886f-46a6-8e54-7a28658853f1","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":122,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"944d9862-d927-43d4-bbd9-e4261d9795c3","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":122,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"065b9fa6-ba1b-4f86-ad6b-296821100c4d","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the per formance of the Fund.","page_number":122,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"910d389a-80a0-4b30-a098-53ad86cedc81","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the per formance of","page_number":122,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"2a92889a-0f4e-4db2-8194-840f14496ca2","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":122,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"2cc4f47c-513c-4a7c-a4c0-56368a903d1a","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":122,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"17b6114e-8924-4127-82f0-c275a9736c65","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":122,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"19642c01-948a-4c77-897c-9db0913754d9","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":122,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"dd82f82c-f2ae-4efe-af4c-97f213d1eab3","block_type":"box","text":"under management for BlackRock.","page_number":122,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"c78e58b4-083a-4f0a-85db-300248fbf9b7","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":122,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"2c756e3c-6ccf-404f-8d43-c2fd9e0da9cc","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":122,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"9184720b-0451-454e-8b1e-9342e665961c","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":122,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"e65de232-f837-4ba2-8728-862a4e173325","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":122,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"6f438652-0381-4046-876c-91b8635561e6","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":122,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"a2545c0a-c432-401e-9896-10b53a8f7517","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":122,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"c6a0a7ad-3004-49bf-9b71-f5ba663212b0","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":122,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"bc67e66a-d00e-4506-b74e-4660faa4676a","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":122,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"8a6e05ba-a4c7-43dd-85ff-8588d81c00b9","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":122,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"5f7bb14d-7362-4ce6-a5e8-b690c42c3436","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":122,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"9582b2ab-0b25-4f8a-9e47-3af7bdc105d4","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":122,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"3eda41f5-b542-44da-a303-89c63c071c39","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":122,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"44b0b3c4-0a40-49c8-b631-e9899218fac7","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":122,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"7e49bd31-277f-47f9-9aa1-af3e7088ca54","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":122,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"93689ddf-c72e-417c-a687-075d414e0a6d","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":122,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"5e20540f-9a2d-4dc3-a911-aed02ca81dde","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":122,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"e3aeed7d-0801-45a2-8337-d667b7ea9594","block_type":"box","text":"II-91","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"58f77a32-980a-45cf-8018-7a1856ad91d9","block_type":"box","text":"NM1026U-5982509-122/232","page_number":122,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7476d827-1d67-42f4-a9c6-4fd8eec92144","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":123,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"42ab4d23-ad94-47e2-8716-90d05f139f07","block_type":"box","text":"any such fees or other amounts.","page_number":123,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"7ee73d82-7a8b-4003-813d-067249aaf9e6","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":123,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"1afb3f6a-1812-46ac-867d-cf0462c615a4","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":123,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"7a41412c-06c9-4813-948e-429fd5ea90ec","block_type":"box","text":"A Fund will be required to establish business relationships with its counterpar ties based on the Fund’s own","page_number":123,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"5203b027-957f-4493-9bc5-f135c1e15d36","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":123,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"bd382dee-1521-4fe5-a62f-6f5f7c105432","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":123,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"95bfacee-61b6-4e74-acbf-d2d07fd9bd81","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":123,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"7a79b76e-1696-48d4-89d0-8711b8338c03","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":123,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"403dd006-6247-4391-9fe5-86dcc64ace9d","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":123,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"a9779352-8bcb-41ae-808b-9f3e38743e30","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":123,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"acaed4ee-f55e-4e2d-b135-f08e4c552a41","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":123,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"8730694a-dda7-4d76-86a5-cddc1b4b0433","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":123,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"c83773c7-2a22-4abd-ad03-d7d65958ff60","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":123,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"3eb0f232-a5b2-4bcd-9268-c069b5c16841","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":123,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"aaf5ea9f-be09-4dbf-aa83-10a70e1e5629","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":123,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"cff7a3d6-86b7-4065-953d-bed1eeb2550f","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":123,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"9dbefe80-7867-43ec-9eaf-1e05fbac3093","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":123,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"33e17bf1-12d5-41f2-ac52-f2545f29bd39","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":123,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"55ebc7a5-1b40-4a4e-8e7d-09b23709ea7c","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":123,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"9d642b13-60f8-4ff0-9fe3-7bf3e752f5ed","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":123,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"9382ce08-26a0-4ca6-a19b-acbc5873481d","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":123,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"ab1fd264-2001-46bb-9bde-355075760aa3","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":123,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"e6045850-f007-4cbc-a26c-35633da0c78f","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":123,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"57a1532e-1f29-4ceb-a02a-e61b7b9d00cc","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":123,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"5463977d-b4a9-48ea-90c5-cb6558a9ace6","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":123,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"7d96d6d8-ca09-4514-bd33-f5fe076ac776","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":123,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"45574d90-be34-4db3-8972-95e66ffe32ea","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending oppor tunities for cer tain loans (including by","page_number":123,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"0236ebdb-0cfa-4477-9b6e-3a51ac806898","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":123,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"13d54f3b-7612-4613-9cff-26644fd68dd9","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":123,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"75d0079b-073f-4388-a36c-91ef76d43d83","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":123,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"8b556b72-b727-43b8-9b61-b3fd7aa9349d","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":123,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"c8f3a6a9-f843-46a9-b8f2-76da6f46995b","block_type":"box","text":"eliminating the volume of lending oppor tunities for cer tain types of loans, loans in par ticular markets, loans of","page_number":123,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"cd730af4-d1fe-4cad-9c36-4976e991798d","block_type":"box","text":"par ticular securities or types of securities, or for loans overall. In addition, some borrowers may prefer cer tain","page_number":123,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"5c36009b-2e5a-42e0-9477-823e00bde9de","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":123,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"1e9376b5-1a54-41bb-abc9-c9b03628b156","block_type":"box","text":"regulation.","page_number":123,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"b246abe7-fb1b-46dc-98ae-c11be208ffa4","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":123,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"3f84a415-60ea-4a0f-b8b9-d124741091a9","block_type":"box","text":"order to allocate a loan to a por tfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":123,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"72add804-2058-43ab-8022-d0c82cdc381d","block_type":"box","text":"various program limits (","page_number":123,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"b3dfe456-012a-4f17-a091-41032b992f51","block_type":"box","text":"i.e.","page_number":123,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"773862c1-490b-4d26-aac2-94a05957778e","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":123,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"e8146d8d-50e2-4e07-8635-ab77df2fa002","block_type":"box","text":"hold the asset at the time a loan oppor tunity arrives; and (iii) the lending por tfolio must also have enough inventory,","page_number":123,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"a9afc217-a890-4b55-a60c-36626416965d","block_type":"box","text":"either on its own or when aggregated with other por tfolios into one single market delivery, to satisfy the loan request.","page_number":123,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"428a6087-3dca-485d-bc67-bb8ec4517fce","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":123,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"7e1fe879-29a2-418d-ad84-0660eea2764d","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":123,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"eb902729-c7ff-47d8-9b08-441507012d7b","block_type":"box","text":"Specifically, shor t and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":123,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"5aa724a8-c280-4358-b2b1-158c1f7ba140","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":123,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"5bbc8dca-3952-4ff1-862e-11398c585e5c","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":123,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"f2b99327-f28c-4ceb-8585-eb352865389d","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":123,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"a3a9304f-c876-44e9-9372-bd02df5c2acb","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":123,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"05ae672c-1751-4c8c-b711-e3c3cf1c914e","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":123,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"38b5f6fb-94bd-40fe-8643-64026692b337","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":123,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"ed444147-ec42-4e4a-927f-7394ee7d34e3","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":123,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"cb309e2e-8353-491f-9f12-ca8d5aa54a51","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":123,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"86acd0da-1c21-4714-813e-19e169afe23f","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":123,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"a4d8fe09-c520-4fa0-8255-7f4841d06242","block_type":"box","text":"II-92","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5198cd3e-0fd1-43c8-81df-6f847441b104","block_type":"box","text":"NM1026U-5982509-123/232","page_number":123,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3eec5961-219d-4752-806c-712388047726","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":124,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"118db6ec-53cf-4e04-b0a3-01c33dc4d495","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":124,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"49cde67b-beb5-49b4-ad5c-690986cf91a2","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":124,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"12207715-5440-4668-95f5-ec4c01a21702","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":124,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"8d1df305-7786-451d-a02d-0ee70ce2d6d7","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":124,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"3f57321b-dc4b-4322-a612-23bcb550ab05","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":124,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"ecef191a-d4aa-44f7-92e6-c5741d3ac83c","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":124,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"5f5da75a-feae-4491-a387-129c8d563800","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":124,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"6f1e87f1-b04f-4078-8b61-4947b71f960b","block_type":"box","text":"than through client commissions.","page_number":124,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"70af42ae-651c-46fe-852a-474aa39a992e","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":124,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"d8309c08-30a2-4c68-aed2-6cd2ca5dea0b","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":124,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"79cea5b5-332d-4798-adae-10f091aea3e6","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":124,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"b374e758-20dd-4b87-9b9d-4a24f6d2b19e","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":124,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"85cf5014-550c-4ec7-b657-80102490f032","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":124,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"11f2faf0-a662-461b-9dfb-1f0fad6f4745","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":124,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"2d957bb5-de02-46ea-9d33-3d05e94dbf12","block_type":"box","text":"research-oriented software and other services and products.","page_number":124,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"5a61f0f5-2594-483c-a93f-ae63b38f5b34","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":124,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"7c3a5216-0879-4fc7-8aec-5b1d59720f76","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":124,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"b4ec3d6a-d297-44f4-a448-b60e797bab7d","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":124,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"6c1130cd-97ef-45db-849b-c6989b9b2b43","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":124,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"e23f55d3-ff7e-4e16-b133-c1d5cc1b2b74","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":124,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"dac13063-8d17-4651-82d0-266810488e4d","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":124,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"ed52466e-d5ee-471b-bf6d-39ce1be6340d","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":124,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"1a911808-9c5e-4144-87d8-0cd9daa71ba4","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":124,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"2ef8d39a-910e-4981-94d4-d6cf4051f36b","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":124,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"0c7169a5-840f-4684-9512-7e11136c2896","block_type":"box","text":"and services itself.","page_number":124,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"64b8e859-25a0-4777-a279-5d7801e0ad35","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":124,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"a2b21283-3440-4686-87bd-d649ff0f6731","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":124,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"15912858-d4dd-43eb-a12a-a715e2af8638","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":124,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"5782a51b-cda6-46c7-8493-1c8758fdc5a8","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":124,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"0493588d-13f9-41dd-b77b-0685e3dafc87","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":124,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"d9613885-bb7e-4cf7-80fd-71d28882ba01","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a por tion of the commissions or","page_number":124,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"8c3f0bca-7a58-4d90-a04c-ab2a33754417","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":124,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"2b15712a-f769-472f-886f-925b4ad9726c","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":124,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"6ab3b159-59f6-49fe-8ea2-1c29b2be96f4","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":124,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"246ba1cb-d131-48ba-8bd2-d5776cd3d061","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":124,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"ee39d53a-a2b7-4f55-aa6e-f0dfab15514a","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":124,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"2f9e0784-b746-4287-a990-a1ea530573d6","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":124,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"213d5e67-7abb-4267-8630-f63c93d7b7d4","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":124,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"0bc4f22f-5ab1-40b8-9659-0e48229f451e","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":124,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"5e49236c-85b9-4ca2-bf48-55b687c38ecf","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":124,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"fc5b52d9-4a95-4b1b-a9d8-8f3abcd72242","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":124,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"f1e90a60-3486-4a1c-a250-0f5d99e90a8d","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":124,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"053dcb00-a0be-48cf-9fea-17e3aa1fa09c","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":124,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"7762e47d-7840-4627-a62d-81fe5b48064a","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third par ty brokers select MEMX as the","page_number":124,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"a0f7ac26-3cbf-44b5-bc9b-6980e31bdcbf","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":124,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"e60edb3b-10fd-4a67-a680-3eb9259e70fa","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":124,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"809fdcf6-8dbb-41d2-8311-1f60dd7b7c0f","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":124,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"dc02a7a9-840f-4fb0-a6e7-3a372802206f","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":124,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"eec28d72-8ec8-4b71-a4ef-caa4cd3411a0","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":124,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"913fb4ce-b504-4655-828e-ba1058e3e87a","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":124,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"3107a967-3713-4350-99a8-596bcdf1c4af","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":124,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"0bab4dde-7801-4eae-ab11-369d318168f5","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":124,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"480df129-0def-42a5-aeb8-3615757a736b","block_type":"box","text":"II-93","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3e24f02c-a56b-42a0-a83e-121fc1ad05d6","block_type":"box","text":"NM1026U-5982509-124/232","page_number":124,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1722c034-a93d-47b3-8572-5e1ba18ee3d1","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":125,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"247859b0-0386-4934-b2ca-b60ec1e87052","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":125,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"884c598b-d198-43a7-9dea-0a87ced08f27","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":125,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"43d47403-b1ed-4996-b51e-8ea504951ff8","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":125,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"9cab1b39-9f3b-421c-9dfc-7e63f587a89a","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":125,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"4913fdd0-5331-43fe-ba1a-b0ff0ba68756","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":125,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"75a37563-9482-413d-b793-4d3ef4c9988a","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":125,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"d39e63b8-cc05-42a4-858a-19e3c360ad59","block_type":"box","text":"consider the effect of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is","page_number":125,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"03ab7777-0d0b-4722-9d3e-77ec30f51f58","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":125,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"69929315-c301-455a-9d7d-e33ad8e3f898","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in which","page_number":125,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"60e3cdb9-9437-4a96-a8f4-8e07a11db03f","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. A Fund may also invest in issuances (such as","page_number":125,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"2666b618-0d1e-4038-9295-3c47f461289e","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":125,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"a13cd4c6-fad2-413d-a334-5ebeb19e2946","block_type":"box","text":"relating to the proceeds from the sale of such issuances. In making investment decisions for a Fund, BlackRock is","page_number":125,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"6d817608-655e-4d7e-a1f9-cca539ab7d36","block_type":"box","text":"not permitted to obtain or use material non-public information acquired by any unit of BlackRock, in the course of","page_number":125,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"b8268a7f-d4f0-4ec3-8a06-229953b0a90d","block_type":"box","text":"these activities. In addition, from time to time, the activities of BlackRock may limit a Fund’s flexibility in purchases","page_number":125,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"09b15a54-6c4e-4d79-a471-1a5ae941089a","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":125,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"a3f2c77a-745c-493a-ba60-2d4cd8bf5de1","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":125,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"e28529ad-9aa3-49a3-9076-c22afcbc67ab","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":125,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"4920c4c4-de2d-42e6-a336-942584700753","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":125,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"87a13002-9955-4e1e-8867-c4bd6d8a1ec8","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":125,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"26e2c6c2-e45c-4574-a91c-398119b9afd9","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":125,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"381220ba-903d-49ab-87cb-61ca933bccde","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":125,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"a85670cc-33b4-406e-a711-be5fe91042d1","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":125,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"56efc9c9-8484-43bc-8c81-75c5eb093615","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":125,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"9a10cdd7-1865-4047-9766-a3cd48b235e0","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":125,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"6a52d92b-cb24-415c-a0c0-f2193ee16eb8","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":125,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"e056f728-845b-40dd-8ff7-33d19f22329c","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":125,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"b2a8274e-952e-43ad-ad81-582cc0a305d8","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":125,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"0135bb3e-d3f5-4bc9-85b5-2ea7796bed27","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":125,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"9789f652-af39-4694-83cf-28ab118d1596","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":125,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"23658981-2179-4754-b51e-0c2c7136ac79","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":125,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"10fcfe9d-29f0-472c-8f28-09415737dd83","block_type":"box","text":"may be instances where the Fund’s pricing vendors or fund accountants assign a different valuation to a security or","page_number":125,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"a5352231-25f2-4c0c-b318-f07674e50e51","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":125,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"8bf8da08-8f0b-488a-9ae8-a9cfa48bce99","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when market","page_number":125,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"935660cf-6e21-4043-b6c0-576696f00889","block_type":"box","text":"quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s investments are valued at","page_number":125,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"8eb9b9f7-b259-4fbc-a018-00975002d756","block_type":"box","text":"fair value by BlackRock. BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":125,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"6540f24f-0a84-4b6b-b87d-385dd40853cb","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":125,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"aed8892b-9ec4-45d3-a719-3417556946a2","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":125,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"7750c519-7ea2-4ad3-9fde-bea7d53a52c4","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":125,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"f2e7e47f-6620-43ec-93a4-b84567176e61","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":125,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"f7630f60-4e02-496c-8d24-92890ae552b2","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":125,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"746fddad-e0f9-4540-9b1a-822f1ec2995c","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":125,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"b3756d51-b3bb-426e-bbf0-8260604fd036","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":125,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"4ce56954-b727-4818-b124-a0d4e4488c10","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":125,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"f68bda0f-b71c-429d-ad9f-059e6fbc52d3","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":125,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"58973876-2545-42bb-a936-c6483bcb250d","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":125,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"365b6470-9bb0-40ec-a941-72a0382b3dad","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":125,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"cd6c529a-4dde-45cc-84b3-584b489f0dae","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":125,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"ff69e1ad-b86d-4d1d-b9e3-4b9281e0f8f4","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":125,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"9ab8e053-78b7-4765-9fc8-a6f0edd14adf","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":125,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"3fc121e8-7cdb-4907-a9f2-a146e98c22a4","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its shor t term cash investments in","page_number":125,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"58da8ee7-d3ef-42a5-bf56-62ae9ff161c7","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":125,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"b79befb7-10b4-492f-b45b-5a01fd4082b6","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":125,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"3926b55e-8e9a-4164-a17d-0fe5d6e02e5b","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":125,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"d10d53dc-90e9-4a4a-bce8-e4c9b5b1eac1","block_type":"box","text":"some additional expenses.","page_number":125,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"896a6cbb-52c7-416e-92a6-13ea0ee44085","block_type":"box","text":"II-94","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"013f923f-4317-4282-9156-e428b030fbc1","block_type":"box","text":"NM1026U-5982509-125/232","page_number":125,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b29f6bbc-0891-4b7b-9f06-177dbc663fc6","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":126,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"83ad220e-194d-42b5-98b2-974c73da6d3c","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. As a result of","page_number":126,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"b3842b8a-88a3-4662-bf56-1c14c7d77724","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":126,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"4bcbdd57-b5cd-4aba-8efa-f0c1a3be1d9a","block_type":"box","text":"employees of BlackRock that are the same, different from or made at different times than positions taken for the","page_number":126,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"57ae41c2-0388-4514-817f-4a304481babc","block_type":"box","text":"Fund. To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":126,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"c2e4bd46-1507-4e59-ae6c-6e338a1a02cd","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":126,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"9ff11776-b655-43c3-ac3b-c421154d5201","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":126,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"5b6242c6-49b6-440a-8791-48095be177e8","block_type":"box","text":"possession of information regarding the Fund’s por tfolio transactions. Each Code of Ethics is also available on the","page_number":126,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"d4ad673c-276d-453e-a57d-269c71288042","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":126,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"a42df6d6-e9f1-4cad-8a30-4e51b1f67c1b","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":126,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"cfcd0fb5-c835-42f9-a911-60a8b6f20b7c","block_type":"box","text":"BlackRock will not purchase securities or other proper ty from, or sell securities or other proper ty to, a Fund,","page_number":126,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"de1aba21-e020-4f9e-9530-0c818a66e904","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":126,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"a78739f5-76b7-40f3-b983-7ce9dfa90d3f","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":126,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"f971988a-af4c-4358-a939-8cc4ff3ea5dc","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":126,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"4f99e709-5a9f-4e8f-9c96-32572cd13f14","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":126,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"724a42e7-8419-4d7c-ae5b-b6d5fbaeb780","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":126,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"f028ebb4-777d-489f-9d32-d3517f8102c9","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":126,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"61d8b0f0-b543-4699-9544-9bad076ed5d6","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":126,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"f3075eae-d1dc-4203-8435-28e2f49bc07e","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":126,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"d2d41604-bc59-4d75-bd8a-0a8a6493bd1d","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":126,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"a20066cb-a1f9-4030-b371-f477f1bbefdc","block_type":"box","text":"initiate or recommend cer tain types of transactions, or may otherwise restrict or limit its advice regarding cer tain","page_number":126,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"ca13e1af-0ee9-448a-92bf-70434a00a984","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":126,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"ab629973-d047-4318-8b11-d04ce65a5c38","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":126,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"36636739-09b7-4b4e-b9ef-cb952ed4b3d2","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":126,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"732a1663-a16d-48c0-8ed0-85d87368f1f5","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":126,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"e7c85be1-2313-423c-904a-973689a6c7ec","block_type":"box","text":"public information about the company (","page_number":126,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"fb44094f-ca89-43b0-b47b-ee07c8def0ec","block_type":"box","text":"e.g.","page_number":126,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"379c3af9-4dfb-4f00-bf65-3bd9cebb9913","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":126,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"cae4414c-776a-4d2c-b6f7-304c83251eaa","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":126,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"cbbd59a2-c45f-4b07-8531-ada1f51384b7","block_type":"box","text":"BlackRock from effecting cer tain por tfolio transactions or taking other actions in respect of an investment on behalf","page_number":126,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"8a484c6a-e540-443b-8391-0d7f274215d6","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":126,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"a42abd97-5673-4f30-8159-cfeeb3cbdc32","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":126,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"af042ac6-a35a-4e90-b15f-7024411ceb29","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":126,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"e1be402b-93e3-4822-9234-30101abd686b","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":126,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"6a69547f-107b-4e61-80c7-6ac970863853","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":126,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"65ff905d-1964-4a33-ba80-23410535d851","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":126,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"817666e1-3d2f-4880-926d-282abdd61ef4","block_type":"box","text":"of the issuer.","page_number":126,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"63263ff4-6126-49a2-8a89-4a4700a25a22","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":126,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"57a7d31f-5d84-4487-a4d9-82b3b6005407","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Cer tain","page_number":126,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"6c6be343-27bc-4e78-99f6-0e56208372d1","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":126,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"ca94841b-cc3c-4466-969a-5e81e1f3f010","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":126,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"45190dc5-c44e-4b87-9d35-1d941eb6f173","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":126,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"07068623-db6c-41ee-929d-04c90e707f73","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ por tfolio management teams. The","page_number":126,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"2172f8b6-b37d-49ee-b36c-87e2d707cddb","block_type":"box","text":"various por tfolio management teams may not share information with each other, including as a result of cer tain","page_number":126,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"c5635062-e3d0-44a5-8e72-7ef6d9f85212","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":126,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"47b2b857-dc2e-4069-96cc-34ec50fc5f55","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":126,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"fd52b56e-9d54-402c-97a7-cc4f77884fe5","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":126,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"93b3e8db-1895-4daf-9a80-e725a63ecace","block_type":"box","text":"por tfolios and voting proxies with respect to cer tain index equity por tfolios versus those responsible for managing","page_number":126,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"3ce757bb-d552-41b5-9ac1-d5fd0fba41ae","block_type":"box","text":"por tfolios and voting proxies with respect to all other por tfolios. As a result of information barriers, cer tain units of","page_number":126,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"fbea964b-e823-4d15-a3af-52304d494d48","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":126,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"ee7192e7-1b9e-418f-b181-5196ff4ec81c","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":126,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"f648be42-6ef0-4b4d-b953-c968264368d2","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":126,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"0805a471-7274-411a-98c2-f7620b953639","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":126,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"095bfbc0-ed70-42b3-84b0-82912260b06c","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":126,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"324def26-4728-4227-8bc5-a0f272541378","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":126,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"80cbec92-d66e-4b4e-9b82-fde5515d7b91","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":126,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"577cf9e3-bddd-4de3-8e69-909e5f9e116e","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":126,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"a0ddb029-7974-4930-851b-b97b1a0f473e","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":126,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"593cec03-bdb4-4aa2-b6c1-06e9a9cae877","block_type":"box","text":"II-95","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f3bfc0c3-1fac-4d14-91e4-beb79bedbd18","block_type":"box","text":"NM1026U-5982509-126/232","page_number":126,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d1e8f881-b1f1-43cd-ac12-5d96adce4075","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":127,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"a4856a84-9ac1-4355-8da1-84a085db922a","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":127,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"1ff88803-814e-427d-bcfb-553d8c28476b","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":127,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"44095e44-49b7-45f8-a679-3f2a35e06265","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":127,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"678b5e77-6f40-4738-945b-acc15ce3ad1e","block_type":"box","text":"a barrier.","page_number":127,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"4f9525d4-4c2a-4339-a4cb-b410486a525e","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":127,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"d42c41bc-d20a-45ca-a290-4eebc65afa1a","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":127,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"fe4a5dfa-4023-4a0e-b6a8-433ff6370f45","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":127,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"11b29cda-e31f-4008-80fc-a7c14f76f092","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":127,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"7a7b5099-8edd-4af5-90c0-3b6af2c85e6f","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":127,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"f9bff362-0cab-493f-ab12-53120d7f5682","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":127,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"95903ef1-e14b-450a-aaf3-7370ecdb9645","block_type":"box","text":"that operate in cer tain industries (","page_number":127,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"ad5ead7e-d9e2-420a-80ea-057965c8ae0b","block_type":"box","text":"e.g.","page_number":127,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"3b76b4c6-8814-44fc-9361-0c8cf700cbe1","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":127,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"efd16355-0074-4eb9-8254-1b37aa8cc256","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":127,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"ceca0690-d2c8-4edf-bd1f-647236b2c6fa","block_type":"box","text":"e.g.","page_number":127,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"6c6fb6bf-dbc7-4507-9c4a-3fa8d8b27eff","block_type":"box","text":", with mechanisms such as poison pills","page_number":127,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"a9664f3c-1170-4cc9-b6f8-3b354e7a092b","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":127,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"1ecb9a3a-d0db-4119-b87d-97e69e38266f","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":127,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"0d07883b-152c-4bc8-9094-1eacf7d37506","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":127,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"614d069f-7491-4edd-9b86-a7249f0b6bb0","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":127,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"04f4ab6d-05fa-4e45-8e47-1795310b2fb5","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":127,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"b31afba2-480e-47fe-bf72-ee7be1faf996","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":127,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"cadb7fe7-a025-46f3-b197-4732768f2d73","block_type":"box","text":"seek to make indirect investments (","page_number":127,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"e9f997e8-13e0-4e8d-ac58-84c84264935a","block_type":"box","text":"e.g.","page_number":127,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"f97156dc-379a-4552-b20a-16247f6d1735","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":127,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"9afa381d-4887-4e4d-81e7-fe065b0526d2","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":127,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"c17d6949-4f01-4308-8e6a-cc7b57c286a0","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":127,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"5f54a412-b51f-49f6-9949-6978c33c40b3","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":127,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"c7cfa868-6083-42f5-a42b-10f5c2faee12","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":127,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"ac869736-29e1-4336-bfd9-d72b8a554431","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":127,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"c20bddc9-8794-4cba-abfb-82c581ec9d1e","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":127,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"8acdf4d6-b71c-4027-bd42-4b6ad1adbc5f","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":127,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"d9882d48-2bc6-410d-9d60-93b9d93f63c1","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":127,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"e377d3e2-e227-406d-94f7-4ff4a7ed2740","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":127,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"c4772e55-7173-4ec4-983f-449b901c7aab","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":127,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"3a499334-b5cb-4fb8-a30b-3efa2d7fb607","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":127,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"be30fb9c-01a6-4211-961f-249e70545876","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":127,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"4a41ad2d-b6c0-498d-8fe7-613c570feeb9","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":127,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"16eacba0-3bef-4304-8065-a407dab168f8","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":127,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"897fe879-e239-42bb-ac2a-c70a56e832a9","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":127,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"2eff39d3-1abc-453a-b452-dd4e2a117c83","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":127,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"758092d7-ffba-4dc9-8a61-51dfc6b55842","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":127,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"d3aae0c9-b529-44b8-a977-cc272f29cc38","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":127,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"35e74032-f82e-436f-babd-23777b4fab4f","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":127,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"20cc2b9f-984e-4b7b-a3e5-22e5fa15f131","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":127,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"c18acda6-57f8-4920-beaa-f27549848d05","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":127,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"b65f5ba7-c3aa-4c35-a12e-a2d795be8e22","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":127,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"3dd49a37-55de-48d5-8587-501a807b9641","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":127,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"a9c0dbd7-9a81-4148-9d18-569a669d9516","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":127,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"9884c70c-c567-4d1f-9c0a-578270ba7333","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":127,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"4dc2cd4b-3623-4188-8a8a-8ec079138e10","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":127,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"b7e74544-14ef-45b6-979e-56bb1c742830","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":127,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"d22410a8-4e77-4560-b3f4-dd3b973fa35c","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":127,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"d54918fe-2713-433e-9f74-69c35f975958","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":127,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"80a928b6-c3c7-4941-b2b6-3f5f27b9a3e9","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":127,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"4b9f52f3-f793-4e7e-b409-ed88f223c400","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":127,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"16f0fc1d-516a-4a85-9eb2-57e8f113555d","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":127,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"b6aaddc2-b5bc-45a3-9849-5533b9e8a40c","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":127,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"0a2038b3-072f-4f24-8d62-3a9e740d3806","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":127,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"1503dbdb-2bd3-46f9-8f8e-a98f75df065a","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":127,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"cebe9fea-a4d5-4050-9d11-7c3bab768c8f","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":127,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"22bbee87-9807-4676-9cac-c1188eb2fcdf","block_type":"box","text":"II-96","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f34e8b2f-dc36-42c4-8263-f047d13b2ee9","block_type":"box","text":"NM1026U-5982509-127/232","page_number":127,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f4b2a819-3878-4c12-a3f9-cb841d27c2b5","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":128,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"836f8287-3aab-4ab4-a7cf-265344352df8","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":128,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"c6c2343c-c272-44da-8999-fc9b2adb7e75","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":128,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"025bfb4e-e994-4feb-a0f2-d54267279e23","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":128,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"934620bd-6ee3-49bc-baea-b7b6982781e4","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":128,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"559addae-6b94-4e48-8a30-3441e9bc5573","block_type":"box","text":"strategy with respect to such security or asset.","page_number":128,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"d0bee8a0-70bb-4a85-afb8-0767dea27f0f","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":128,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"858c4d43-3871-4602-bc52-cf96d0c72cd2","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":128,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"07fc815a-8a65-4019-9502-cb3162e17bdb","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":128,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"41ab22c5-b65f-4325-9c6b-5317cb2aad7e","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":128,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"24be2c53-834d-48a8-829c-090cc71cbf74","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":128,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"2ffb2aaf-adbc-4a32-a2c6-4a100126cdbd","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":128,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"de8220ba-a498-4fd3-b594-27bdbf779a95","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":128,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"431b9525-e92d-4833-ba72-c8110c6aafa6","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":128,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"2131e382-1765-43e8-819d-7973bb95d8a6","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":128,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"a0fe2bbf-7ea5-4f97-b48e-af169144c053","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":128,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"fef40580-ccbd-42b1-b479-6775fb25ddb3","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":128,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"ebd09056-08e4-41c8-8710-610e44c08cb6","block_type":"box","text":"e.g.","page_number":128,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"f46a935e-47e0-4f69-b45d-84063e3b931c","block_type":"box","text":", custodians,","page_number":128,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"16c92d34-8e88-4537-afa4-92b0e695daa0","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":128,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"d60ba150-854d-4d0c-8c77-7703d97f1c71","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":128,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"3b202a3a-b8a4-4f99-a062-17d3f67523db","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":128,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"5d0b1d1e-93f8-4980-8b7a-56021423b271","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":128,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"48582693-7ee9-491b-af01-8e9487a4b546","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":128,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"7ea353b6-f756-4483-a034-267ce535a245","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":128,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"f46d7265-273b-4c5b-abcd-b23b3ed048be","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":128,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"1e6b91b2-1b57-4c24-8079-1fca48e8426a","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":128,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"7e3d5817-c0d8-47c8-b8b6-9a6ceec5b793","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":128,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"b60f1e14-ab40-4c82-8a8a-e1f46225f71f","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":128,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"9e0acd8c-fd3d-4b0a-b433-8dcf6b3e59f4","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":128,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"2f7a5985-cf33-44c2-9178-569a2fad1447","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":128,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"9f5d181b-f9f5-48ab-af07-6a4cdafb6dc0","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":128,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"279c75b3-0c90-4103-9fd0-49636297b37d","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":128,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"6af46a1c-56ca-4755-9b4c-1fd84011dfff","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":128,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"0a4a36be-361c-444b-b225-145212c97e27","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":128,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"0a8d5b60-4450-4305-a282-2c4c464acfb0","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":128,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"3a0b1bf7-5a30-4d84-945e-a1de498858ef","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":128,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"8c707c98-f9cd-49da-9916-33d08544d077","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":128,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"5f2e6989-d069-4d35-89b9-6b1dca590fcc","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":128,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"4c01ee14-bb1d-4fa3-987a-ad934dd1dc28","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":128,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"3e0c5c3f-33cf-4ec6-9601-c15a13079a8b","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":128,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"296d93a5-1632-44eb-9f1d-7b118f4f3000","block_type":"box","text":"provider.","page_number":128,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"c8d8a0a5-976b-4930-ad43-70f3c6518bac","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":128,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"4c35f392-b896-4717-8e21-8be084f054d3","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":128,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"8162870b-721d-4fd3-a77a-75d8341e3b20","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":128,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"6ac6ba64-64bc-42e9-875f-de74f4966fb9","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":128,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"142bee05-7bc9-4703-9342-e695407c9952","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":128,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"4fc6335d-c472-4d88-8c5c-a26387cc678d","block_type":"box","text":"PURCHASE OF SHARES","page_number":128,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"423294d6-2860-4788-b526-8e9353c1cb70","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":128,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"037a4de0-7cc8-4084-ba20-c4dde749a22d","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":128,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"413dfa4d-8ce0-4048-88a0-a71422ff1b42","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":128,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"8db52698-e13e-4dc8-9341-d59d6b56d68d","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":128,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"51837db4-1ba0-4569-996a-9740b828249e","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":128,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"61553793-c966-471c-bee4-e9a9ef2c8659","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":128,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"90f78100-789c-43a0-ac92-e65859dcf531","block_type":"box","text":"II-97","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c39afb17-bf99-47f1-8e8a-15b5bc901adf","block_type":"box","text":"NM1026U-5982509-128/232","page_number":128,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cfb43875-4357-4ee0-b15b-7d92a52cf64d","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":129,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"dfe6bb52-6d21-4ad4-b9e8-26a63c5ab77c","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":129,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"18a15b7c-154c-426f-839c-d8afb185b926","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":129,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"48de5f39-6129-4b49-8bea-31321414c4ed","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":129,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"6a57b879-f5fd-4161-8263-abf9cfc02a96","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":129,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"d6e4f5a2-9fba-477e-88f3-a224438674be","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":129,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"02a02d5d-2f06-4e6d-9ff5-a0d97c0c59dc","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":129,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"df222eba-7c29-4c80-a3ff-8020ec00ab4b","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":129,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"ba924d17-6fef-488e-ae3d-539aa154431e","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":129,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"22e660d5-d99c-40f2-91ec-88a8649e1259","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":129,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"96ef819e-b6d5-4e32-aa39-0011fb1d6867","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":129,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"8d6ad5ec-6a63-4d40-a60a-bcecbaf325ff","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":129,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"65965815-1c2a-46d4-a202-9a5296fc97b2","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":129,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"53a62612-82d8-43ab-8f7a-5bcd1dfa24c9","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":129,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"49fdad3a-e532-481d-8aa7-f742b562da09","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":129,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"4b8a2fb7-39b9-4c1d-9878-a07d09bc8f1f","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":129,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"0c8d2b26-1daa-4f2f-88d0-85a283f9b047","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":129,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"6a180324-904e-4296-aa57-9dfb72dd6578","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":129,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"f41f7896-0e0f-47d8-9fd8-af555ba44df2","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":129,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"f50d3333-2c3d-41d7-87be-c903559b6f7b","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":129,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"456157e0-7f72-4de5-a938-c5f389455db3","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":129,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"3911cba1-a65b-4a46-9446-133533c906a8","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":129,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"83564faa-df5f-4aef-8ee6-719e8074b941","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":129,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"b4337713-8b15-4a73-8ec2-0a1f4260345b","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":129,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"dd7879f2-ca0e-4264-ad86-96f6b79b513d","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":129,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"6656e4d9-7e8c-44c6-b1ad-360e5e571071","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":129,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"f593e7f2-2910-462e-b261-bb05f97ca550","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":129,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"d27612d0-5801-4d9f-89c0-f8b979050169","block_type":"box","text":"investment is $25.","page_number":129,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"7c4ba71f-f3f9-4469-96dd-10bd77367288","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":129,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"30c1b58e-7fbb-4f84-b764-8a0791b8944c","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":129,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"320373da-7aa2-4c67-8740-01115946f5c1","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":129,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"cf036fbf-a3e7-430d-81ce-0e3955399873","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":129,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"a78576f5-cac1-4349-9988-3d0bef452e62","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":129,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"8ca72605-d20a-4803-a416-6d57a04e3002","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":129,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"8c3525f7-d9a2-4c04-b494-ee2d8de1f3ef","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":129,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"f3ecd665-ea99-40d4-ace2-e2a89752651c","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":129,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"ffec7ba5-92d7-4200-bfde-805d439ae14e","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":129,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"351da8c6-2051-4dd9-8b8e-e08f932174d5","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":129,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"6716a2c3-35c4-4ac9-bb36-69cdfc31a91a","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":129,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"8807490b-40d9-4b01-9141-5085c244d255","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":129,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"210f2431-34f6-4425-bde4-182b4850dbcc","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":129,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"88330471-edf2-46a2-82f2-1fac515b9a16","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":129,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"c28a6b50-1535-4093-b370-946b2be08f8b","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":129,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"e74a8937-8501-4f76-83d9-7b69cbaacce6","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":129,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"6f9aed43-ff2e-464b-9a84-4c29a98fe8c4","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":129,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"e0d4a2a7-f814-4fda-8e27-d92063176d74","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":129,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"384c2f2e-2d29-4f47-9107-e1a4d40c83bd","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":129,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"ac862844-6b94-4837-bde4-bd7416bf46e3","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":129,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"3bb1f1ad-1c31-4b04-bcc3-7062d739840d","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":129,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"8dd3b677-cf23-4423-a786-ed8d0a43be12","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":129,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"15f97635-a03a-4548-aa3f-7e7ca5d66a5c","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":129,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"6ad96e8a-afca-4c15-b377-676b7bc2073a","block_type":"box","text":"adviser.","page_number":129,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"158e23d5-33ee-4ead-8b98-a2cd4a4cecb9","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":129,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"72539c34-7b1a-4d07-9841-518a4d139006","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":129,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"9d88dc40-d8cf-4c27-b97d-792998a02fdc","block_type":"box","text":"II-98","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dc6d22e1-b94d-4180-9e15-a62b44d2bf98","block_type":"box","text":"NM1026U-5982509-129/232","page_number":129,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"07a9191e-2a8c-451c-92dd-ee1f1a35c729","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":130,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"e23eae91-1e0d-46f7-8ab4-1e9b9397a921","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":130,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"668586be-2c89-44df-a738-fcfc9d3a881f","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":130,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"d1deeee2-2cb3-40c9-8bf4-1d25c047eaf4","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":130,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"974505b8-cf97-4a57-be97-6401eafda5c1","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":130,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"891efd39-8dca-4848-8f3b-88338ea012bd","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":130,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"f18a2987-3d1e-4f29-af43-ff35dd0c0694","block_type":"box","text":"also be restricted from making additional investments.","page_number":130,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"8237a8da-3dde-4751-b107-9a2ecd9b7f44","block_type":"box","text":"In-Kind Purchases","page_number":130,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"d224bae0-d982-4354-92ee-3802e7463ba2","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":130,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"0041af78-02b1-4db4-8aff-77a5cfd1429d","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":130,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"991fabb1-68cb-4b4c-b69b-94788a54015a","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":130,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"ef45296d-3411-4cae-97ac-c61867f0eb6a","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":130,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"dc98df68-ec99-489f-ae35-1380a391598c","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":130,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"651d982b-8369-48cb-8134-1bf14e04e94e","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":130,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"0fc143e8-5050-4b63-9ce3-cc50be77e2d2","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":130,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"67e758de-30b0-4e1b-bccf-13da07a3f5c4","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":130,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"0e5315a8-08bc-4c71-a2e2-a29d6c850a6c","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":130,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"da068e77-c43b-4106-bb33-f275b5e896cc","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":130,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"8bdd386e-db3e-4ce5-9575-dddf2e435544","block_type":"box","text":"has settled.","page_number":130,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"a636dc43-e2d5-4353-b64d-d613893ae2df","block_type":"box","text":"Institutional Shares","page_number":130,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"1aeab40c-9190-4cdb-b57c-6c199e640eac","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":130,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"ae227240-b38a-4da3-82ef-fba84e7477bb","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":130,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"856bc2f1-2fc6-4b5c-8f37-407b78ea913b","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":130,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"9e31d0aa-f9fd-4188-acb2-1ae8252e88b2","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":130,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"d9ae4696-cf0d-4e61-a4c5-d0fd6ee31bc7","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":130,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"a0bf441a-111e-461b-a2c5-9a8f496954ce","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":130,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"a1d50f29-3316-4805-ba8e-cf777dfe4aef","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":130,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"3553d92e-9d36-43bd-b4a5-6cede44565a2","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":130,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"019fe618-0b0d-4dc2-93f4-1c6fddba36d1","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":130,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"61b3cb3d-6418-4183-aa9b-850f8c16748b","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":130,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"4b35fc66-e88e-4eb4-bccc-449c57239453","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":130,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"1e90550e-c803-4f69-b8de-52b227378383","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":130,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"b703d971-9b24-44e5-95e2-2431130ad49b","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":130,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"93af37fc-8194-48cb-914e-a3953d90aa6c","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":130,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"832275e6-74fd-442c-93d7-50043a38a00a","block_type":"box","text":"these fees and conditions.","page_number":130,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"1c53e3f9-7e54-4af0-9e06-359621d2d886","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":130,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"6588c5bb-7fd2-4db8-87d7-563a0197b755","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":130,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"4c1133f3-9c90-43f6-80f2-55e845717075","block_type":"box","text":"cer tain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":130,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"6609e2e6-0641-4798-9c1f-7229e75c58d0","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":130,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"c5135c12-b3bd-46cc-a6d9-7bfafe581bc7","block_type":"box","text":"incurred by the Fund.","page_number":130,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"9c8f6d2c-0570-4181-8763-4ca1cb3f3b35","block_type":"box","text":"Cer tain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":130,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"83bd477c-daf4-4872-a5b1-75b2969b1e0c","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":130,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"0dd3dc74-40d9-443e-b492-bd8c07eb0629","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":130,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"4b82a4f3-7ebb-4f43-9953-7cddb63bd0b5","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":130,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"efc9d667-f2cf-4077-bfab-cacbb5dcfa12","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":130,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"dd5edc63-7def-4b24-9264-fa36e873f03a","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":130,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"a0b784be-e16b-401b-ac7c-ace51829ada4","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":130,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"c44fc713-bfbd-4cac-93f7-b40b14d95793","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":130,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"8733226a-ea24-4289-aa03-6a908cda1cd9","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":130,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"57b362db-6ecb-4128-a4b1-0ecbd2dc1d9e","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":130,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"7771ce12-079e-4265-ab36-ca1284caa4e4","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":130,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"2ceefeb4-4003-4ef5-be7b-001c79a76210","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":130,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"9519ae63-8e01-42bb-98a4-d0ad4939393b","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":130,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"83f903a2-5b6e-4c5e-91fd-d63655209c54","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":130,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"baa6ecea-8a9c-4fdd-97ff-c96e133433e1","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":130,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"7b814326-ec1c-4c38-97a9-387e723ef4e1","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":130,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"a1392a8c-7368-422b-a1f7-097dea8cb23f","block_type":"box","text":"II-99","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b1d4883a-d8e2-4180-b423-dcbea4120dcd","block_type":"box","text":"NM1026U-5982509-130/232","page_number":130,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b5b60c07-0be4-4fe2-a150-8684e5bf455a","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":131,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"2a7cccdc-471f-4271-8ad9-a0f6c4edde12","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":131,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"1d1411b6-0260-48a5-a547-57f442a2570b","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":131,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"77b9427e-e1ac-48ed-97ac-f86d68121b8b","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":131,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"beeade62-d17f-4d5e-b659-7db381862922","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":131,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"6ebfe1e3-898d-43e5-a824-01758eed3481","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":131,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"b8e66d29-ab0b-458a-962c-d1889981b587","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":131,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"7b6d7066-e276-4846-80b5-a7aa62a490a9","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":131,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"f8238e40-3a3d-4f09-9b6f-78cf258e0280","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":131,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"c9cba140-7359-43eb-a227-832c6eca778a","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":131,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"2fb0b81b-a2bd-4677-91b2-f768b47a75bb","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":131,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"cb386510-7acb-402a-9432-12eb350abcd3","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":131,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"879121a1-4ea1-4ac1-8000-2615599cfd4f","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":131,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"dbb5e34b-83d7-4e11-90e9-7229627bbd7e","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":131,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"19b123e0-ca50-4782-8e8b-49eacd326142","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":131,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"9d2b4126-a881-491a-9df0-9588b535ad5c","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":131,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"9def897e-0d5c-416c-a608-de9d767b0e82","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":131,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"27a4805f-dd28-44ec-b652-afa5cbb01ce5","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":131,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"0969a795-86e4-469b-8a21-8cf439eaaf1f","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":131,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"70181f6c-e5ee-4b61-a73d-0e1aa491b70d","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":131,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"23948285-6314-452c-bbc9-8ee1017fc27e","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":131,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"09cfb8bd-e441-407b-9536-c24b6f4e6838","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":131,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"7fb0204b-2a5c-4981-bb05-3a402ddc76ed","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":131,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"65b9d307-d7b7-441f-91a3-615f74fa4fa6","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":131,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"5b0e93c9-bc49-49a0-866e-f50957e86454","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":131,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"9e29152c-51fa-4053-8eda-9fb7aa2deccf","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":131,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"b16ea09d-1651-4613-b550-1d6dcac8a561","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":131,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"710f10d3-d4a4-488d-a5ee-fb660be7e2ea","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":131,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"5df78cad-a82f-4ee5-ac98-c176e1bdc679","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":131,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"fa3e28e7-f891-4d21-9d6d-339b58d3c830","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":131,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"2beff19e-2296-44bc-92ce-3ea99308518b","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":131,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"6751abe1-8e49-4d7b-befc-2d3efb8bc10d","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":131,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"24770ed8-0b29-499f-a269-336db2af1395","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":131,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"cc4a9831-8168-4df7-99be-29e46eb4e699","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":131,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"f49c5c06-1974-493d-9d4a-6957cb2a158e","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":131,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"72c625ae-40ad-4cf1-aa71-7006b4f42291","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":131,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"cc93e79b-705c-4262-aec1-9976c7ad4539","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":131,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"46125e06-c5dc-4ad1-8cf9-e4d494b00d5b","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":131,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"d54e0ef8-3e66-40dc-adb1-aaea51a2fe6c","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":131,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"6d967fa3-4938-4e20-9f2f-ce99cc1f052b","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":131,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"94380f5e-f895-48ec-bf39-0d4e54c238e0","block_type":"box","text":"periods indicated.","page_number":131,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"bf194d4c-5ed6-41d3-afd3-e49e62dd00ae","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":131,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"e5bd387d-cce2-4968-aef1-ad95112c9f8c","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":131,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"ba934503-41d0-41ad-ac7d-618f9a335683","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":131,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"1bb44a77-ee0b-4ed5-81fe-a5a59166eac9","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":131,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"e01dc4cd-53d7-442f-8c7c-59b2e3cd99c8","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":131,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"a6a54382-4c71-4b77-bf98-9f866c7799a6","block_type":"box","text":"Cer tain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":131,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"df1205c6-633d-4c72-94ee-c83f89fa1292","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":131,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"922ec928-c45f-49cc-aafc-9c1b71d1324d","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":131,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"f3ac5ec4-71f0-4984-abdb-9b365e9ecfef","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":131,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"0187e61e-7888-47f0-93a3-b0d1c5c96af4","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":131,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"d4ee61c9-0b1c-4087-9490-785aaa86382f","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":131,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"424fef1d-d5ce-416a-bc75-3bbd884accef","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":131,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"89ce25a1-0351-404c-aabe-faab21b25c20","block_type":"box","text":"II-100","page_number":131,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ac327633-54b6-4897-b971-23d1bfe04db2","block_type":"box","text":"NM1026U-5982509-131/232","page_number":131,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7bac4fe0-e17b-4eaa-b720-2b368fc53503","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":132,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"8042341d-b7fa-4db1-adba-8b4de3dfbd46","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":132,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"9bd04fc6-13c8-4cb4-83c9-90a6062be5c1","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":132,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"05ea5990-838c-4e31-8759-3d4273f1ce5b","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":132,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"4cb3a92c-c74b-46fa-89f8-a365d9a67cb1","block_type":"box","text":"Reduced Initial Sales Charges","page_number":132,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"8c81ebb1-6da5-4fb1-ad76-1b938a449051","block_type":"box","text":"Cer tain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":132,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"65697169-e844-4581-85e8-c2a5faf807c1","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":132,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"2e6b544b-7f16-4835-b641-830177b43f91","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":132,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"ddc2a9fe-a3a0-4c0b-983b-707aae8f3ab7","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":132,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"c88971b6-dd34-44b7-9713-50b3fe12e18e","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":132,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"473abd30-42fa-40ef-9853-52484e6abfbf","block_type":"box","text":"requirements of the new share class. Cer tain sales load reductions and waivers may be available to customers of","page_number":132,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"40d7b1fb-28fe-41c9-b22d-e339a9958197","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":132,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"ed027551-a6a1-4904-aa7c-cfd953453afe","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":132,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"55d34a1e-35bb-4b4f-ac53-8e0249481feb","block_type":"box","text":"Reinvested Dividends.","page_number":132,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"e50ddc25-8c43-401e-9a67-a44e37c1f503","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":132,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"381bb64e-fc29-4397-9a63-382bc5ded6fb","block_type":"box","text":"reinvestment of dividends.","page_number":132,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"8f352d39-eb6b-4290-8582-7706fcc4f180","block_type":"box","text":"Right of Accumulation.","page_number":132,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"ba530683-24d3-48aa-946c-19d298ab5aad","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":132,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"4099efc6-5b24-470d-87e1-879e27a80171","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":132,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"74723b89-7809-4ba8-a5da-d40c899cb646","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":132,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"ca83b2ce-e472-4649-850f-6bf662238d73","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":132,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"6aec1807-0f1b-41bf-8206-3e4f93da7f83","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":132,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"0f1de438-50c3-4ce1-a306-e00e7e468387","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":132,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"9dfae60f-6184-4def-b3ea-89c3da0c5388","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":132,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"88f428e5-40a4-4a27-8026-e38009370d6c","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":132,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"42ddece8-2d05-4818-b66a-dac0c1254d30","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":132,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"49758eb8-5b59-4b60-b82d-1021579b2732","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":132,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"ae9af00b-677e-4210-b752-55f2cf1d6f40","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":132,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"201c6651-8857-4981-a8e1-8dd3aa70cd57","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":132,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"2f6eed0d-3b73-4791-8972-12814898c6d4","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Shor t Obligations Fund generally are not subject to a sales","page_number":132,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"e2f8be9e-754d-48d8-98d1-63a52a13f163","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":132,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"2e30cdf4-9792-4213-8a39-e6afb0d4fb02","block_type":"box","text":"in the Index Funds and BlackRock Shor t Obligations Fund may be combined with the amount of an investor’s current","page_number":132,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"093c6399-f5c3-4657-9076-1b4fa6a816cc","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":132,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"6d82de38-9703-422d-b432-f9b4ffad8170","block_type":"box","text":"Letter of Intent.","page_number":132,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"50b3467c-31f5-4876-883b-f40bbd345012","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":132,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"5333e9f5-ac7e-42cc-91d4-b22266e8fdde","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":132,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"280f4de6-734a-4c0e-9235-01fb32936f10","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":132,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"44f65a14-74ef-440a-8f08-51f21c32abbc","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":132,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"c94876f8-f7e3-4442-8dce-556d96c29bd2","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":132,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"ce54bc0b-de89-4c96-9d79-b56c1ed8fcf6","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":132,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"8da987ba-daab-439c-b2d9-7e11ae0cf1e8","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":132,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"0651c8b1-f4e7-4459-9531-7de9546d8afa","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":132,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"ad169dbb-a82d-480b-ac6f-9e5f140dda22","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":132,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"6d90cf69-f037-46d1-9963-18c67ad5ab37","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":132,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"d00f895b-cf4f-4693-94a0-2f492ac267b7","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":132,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"116e8b0a-c5d3-4b9e-a51a-8d9267f6c572","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":132,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"05ddb191-5a56-440c-9aa8-95fc04bcfded","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":132,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"5d769bf3-7729-4066-a178-5c00bb8fe103","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":132,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"13149e51-fb96-4a1a-a071-4e8219f86fd8","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":132,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"25d63221-6ae7-489e-972a-5745e2a54fea","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":132,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"451a9c0f-e9ab-4f89-90a2-648abc2a8a74","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":132,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"decf0bbd-39dc-4634-a0e4-b938da2dab84","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":132,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"6230d6ea-aa46-4d01-bbbb-736986ac8ff6","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":132,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"5e278def-5a51-4dec-a7fb-3e4ab009b5fe","block_type":"box","text":"Placement Fees.","page_number":132,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"d087f5e9-08d1-401b-9b6b-e938a639dfcd","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":132,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"a4a747d5-2d5e-48bd-88ff-7ce1fb3a2e78","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":132,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"b2a8fe15-a6f1-44aa-9272-1a1aa183e1ae","block_type":"box","text":"II-101","page_number":132,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f47ccf7b-dd5d-413c-9e6d-b586a50ec257","block_type":"box","text":"NM1026U-5982509-132/232","page_number":132,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"50521130-1a7d-4220-a60a-dd835ef0fc28","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":133,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"5925cbb7-cea3-4e6d-8b35-98d2ac074214","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"12a44088-c6e4-48e4-bc22-fd7420b05a27","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":133,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"e1d5e4aa-0d9a-403c-8bd0-6b518128cdbc","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"5eaa528e-e3e8-46dc-beef-47e87a5ab554","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"a82648c0-e606-4f53-9bf2-3950b3a0fc65","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"c697ec72-3ca5-4e1b-89be-40e9ba36135f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"6a9de7e3-e053-400d-a4ac-009743ea241c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":133,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"09c2213e-1414-4282-84fc-e0957eb70dd7","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":133,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"e9fe86d3-335c-48fe-a5f4-2d127b651f73","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":133,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"e21798dd-391b-4dd6-8d25-f0e4e9349ed7","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":133,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"09fa8fb7-af5f-4fb0-9e43-769bc22a8034","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"d5d37172-6574-4523-89e2-6caccd94b957","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":133,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"a7afad26-e686-46c6-a553-6ace2db45308","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"da643777-85fa-46b6-b506-c6d17aaccbbf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"a71653d3-d9d3-4082-89e9-b86fbefeccb2","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"beb8f5e3-64df-4eab-b800-bec83f741460","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"c55beae3-7923-4d84-8a7c-ee48c709bc98","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":133,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"3d780a9d-cd1f-410b-8ed2-28b458729a51","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":133,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"f069ec73-22cc-4b7f-b72e-409a85fbdf6e","block_type":"box","text":"SM","page_number":133,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"b2b0bfe9-9ca2-4005-97bd-bdd3a75c1110","block_type":"box","text":",","page_number":133,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"b90bbe9c-42a2-4993-90f6-f90ec9c94db6","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":133,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"b185af11-e172-4f54-a653-8c4ff49f5ed0","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":133,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"0ec57ea0-ac8c-4602-b4bb-89a3194ebb72","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"3929f24b-08ad-42ee-ac85-04e3be399071","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"0b0aa875-4688-4741-94fb-3dfa83172e84","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":133,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"b3c8c471-db3d-46d0-9d99-ec933d6412af","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"a9dc9903-67e0-49fe-a7b6-8bfc8001a211","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"7ac2aaaf-ec2f-462f-9681-b593aaa89a93","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"b982cdf1-f8fe-4c07-a83d-3cd6bda2c176","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"1bb9deaf-f0a3-4d02-8ea4-1cc5b7efb069","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":133,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"10f18ea8-ad45-45fc-b897-f48aeee5db3a","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"3b37758e-4825-467c-ae0e-c65d1f7271bb","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"e7f56a67-1958-41c9-a56f-6bf2dc2a8d76","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"66eab0f8-975d-4be9-9814-13f89479494a","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"6f814b36-340a-4a8d-8599-eae3f98e8b00","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"94b65d09-5a9a-483c-ba86-25217594c780","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"4dda17c3-764e-494e-b1d5-466718cea9b5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":133,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"96583021-7cfd-46ed-94a3-1af86b4edc64","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":133,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"1c1f314e-7cfb-49a0-a820-3162b4a9b004","block_type":"box","text":"may be up to the following amounts:","page_number":133,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"d1df7cca-2387-48b8-a612-9825aaf9cf43","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"e002ef3e-4018-4c51-a5fa-1f45be93cee5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"0f090df6-7087-4f05-9874-62ff5db33457","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"39df9979-3860-4448-a658-186a794dd6c0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"3c4b1585-6a94-4001-aae4-79ff76e98195","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"8e355744-4cde-4c6b-aeae-497429c91d07","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":133,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"a0e12a5a-b418-4134-9575-64751ea2440b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":133,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"d92bda26-3189-4411-b251-2fa6db061585","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"6d5bb365-64a6-4b45-9eb9-73c6c6fb275a","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"19391795-464a-48cd-9780-8c9a2cc8c682","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":133,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"724efce2-3737-4ef9-9d2a-aae364ebfc21","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"3a8a42f5-5e10-428c-b793-297cad9a5a16","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":133,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"f6001c04-d672-445e-bce1-c2f58b61d543","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"b292223a-2ee2-4282-830e-2e04b0e8e4b1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":133,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"4d5f29c2-bf51-4b37-abe2-06ac3f6cf425","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":133,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"5d03aaa6-74ae-455a-87d7-d4bbb94ad07e","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":133,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"0a2ebc4a-b38c-4a6d-a34a-23c38cf6ad8e","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"28703424-f8b1-4869-9e25-bd7c98d53936","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"56217bbe-aeb0-4364-9a49-0611e08d60bf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":133,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"89440695-4aeb-4fbf-bde5-5eac79a538e1","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"3bb6398e-95de-4c69-a293-2b71f0051fca","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"1e3eb5d0-b51e-4ce4-a212-a9c1c1a7198b","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"305e74a3-5603-4b68-a704-d1bec818d999","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"3fecd5e8-f57d-4346-8f1c-f3b138d56143","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":133,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"f470a40d-54a8-430f-859d-52e5c2be4b72","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":133,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"d5d37059-2329-4166-8fc8-caafbd5f0461","block_type":"box","text":"$250,000 and above . . . .","page_number":133,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"e3ce4b44-d685-4494-82ad-cbe669fe417c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"04951d10-82a2-4b8b-8d14-a5571e951e69","block_type":"box","text":"II-102","page_number":133,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"39c32653-478a-491e-ad94-df2c9c62518a","block_type":"box","text":"NM1026U-5982509-133/232","page_number":133,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5bb7dce4-68bf-464f-b709-8cf32e170977","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":134,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"11f2cfaa-c80e-42a5-9ebf-e495a71e24c4","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":134,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"82132c2f-524e-41ef-9556-55ce7fab79b6","block_type":"box","text":"the following amounts:","page_number":134,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"4549de8b-cf1a-4b27-b7f8-880b80d5764d","block_type":"box","text":"$100,000 and above . . . .","page_number":134,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"6eb132e0-5334-422e-9922-7ddd549dc435","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"35ec2d62-c4d7-4e24-811e-a1f6e98b9ac4","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":134,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"506bd187-c91a-48f6-a80c-241feb4c739e","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":134,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"c93d9423-53b7-4faf-81f6-90e5cdeea16a","block_type":"box","text":"$250,000 and above . . . .","page_number":134,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"729c8e91-d421-425c-945c-d390e811e7c8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"5bf19a8a-a7f1-4e26-9ed1-73a0ed395c4c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":134,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"81483f10-98f9-41db-ad5c-0fc2efbaa30c","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":134,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"b6f1ff34-8df2-4c08-ac93-6ff9c3ef100c","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":134,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"67ed8f88-98cf-43f2-b443-571f064d4937","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":134,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"32462452-a291-495d-88b8-59a2192124be","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":134,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"13f47b01-7b2b-4fc5-b1c6-e13e566399d7","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"f6287c04-978b-4e2b-be4a-16668df893f2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":134,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"f2b44fa0-2aae-422b-8938-b0ac49092588","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"48acb13d-efa6-42db-b772-70dab6d20da1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":134,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"e1470f06-25e6-4656-862e-2227f13a0668","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"f495aae0-c4c1-414b-b94a-1bafc3422cba","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"2793f304-0e48-4cb6-bcb0-ad7a090c2e1e","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":134,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"ec3f651f-c83e-4dc7-8a7e-729c772f20a8","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":134,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"2c1d8e0c-79da-42b2-a955-ce76574a3f8f","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":134,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"f2034bf6-42f5-49c0-87c8-2e5e16df7303","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":134,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"b7cf98d8-fadb-4db4-a3fd-c42b978c2fd8","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"e6dd9524-7db7-4985-a61e-d941ec66eeb8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":134,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"249de011-5e96-4237-8659-3b67a2e64c5a","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"30a210c4-1294-496d-b0e5-c7a9f2883006","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":134,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"57058ce6-1659-440c-8f83-88d8a3d223a3","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"3cd682f1-5bc6-4272-9111-e0bd76a38412","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"81e6c87e-7d78-4333-bed0-6afb401cbe03","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":134,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"6e5b205d-5aac-4629-b1f3-79483345eb4d","block_type":"box","text":"®","page_number":134,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"d47b615c-2267-41b6-8fe6-c770ed430640","block_type":"box","text":"Index 2030 Fund, BlackRock 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a","page_number":134,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"36a7a193-30cf-4618-8999-28c5b5815e99","block_type":"box","text":"II-103","page_number":134,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c070c6cf-e74a-42d7-97ee-51343e0c5a26","block_type":"box","text":"NM1026U-5982509-134/232","page_number":134,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"81257dfc-fe37-4233-af41-c438cc4a46a6","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":135,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"b0aa66a3-7cbf-4855-87e6-a5cc83f636e6","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":135,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"73c193d7-c13b-4512-b5b1-6fc99afed20c","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":135,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"ee0125fa-c9e8-4549-92d1-ee867417ac74","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":135,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"71ff56c1-0610-486a-b678-cf6b98adda7a","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":135,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"b4293e31-ff9c-4ebe-ab01-12d8c2e09261","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":135,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"209c1e3f-88b4-40cc-8e7c-f1ad68654423","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":135,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"a864c41a-bae4-40f5-a402-cbbdafa101dd","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":135,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"97dcba0b-6d4b-4339-a9c7-b9f8b7fa64db","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":135,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"fefab16a-bc6e-427d-8062-d0264f14e64a","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":135,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"92cfacc9-ab13-43ca-9bd2-22c4b14f9a99","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":135,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"9068bd21-8017-42d4-aedf-6ddf46c7ac7f","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":135,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"f1114218-807f-4f7f-b2a1-9bcecda0a9a8","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":135,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"8ee86ace-62bc-42de-9f7b-4e39bea789fb","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":135,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"a00ec2a9-134b-410f-a8b3-7f035dc61803","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). 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The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":135,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"980f9346-558e-41fd-9c3c-6cb5e6b2494b","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":135,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"1539f0ba-cc02-4668-93c4-54240ac74d68","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":135,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"e409e81e-2348-4e3d-bc13-c969bccac338","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":135,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"ab570092-3221-40b1-bec1-382692e70490","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":135,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"5f206156-d4f0-46d2-8e02-0157cf2d1d90","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":135,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"ce0fb1e7-23d8-4b56-a360-a9fd5e4765e4","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":135,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"89fd6e92-b8df-439d-bafb-4c4cf2f7fdf4","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":135,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"55ac250f-033f-4583-980c-2495cc0286c9","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":135,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"506c4256-7e22-407a-a863-7f162a8118e8","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":135,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"ca4811ea-5baa-460d-b60f-f06a68bc7bbc","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":135,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"d19d2bea-1d05-4848-ac19-adfcf0875983","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":135,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"b2346b7c-8bb4-494d-9a07-bd9b3806ccf8","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":135,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"b042efab-6cee-400c-8d27-1e4fc1fd8b64","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":135,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"e37e15e9-9023-4b09-be7c-ac4c2fc03a9c","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":135,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"7d34e50a-5963-4d1c-8122-280690da4348","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to cer tain redemptions of Investor A Shares of the Index","page_number":135,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"4cea0195-f30f-40bd-af20-2099e4ae8345","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":135,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"55af7b96-5cd5-4f39-8066-51951112bb67","block_type":"box","text":"por tfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":135,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"2bf38b54-40e6-49af-bb70-404868cd4457","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":135,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"a7cf0113-b6ba-4254-9a1e-9793ab81338e","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Por tfolio) or more. The Investor A Shares deferred sales","page_number":135,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"26853608-5b08-4854-bf4d-769505675a4b","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":135,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"4f216b03-6c33-4740-89e2-641c67c3c81a","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Por tfolio (a shor ter holding period may apply depending","page_number":135,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"f5d16235-20b1-475f-a6ee-82c32afebb6b","block_type":"box","text":"on the Investor A Load-Waived BlackRock Por tfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":135,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"9376a299-0b8b-4796-9a61-a9292b0fc793","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shor ter holding","page_number":135,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"075eed9a-44ac-4d44-9fcd-e01b6ac837b7","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":135,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"9e0151ab-fd09-497e-9304-a42487bca1a9","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":135,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"0510fcc5-f6f4-48bb-864f-5ba97eb19513","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":135,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"0236747c-6459-4efb-a54e-06d738070e81","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":135,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"fa935bd9-7995-4043-9b43-9b6a4080c37a","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":135,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"bdbc8085-b62f-49fe-aad6-a5a56a287739","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":135,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"d61a108a-8de6-4a7d-9b51-f31961b0c8e0","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":135,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"42ba7f7e-f11a-4295-a356-c53ac04ff2b2","block_type":"box","text":"cer tain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":135,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"29db5173-031d-418e-b743-da9b551bbd0e","block_type":"box","text":"shareholder’s death or, if later, the receipt of a cer tified probate settlement (including in connection with the","page_number":135,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"e0226bc3-e736-4e82-9b63-ff8b50aa04e5","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":135,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"d2028b7a-628c-433a-9e6a-1fc1885ba1b4","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":135,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"c0a1ce46-4083-453e-8245-8b241932b6d7","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) cer tain redemptions made pursuant to the","page_number":135,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"a2446d80-cf17-47a6-bb45-4229b8dd7909","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":135,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"6408d243-5723-4def-8449-9be7973a1bcb","block_type":"box","text":"II-104","page_number":135,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"feac34df-3566-41a6-ba2c-920f69394d38","block_type":"box","text":"NM1026U-5982509-135/232","page_number":135,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"96337686-7e1a-4ccb-b861-26c7bdb123e1","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":136,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"fc85a997-dfa4-4852-8710-188aec6e57ef","block_type":"box","text":"the absolute discretion of a Fund.","page_number":136,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"9bb043be-08d9-41d3-a8a8-26dda8af77d4","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":136,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"98da7397-fedc-47fa-ab58-c4f809820c99","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":136,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"1cde2be1-7258-400b-82ad-29942fb77903","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":136,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"633b8535-e4e1-4a33-b01e-b0243a2083db","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":136,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"0b3d7f6a-0b49-469d-8306-c3d74014de80","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":136,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"7c50e045-f7dd-48ef-8df6-377ef917ab95","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":136,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"fd68aede-bbb4-4a2a-b61e-2056a2973aa5","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":136,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"803ecd1a-6647-47ef-919e-98c3295dde10","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":136,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"ea824ed7-6a77-4f1d-bf7a-a239ad936ee1","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":136,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"0b4cd4bf-6bee-400e-b916-81d0309ea473","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":136,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"3b76fab1-8269-4f84-8a23-b6faee382377","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":136,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"2c6d783a-4b5d-4105-b12b-c41ef4d9c731","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":136,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"632332c2-8088-40d3-999c-b6cface3fa7b","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":136,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"c4e565fd-f974-4ab8-bb33-1156500f5761","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":136,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"cf0864e9-3e35-42bb-9030-917202096e45","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":136,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"65ddea4e-b48a-4354-844d-759c0b0c1587","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":136,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"99fc5382-e46f-466c-a8a1-642ec712904e","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":136,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"fcd45888-55f9-4116-a206-ae8c8700e49a","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":136,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"361cbe53-6732-4124-b3d9-2d9e26a6d42a","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":136,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"ba11232d-b291-4c78-88c2-6de20f7fdbd2","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":136,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"7578762e-43ba-41d3-a8e6-9f0630d06ad4","block_type":"box","text":"public or private investment company.","page_number":136,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"fa33e96b-acf0-4169-8013-3f4f40d96dbb","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":136,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"15ad2937-5ca8-4e4e-a9bd-ea5ec635fd4c","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":136,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"ec552142-57aa-433d-b220-55fdaa36f341","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities dealers","page_number":136,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"6f3cdd7f-fecc-4854-8391-753ad351a0a4","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":136,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"ac2af19a-bb16-4474-a071-265278334949","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":136,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"2ca856f7-68c0-4a2b-b4c9-fbc859e6021c","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":136,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"d4cfbb06-6e6d-4276-9690-a733f3da2251","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":136,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"1e84ebcc-2c03-4b65-8e28-102643861ae7","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":136,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"4b60b67e-4cf7-424e-8453-663e3d629ab8","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":136,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"e9daeb79-41d6-4b92-9809-7f16c2aa9b7d","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":136,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"5b4479a4-4be3-4146-983c-d4b17ec8ad4e","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":136,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"4714ba04-662d-41ad-8a6a-d293f716b2ba","block_type":"box","text":"intermediary associated with the account.","page_number":136,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"351164a4-77ae-487e-896b-b971597a21b4","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":136,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"c1c0a6ec-1624-4316-b41e-5ba6eb5552bf","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":136,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"2bf08b53-f092-4bd5-9fb6-e3ddb462fad6","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":136,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"83f7d58c-ed31-4ba1-bb7b-70846cf574dc","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":136,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"2f1bfc4f-301b-46d1-8a44-7232981a9883","block_type":"box","text":"CDSC shares.","page_number":136,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"6f616ab4-b622-4784-8be3-db5d7b69ee83","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":136,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"f19cf947-6861-4b8d-bf02-b2390e185b2c","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":136,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"d10d8abc-b736-4c94-847a-0f431faddb62","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":136,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"761f8246-ace3-4883-b232-436fc2f795b6","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":136,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"c720813f-8651-43cc-95dd-5e8f71a837f1","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":136,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"8b388564-8578-498b-9f4a-178d158036df","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":136,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"6267a994-358c-4a8a-8d59-8057210ddb56","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":136,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"8f552cab-6315-4860-8754-7eae2bcff90a","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":136,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"6a860b57-7800-4b06-9b96-b41cb6e45aba","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":136,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"8bdc2179-a944-4fa1-9e59-88524ca9f441","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":136,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"9dfc4be1-f022-4ef4-aec7-97640d154237","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":136,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"4d98e57f-1578-4536-a78b-8ae14df7e5ce","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":136,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"86f2a603-70bc-4a92-a45f-f303fdccdce7","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":136,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"4c9cb05c-a0bf-4c2f-83c2-5843e4edb55b","block_type":"box","text":"II-105","page_number":136,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"97186f42-2e11-4a65-8e87-9cb25d7017ba","block_type":"box","text":"NM1026U-5982509-136/232","page_number":136,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a2f4c62a-97ef-4a2d-b626-ce17d54a5d9b","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":137,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"fd2523e6-ebf7-4d67-ba00-6f669c51ba69","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":137,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"4a4e08f0-45f1-4c5b-a92b-0227ff1ac2c8","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":137,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"daa8ca9d-7ee9-4ed3-bc28-f36e4ac37f50","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":137,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"0897d62c-f6bc-48c5-ab50-f3138ef3eb5e","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":137,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"23d7c0f5-e0c5-4582-8027-cfb837b9fbe2","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":137,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"592669a7-4b21-4b29-a314-5355a9cfda90","block_type":"box","text":"Investor A Shares.","page_number":137,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"2eb286a5-c590-4a2d-8aef-5738676582b5","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":137,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"d78fd760-4238-4a6e-af5a-985fb16e1d32","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":137,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"b114b7fc-5693-4026-8681-9b7799c9d3d7","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":137,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"f8e65a05-d073-4df2-98f4-dd7ee1d40dc3","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":137,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"82bc9925-e597-4c95-ad33-8d3a3bfc3430","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":137,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"b9f3bf63-3de9-483a-8892-c80d92fdc53d","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":137,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"24bafdb6-c5de-4134-a1ae-5d81596acbfe","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":137,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"419ea619-2ce8-4b94-9ee3-15c144ebab33","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":137,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"a9bf0835-3767-485c-934e-731fe3d29f57","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":137,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"40581793-1fd6-4cef-8956-63920283a033","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":137,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"26c3f81c-b1b7-4899-9447-614e11d07284","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":137,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"87c2347e-023c-40cf-95b6-eae15debeeaa","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":137,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"965db33a-b0a5-4021-a1d3-e9a08ace933d","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":137,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"2d7a0c5e-ba9e-4a81-9a8c-ce9c93e04232","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":137,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"7e0b4de1-7b2f-4997-ac69-37234843ece9","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":137,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"452de616-b7d8-4083-b74a-a32ffafad726","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":137,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"07159283-dcdc-45ed-ba80-e4013bd6c62b","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":137,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"a02d43f2-1256-41f3-a15a-3bbfa39c888e","block_type":"box","text":"“Investor C Conversions”).","page_number":137,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"b5fb2442-3bd7-4dff-ab4b-359a6db3cef7","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":137,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"106c4814-027f-42a9-9726-7a51fe6eb64f","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":137,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"8e49dd2d-67ba-45b0-93b8-987a4bca9bff","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":137,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"174a7e74-5f0a-4fe8-a2b7-bf5ddfaa2ab2","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":137,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"73da2906-fc08-4ad8-9260-0bc265bddf88","block_type":"box","text":"Shares will also conver t automatically to Investor A Shares, as set for th in each Fund’s Prospectus. The Investor C","page_number":137,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"38b5820d-7ae5-4ef3-a8f8-536b3d3a39f7","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":137,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"65ac382c-f214-4634-a515-fe0154a1dda5","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":137,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"dc290008-9fa2-4217-918c-1bbb945e75bb","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":137,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"f1c60ec2-ecbd-4f81-a9d3-461bb68fac93","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":137,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"ec62ad2d-5c20-4e11-bcc8-26bdeb449c68","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":137,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"2e8c8d36-2069-4974-a794-fe788fada60d","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":137,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"e62bb532-af55-4a23-be2c-e3fa1ab481f4","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":137,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"337ad306-a130-4d32-bf98-7bbdaf471963","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":137,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"15d5793a-f29a-46d7-b6cc-bc87448e7640","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":137,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"f9eec0f4-de35-496c-8a9a-204d8e195b64","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":137,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"cab1f1cd-e556-4c27-bc59-328154bccde1","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":137,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"31acb6b3-13b6-4e0f-9af3-708ada018dc7","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":137,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"7ea3c85a-3fcd-4b35-a1fb-c7ea04e02cfb","block_type":"box","text":"redemption.","page_number":137,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"441acd6c-ebb7-43ea-b3a9-648a2c6a9638","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":137,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"8adf26df-9409-4e34-94ce-fb375b028cef","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":137,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"21e19669-1af6-40eb-8858-7953d6b840c0","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":137,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"11b70cdd-b490-4b1a-ae77-cbff6d7b366c","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":137,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"b55de447-863d-4a25-ac4c-5f529961bc34","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":137,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"5910fe19-99eb-45ef-9e0e-dc497ca68416","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":137,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"6cec3baa-2cb9-4404-8c50-95da38bfd60c","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":137,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"a3cf0abd-bdd5-4499-b203-1a06f019ef06","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to cer tain","page_number":137,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"33d29f61-bf67-4ae8-8bd1-a03b1af83d86","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":137,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"c8de824c-dc53-4b88-8471-7d27143fede1","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":137,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"76cfd30d-3fdb-4e26-a59e-fdd8647b3adf","block_type":"box","text":"II-106","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"74786c31-2f47-4b1e-924a-07db00b2cbc8","block_type":"box","text":"NM1026U-5982509-137/232","page_number":137,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"666e4531-49d8-4d44-92b6-ad0d568d4c89","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":138,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"bc84d279-6ea4-432d-93a8-c616c642cf67","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":138,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"31a7b55d-4a4c-4846-a197-deb6767dc148","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":138,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"5ec5b99f-40e5-44a4-952b-11130d184fef","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":138,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"07667d82-d7b2-4dce-b1b4-e76dd098bbbc","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":138,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"28d95571-fcca-41d0-90e3-535793d3caf9","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":138,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"4fe886d9-f4fa-4095-99ee-2856cdadcc8a","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":138,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"487291a5-28b8-4c4f-969b-2dfb45482e4c","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":138,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"93ed2c45-4177-412e-8593-47cd2a37c872","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":138,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"184c1dfc-0d0a-4d5e-b69c-52548c0f1327","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":138,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"6e60659f-17d5-4852-9105-7860f4d0aa1d","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":138,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"11812263-ff31-4293-a024-b208ab4eac0b","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":138,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"1d0877ba-4a09-4f21-bfa4-ac7a88df5929","block_type":"box","text":"Class R Shares","page_number":138,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"03309d81-a7a3-4300-9621-f949d52caed7","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":138,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"182405c4-64e7-4c6f-b059-2b8303ade214","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":138,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"22a6b384-b987-45fa-99a6-a226e2e034cc","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":138,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"42f3118f-c8cd-495d-9b64-c440ce3adc60","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":138,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"2b8028c9-0417-4671-a98f-70f33baa8373","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":138,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"d50bb489-3a52-456d-bb73-fc654365e843","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":138,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"de8030cf-ab83-4fbb-9770-c99f0b1252e5","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":138,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"bebf2d11-c5d9-4f32-b343-efd16fe39358","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":138,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"1244c7eb-8e68-4d7c-8758-4f418792cc59","block_type":"box","text":"Class K Shares","page_number":138,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"2044616b-76d0-4945-ba51-f4f04e277c4f","block_type":"box","text":"Cer tain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":138,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"e15ceeab-888e-4909-aa53-1f67d618c5fa","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":138,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"a705c6d0-d044-4c4a-a71d-29d4f36846b7","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":138,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"3cdfd227-8a17-4da1-bf17-f99bfc70c602","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":138,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"c23c72da-f772-4ccd-bb27-0abd9309d2d8","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":138,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"62f76797-357e-406e-a05c-5ce7aeff7393","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":138,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"479e60a6-4186-435e-922b-89b92af286ac","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":138,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"37b7e7ce-db06-490a-8bdd-fd616a0c77dd","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":138,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"1c837162-78a0-4d50-8572-02d9bdc605d9","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":138,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"efda6ca7-89cd-40d9-b066-44ce91025ac8","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":138,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"ed9dd4f8-4b0d-4932-9ea8-4d48d07f3bde","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":138,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"b7081718-623e-402a-97e3-8480d8ac5fa0","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":138,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"758e914d-eed9-46e7-bb28-0123e8a2664d","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":138,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"d9c4cbf3-c659-4d55-9c47-dc086f082e6a","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":138,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"0d7138db-cb98-426b-8a82-cabde59edd2e","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":138,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"8e653896-0726-46f1-8f4e-a56b234da4a5","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":138,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"285e6a60-42d5-47ac-8a9e-b0eeaa92e3b1","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":138,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"897e9d1e-ca70-472c-a597-781b339fe5d6","block_type":"box","text":"distribution and marketing agreement.","page_number":138,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"37156516-5cf6-4ed3-83e3-a52c6c5902dc","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":138,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"1f0d5f26-4ddd-4b54-90d3-78f5365752f2","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":138,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"bc90d2a6-9f3a-4dc7-9b6e-8ebe84bfe25f","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":138,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"e75cd9b7-d99c-48f1-be5b-96b21fd0fc97","block_type":"box","text":"Class G Shares","page_number":138,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"cb9fffe2-493d-44be-a12e-cae8b5529ffc","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":138,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"d0489cd0-ee4c-49ca-8515-55b7dbe5adbb","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":138,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"2abc5351-7bd1-4d15-a527-7c302a3fd295","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":138,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"d1638cbd-dd1e-4fd2-8592-148fe2fa477d","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":138,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"4170d4a9-5cf7-4ba0-aa9d-ccd12e5f2ae1","block_type":"box","text":"eligibility requirements.","page_number":138,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"84b12d1b-bc32-495e-aea2-339ccf7c9f9c","block_type":"box","text":"II-107","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"73d33e19-8d61-4957-9b79-65ecfaaac92b","block_type":"box","text":"NM1026U-5982509-138/232","page_number":138,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3ecee78f-8263-4e2a-8808-e1db27216ac2","block_type":"box","text":"Service Shares","page_number":139,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"a19dc722-8370-47a0-9a05-b7e59fa4fd90","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":139,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"f240f2d2-0a81-4833-bc6a-98e4b2e729c5","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":139,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"87533fe3-7baa-482f-afb6-aea95fe4f22f","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":139,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"57c32fbc-ede2-4e4c-85cf-7ac232cd9dbe","block_type":"box","text":"®","page_number":139,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"565fe870-39ca-4a23-9f32-04981f121455","block_type":"box","text":"Fund in 1996; and","page_number":139,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"ec8594bb-3195-4a92-897b-d0439f73a569","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":139,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"b06acc46-05f4-4c2a-8d96-a86b73c450b0","block_type":"box","text":"SM","page_number":139,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"7b2c27c3-b7f2-455e-bb52-066a8c8f597d","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":139,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"266dce8a-5d15-4be7-9703-aac6ef2ffe78","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":139,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"51924d43-0c45-4235-bc8a-39f783fe6957","block_type":"box","text":"BlackRock Shares","page_number":139,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"d9fc5f97-b813-4c1b-b130-95c95a0e6597","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":139,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"c00ec3c2-df89-48e0-812c-46903418e980","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":139,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"98d7879b-1021-4ff6-8149-92870c2bc472","block_type":"box","text":"fee-based programs.","page_number":139,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"fed29462-8b56-4912-970e-89f781db0ec4","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":139,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"d1675062-83fa-468e-b9a4-d25e4cb3c14e","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":139,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"ea26d120-3d66-4476-b482-985c8221e05d","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":139,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"b6aa7d68-58e7-4f55-aca0-d5eaa2f714ca","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":139,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"eac3bed7-776d-450a-b640-2e8dd91ee4e4","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":139,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"3a9548f0-ccca-4858-be23-54e063c73b34","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":139,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"8520a7e8-42c4-4b69-a0bc-023669575aa8","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":139,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"357cc19a-87c7-4b42-b00b-1fd9369f6168","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":139,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"20d3f724-fcc8-434a-b4dd-daa7b9caa4d7","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":139,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"26015955-8705-45e3-9766-fc1c7cd45433","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":139,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"150fcbe6-65f2-4f48-a874-96954cfb9327","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":139,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"94c038ad-1695-43fc-8176-6e3445bae864","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":139,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"db2709f5-691b-4264-828b-9b1c969f8c9e","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":139,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"136ec1db-2496-4c6b-b721-719a06abae03","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":139,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"3ce1ec8c-614f-4312-9a62-bc248ec9ae3d","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":139,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"90e0d2be-3966-4d41-bd41-1b95209e50f9","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":139,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"9ea7f5e6-e10e-4225-b828-d5adc3714c8e","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":139,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"63a6c5ff-edbb-45a2-b404-cfca5de692b9","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":139,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"06d4985e-7135-4fed-8605-0d5a9424feff","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":139,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"4e10aeca-46ca-47c7-9a42-5d10fc5fb5bc","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":139,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"9347533e-e77f-4633-b296-df6263dc3a50","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":139,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"67c741e3-e5f0-41fa-b21b-87e9b1487bf5","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":139,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"f270e71d-5358-4391-ba9f-5023f1ed3a0b","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":139,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"45257d0d-c889-4b42-9c58-56e9fb09423e","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":139,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"52d69a51-a9b2-43f3-8415-a2467bb98df0","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":139,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"157d5988-309e-4030-98a9-3408bab0bcf1","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":139,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"f87c1b79-7560-467c-8e2d-abc30e394e02","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":139,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"6be86cde-a71f-4157-82fe-376b7c61490d","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":139,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"eb196a0d-f175-410a-850a-0a567293c1cf","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":139,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"783f1bb3-0c6a-4bc7-be37-8aa8360714bb","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":139,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"3c078715-9862-43ae-b706-042e5f5894c9","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":139,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"1a5b07bb-36be-4341-88be-853c38f1c464","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":139,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"ae89522d-bbb4-4fe3-b2de-52a2fb6f81c4","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":139,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"dc3f65fe-165f-4016-a878-aaf59f230ebd","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":139,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"a1022e60-c951-49fb-b24a-13cb37c2b467","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":139,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"a66ed1a4-1cbd-400f-98d5-aaa2100d12e9","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":139,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"4d85e7d9-c362-4376-9c8a-8a0e77edae70","block_type":"box","text":"compensation for selling different classes of shares.","page_number":139,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"cf708e0b-0937-49e9-bd74-335771fc008e","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":139,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"ad6ba127-9915-42c8-9e97-bac8126681be","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":139,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"f45ed4af-f051-45a0-b71f-97fc5dcc2651","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":139,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"5e4d8c88-8458-4bac-a6ad-6cbe2130af57","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":139,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"9cd7285f-78fa-4133-ac13-0259ebd7a69f","block_type":"box","text":"II-108","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7875508d-9dcf-486b-947c-320541c62aab","block_type":"box","text":"NM1026U-5982509-139/232","page_number":139,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"664ae683-8708-4374-9354-fcde734436e8","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":140,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"9ce2dd8c-ae12-42e4-97d7-2d4dc75d13c2","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":140,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"48c25082-f871-4dae-94c6-3300aba7df6a","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":140,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"31a8a0c2-01ce-4f99-8926-5d9930ee4261","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":140,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"a3747549-2f5f-48d3-98f2-4840a86563b8","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":140,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"73e06f00-d65d-4a25-b2d1-2211b39ac6e7","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":140,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"75da8a79-a3d6-4542-a0c8-6263f974ddd8","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":140,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"98757a21-5637-4ffa-89dc-91f7cf72f9b9","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":140,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"cd8b31f8-079c-4429-ae85-a24742ae7355","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":140,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"2c784bbe-3000-41d6-85cf-54ffe1651a7e","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":140,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"0ce90ae1-7a92-48ca-9dc2-2f10510831a8","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":140,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"67d7be9b-45e7-42be-8fc1-13f52591f511","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":140,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"59628471-4ac5-47b8-878f-7e562dd1e4cb","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":140,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"6463374c-ef18-4ae5-b3b4-3f443a0737ae","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":140,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"beff4ebd-0ce4-4e82-9632-721b1ac91a0d","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":140,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"9d3cb611-8519-4dff-8ed1-3e201acd6fc2","block_type":"box","text":"easily accessible place.","page_number":140,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"1e021a95-697c-42d3-a4ee-4549e06e45c4","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":140,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"d4f169c7-139a-4bbe-867d-7a299e21e644","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":140,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"1f316ed6-65d7-49b8-a10b-f5e5115e4162","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":140,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"60f04457-acbd-4697-a0ff-9c46a343a64f","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":140,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"407e3b56-c64b-43b1-9403-c4f795ea6294","block_type":"box","text":"fiscal year.","page_number":140,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"0fc3aa07-6dbe-4a81-92ed-ec378366389f","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":140,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"82e5327e-b088-4c68-a31f-1c94c1ee4962","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":140,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"6520c0f6-ad13-46be-aae6-22de7226e3ff","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":140,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"e0fd63cd-d8d0-4f5a-b932-f8112c4020cb","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":140,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"d2bf8db2-5c01-48f2-b861-4750bff8eae5","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":140,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"b15b953f-fb0a-4f69-a7c1-a8bbea040953","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":140,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"6e6a54d6-fe9b-46c5-8a27-6c0bc3aafd5d","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":140,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"07f80985-7bdb-49e8-b767-e45d36136f0e","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":140,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"eb982197-687d-49fc-84fa-e25ba2069f32","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":140,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"e567b038-8956-475d-a810-12a790d04a99","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI","page_number":140,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"39b6fe6d-0b5f-42e7-9af8-b70697f313fd","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":140,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"d44f203c-58fe-45f4-88c5-646dc25cff0e","block_type":"box","text":"and Class R Shares of your Fund.","page_number":140,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"ce07c6ab-21e6-4c25-91b8-21eacf1544ec","block_type":"box","text":"Other Payments by the Fund","page_number":140,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"350733de-822f-4f3f-8f57-7e0a59a958e1","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":140,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"2982568d-d6ee-46ec-90ac-ab725e5c599e","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":140,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"15901d8e-ce9b-430a-97c7-9720b0bfa249","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":140,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"9ab31946-ac5e-4c18-8635-296593cc308e","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":140,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"f328842f-4820-4cf1-895d-54eee386b7bd","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":140,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"0a5e412b-2328-456b-b601-ae67204aa48b","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":140,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"8ffc27fb-e6c9-4272-9206-8349c8c17dd6","block_type":"box","text":"of these payments may be substantial.","page_number":140,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"b570a965-84d1-4b86-a3ae-98571315c6ee","block_type":"box","text":"Additional Payments by BlackRock","page_number":140,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"e8fab488-13cd-41e9-b106-e0f8a775fe56","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":140,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"6a6a9680-3201-449a-9981-4536b0a4fbd3","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":140,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"1156fe9e-64c6-40a1-83d6-12fcdca180b4","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":140,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"da384f02-c5bd-4a69-a9d3-c9592f581902","block_type":"box","text":"obligations itself or may arrange for a third par ty to per form them. These payments, which are not made pursuant to","page_number":140,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"94adc9b0-5c70-4d66-b6ca-550b0a354ac4","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":140,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"cd080817-6a45-470c-9cab-6531d2c05ea4","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":140,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"d64a64f0-3074-412d-8f5c-bf7c1d2b5af6","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":140,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"0b2e9107-a943-4e9d-b2a2-848524aef346","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":140,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"85693fc9-2ab5-4840-91f8-72cf09742498","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":140,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"81346e91-153b-4ac2-aaa1-f3f0d9e2a3c3","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":140,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"640eb2c8-7c0e-4980-b9dc-a1e0378ce7ab","block_type":"box","text":"II-109","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b20a47ea-561d-4a62-802b-9996140525b8","block_type":"box","text":"NM1026U-5982509-140/232","page_number":140,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7b7f02b6-0d67-440c-9d23-488f91a32eea","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":141,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"2949852f-5a53-423a-84db-7bb49008abe6","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":141,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"e268c98d-554c-4c04-aff7-ec07319f5bff","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":141,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"2be0c40b-50cc-4b95-87dd-241f1d7c1c21","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":141,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"77878581-1dc3-4371-b9f6-2c6a6a93cda1","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":141,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"6b81014a-8468-4219-8761-8f5f50c311dd","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":141,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"97357afb-9119-4cf6-8465-5626b3adcac4","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":141,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"bb30f53b-0ab9-4cf9-9de1-73677a391cc7","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":141,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"4f9a4c6a-a5ee-4dfd-94f6-2429b2ababf2","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":141,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"34f70db9-05df-414c-b81c-43b75585d022","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":141,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"ec1398ff-e7ad-41dd-849b-55cec5541c6c","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":141,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"6c628f79-09b2-4b7a-8e7d-b0480f201dc7","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":141,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"f91db8b3-8b23-4fbf-abd8-8ba89155cca1","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":141,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"58ddac9c-7cee-46d0-98c4-a1968de4d999","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":141,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"c902a4be-c4b0-402d-a7fd-03d8f33f16eb","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":141,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"20cbba94-fb7c-4214-bf6d-b3624b14d42e","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":141,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"56ed948e-491d-435c-b4e9-c1a4ba555860","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":141,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"dc1ae120-1036-4a09-ad46-f030fe8ef466","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":141,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"03701c2b-f955-4374-a9ca-d9e0620cf7f1","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":141,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"889e9768-358c-4208-8fc6-bcd433768920","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":141,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"4d957da8-fc47-4987-94e5-5b86fd165ff8","block_type":"box","text":"Funds.","page_number":141,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"60b853da-c5be-428c-a4cc-02ae71202929","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":141,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"1ba3732d-a665-4089-bf05-7eac63aba0bf","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":141,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"f127c54d-166e-485d-a05b-ee694d9de4b0","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":141,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"92682473-3234-4565-b697-e82c94adfe66","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":141,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"ed6db345-3f3e-440e-a937-dc70c0badeea","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":141,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"5ce2452b-d515-43e6-81c8-cb2cb75622a9","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":141,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"8472bc10-258f-4a03-bddc-e0d1c1df2dd5","block_type":"box","text":"the Fund on the Service Organization’s platform(s); “listing” fees for the placing of the Fund on a dealer’s list (which","page_number":141,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"c9494d90-a649-4e72-b198-bb8c227f9d1b","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in cer tain sales","page_number":141,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"aa0d274b-862a-4e45-8e47-fa0c8b8df1da","block_type":"box","text":"programs from time to time; fees for providing assistance in promoting the sale of the Fund’s shares (which may","page_number":141,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"5c250954-b296-4d1c-a31d-620de50b14c2","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":141,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"d5222e8d-aa1d-4bfd-8761-d74ae54e7275","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":141,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"97b96f7f-9b3b-4e54-8a95-ffda4ea79056","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":141,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"0dc473f8-f0d5-40f1-88a9-e2d7a81b096c","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":141,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"1613e451-fd5b-4f8a-af29-4eb07a2b0270","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":141,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"32fa798e-8162-4bb3-9606-a6d9feded517","block_type":"box","text":"B. Shareholder Services","page_number":141,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"5a32829b-4b9a-4ce9-b7d1-4f0063353bbd","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":141,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"b31c028a-fd0a-4d53-a59a-7351b523fdec","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may per form","page_number":141,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"9eb5b8b6-35d2-42d3-97b1-dcf93863a31e","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have per formed if the accounts","page_number":141,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"4a26ec22-1c6b-4d26-b33d-5553e807cee8","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":141,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"e6f37711-eb38-4501-b9b1-e3f004113c82","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":141,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"7d92d88f-e8b4-46ca-b974-d30f103076f0","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":141,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"6a5c4798-85b3-4766-84b6-e78619a4e253","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the per formance of these or similar services. These","page_number":141,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"583b2715-5dda-4fab-aa4b-17cf2c9f3d36","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":141,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"1c339ead-afe1-4454-a44e-babeaa574843","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":141,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"c1666373-e651-4ff8-a626-f5a6bd0f89ed","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":141,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"a27ec49c-f366-4376-884e-ea51399762d4","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":141,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"4d2ee43d-22c7-48ec-b459-8a0f77aec973","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":141,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"7f78ff57-e7f7-46af-9b1f-74b15644b22d","block_type":"box","text":"suppor t. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":141,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"33675622-778d-4559-91db-7759d551bee7","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":141,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"c9dcdd29-145d-4215-b919-a7244cb590f7","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, cer tain of the Service","page_number":141,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"40623ff3-4a8d-4e8b-9dc2-5b43fa31ed69","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":141,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"0ca0edcc-3acf-4344-a8db-3e602f685fab","block_type":"box","text":"II-110","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b945b5ee-c9b3-49e7-8880-13ce039c53fa","block_type":"box","text":"NM1026U-5982509-141/232","page_number":141,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c1edacf8-2508-4bbc-920e-937e5f946df6","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":142,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"1b61e4b6-44f6-47f8-b0ac-a7724e50fcf2","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":142,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"b33c8152-5bf5-4a7e-90b3-3d10ca1a4d3c","block_type":"box","text":"payments and to obtain fur ther information regarding any such payments.","page_number":142,"box":{"x":70,"y":75,"width":523,"height":11}},{"id":"ad138bd1-5ab0-4e2f-965e-ace6f5e152de","block_type":"box","text":"&Par tners","page_number":142,"box":{"x":69,"y":106,"width":71,"height":9}},{"id":"d9f24c86-b9b5-43e8-b526-b215fcff574e","block_type":"box","text":"AccuTech Systems Corporation","page_number":142,"box":{"x":68,"y":127,"width":219,"height":11}},{"id":"f32a47f9-883c-4490-904c-557e2f8bf7c2","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":142,"box":{"x":68,"y":147,"width":164,"height":10}},{"id":"c540670e-ac43-4d33-bbd1-2499c47d8345","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":142,"box":{"x":68,"y":167,"width":207,"height":11}},{"id":"934ab52c-11fe-43f9-a1be-cdcf36c63876","block_type":"box","text":"Advisor Group, 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The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":146,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"c380c8ab-051e-43f1-bebf-10d8b3f6cd50","block_type":"box","text":"time of purchase, depending in par t on the market value of the securities held by the Fund at such time. Except for","page_number":146,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"c5b09b3f-efdb-4fef-9a08-be452865d3af","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":146,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"5eeddba8-3042-4569-ab7d-9940fc9d21b3","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":146,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"143657d1-13a4-4f44-a1df-ad747f7ed665","block_type":"box","text":"redemption.","page_number":146,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"5b25f698-f46e-42cd-91e5-66c363af6396","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":146,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"41d2a4aa-f534-48c4-aef2-9c53a36ecb43","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":146,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"77a6454c-fbf5-41bd-91d0-26e44f6a3533","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":146,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"5b827709-2d0c-487f-a32f-41fbaaba4e4c","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":146,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"62c6edb3-fcce-40e4-8573-7012042b4892","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":146,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"8eb2e5cc-3936-4d79-9e26-4a883eb068ee","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":146,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"721f2dbd-cbef-437f-bd51-de3e117edef0","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":146,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"e9e72ad1-d472-4036-b3b1-830408c2bc67","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":146,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"369ce72c-364c-42b2-967d-b55fba208e52","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":146,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"f4abddb6-d049-4e42-9934-9349aea39ea7","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":146,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"32887fb3-433c-4a24-b488-f9238325282c","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":146,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"e2ae396a-ce12-43cf-a1e5-b272a392bc35","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":146,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"63f68b6a-6750-4cc8-abce-1e1aa4d2f32f","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":146,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"3ef4c936-9cb0-461c-a3a6-aa47b65aeff2","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":146,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"08dcfaf0-0b5a-4de5-9323-7feec4f72e43","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":146,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"28b257e9-0084-42d5-ac22-1c57e0e16aec","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":146,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"ae4d83cb-4637-4db9-8875-04cf7054b72f","block_type":"box","text":"Redemption","page_number":146,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"8b333495-bc66-4e56-b053-e1236b258c95","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":146,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"f0ce008c-c413-4032-b675-bb4942157534","block_type":"box","text":"Redeem by Telephone:","page_number":146,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"de05d3ec-6448-4fc2-a11f-a55f3ee562e7","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":146,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"d8d6f608-1ac9-48bc-9a61-a11950278eb6","block_type":"box","text":"telephone request if cer tain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":146,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"079b812e-17d5-4243-b7b5-6a4af260d015","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":146,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"8f1e4276-16ef-4c63-8ca9-5a36c789df8c","block_type":"box","text":"Cer tain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":146,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"c450ad43-2bb6-48ee-bb00-fd9100a60c52","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":146,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"5cedede3-9e4f-49fe-9b74-de23e44e816a","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":146,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"1f9db2d6-be0e-492a-ac60-ba7f60529922","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":146,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"f5989059-8b24-47d1-85d8-fb7d0017d0f5","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":146,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"8e4c1439-310a-4035-9752-292b5f386735","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":146,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"80101e8c-d124-4593-a45f-51d04150001d","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":146,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"27855fe5-52a7-4142-9095-05ca93903ea4","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":146,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"6d3947c7-c927-488b-a17b-c0ece0f7cf33","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":146,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"a7f79c86-bde2-4d94-bc6c-6b02f2a47898","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":146,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"35ed2413-f3c1-46bb-91d8-7fdb593bc3f9","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":146,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"ff39788f-ac28-4649-aa64-bd1771a27acd","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":146,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"a9ff1f9f-7b87-4703-813a-49da6626db9b","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":146,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"aaffb36f-d667-46e9-b42a-f1ae66815acd","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":146,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"c5bd6f67-956d-41c4-9365-2acc9d861e1f","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":146,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"4586bbb6-0b1a-4c37-8986-786a02a58b26","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":146,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"17fa68d1-ae69-4c49-b82c-c2c04cca792d","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":146,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"47d7aeb6-a304-4110-8e51-9b4a0c327e98","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":146,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"76de60d3-715f-4846-aed5-5e312cc637fb","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":146,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"37224e9b-5cc2-4848-b988-a5c498577011","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":146,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"5ba26ad6-0886-4754-b7b8-929bc80f6104","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share cer tificates have been issued","page_number":146,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"46bd1eac-d9bd-4a6a-bef1-57277fd5dc8e","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":146,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"e29ebb4b-b1dc-4432-a631-b244457fccff","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":146,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"b7ba7287-1a55-41fe-99dd-1405d8117828","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":146,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"386b5bba-7081-453e-ac9d-8b12bac67dd6","block_type":"box","text":"II-115","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fa96c275-b676-4fcd-88fa-8308d631969b","block_type":"box","text":"NM1026U-5982509-146/232","page_number":146,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9a9120a5-2651-4e97-84d8-6ee3b8dfaf26","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":147,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"4c086330-c97f-4ee5-a221-b24f080431de","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":147,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"0f4a6c6f-2d35-478a-bc10-bdf1fc1306a4","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":147,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"993b41f7-a54d-4f06-aa54-3286defd7721","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":147,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"987f5ab8-f56f-451f-869c-e3aeb0b03675","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":147,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"15aa969e-c36e-441c-b8b3-dabe957b37f0","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":147,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"6ba07a93-d5bc-43c2-9505-b8af6015d131","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":147,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"2481f97d-7f4a-49a7-9b6c-ed89b7ea7271","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":147,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"3159f3df-f569-4b38-91d3-79aad09532e6","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":147,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"ffc0207a-6a62-4953-93e2-df2b4b3693a6","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":147,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"3bddfbca-9c8d-4f01-93fb-d066bcba1cda","block_type":"box","text":"Redeem by VRU:","page_number":147,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"c2d976e1-cdcc-4b6b-bfc3-2549eecf91d3","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":147,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"af6e5dc2-be89-4f1e-9654-3ffdc028f41b","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":147,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"ab96f1da-870d-44f7-b65a-d0dbe0da2605","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":147,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"a54a7b9d-1105-4d14-a41b-af6c8b092240","block_type":"box","text":"Redeem by Internet:","page_number":147,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"cafb92a8-42aa-48ce-a2bb-71a2967de3d8","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":147,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"3ef707be-1317-4f32-9332-d325590b7c1c","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":147,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"bfa2a756-d778-459a-ae7c-967003d68728","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":147,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"6832cc5e-90f8-4099-b27d-ebc5055af3e6","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":147,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"c9e1acfc-8149-458b-aeab-f9a0b68e7508","block_type":"box","text":"institutional investors.","page_number":147,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"1d17c4ef-e197-4226-a251-343dde8f804f","block_type":"box","text":"Redeem in Writing:","page_number":147,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"4c793066-e5e5-4667-9383-aa2072395325","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":147,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"5397ee9c-4360-4c83-9269-92c52c262150","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":147,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"735cddbc-80bc-4533-9961-aa44692667e2","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":147,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"0eb9d56e-011a-4655-885b-5cf6e09ed033","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":147,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"fe26380a-3868-46be-a3a2-cb81edb55f26","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":147,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"5609495b-fece-49a8-8af9-ce1619fde6be","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":147,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"fdcdd756-28a0-4406-bc20-5d83ac707726","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":147,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"bdb3812d-b40e-4db3-9c9a-1ce71c1787cf","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":147,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"79c46e4c-5178-4de0-92db-7c1daf771013","block_type":"box","text":"hold stock cer tificates, return the cer tificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":147,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"35f39a26-3f1a-431b-a0ed-1d8a008aed2e","block_type":"box","text":"or wire to the bank account of record.","page_number":147,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"62551d80-4d12-4a11-8fdb-205a093f0fb9","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":147,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"aa434a22-9c92-444c-8959-f988022f96e2","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":147,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"eafa0b14-fa37-497f-b53f-8c02bdc599ad","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":147,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"cdfae5fe-6670-4d25-8014-e63626c87f25","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":147,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"2f639ce7-3707-4810-a005-445b5822045f","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":147,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"1021eafe-6688-4e32-a85b-5839213b6286","block_type":"box","text":"(that is, cash, Federal funds or cer tified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":147,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"83402582-3577-4206-b391-8634182f8b0a","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":147,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"9366f06b-caf6-4325-8db3-9b7193d35da7","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":147,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"c686e27a-a053-421b-9aca-56e03109e988","block_type":"box","text":"redeemed by the Fund.","page_number":147,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"88e0dce3-1f66-4b98-b836-8100f2d1c192","block_type":"box","text":"Note on Low Balance Accounts.","page_number":147,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"b4a9255b-87a7-4b9d-8c5a-8e8b3c4a51b2","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":147,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"ff9d27d1-1704-4aed-aa57-a75f3e733b4d","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":147,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"44c88cdf-8926-4ba9-9514-79ae363ce654","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":147,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"da0887c2-61e9-44d3-baef-356b51e68271","block_type":"box","text":"for any reason, including market fluctuation.","page_number":147,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"91c90180-a302-4ed7-94db-9a8037834e60","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":147,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"89c63613-e763-43a9-bc24-22b15eeff563","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":147,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"2a1569f1-ebfd-4fb4-a1ef-f967ac2442f1","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":147,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"aaa7448e-5f12-4f6b-ae01-1e81b1173912","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":147,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"14849d06-0e23-451e-9734-c24dec72056d","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":147,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"aa9dfe18-e475-41ee-9955-7ece16e3cd5a","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":147,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"628d78cd-31f9-47ba-bc24-456f4ac08d27","block_type":"box","text":"Redemptions in Kind:","page_number":147,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"e15139ed-078b-4aa0-9186-436681fd7084","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":147,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"0e3d5a3b-74aa-4a04-a237-f1adc8621b83","block_type":"box","text":"whole or in par t by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":147,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"32449a57-09f5-447e-9d54-674dfc8085f3","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":147,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"12647487-418c-41ef-ab3a-c3a600eba6a1","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":147,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"4b08b841-73bd-46e4-a572-dbe853d6068a","block_type":"box","text":"normally be paid in cash but may be paid wholly or par tly by a distribution in kind of securities.","page_number":147,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"faa4165d-4266-48ec-8999-90d3115a578d","block_type":"box","text":"II-116","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"636ac660-3da1-42cf-acf7-0f4a21900ccf","block_type":"box","text":"NM1026U-5982509-147/232","page_number":147,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"894d5944-545d-4b20-8565-a76d75719b6a","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":148,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"f0edb6a3-aed4-45a6-86e5-7b2956b7e316","block_type":"box","text":"rata representation of the Fund’s por tfolio or a non-pro-rata representation of the Fund’s por tfolio depending upon","page_number":148,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"c359f77d-8bf7-4228-93d7-edddf6559d52","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":148,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"4714f9a5-7c88-434e-abf9-28bc39968c46","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":148,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"eb4956d3-33f7-4e10-bdcc-7d40a854434d","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":148,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"af023546-ae8c-4d74-9ecd-271aeb665f23","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":148,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"4f17c83c-b0e2-4c96-aa36-a05a3b853c1a","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":148,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"afe16dd9-8828-4546-bb52-2352c3839e6e","block_type":"box","text":"retain those securities that will per form the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":148,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"45804a6a-d7b3-4737-9fed-ddf4bc22d1f5","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of por tfolio holdings","page_number":148,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"198cf79a-987f-4c27-b760-a4898dcca725","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":148,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"f0c5755b-4900-41b3-839e-7c940cb3dc34","block_type":"box","text":"The Funds may effect redemptions in kind in an effor t to, among other considerations: (a) manage the por tfolio","page_number":148,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"57a0f3de-bab5-416d-b858-6899f9835745","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":148,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"f89eff10-8ef3-4929-881c-c42f833d1268","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or por tfolio turnover. Redemptions in kind may","page_number":148,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"c34212c3-691b-4f81-948b-6d4137b4e0d6","block_type":"box","text":"reduce the need for the Fund to maintain shor t-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":148,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"5d36b4c5-3ab8-4894-93a7-959d1373ebe6","block_type":"box","text":"for the Fund to sell its investments at inoppor tune times, and lower Fund capital gain recognition, all of which may be","page_number":148,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"260b0d11-bc54-4933-b634-45d3cccbce30","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":148,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"f2771466-b9f8-4f66-821b-342435183032","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":148,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"70556dc7-19e0-4f36-88cb-6b0accbc29c8","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":148,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"233bce1c-49c7-4bff-9e10-c49129383746","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":148,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"fcb63163-ec43-4a96-b1b1-0b5bf4084e96","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s por tfolio, or a","page_number":148,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"a0767252-bd6f-4775-af11-59a604493fe0","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":148,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"6d9a7a25-fd7d-440f-a1a0-e3cbd03e2dea","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":148,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"0907ff0c-b18d-4cc3-a863-4e2351203c84","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":148,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"094710ec-0079-4d06-b3fd-27153ec4746d","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":148,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"e5f3642c-6a15-4681-aa49-1fe3bd7f4c40","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":148,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"3f680217-6ac9-4d33-80ee-ed5e5f67f0d0","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":148,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"8b439f5d-40a5-41b5-b3f3-b1835dacda05","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":148,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"b86053b0-7e38-43e9-b101-d48418f57693","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":148,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"13cf4334-47f2-4d94-aabd-ac3b45750031","block_type":"box","text":"institutions that par ticipate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":148,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"25dc06fb-5f8d-45c2-9ba8-f92ab8047ca0","block_type":"box","text":"doing so. The Funds’ shor t-term trading policy shall not apply to the transactions described in this sub-section.","page_number":148,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"43843817-0d32-4157-9fd0-5fcde428e7db","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to conver t them to cash, you may pay taxes","page_number":148,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"cd4e5f47-4daf-4a43-9cae-33dbc55967a9","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":148,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"cabab608-77c4-47b0-ac7a-94f7b8bc679e","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":148,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"a2873ce2-fe8a-4833-9a52-4375325d33c3","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":148,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"0b4343cd-c05a-4aa9-96ba-0fc84e83f44a","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":148,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"2c742f6e-59db-414a-906d-6d14ae1e0233","block_type":"box","text":"Repurchase","page_number":148,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"8bf64be2-c73b-494c-9bf6-b2b7db9f5b1e","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":148,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"0bb5d38e-1727-4fab-af71-bdebc1aaf859","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":148,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"0674fb83-531d-4d25-b845-ba4a196726d5","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":148,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"a4f37698-2ac8-4f48-a0bd-df4ba46ca621","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":148,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"78926272-a5a5-42b4-939e-05a5fb1ee98c","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":148,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"74ff4561-8d18-432b-aec0-9275cf4a5cb7","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":148,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"bac9ec57-0116-4f96-9ddb-337269ba3f9e","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":148,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"abd76679-428e-478a-805f-881f09731ae3","block_type":"box","text":"next business day.","page_number":148,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"1f66711b-62f9-4dc0-8667-b8eb44402a7c","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":148,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"03fe7328-c609-4082-afab-c151b4e5426d","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":148,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"35c57dd4-1ae8-49fe-9988-cfaae46c5af9","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":148,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"b551a65a-f798-418e-b559-6394994f5aa7","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":148,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"489b350e-ef52-46fa-a02e-5e475bdb4781","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":148,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"87a2c1dd-a249-438a-9643-95fa89ea0de6","block_type":"box","text":"redeem shares as set out above.","page_number":148,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"2a889e67-90d9-4278-b7c0-0910a0cd251c","block_type":"box","text":"II-117","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7b14738c-839c-428d-87cb-f7fd18bbb7e1","block_type":"box","text":"NM1026U-5982509-148/232","page_number":148,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e0f223cf-b536-48b0-9344-be7aec8218c1","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":149,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"c49f88dd-398d-4cb6-aadb-3d043b8928a3","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":149,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"47b7ffbc-0dfe-4e99-83c8-ffa2c08d1fcc","block_type":"box","text":"reinvest all or a por tion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":149,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"a5d34a97-a4a7-4618-9509-c177e92e1df9","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":149,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"408a613c-326a-48ce-bcee-02a314b1a8a4","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":149,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"ead31595-5c50-4dcc-b393-4566e4f4239b","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":149,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"ee4c4d1b-9084-4448-a0a3-8aebab4acdd0","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":149,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"e07f5652-d329-4e52-ab7a-d198c599ed84","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":149,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"beaeed29-aa3a-4b4d-a6f8-e796f5c8b00a","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":149,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"c838cbab-452b-42a0-8c67-e4ea2ae2b104","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":149,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"129bd471-5af7-444e-af67-9a7f5fa293f2","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":149,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"41b18591-f3a6-4c45-bbc7-75279a099076","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":149,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"9f62f4d4-099b-4d61-b66f-9b639af3b9fe","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":149,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"77703903-d0b3-4363-830f-57bed587a6f0","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":149,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"b4645475-36d7-4f51-b5b0-d73db00dc915","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":149,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"5afb02d6-a313-47ae-8371-758715dd6164","block_type":"box","text":"Investment Account","page_number":149,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"914049e6-7812-4552-a73f-baadab05e01a","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":149,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"2b846f0b-dc33-47c0-a2dd-333e457e314f","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":149,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"45fd8d77-6cfb-4c3f-a822-37f8fe087581","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":149,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"98ce634e-4f2a-4001-ae0b-2ffe0b63a78a","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":149,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"4a838b6e-95b6-40ac-8376-bbb51bb00af1","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":149,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"bd7b78b3-cbc9-4065-b250-2a76cbe4f75c","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":149,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"57bb2e9a-99c3-4c3a-850a-1cc08c92c612","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":149,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"aa142604-184f-4fa8-83c0-ac3f42079a3f","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":149,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"05547e48-408e-476b-967c-62114707963d","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":149,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"242b104d-277f-4fb9-a570-4628d5cce841","block_type":"box","text":"automatically at the Transfer Agent.","page_number":149,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"1660e4de-f9cb-4d36-a8f0-7e09dceda91e","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":149,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"69f4b210-cd9f-4038-a730-f81b12387383","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":149,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"bc48eb72-5dd0-43c8-8bf5-36b389b06482","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":149,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"abed57ee-c6f6-4bb9-9020-fc1e20794938","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":149,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"1cdbe85b-17f4-4d8c-af61-dfed8e3811d8","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":149,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"087f971f-4731-492c-bded-aea631895ef1","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":149,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"9fe73888-de6a-4f92-8eb7-ad353427fca0","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":149,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"ea5139b2-e636-4be0-aee1-6c19f9435cc8","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":149,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"6ac257f3-f7c6-47b2-ac38-3f97fa70598c","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":149,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"ff91e621-2128-49d7-a17f-49aa756507fd","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":149,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"50e96ca3-f90e-45fd-b389-016d7545b738","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":149,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"76239092-fd59-40cc-bf81-ff1e77e40688","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":149,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"479138c1-f023-4a26-9cbc-8cddb34afaae","block_type":"box","text":"issued.","page_number":149,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"7833d6e2-9eb8-4225-87c1-cde0a3e6a3a3","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":149,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"5229ffc6-e429-41c0-98ac-ec982b78ed34","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":149,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"85af3497-7a50-4cd0-bbaa-411467b7a413","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":149,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"c525f722-b082-44ea-9600-cb05720c19ae","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":149,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"31896059-03b4-4132-a4de-e1f214385d93","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":149,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"477e4435-3c0f-4eb1-94c7-fe44de855ef3","block_type":"box","text":"Exchange Privilege","page_number":149,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"8fd2643f-516f-45e2-887d-39f70b4f4575","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":149,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"a05ddfda-8276-4dfd-a440-2c5b1425544f","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":149,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"11722155-c465-4e27-8766-823bdbcbc683","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":149,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"7d89d601-8108-4f11-b4e0-5f38738cdd64","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":149,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"2a76d1da-e389-425a-b992-6501ac7db75e","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":149,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"c3633138-d3af-4aa5-b774-2b968bc1714e","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":149,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"ba75c8bb-3610-4ea0-933d-7ca3bb1820ac","block_type":"box","text":"II-118","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e11dd9ba-789f-446d-b109-98fe793fc0cb","block_type":"box","text":"NM1026U-5982509-149/232","page_number":149,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b877a1f4-1fa4-49b5-b4d0-2040fad24d17","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":150,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"070c061c-e768-442f-bcca-2d4e1788fd2e","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":150,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"c513df75-ec61-481b-8a37-e714c698a92d","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":150,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"d267fc4d-7134-4ce5-a3ff-b2e03e250f26","block_type":"box","text":"Institutional Shares","page_number":150,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"33ffcfb6-97c0-462d-8c3e-2cd43b3d927a","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":150,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"97e339aa-95f8-44fd-8489-31f2f74fc54f","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":150,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"0c9e6138-3c80-4174-89d0-81fe8da8fbab","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":150,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"8e182425-b642-4d2e-9bb9-1352a39c68fc","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":150,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"6f7ef2df-4828-4140-8d31-e02b378b9813","block_type":"box","text":"for Class G Shares of other Funds.","page_number":150,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"fc4fcf1c-a5ef-405a-947c-7f3fcf109808","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":150,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"71a18758-aebe-49a2-bdb4-7acd1329da48","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":150,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"b693b4ad-4c68-4752-b5e1-33339b9cbe43","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":150,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"7b69ca8e-f921-41c4-9e6e-d2d1c4b527aa","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":150,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"bb4f6ae3-3d11-4034-a235-142bcc92f2c8","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":150,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"c2d74f04-e6a6-4096-9ba1-7180cf67e109","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":150,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"c1d9c43d-dcb4-495d-b074-2e70ba78c385","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":150,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"b5adcbde-68f5-4e7f-b493-c5fc271d882b","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":150,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"f8cd4109-a9ac-40e6-9061-4f54bb24f5f7","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":150,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"87b04a14-803b-430c-b3cf-8c423769d96b","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":150,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"bf262701-aea7-4ffa-bbe6-6e251c27b048","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":150,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"302f60d7-54e4-49ed-b628-c71fb9770310","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":150,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"27bac3bb-b494-4681-81af-ba8b7da06312","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":150,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"00ff5181-7853-409e-9e94-04cc30b40f31","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":150,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"289d24b0-e157-4cea-83c6-ba6ac824bab2","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":150,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"786d6865-f5b0-45e9-b762-e5fafd3c939e","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":150,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"1fda4be8-bae6-48f2-95dd-fc9adef7264b","block_type":"box","text":"Exchanges of Service Shares.","page_number":150,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"f2cbe2f3-04a0-4799-b477-7a9b84521fd9","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":150,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"6a0ace5d-1ee6-4da6-9954-9b6042565cdb","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":150,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"410b7807-4241-4691-9b15-44b9d2eaef32","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":150,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"1619d437-45e7-44ea-86b3-4db43d4c26e0","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":150,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"01da7bcf-dc44-46a1-b016-32c3eef99adb","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":150,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"95b8522c-b0ba-4529-87ed-e3757f127e5d","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":150,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"fec8688a-982a-4ea3-b737-2d14fed963b9","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":150,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"f459a18d-a564-4ac7-86f0-88fcc8386f59","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":150,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"94e0285b-093c-4ec7-a4a2-4df6d09120ea","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":150,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"928e995d-d9f0-4172-b4f2-9aa060ac0d55","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":150,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"2799f72e-5f4c-4774-a125-c75c8c333ca4","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":150,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"47aeaf0d-90b7-4a05-8128-f7664fef6d0c","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":150,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"2dff95b2-f1d3-44c5-8ff8-1edbb1ee55be","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":150,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"288c0afe-809d-4fd5-b127-330b3b2cd50a","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":150,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"a0a99e27-031f-4778-b2e9-7de028a81aa4","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":150,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"cc5a051b-37ba-4898-9a04-ebece172cbc3","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":150,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"569d199f-2aef-4f10-a93a-e18917abeabb","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":150,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"e1511a26-8b06-4688-9f5c-1304b4cd76fa","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":150,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"ea88f709-d6fe-46a6-93b3-1739dff157ad","block_type":"box","text":"exchange.","page_number":150,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"654d9163-646e-4b79-8a2b-854a7d892c5d","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":150,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"5cfa49b7-4cef-4861-bd0d-a2f4f6265a3d","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":150,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"df212ef6-7014-44f4-a90e-67808a952a32","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":150,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"b6ffd0c8-6603-4404-be10-dfc6f0256a6a","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":150,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"56329b13-75f8-421e-94a2-87ba14f4fa9f","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":150,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"530a1ede-600d-4bce-8901-245e4d0f052b","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":150,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"3b774960-824f-439a-8eb9-2213462cbf31","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":150,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"cf2db521-606d-4796-90e7-20350cb91136","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":150,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"6f7668da-5c87-4376-825c-2767b69b2f1e","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":150,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"f44abf21-b906-4ebf-9d09-3adc78bf0ba1","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":150,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"51f11ddc-11cc-4c8e-8216-4520a6ce7aae","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":150,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"f57ed963-301e-49d7-90fa-a685a9894780","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":150,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"e7ffec70-2e8d-4b30-9cdf-888dbf1d96ab","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":150,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"cafc7d8d-5786-4cae-8635-82ba1d0dec60","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":150,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"6294d353-b976-4bdc-bef9-ff8e8495d604","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":150,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"4f903af6-2ab1-41e2-a2b9-9c7d65a3b04a","block_type":"box","text":"II-119","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"295ae41f-7972-4bdb-9001-6d7e71eb8729","block_type":"box","text":"NM1026U-5982509-150/232","page_number":150,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2f4898a1-1e99-4b23-b61c-99480c4e6cee","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":151,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"a06ff125-e99c-4b93-9066-bd6ba183e373","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":151,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"a51b8b9d-7c36-49e7-b91e-904b61dfdcc6","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":151,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"b610dc7f-b4d6-4022-ba3c-27d925b6e70e","block_type":"box","text":"Transfer Agent in writing.","page_number":151,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"0a6b2d67-3200-40cc-9af8-a2bc5241fad3","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":151,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"d39b9cd5-96b9-4ce1-b168-0e24ec19cf88","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":151,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"d33aad08-8b48-47dd-9c2e-842a918b9752","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":151,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"8da5a962-b4e5-4df0-8b89-216e5bb40105","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to par ticipate in the","page_number":151,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"239764da-ac93-4916-a265-8ad6af0c23d2","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":151,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"01dfa0eb-a865-4a6b-b1da-22f6fecfb140","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":151,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"2d9f73b4-68e5-49fd-bbd5-edeb61113ee3","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":151,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"234c65d5-f4ff-4242-aaff-e8b424911d60","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":151,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"82fb6824-32b7-404c-89d0-56b780fa9967","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":151,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"a22e5ebb-c639-4890-aaba-ba2e818a4b86","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":151,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"3ffcaead-7774-42cf-ac4c-fb492bfb4132","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":151,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"65046267-c3fa-4ab3-9cb7-7848da395b21","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":151,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"c6e92b89-a1a8-479d-a5b8-3cc758bb300d","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":151,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"7cc06312-0a58-422b-bf55-3a813d08341e","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":151,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"ca2cad5f-abe2-41fd-9b6c-bd09159b24fc","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":151,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"503d3d06-cc8b-4753-9882-26908b757501","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":151,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"be05aa0e-9be0-4499-9e99-35e3bd99982a","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":151,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"2e5e7a80-7856-4a32-ae82-85ba8370ecf3","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":151,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"b13ae4ce-6d7d-4250-bd0b-4954cecc9147","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":151,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"b007ad25-8a0c-4cf4-85b7-0589912ea3e4","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":151,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"4f55fc05-9048-4bda-a50e-ecd52fb3e895","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":151,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"eee88c97-b154-43a2-aa1d-79e13f70d923","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":151,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"d3c782c2-301f-48e6-8873-2941a5a40996","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":151,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"adb94cdc-5c36-4fdf-b92f-a72d06eedb45","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":151,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"73005c0c-72b6-4332-a863-3428c5856fe2","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":151,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"ce374b38-06a9-401a-a3d0-bc70a0a0534f","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":151,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"a2b0f149-4920-42c6-a79d-15c8526559ef","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":151,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"0ff449fb-c390-4e15-94b2-aba31323b049","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":151,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"a83ddf54-4702-4982-80be-8880a7053311","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":151,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"8afd5319-9989-4092-8636-32f15563de31","block_type":"box","text":"may be distributed by the Distributor.","page_number":151,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"c6a3f2eb-a36c-4d96-a588-077c8b42a37a","block_type":"box","text":"Participation in Fee-Based Programs","page_number":151,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"8390fc48-4b1a-4d82-8c99-8774f9e94800","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":151,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"5e5b5e48-66d2-454d-aafe-583878c11bfd","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":151,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"944ddc3a-5104-42d1-b317-32d2d0cd9330","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":151,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"67f8990a-8fff-498e-95f4-21d30ec9ab36","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":151,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"52731f6a-aa35-4265-9491-54883f2365ec","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":151,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"d14ada78-f044-485f-80f1-8e104ce582b2","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":151,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"690ee805-e219-4099-af2e-90850ef9e907","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":151,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"8be0dbec-a70c-4b51-9f9e-fc148f92dd1e","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":151,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"9a49b2a8-95c6-49c9-b1a4-b50cf69ff984","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":151,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"f86dbeab-50f8-449f-9145-31275be3953b","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":151,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"41bf02be-9d85-4fae-bf41-b57d7becdc6a","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":151,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"240536e1-8ec9-4a3d-b36f-66ad62a89377","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":151,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"6ddbca2f-f4c9-4e64-8d30-c3112c6c2a29","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":151,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"144c63d4-f099-4dc2-b7ff-02ade16428c5","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":151,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"fd74e15b-e701-423b-b46e-ec661b705286","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":151,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"b62e6bed-b272-4742-8f07-26aac35f9947","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":151,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"14ad16cb-54fb-405f-8e68-1a74e0b95335","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":151,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"c38e5a67-cf34-425b-b064-6063c0237240","block_type":"box","text":"II-120","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a933236f-bf22-4f30-bb10-264ea4d936de","block_type":"box","text":"NM1026U-5982509-151/232","page_number":151,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8a8eccbd-0dbc-4e27-af10-24c84020e881","block_type":"box","text":"Cer tain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":152,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"d0997eb3-0d7a-47c0-a08a-b002a3d3f332","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":152,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"13799578-24a8-4e4b-be43-1a76eeb0f84c","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":152,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"08e0b660-7847-4b62-98d0-7de5af72345a","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":152,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"2d420a88-5248-4b75-8d69-f174d8466004","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":152,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"eb4692a1-997f-4e48-a12b-3e20d27af93e","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":152,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"42224b34-11e0-4f66-82bf-4fee092f2718","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":152,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"4f06c9c3-d0b5-4064-9b02-0bf9856d8659","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":152,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"0eb8feff-8b1b-450a-9485-0ee4ed735111","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":152,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"7f76eccd-796d-418f-a8b0-fde0fd4e72f9","block_type":"box","text":"information.","page_number":152,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"7e685950-3892-4416-90a5-bcbd336ecf4b","block_type":"box","text":"Retirement and Education Savings Plans","page_number":152,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"a5dc7433-66bb-4a8a-9a42-f1847d869936","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":152,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"b1d2f24a-305f-41d9-9221-aed87d3bff46","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":152,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"1f97c384-cfad-47e3-9c9c-63d49cc73a4a","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":152,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"dea40f45-eade-4584-b59d-ab21ce8f5703","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":152,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"f0d736d7-fd34-4fe0-a4e4-f4992c5a9b9f","block_type":"box","text":"your financial intermediary.","page_number":152,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"5ca1b466-4812-4128-acf1-2c51af75b5bf","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":152,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"d33270e3-42de-4bcd-ac7c-17f08ced7162","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":152,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"20957492-625e-47b5-a3b3-53dfc4e28a19","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":152,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"8d6dd87f-9112-41ee-afc6-54e79a95e045","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":152,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"79cf09ad-e83e-4da4-8d62-555a87c53204","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":152,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"1c329d07-071d-41c1-95f7-6a498736dc69","block_type":"box","text":"Automatic Investment Plans","page_number":152,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"ec7f07f8-2249-4fbf-b822-6a2f2f182c7d","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":152,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"a5f99dc3-89ea-4f69-9265-ccb18f5e9662","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":152,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"6deb9af0-d2ae-4c08-a657-42008a8a9445","block_type":"box","text":"®","page_number":152,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"4b646e9a-419b-4a9f-8929-a9d11ea55481","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":152,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"5bfc91b3-f7cf-411f-aa8b-55c70cfa6275","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":152,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"5dbfc299-eceb-4a30-964d-db71326113d1","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":152,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"a3dff2ca-acb7-44df-8fb8-369d6fcc1fa4","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":152,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"b9345596-495a-45f2-931f-3ef585141100","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":152,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"8985314b-e4db-4a02-8eec-93d8c74f9304","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":152,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"9b1fcb86-e1a7-42c0-b4d8-727897ba4d46","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":152,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"7e243832-ddde-4e26-bc20-d37c71337bf1","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":152,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"0198036e-8e6c-43bd-b63f-0959e473cb5a","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":152,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"c34b6fc8-a347-4696-9c79-ab2ed7785ec4","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":152,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"3e1667ec-5909-461c-95a9-914f7e081f83","block_type":"box","text":"Systematic Withdrawal Plans","page_number":152,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"55dee60f-c608-4cc9-8149-9dfe56ea4f34","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":152,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"7c5c5724-4a00-4d26-83bc-89ca90b2e2b8","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":152,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"31a7ecf6-c430-4e32-9f46-6321ac5b19e5","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":152,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"7b93e38a-9c32-4d54-a8f5-e652e07af22a","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":152,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"5f7f9744-3298-4694-ae25-a44a149f2c28","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":152,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"e621f3d3-161b-4f19-99b4-b1ed4e1b1c9e","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":152,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"3d37c542-c2e6-4b07-bab0-0734522efc5b","block_type":"box","text":"www.blackrock.com.","page_number":152,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"e413709d-e518-4145-90f0-7eaa719b8e92","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":152,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"6a6ff640-3b4b-4d23-934b-c62731578707","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":152,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"0fff4115-3ddd-4697-b71e-9c172dfb3a72","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":152,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"fde135bf-8453-44ce-ba02-44edf182b10e","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":152,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"48d0d12a-b5bf-4378-a5cc-c06733a7c664","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":152,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"28e81a3a-f8ca-49ae-871d-c9751bd22a68","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":152,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"9b75b99b-6021-4fae-aed5-06d94847e66e","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":152,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"685a7f15-13f4-4922-bf99-ad6dbfa568b0","block_type":"box","text":"II-121","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4fcbb03d-b0ca-48a9-8ec9-807f69e3a021","block_type":"box","text":"NM1026U-5982509-152/232","page_number":152,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6375f060-cf85-416f-80bd-f2f5265da52a","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quar terly) and 6% (semi","page_number":153,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"d9a2e213-8332-4ae8-9922-3bea9e89e964","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":153,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"da2f58fc-6a1d-46b0-a389-d99a002fd135","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":153,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"6e93e6c7-1cb7-42bf-bbd7-e87067ef78ab","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":153,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"6240ba12-de0a-4329-8fa7-4040fc2d35a8","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":153,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"99960b2d-aa70-4393-98f3-97d0fb0ecbbb","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":153,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"d03b4c9b-48b2-4df0-81c3-9f8ebf1680ed","block_type":"box","text":"Dividend Allocation Plan","page_number":153,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"d94938ba-feb0-4082-abeb-10c2cdfd8d22","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":153,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"72d500d6-b929-4005-a8a8-7b7c4cb25ae7","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":153,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"83d15672-e4ea-4819-aede-5c222d3558fe","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":153,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"14c9d33f-889d-44df-a6fd-5b059f481a12","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":153,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"3086ecd0-cf97-4718-a4bd-0c388df839db","block_type":"box","text":"PRICING OF SHARES","page_number":153,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"459e2ebf-8665-4397-925c-74f4b1ecec69","block_type":"box","text":"Determination of Net Asset Value","page_number":153,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"e7209a3c-d27c-4070-b6f1-f719f427b482","block_type":"box","text":"Valuation of Shares.","page_number":153,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"9ef4d162-34db-4c1c-8899-40e67c48a6b6","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":153,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"5d09af01-0565-4f49-a3af-e06c58b2e2a8","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":153,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"709c81a5-4049-4944-9ba1-bb7486883439","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":153,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"835e70d6-b5ae-4107-83e4-4db885c23b02","block_type":"box","text":"Equity Investments.","page_number":153,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"6a0fc07e-a405-4b82-80be-ee64afd504bd","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":153,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"a4e1caa9-99a5-4fbe-a473-7fc7a2faf739","block_type":"box","text":"e.g.","page_number":153,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"20c4dcd7-06d8-4714-abae-aa6ce1f23822","block_type":"box","text":", NYSE), on separate","page_number":153,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"d5a82031-f149-4038-b207-b03b41be47a3","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":153,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"0ab6e880-6bc8-4116-b7e6-f3811a2cf12f","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":153,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"285838a5-5bee-4184-b19c-07c9fb7fdcbf","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":153,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"6b08a89e-6000-49e7-ba23-d782cf3405dc","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":153,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"555b1ff7-1ed6-4eb6-9719-66b43e27c24b","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":153,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"443ffb59-4c41-4fc3-9965-19802e8032ff","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":153,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"cf6ab24c-01d6-4254-9ff8-18ab30871403","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":153,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"b9997ff5-83fd-476c-b3a7-fcb31b7fc3dd","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":153,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"ed01fe28-7f62-418d-ba6b-da12de8ddb32","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":153,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"8bdd37c9-a9cf-40b7-b048-b519d6e1c5c8","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":153,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"fa39f580-651d-4fec-a08b-1e54cabfda7b","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":153,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"1d5afd37-6504-4cad-a6c1-1c55746f07d1","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":153,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"019b9ce9-c212-441e-98a1-0339dd2fea6f","block_type":"box","text":"defined below).","page_number":153,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"93242634-81b7-49c8-9705-0ebda301533e","block_type":"box","text":"Fixed-Income Investments.","page_number":153,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"939ec9a1-f686-4c7a-9304-92be25e97d1b","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":153,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"c6542aa3-d569-427f-be69-1d1737111d08","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":153,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"462da635-2e48-42fe-a3bf-9931233cdc05","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":153,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"82f24f56-fce3-452a-9324-c8dd416758d0","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":153,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"f8891406-588b-46d3-901b-a2893586e3d7","block_type":"box","text":"e.g.","page_number":153,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"edd3d29d-3a46-4944-a78b-0c6fc02b0d6e","block_type":"box","text":", recent representative bids and offers), credit","page_number":153,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"5dd22b2e-f2b1-446c-9118-8bd64a79c948","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":153,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"850cbfba-8403-4aca-9897-2a07f9158b77","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":153,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"dc84bdfb-172a-43a8-b19e-fe7a8bdb5b32","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":153,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"180fafae-5492-442c-814e-da9e2851b9b5","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":153,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"d95f952c-dcda-4b0c-9096-06d6b8b5439e","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":153,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"3242f353-001b-4cd6-89b1-3d523607ae03","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":153,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"2b5dfc7e-92fc-4002-a64f-2d162cf162a2","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":153,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"e069ec28-e9e8-4f54-ba0a-1dfed3905056","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":153,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"30999f50-70d2-4518-ae20-10d221cc9117","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":153,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"87518405-da6e-48f4-9ced-901e2c65b00c","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":153,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"d4096bcf-46f9-4831-b944-f36da935a043","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":153,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"9d3a0c06-0cbf-4b0e-aa09-b6b412eddb2d","block_type":"box","text":"attributes of the tranche.","page_number":153,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"8645b692-cc79-41f9-8315-8d3b247d8f36","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":153,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"ccafec03-3291-4317-994c-24abfa7996a0","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":153,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"02921178-056b-44d0-bcae-3dbdc9103ee4","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":153,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"e509c670-45a1-46b7-9b7a-a891cb0a6586","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":153,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"6962fa4d-050a-4414-b1a3-e2755b782d57","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":153,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"0bc6125c-be23-4546-b0e8-244c6f914194","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":153,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"ff3e9505-e50d-4711-9648-a5802bbd2ff1","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":153,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"16325da9-fce9-4a0f-80b3-67dca4cb7936","block_type":"box","text":"II-122","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a1b967b3-2d63-4795-8717-b584b9c7c1c4","block_type":"box","text":"NM1026U-5982509-153/232","page_number":153,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a1cc4f32-a21f-4132-a5e3-078e18f5c0e8","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":154,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"2a2ae364-ca8b-446c-ad90-08e015c21f96","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":154,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"0a0d5b2b-0b11-416c-85c0-5ee0a2694fd6","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":154,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"6d3042dc-1526-45cf-ac2f-ee840efb137d","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":154,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"b430f0fa-d28f-444e-bd93-4a1cf2210cd0","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":154,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"eb227ddd-fcbd-41b7-84e5-6c4908886698","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":154,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"c9f177cd-57b5-4c00-84f3-62912f54a810","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":154,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"a319d193-5d54-4ecc-b545-a209714cf572","block_type":"box","text":"Underlying Funds.","page_number":154,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"5c8cfe47-3505-4563-8bc5-1613dec81c80","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":154,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"890a7315-2bce-47fb-b0e8-3c1b90b536ab","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":154,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"5c1edf27-ffae-4770-90d8-4fc2fe43b398","block_type":"box","text":"at their most recent closing price.","page_number":154,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"5b274a4c-5ddf-48b0-a642-d31fbd3d3c27","block_type":"box","text":"General Valuation Information.","page_number":154,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"09d13f9b-b88e-47cd-9bdb-6cac2900d055","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":154,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"e2efc4ac-069e-4ec9-a0d2-160051af26c0","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":154,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"95a6966c-54e0-4d5a-bba1-2b6102742a68","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":154,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"b23a8b40-189c-4b57-b290-01cc380fbe1a","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":154,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"2c7ac176-8e3e-4cc1-85c3-8e08d8924822","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":154,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"cc0a221b-260b-4b08-b500-7c23b2ab97c8","block_type":"box","text":"the revision.","page_number":154,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"c45289b6-fdc2-4e6f-9402-e5de5b92f314","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":154,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"e30e2e21-da82-4cc8-88cb-ec58e5b586d2","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":154,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"933af482-8f45-4dfe-a1c2-ea57ff480276","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":154,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"f937fcd9-d267-4abd-a690-04d02ec1e9ed","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":154,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"3d36b382-0c3d-4028-b653-d6bc6d0d3635","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":154,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"1328e8e5-1104-415b-a148-0dc9f5946790","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":154,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"cbcb7075-b145-469a-95e6-2d4dc7473909","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":154,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"aa104ccb-f30a-48b4-8c18-5fed67a5f97b","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":154,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"ff762d98-7b97-4a3b-90c2-5943fdddd7a3","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":154,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"b70b1970-4615-43ca-bb85-86dbbe16c8fc","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":154,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"3bc481be-9ebe-4a27-896f-7aa0a4e1d27a","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":154,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"fdb9d45b-c802-48cc-b916-9d7f8a8b00dc","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":154,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"f52a817a-2161-4045-b84d-5f993f0b9f47","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":154,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"cee5bccf-c9b9-4d8c-9bdc-bb79dab8bbff","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":154,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"421756fd-14e6-452e-9824-cf70b3a394a4","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":154,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"52463066-273a-44b4-9ad3-7b78694ccb53","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":154,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"747822ad-44d4-40a3-b410-6516b2a12a7c","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":154,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"3402b41d-a725-4991-a84f-c1ba26164aba","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":154,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"60b2472e-2b44-45c7-b574-65aa4311abf0","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":154,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"2c135120-b07c-4127-8671-d16c714d99a6","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":154,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"763bc4f8-aec8-4065-b486-5cc83ac6ad90","block_type":"box","text":"Fair Value.","page_number":154,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"8596b9b3-38bf-463d-a790-861392ceef06","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":154,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"6ebd5702-cfe7-43c3-9532-b7a301f4347d","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":154,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"45b5d59a-2841-4882-a3ba-dbfdec1165a3","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":154,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"4e121a5e-9d02-4d78-81f7-dfe2cea99c94","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":154,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"7fd5b856-1e7b-4aa3-866e-cb692578426e","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":154,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"819dc341-666d-4f76-aeb4-1c19fd2a00b9","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":154,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"a2b3d98b-f92c-469d-8486-49f58ffce1a1","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":154,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"98d80c80-7bb1-4a6b-8dbe-b690b9d15cb9","block_type":"box","text":"(","page_number":154,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"47c88e4e-df44-425e-9dd3-c894882463ac","block_type":"box","text":"e.g.","page_number":154,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"57ee161c-492d-4b73-801e-03a28742bc45","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":154,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"41a54955-21de-4793-8f82-aa42f5d8ae03","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":154,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"2b7aa976-90ef-4a4e-83a7-d5cbdcb6ab15","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":154,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"16964340-0157-44ce-9eb9-fb01a1b08a2e","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":154,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"d43a9c8c-4983-46f2-98f8-d48dba107b1d","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":154,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"bbc59617-0b12-4f3e-b013-9bf87ab521df","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":154,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"0ab991b9-ed04-4e47-804f-48e182007dba","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":154,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"da8ad051-93d1-4a2e-937e-1cd6f491d54a","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":154,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"6170c64b-7e86-4629-97b6-e5323594a43b","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":154,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"2403fa92-88df-4142-890c-227504709af0","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":154,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"3630d4ed-2850-478b-a12b-18391df54190","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":154,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"1ae52550-675a-4cf2-85a9-6f2436df753d","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":154,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"545e0b23-39aa-42dc-ac47-b581dff0be23","block_type":"box","text":"II-123","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"dea604c0-df20-4203-8b41-9706cb9d83b3","block_type":"box","text":"NM1026U-5982509-154/232","page_number":154,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1804cb6c-9833-4abb-a345-ea204a784fdb","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":155,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"57f2f74d-2c36-41bb-b105-cfcf93d5a8b9","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":155,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"dff4c7bb-e3ce-4db4-8224-8606dec5c81f","block_type":"box","text":"pricing time.","page_number":155,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"3f020452-9b2e-4e0d-9052-75917975685b","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":155,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"09bba393-c9d8-4e39-826d-413b21f01a44","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":155,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"12abc2bb-9fd7-408b-8c6d-104de7dc88f2","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":155,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"8e5d4f5f-3a39-4325-9d85-253a25600db6","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":155,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"016b3d1f-d0eb-4958-9267-20ea8856edb4","block_type":"box","text":"assets and liabilities of the Funds.","page_number":155,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"378b5132-128e-42da-be2f-d856f97b5b3a","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":155,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"15600d0f-7842-4006-8f90-c11506033c2b","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":155,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"7c30d772-1fe4-4cdb-829c-11a84ac36e5f","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":155,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"66ada464-ece7-4d43-b3f4-d065cdda2c29","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":155,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"b0d79028-6c0f-4836-b5bd-464d9cebc60d","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":155,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"5153d66f-22ed-4f16-9e2f-823ff8e1ca1b","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":155,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"c81b743a-8f65-41e7-956a-981ba2a169c5","block_type":"box","text":"valuation models.","page_number":155,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"8545a2d8-ca12-4e92-81fd-c42e310f1ab1","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":155,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"3401d5d5-dac8-46d4-91b5-89f14ed90a56","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":155,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"504a67a7-cc3d-4220-9c5e-648024f13b9f","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":155,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"397329e0-889c-43d5-a37e-e1d7881402bd","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":155,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"ef5aaee1-44e8-43cc-850a-c5937833e367","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":155,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"1b81edcd-af41-48d3-935b-d1ad70cc1fc4","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":155,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"63809aba-eb60-4e0d-9d8d-b1890a5b7aee","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":155,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"d3cd7594-c933-496c-8b9d-2a97a1d5c034","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":155,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"93fede55-5650-4cc1-bbca-c3a4b188bed6","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":155,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"81f11fd6-c4dd-4e11-989f-046383c6c17e","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":155,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"f71e3657-c499-493b-961d-190792923eb1","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":155,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"3c9525e5-71f1-472a-b357-fa2dc47d1c97","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":155,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"5dc519dc-5e74-4bb5-b981-61865719426e","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":155,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"e8af5bea-f27b-4f75-ab2f-4c4634cd6847","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":155,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"6d42d7c6-f5db-4cd3-90a6-c9aaf748294a","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":155,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"dc8b3f18-d3bf-4c49-a4ce-40ce17bbb7a8","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":155,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"f3ac5eb2-09e1-49b8-a294-fc873955c754","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":155,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"f66b8886-8112-4d21-944d-dbf3b5fd166a","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":155,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"52982f34-dabd-42da-98c4-29708d12aeb0","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":155,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"d72f329b-7f8d-4ddd-bdbd-db8a2838d574","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":155,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"5fb64cd3-40da-4765-b119-1b02d86f36a4","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":155,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"9d8c0185-b5a7-42b3-a36c-a1284debecb6","block_type":"box","text":"par ty determination of fair market value.","page_number":155,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"01c85e60-e606-44d6-b403-3ea077d4504e","block_type":"box","text":"Computation of Offering Price Per Share","page_number":155,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"38397b0a-1ddd-445f-8b69-1db32b2a0a20","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":155,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"9ccca5f4-633f-46ad-961e-f488dffe1d15","block_type":"box","text":"the offering price for shares of your Fund.","page_number":155,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"2e0baa7a-7518-4aa6-856e-77cad90bb077","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":155,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"c59408b1-12d1-4958-9aae-da8803a17831","block_type":"box","text":"Transactions in Portfolio Securities","page_number":155,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"8236866c-ace5-4b4a-8a94-9d8e1458720e","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":155,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"cf364ac4-1d38-4900-ad91-1f004da92446","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":155,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"49f4cbb5-27a8-4b5a-ac97-513dcbf3a604","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":155,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"1ea924ff-7e7d-4c07-8277-185ec37ec217","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":155,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"a8631a3b-14c4-44b5-9cfa-2d1efd78103c","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":155,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"a2bd325d-0c04-410d-a7ec-51aaf736c4bd","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":155,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"315cd091-658d-4b8d-9dd9-917b04dfee5b","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":155,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"dec62528-b34d-471a-a612-39589f9eab75","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":155,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"c23c67fd-2d93-48fc-adcd-25553bfa2401","block_type":"box","text":"II-124","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8f6c8923-0fc7-4a03-86a1-7891c1da875a","block_type":"box","text":"NM1026U-5982509-155/232","page_number":155,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3245ad2d-ff1b-4054-9c41-6d8c90e193d8","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":156,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"8c9c7e02-55ad-4920-92ab-85f479c8e20c","block_type":"box","text":"reasonable in relation to the services provided.","page_number":156,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"317b65a7-7f27-470f-a924-6ae214de2e02","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":156,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"5c48cc18-898a-4f67-9afc-a09cc5805904","block_type":"box","text":"Master Por tfolio, it is expected that all transactions in por tfolio securities will be entered into by the Master Por tfolio.","page_number":156,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"f023b0a9-71ea-44c1-a4a8-c9af2da7c8b9","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":156,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"f36b9962-626a-4335-b0b6-e35a3acf69ea","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":156,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"69bc8627-bb21-46df-b7d6-c7d7a223b5ec","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":156,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"7af71312-1389-4196-9fd0-3c702ec6eee6","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":156,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"472bc56e-c5d0-48f2-8736-6d7ed0e0173a","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":156,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"d9ee2cbe-8248-4b88-9879-4b70109fba33","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":156,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"f9d6dd55-643d-437a-865e-0575b169ce38","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":156,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"d340ffff-6d6c-4459-aa13-0c96db028f8a","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":156,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"4ab510d0-660d-4642-92a6-6c96fdad00c8","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":156,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"f63bb840-03e8-4435-ba5e-70f343ab0ed8","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":156,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"a7358e73-eba6-4ad9-beb5-ef42b5a6b9e7","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":156,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"589c427d-099b-45fe-8f52-1f957facee9f","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":156,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"18b297a4-8a4b-4f56-a371-9170fea49e30","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":156,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"9d3070d1-2319-4e21-b590-15f15deb0ae9","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":156,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"4d1e72d8-8662-4fc8-8287-47cc58fd37b8","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":156,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"162326d8-9a92-40c5-aeab-be13dfcb0379","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":156,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"03a59b96-0e0f-4e87-a9f0-59c94836d8cc","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":156,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"5d8e8fed-5463-4661-a232-b38b5fd1d27a","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":156,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"0964f6c5-d98a-47d2-9c92-a84cecbb6b3b","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":156,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"b8f305f5-001a-4f73-9bd6-78b3769abefb","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":156,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"c44f9f2f-5eb2-4dfd-916e-1fc83c89484b","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":156,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"724f5b54-78f2-49bd-ac7e-c02862c26cd1","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":156,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"0de73335-6f3e-4b33-ac09-70683fc18387","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":156,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"7b6d56a3-c099-42a3-a283-17298a7885d3","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":156,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"85985630-b5fc-4bd2-b4f6-1c07f7153a4a","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":156,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"b48b1f9a-05ab-4da5-95d7-9a4ce01f2598","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":156,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"c1178b62-f680-4f21-aaca-a2b9e8924b10","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":156,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"7ec914e4-91f2-4459-b4c1-d506a0141182","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":156,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"f0ef810b-81f5-41f1-904f-aea5fbf5af11","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":156,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"7355a2d8-ea32-4303-baf8-8ac88da696d1","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":156,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"875d15b0-6102-4af7-84b2-0d48107eb270","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":156,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"8130a046-3d81-4804-89a0-472caab87d53","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":156,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"64afed83-fc84-4104-be85-ed48e57c170c","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":156,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"08d7327f-69af-41d7-ab9a-a96adc4db4f7","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":156,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"170e41aa-ecb8-49d1-9c21-3e7d9466f216","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":156,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"fba7623c-7405-49cf-a67c-96cc7ef9724a","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":156,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"6a55457c-009b-4368-8119-bb8fd5ca21e1","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":156,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"5c261b29-97c3-4ad1-93d5-2b7ac5830190","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":156,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"82644f7b-0d92-4156-a5f7-62463f4fc330","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":156,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"bf96e35b-b7f7-4a8f-b211-245d1b09112f","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":156,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"9715d8d8-fcbc-46ef-a5ae-cc8280eaf1d3","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":156,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"83f5a710-a3d1-48d8-9f78-b5548315381b","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":156,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"241f4f05-f43c-4e44-b425-8d7a086045bb","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":156,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"cf4f7c1d-0943-49a8-b531-a3e560880d4f","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":156,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"b3f14c0f-cb3c-406e-a564-a322a0512382","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":156,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"0e45f8f6-9d20-428f-bdb7-c4850f779bcb","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":156,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"14d4a70a-bfae-4392-bf1c-d6453a75627b","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":156,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"326befc1-4cab-4bea-8ff4-928ddf774c70","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":156,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"12df4eba-90a2-4b88-954b-61594ff36eb1","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":156,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"ba35d3c1-e66b-4627-b785-3083e626b231","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":156,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"fd85f1f3-334b-41aa-922f-bc05939e2d9b","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":156,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"d2c013a3-01ba-4207-82be-0f3b98f55385","block_type":"box","text":"II-125","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"780563be-8c9e-4344-a9c4-079dc8c17cf7","block_type":"box","text":"NM1026U-5982509-156/232","page_number":156,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ce365b58-0768-4464-ab83-dec76af38a1e","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":157,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"816acf9f-9e54-46d1-ae18-abd196ca9e56","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":157,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"d2fbeb31-2fff-4da1-a680-7b5eae1d2650","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":157,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"5b83c066-a2e7-4946-b327-ae272aa5d500","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":157,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"c3ded08b-341a-4876-8d1a-eafae9808efd","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":157,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"cda2a42c-e0c2-4569-a068-1b804b4df3e1","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":157,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"265aa7c6-6b50-453d-8683-d03bbe299c38","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":157,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"7a8e5c56-b131-4521-8bf6-c7940b85b6de","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":157,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"6b4dd6e6-0695-47f0-95cd-7133642d0756","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":157,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"199a138e-07e6-4e30-a104-d25ac0b0622b","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":157,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"7479ea9d-1f16-47eb-a38f-8960d1b80da2","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":157,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"5796db21-9bf6-462e-81be-a2b00f492dc7","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":157,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"f3929a54-8bef-45e5-a366-3a3c3b213dfd","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":157,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"6fafa39f-0469-41d0-b974-12747982e895","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":157,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"545ceeef-07e1-4216-8bc9-9854e9398f02","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":157,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"92b81dfa-f785-4321-9522-2c90e4d146e0","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":157,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"8910ebd1-9155-4909-bc32-4249599584ba","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":157,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"9bd4a1c1-256f-45b8-b163-e9dc706d83e0","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":157,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"d6a61a40-aeae-422e-b136-44a6536ecadb","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":157,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"ca3835b9-266f-4701-8684-d129636b1b6d","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":157,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"be68cc67-1f4e-4bce-a196-8041271c35cf","block_type":"box","text":"brokerage.","page_number":157,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"b5d2ad27-e8b3-4e0f-aff9-4899bb6e8e57","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":157,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"57d90278-4f9b-4e73-9267-ae192643afd0","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":157,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"9570121c-5d72-42d9-b461-f7ad9941b542","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":157,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"7356652e-8d7c-4900-bf68-724cbcdae5af","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":157,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"05e4c5fb-e884-4c3f-9fbe-b51303734bcf","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":157,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"87023da5-8ebe-4157-9b45-bac4bba2f759","block_type":"box","text":"Section 28(e).","page_number":157,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"eb1d17c4-f55e-4b85-8895-97f18eee50f1","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":157,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"69510481-9fb7-4a6f-a915-d5562035042b","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":157,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"54e40389-4b11-483f-a69d-a1ae8652ea69","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":157,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"e7edf843-21c5-4dda-b1c1-4833f04c8efd","block_type":"box","text":"execute transactions for those mutual funds.","page_number":157,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"3127762e-4a61-4068-8674-33cbc056064b","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":157,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"cc9ea26e-d1da-412e-a82e-2fd3cd9dfb12","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":157,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"82e27867-190c-4b51-9248-c8523c16dbcb","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":157,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"f85f4c9c-0845-4410-b305-d3f23593a9db","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":157,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"78691247-eb4c-493d-acac-be7a77bd230b","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":157,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"82569a5c-3b18-403c-8800-af75ef32d7f5","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":157,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"b20a1ef9-c4fc-48a2-afc6-f1d259fcd2d1","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":157,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"819d686e-c63a-474b-a329-0b50b955471f","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":157,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"e26ee048-6b27-42e4-bf43-bdb1188de365","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":157,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"8ff1cf14-9feb-4989-9c3a-1e9a6bfa6678","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":157,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"e1cc3b93-ae80-45d1-9026-c46c34a66c2d","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":157,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"006a603d-2331-414b-aa2f-297b391e773e","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":157,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"8e1676d3-9c82-4414-bf4d-a9de604811a3","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":157,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"0a018ccd-7e7a-4b2c-a92c-64f20ac85922","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":157,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"e1770860-f9d2-486e-ab7a-989f23a3552d","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":157,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"aea2ee16-23e9-48cc-abec-1d512e9f6660","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":157,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"b8535564-54ad-40e3-b172-6da00927bb29","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":157,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"b967a45e-6f76-4942-97a3-938a5321f670","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":157,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"e904b9b5-77b9-4d87-a02e-0f44b43f9404","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":157,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"64331850-c03e-4644-974c-08814724d51e","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":157,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"8b77a876-fbdc-4798-b211-37f0804ae77b","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":157,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"6298f41a-e428-4861-91c5-67c11d845367","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":157,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"d474ab99-97a2-4ebc-8d11-b0125f709806","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":157,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"89afbf4d-598e-4e97-b9e1-d2fbb49e811b","block_type":"box","text":"II-126","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ffc27a04-8c7c-4f1b-a0ab-9a5fcfb5294d","block_type":"box","text":"NM1026U-5982509-157/232","page_number":157,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b7002b0a-a469-4961-81db-1c208f1ced24","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":158,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"8ee11943-0a15-4f12-8a7a-fbcd1ebe9f87","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":158,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"cf0d7096-4839-4cd5-ab60-410af97e32e3","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":158,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"654bc7db-e670-4dff-8464-b4db4e4491eb","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":158,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"160f1953-b537-468a-a7f0-30a9c18e8dbe","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":158,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"6b7bb17b-53c9-4d62-b234-1c89bfe819b4","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":158,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"d0a5aebb-fbd6-4483-9cec-25d43f9bcf8f","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":158,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"42a09a9b-5853-4816-8c3d-1355ac4cdaeb","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":158,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"69c65b3c-4e7a-48a1-aa10-1bc81336e45f","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":158,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"248a37d5-09fd-42e0-b06d-96e2a915f770","block_type":"box","text":"with the rules of the Commission. As a result, the por tfolio turnover rates of a money market fund will be relatively","page_number":158,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"029c3e54-b632-49c3-8f82-5b33e9c00538","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":158,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"b8dbc9ec-c4f1-4920-bff8-381deeeb2c69","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":158,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"fdaad941-0d65-4f93-85bd-5bf0819ce047","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":158,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"f5c8d986-e9f5-4323-9676-e8dcaa6fdbb2","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":158,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"9c297e25-c8d1-4cd5-aa83-97310344eb7e","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":158,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"ceb7074f-eb89-4ab0-8615-25a7bd9ab80e","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":158,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"9d866033-a42e-46fb-8647-8e1b7fc3f95a","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":158,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"a2899a26-9356-45ea-880f-277df10465ff","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":158,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"bbba46d1-bb93-43ab-a0d2-d74db7021054","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":158,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"26783604-7936-4bf7-92ce-7f08a6cceeef","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":158,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"06bf4d19-b5a4-4a9d-ac8d-4fc16d6038eb","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":158,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"d276e559-9ed4-4f2b-96f3-6f529995d6a5","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":158,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"bc252f1e-eb47-498b-887a-dc7986d74f96","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":158,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"f132f83c-dd39-43d5-9290-45271dddba2c","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":158,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"71dfcff0-3e10-4db9-a386-c75d6f2c4a8b","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":158,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"a717ae43-581e-4038-b209-009df3a83355","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":158,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"554dcd20-a1a4-4225-ac85-3e949f20e110","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":158,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"f818ad08-a335-48f9-8e9e-35c3e4366d66","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":158,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"8d5f1072-139a-45ce-becd-c43ffd656879","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":158,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"fa685b6d-2732-4213-9465-eac31133f259","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":158,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"35244df7-a616-441f-b5a5-1deb3de42084","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":158,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"b6599130-113c-47e9-91ce-71e5eb9648e4","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":158,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"142a0347-0f17-45b3-887d-22d20b71a3b3","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":158,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"091e863e-8e11-4136-b80d-06889c9ec976","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":158,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"e9b0fb31-0873-435f-8f20-e4e7a77a0e16","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":158,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"1e4fd4a2-882b-418f-8e45-66eeda0056f9","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":158,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"630b129d-c36f-4943-b084-5d8c5e6d8a77","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":158,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"750ffea6-838e-4275-96a1-e92d09d305f6","block_type":"box","text":"accounts and compliance constraints.","page_number":158,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"e2f64a15-68ce-4c42-ab6f-553033a95f2f","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":158,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"eac9e0ef-7b8d-46e3-9885-fedc5d5f9f09","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":158,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"d117839a-8432-4733-8b87-da6477327120","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":158,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"04b13f21-afa4-4f85-a448-0a304e6f812b","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":158,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"c1786503-7e14-4cef-a2ce-201d3040bef2","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":158,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"dfd86f1e-c9a7-45aa-8f2e-dcf0d7047db7","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":158,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"c9d89d86-dfa3-4375-9bb6-8ec4c355877a","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":158,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"df2b743d-5b30-422f-8cc0-ec3a7567cd0f","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":158,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"364774bd-0543-4718-a297-48435ba6c530","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":158,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"be52e53d-3b7d-4dd2-a440-d702682ddf6b","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":158,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"b85de7a3-684f-442b-8019-0ab6fab4f4ee","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":158,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"32240343-0222-4c7a-ad43-fce5fe548cec","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":158,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"771e851c-bd7c-4a03-b8f8-b55170b6d33d","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":158,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"e4ed7251-aa59-4c8d-99f3-0d82bfc602bc","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":158,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"fb5b774c-ee21-42bc-953c-a20497fd3013","block_type":"box","text":"clients may be used as well.","page_number":158,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"9557f6b8-3ae5-4fcf-8443-0d3974fd74b8","block_type":"box","text":"II-127","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e09eb22a-8070-4c33-a258-2cda21779646","block_type":"box","text":"NM1026U-5982509-158/232","page_number":158,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c6f3b2bd-9f93-40f0-8d88-43c966af4c95","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":159,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"8d1347b7-daf2-43dc-9af4-b15dd7661b8c","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":159,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"6ce72d03-376b-45d9-80ac-5afd6dcbec7a","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":159,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"9290f4c6-338b-457e-b62d-243730a6658c","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":159,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"cca7949d-5cea-4f52-9b70-1ad0cce3d293","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":159,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"5a62c383-c37b-4734-a6ba-15f948290272","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":159,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"4e28d257-256c-49d5-89b2-a85170c94765","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":159,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"25a200ab-c5d7-408c-9560-c2c2d9dc9be5","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":159,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"77a3a1ae-7f0a-41ea-9512-e6fcf0401558","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":159,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"695d5654-2c1e-4780-94a1-61aa5c98fb13","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":159,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"b4cd2fdb-e949-481b-9408-d7461dfc9c0e","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":159,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"20d9b7ca-b75e-4cee-9458-02ac91c2263b","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":159,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"3a876d9f-496d-43e5-9164-e2cd7fa72d39","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":159,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"b84cf3f0-0ca9-4fc6-8ff2-7b01cfb21c72","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":159,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"a60090ea-ecea-4076-b1a8-6583654c6a3f","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":159,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"e20a23a7-f83e-4486-96bd-fa7123e43849","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":159,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"67e8e390-d7cc-4049-9015-dd1d1d68ccb6","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":159,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"c4bfea14-32be-4138-847f-25365f674921","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":159,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"9728c2c9-5654-44f2-970a-07931258078e","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":159,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"36c3f677-a2e9-4f23-bdd7-60adc77674b0","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":159,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"5485ccb5-82eb-4a0f-af93-a7bc11e77606","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":159,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"d9cb3eb2-a46f-4323-8e12-fb9b04670120","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":159,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"6557e79e-f255-4301-81ee-d608f76c8fba","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":159,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"3da4200b-a3eb-471d-9eb8-ad5f8b5480d5","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":159,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"71449ab0-9f69-4ddc-8383-9eda019052b7","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":159,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"bbb79796-1b39-4cbc-a00a-e9c531dbdf66","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":159,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"9f281306-c2bb-4550-8b00-c0473f8b2d86","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":159,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"de9a0946-d080-4ddb-83de-9e6879b2371e","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":159,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"a1397ab3-84df-42b2-a2cd-e59fc56ff9dc","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":159,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"730978d2-0fec-4bf0-aa35-5c595f688022","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":159,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"2a5da7d3-5838-4e88-8cdd-a0f0e52d9483","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":159,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"826b27fb-9f83-4079-8c0c-2df5c84fd5bb","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":159,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"99a5c863-65b3-44fe-a6fa-12202c6bcdd1","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":159,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"628681f3-3732-4726-8b1d-df9a2a665804","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":159,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"74742cb2-ac99-4538-8545-5ef8944aff24","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":159,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"744699bd-ac84-45b8-870e-26112af1cb1a","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":159,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"0d205513-729b-43b1-a6e8-e720d705413c","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":159,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"038b3fdc-bdc6-4199-a387-777e6be55165","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":159,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"711d2315-216a-4f8b-a8ec-b9a38e58b37c","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":159,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"082174e6-e257-4afb-952a-171442f8e3df","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":159,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"b7ad513d-d62f-4354-8a4c-58d0338a101e","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":159,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"ccae2ac7-9159-4f72-9efa-328b7361c902","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":159,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"044f4b97-ba56-49f0-b54b-03c449cb15c5","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":159,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"b2e53f18-b37d-4f8f-854d-83b49e1e4e72","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":159,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"28070511-33f3-44f3-a462-f2514c1bf1f1","block_type":"box","text":"Portfolio Turnover","page_number":159,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"4d0a9e89-915d-4361-a712-d8d65ebb53c4","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":159,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"8a511762-9e9e-4982-a017-5f9f126ba020","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":159,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"fcd76c51-3452-4fce-9f51-2143a0166f50","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":159,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"91dde997-d813-44dc-abc8-0aeea4ab351e","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":159,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"04b0ef58-b976-4a2b-80b5-8fe4cc6f9bfb","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":159,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"d2f2f258-37eb-4b9a-9ef5-0b29038b472c","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":159,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"e6c66366-18e6-47a0-b4c4-2f94a7301432","block_type":"box","text":"II-128","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a9b5d8a2-9b82-49d5-b6da-b94b55f7cdf0","block_type":"box","text":"NM1026U-5982509-159/232","page_number":159,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"884eadd7-68ff-450e-9ec3-88c69897509f","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":160,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"c008124a-f6b0-43f7-af57-a3b50b204ea1","block_type":"box","text":"Dividends","page_number":160,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"01ff924d-240c-4f68-877c-87cd9ae123e4","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":160,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"5a06727c-2a52-42fa-8ae5-483a466aaf9a","block_type":"box","text":"investment income are paid as set for th in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":160,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"226ecd76-73c6-4147-a5d9-e4b70fdf3d06","block_type":"box","text":"realized capital gains, if any, as set for th in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":160,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"a4756596-556d-4e32-bc2a-fa2e7284ec52","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that cer tain","page_number":160,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"29039d2a-df8e-4b7d-bf1c-680dcfa00c94","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":160,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"184feb35-9f5b-48df-a568-74ab5b6ab00f","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":160,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"d84e1f1c-e17b-4de0-a292-6264e16da44d","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":160,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"b23978f6-9eb7-41dc-af21-4ea4944ead5b","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":160,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"dc15132b-8d30-4e65-8326-47e4092f225b","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":160,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"41ffd7fc-f639-43e4-b0a7-cee2f507ba71","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":160,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"d38bc8f5-6868-4a88-90f8-c5df6efc8d22","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":160,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"201a4227-b6e3-47fe-a7ae-26bc7d09a84a","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":160,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"1df891e2-ebf7-42fe-a47d-9d60b7870cfd","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":160,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"68c94eac-8dfc-4a25-9dab-2f0a83f131c1","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":160,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"650fdeb2-e028-47d7-a2cb-8d5d378a9f36","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":160,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"bd6af64f-a72d-407b-8ff5-5dfcf4212700","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":160,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"5c2878a2-4990-4494-b769-c6f9408cc478","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":160,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"38028a95-d200-44bd-8704-537dc3bb8731","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":160,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"f0f2c98b-1ea7-4ece-8b94-e80fc954d382","block_type":"box","text":"Taxes","page_number":160,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"0adff21b-8079-4397-8f85-188e42b89bde","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":160,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"cdf24a3d-0561-4d6e-b35b-b3a8b6cbf3dc","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":160,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"d304c149-1ca3-4861-8e76-1f4f8e0f875e","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":160,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"fc013e60-5781-4b8f-88ce-74b1be1ff675","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":160,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"ff3cd8cd-89f3-49ac-ac07-a2a24862fbc6","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":160,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"357650b1-70d8-452c-ab91-81f2ffb10659","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":160,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"7eeedb00-799f-4de3-a45f-21334782988e","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":160,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"6a6d5962-e023-4fbf-ad79-ef708aeeae50","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":160,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"631389e4-78e6-4871-a8fe-c55b5396d1be","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":160,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"2b1d899f-f6cb-4181-bfe8-b023b3f46ab7","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":160,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"9c8ded78-d5ea-4a81-986a-b34c55ebc913","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":160,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"2f485b6c-2b09-40db-a05b-5c66d295c787","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":160,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"0a732162-c408-4859-9752-81fd0187edb8","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":160,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"5f45d7d0-7c6c-4884-8685-f76a74db1abb","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":160,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"c6ac682a-06e5-478c-9cd1-04750d33d2a5","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":160,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"1faef7df-2136-4023-921b-13d25c2ef557","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":160,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"8e3bbb61-c45b-4c6b-a33b-adf8f438a8a5","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":160,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"cea6f12f-ce1b-4e0b-88ec-e2ac2833ef29","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":160,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"f1ec9a3d-cba3-4c97-9ef6-fe774370cc90","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":160,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"364cfcd4-3554-48e0-a1a2-a84b7d213b84","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":160,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"9e5181f8-e77b-4ae2-bbc3-04762aa98a55","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":160,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"6b435903-09e5-490a-82ef-fa7fce04da80","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":160,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"2c09f0e3-ab7f-4c8b-963d-973ce9eee087","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":160,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"fd873371-3a4d-43c3-b136-b64ae718be03","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":160,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"7e64b588-99f4-41f9-abd4-c7538ad2194d","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":160,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"b34d08cd-9f64-4708-bdc8-f628badbae02","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":160,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"e2ca73b2-e66e-4514-b897-5b03070e8751","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":160,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"8e0d33f2-bc80-4c95-becf-a55624ebfa96","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":160,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"46582fed-3145-4fc2-bdc5-02ad81b06eeb","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":160,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"97ba4de6-6b5e-46a4-a451-1abd3ea6a8e2","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":160,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"f2a86c24-e616-4d5e-9bc8-ffcf04c113fc","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":160,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"923f950f-6f52-425d-a479-6df809e8c655","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":160,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"bf5d1162-7238-4040-911a-8108f9877949","block_type":"box","text":"II-129","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6817b3c4-b02e-4aa7-9908-514534e9c73a","block_type":"box","text":"NM1026U-5982509-160/232","page_number":160,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7bcb8828-54dc-46af-a4b4-1f6af161e632","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":161,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"04faa17b-9870-4de9-acab-4ac322f97411","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":161,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"99830121-13ea-451b-88e0-95265dd7b5f1","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":161,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"b7000285-24e5-4576-81a6-b10c555ababa","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":161,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"74e40dc5-6f6c-45de-ad8b-a430a569f0b8","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":161,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"cd1c28aa-3ea7-4de6-91c8-4771a1f6aae2","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":161,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"77882bbd-0c59-4aff-8317-3be6f7a70880","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":161,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"0b069d9d-f9a4-4840-9d19-e1b928392bde","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":161,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"32464163-8d46-4838-9547-5a758e65c9e5","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":161,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"9a8e039f-a206-4d2e-8fcc-83504a7b9589","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":161,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"8cdb1610-61a3-4039-8efd-82ef046d257b","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":161,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"4d6a3c2d-05fb-4d1e-bdb9-e5e88dc44494","block_type":"box","text":"limitation.","page_number":161,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"7444e7b0-f3ba-4c96-8128-ca6110811e3e","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net shor t-term capital gain over net long","page_number":161,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"027cd5c0-1313-421e-bf63-4a25e18ef5e3","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":161,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"01bbdf2a-1672-4757-81cc-0cf5b9b1fdf8","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net shor t-term capital loss (including","page_number":161,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"2a2a0e31-940e-460f-b21f-bcbc7d1e2e01","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":161,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"367d765f-58b6-4265-8726-28e082e68f62","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":161,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"9c72bbe6-88cb-4955-949d-5872be0b8a5f","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":161,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"a2ff6a85-1ab1-439b-9b3e-1bf14cd79b8f","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":161,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"3ac1e6fc-eda7-4614-bff2-7e17051ca498","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":161,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"d6ca8089-30db-4d66-9d05-deb103e66909","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":161,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"2ceece21-b50b-4d2e-ac03-ebbae62ecf5d","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":161,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"677d6bbf-0b98-4881-8ff4-559b844c8587","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":161,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"88c4a00b-a7de-4ca3-a2ab-def0c2131eb9","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":161,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"584c497d-0db5-473c-89a3-b05cd4d2caae","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":161,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"762f6188-5920-46b3-adbb-230036fb412f","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":161,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"75cdd023-3f24-4c14-bb1a-5230399e9e95","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":161,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"89253644-96df-47cc-9c8b-45ca3475d063","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":161,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"3d5eb550-fee0-454a-a47c-7b11f6bd76b1","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":161,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"c5c609d2-762d-435b-bc96-bcc50cad5599","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":161,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"b9422b01-6721-4202-8b2e-185026e5f6da","block_type":"box","text":"constitute “qualified dividend income.”","page_number":161,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"3bb29ffd-0068-4d66-a720-7f7dc952cb7b","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":161,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"352f3ff0-4b20-4df2-be2d-3f8a2f8c6513","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":161,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"207bbf0b-1247-4323-a7a8-7f0093012a0e","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":161,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"098803e1-aa76-4991-9cb1-0038b4715dfd","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":161,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"f4755e69-5181-4f01-9cdc-1e7ba399472d","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":161,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"10e8802e-50ec-4f74-9e24-d19c32d18e2b","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":161,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"11e87dde-bb55-4505-962d-46847b41073c","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":161,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"f0edea18-269e-4839-9a35-c212d7b69f00","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":161,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"fef93bbd-1c58-40a8-835e-1782e4d4d68b","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":161,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"243b8e7e-8cbb-41fe-b835-b94c1b687401","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":161,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"4e339211-7126-4e31-ae3b-cb6148afdff1","block_type":"box","text":"against their taxes.","page_number":161,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"b43bd7d4-627a-4520-b62e-e76177374b3c","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":161,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"2b5d816c-100f-4d6c-96b4-018c08a5be37","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":161,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"0aad5efd-1dfb-4479-a61f-f26c5c15e407","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":161,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"7091b2fa-4348-4cb8-8b23-7dfeefbdd1bc","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":161,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"036f1da4-a27d-4880-93af-8adb3ec2cc28","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":161,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"23d8deb8-044c-463a-8525-7ebf14d7572f","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":161,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"f0a7b8a3-a41e-4133-8d1a-6b428b1f21c4","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":161,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"97d8bf8e-59a0-4298-a1b1-59cd386aed00","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":161,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"724e9c3b-3eed-4408-8df2-e375004f817c","block_type":"box","text":"dividends received by the shareholder.","page_number":161,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"1e8d738f-8e4b-4f6d-a139-723f9ccd31af","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":161,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"3035a04f-5289-457a-b61f-031c7d42ead8","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":161,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"fb7808cf-cc03-4c22-9517-db87e16f2c8d","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":161,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"34e83008-0da1-43a7-9fc7-89439bbb97c3","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":161,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"99b494f6-d276-466b-8d7a-187f415a3764","block_type":"box","text":"II-130","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"485bbefb-945b-42b3-b07c-6719fb960c2b","block_type":"box","text":"NM1026U-5982509-161/232","page_number":161,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a14968d1-1040-4838-b54b-1486030481f2","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":162,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"e0d0f0f5-eff7-4621-b059-785337eb01a2","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":162,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"9ccf0797-36f2-48eb-a592-8f09dd644da5","block_type":"box","text":"calendar taxable year, if the Fund repor ts more capital gain dividends than it earns in such taxable year, then the","page_number":162,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"12ffc3ec-b0b4-4a6d-84b4-ce73f1104eb8","block_type":"box","text":"Fund will reduce the amounts repor ted as capital gains. Where possible, such reduction will first be allocated to","page_number":162,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"e934c101-95ce-4d07-83bb-4c13269ae4db","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":162,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"cdfa1d9d-7830-4d8d-83b1-9498513414b1","block_type":"box","text":"taxable year, cer tain net capital losses arising after October 31 of the current taxable year, and cer tain net ordinary","page_number":162,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"b3e919bf-dfaa-4ac8-9b37-68802fde4959","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":162,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"cf758d74-08b5-4305-867c-3d9cf0f0dc35","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":162,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"eb0f4cad-3a6b-4277-b8a5-69b4752afe0e","block_type":"box","text":"taxable year.","page_number":162,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"56cd1620-4dc8-4ce4-87c1-eb438c6e1c97","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":162,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"95de428f-e6d2-49a1-958e-1b753e4deabe","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":162,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"f53dac1b-c0f8-4d7f-975e-a9707050912f","block_type":"box","text":"basis in the conver ted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":162,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"a4371c0f-64d3-4ffa-8636-376217f299b9","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":162,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"5ed4f532-6bab-48fb-8ca8-ca410b03abe6","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":162,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"49f98b7c-02a8-4843-a4a6-00c4837fb561","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":162,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"96ac6c87-98bc-4cad-9943-78e5278e6c96","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":162,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"41b8fdcd-d382-4434-bf9b-30d4978d566e","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":162,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"b7b06bb6-77c2-4d50-aec3-4e9878b22bd0","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":162,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"f9f442e9-56a4-4218-b95a-20b1e41650ce","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":162,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"c754bf83-f5fe-435f-83cd-dc96059d791a","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":162,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"c22fd2f1-3085-4537-ae4d-7a4fd6e8463f","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":162,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"8633d423-7037-474f-92fa-143dde6145c0","block_type":"box","text":"generally be treated as shor t-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":162,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"8c83907a-bf5c-4676-a787-49a249bf224f","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than shor t-term capital loss, to the extent of any","page_number":162,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"7a62c20e-a49e-4926-b291-bec6c9e44c8d","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":162,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"1468c035-c306-4623-8761-26a4a00b2b5f","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":162,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"ea5603e8-95dc-45b1-841f-cc2855b0250b","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":162,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"4de1c225-69ad-4609-b9ed-2f1089536fcc","block_type":"box","text":"special tax rules that apply to their investments.","page_number":162,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"5746bdb7-278d-4fd5-94f5-ec73c0af0a00","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":162,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"780ca46a-6c02-445d-9e0b-7814374d6163","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":162,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"6d506a55-af61-41b8-90d7-6fc8d767b61d","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":162,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"99ad1b30-b26e-4330-9eb1-ffb6f67e28b5","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":162,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"aefbe917-46b0-4540-9d0d-4d91aa8791f1","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":162,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"f657d295-a872-49d5-b2af-275174f14e31","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":162,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"792c1b3c-58be-466b-8dfb-dbc2557f540a","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":162,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"5892c22d-ac03-4579-b8a2-83ababf9ff7d","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":162,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"179b5711-3e1f-4c86-846c-1cc74bda81e6","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":162,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"bc296ed2-c285-4026-809a-cac2eb5f07f2","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":162,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"1246a85c-b1e7-4eb4-b8c4-ec1f6106c66f","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":162,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"ab9d0f9a-5e64-4f9b-b86e-0007d65f4afd","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":162,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"35da62a6-4252-491c-bee8-865d09beee56","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":162,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"bac99d32-26ec-4a2f-b5ed-641e309c0a47","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":162,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"687673a1-78c6-4a4f-a5c5-9fb81303de12","block_type":"box","text":"redemption of such shares.","page_number":162,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"998d1771-8a9a-462e-81a1-287cd59ad525","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute por tfolio securities in kind for the","page_number":162,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"780366ae-22ee-4851-a542-cb78c445e1dd","block_type":"box","text":"purposes of por tfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":162,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"b7d035e0-bf1f-42fa-8cc6-a3856d549330","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the por tfolio securities it distributes to the redeeming","page_number":162,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"ff134d2c-813f-4dbc-8ce2-df77478c3c0e","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":162,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"b40128fd-8041-4378-8a8a-87a087762aaa","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":162,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"767ac5d9-d20b-4e51-acd2-850b89de03cc","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":162,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"c907ff1b-e0a1-4da2-8f91-0c9e8c5e52c3","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":162,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"58b5a68d-c14d-4872-ab79-e7a7b2220cb9","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":162,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"30cced59-b3b8-4567-b791-d224cd2a1efa","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":162,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"bf96c670-a9c0-4255-949a-72fe6265c285","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":162,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"afd613a3-441c-45c9-8ec9-577d3012d0f8","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":162,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"fe2f88ef-6afd-4736-9f49-fe50b0468d0c","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":162,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"6cc95143-4a81-4c9b-821a-a9bb0ab27b93","block_type":"box","text":"II-131","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a5c4573c-3f1f-4270-a7a7-73095844b5db","block_type":"box","text":"NM1026U-5982509-162/232","page_number":162,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d8987028-49fe-4391-9d9c-f1365aa82648","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":163,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"2eaf5136-055f-46c6-9efc-e662bb7bdae7","block_type":"box","text":"(and, for purposes of the 4% excise tax, cer tain other dates as prescribed under the Code) are generally “marked-to","page_number":163,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"ff5c017c-9e7a-4e9e-8d42-1cd9c54b2e7f","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":163,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"10f17020-bab0-4d1f-9b7b-045dec702fb6","block_type":"box","text":"considered 60% long-term and 40% shor t-term capital gain or loss), which may increase the amount that must be","page_number":163,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"22efbb28-2f68-49ef-9e8e-f3a759616fb5","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":163,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"505d2880-7b82-4850-a56e-cf97909f4d1a","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":163,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"2ebe3a78-c52a-4a95-b6c8-ea38efe6cdd4","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":163,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"d11a69f3-48a2-4602-b23c-d54200ceef6b","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":163,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"76210498-a07c-465d-a260-bc3fded5e189","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":163,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"42b4250a-e3c2-4a22-bd89-c2dba883b3c6","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":163,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"554c773c-86b6-4cba-a0c6-7cd421852249","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":163,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"ca429506-0d91-491d-952b-591cdeafdc6f","block_type":"box","text":"on a section 1256 contract is treated as shor t-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":163,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"a1a156db-3bdf-45fa-a03c-df902d02e9df","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":163,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"9468d145-be29-4fec-ad5d-23789a787cea","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":163,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"6752d150-8f41-47d5-81fd-b6fa715d5a03","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":163,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"dd115d12-b2d2-46f8-be82-04e3ce249e4d","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":163,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"849f2b2f-3d02-4784-9d1f-ea1fa9b0ef24","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":163,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"bcdea285-a5a9-427a-a6cf-f95762c033c9","block_type":"box","text":"Cer tain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":163,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"80f90573-3b60-476c-9f22-d88db485d2ec","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":163,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"ff90a035-39c2-475b-8828-6348fde577e3","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a por tion of the excess of the stated redemption","page_number":163,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"838fd3a9-e29c-4d51-9fb7-6a040d079045","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":163,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"c15ee658-a4bf-455c-9cd4-ab5c8fd7423e","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":163,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"8599f37b-7721-414b-ace7-6710bb0bc770","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":163,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"5c8084fd-99f9-4663-a200-546af0db680a","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":163,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"8c63ac27-2d78-4d5b-bec8-45d1306a65b3","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":163,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"d2d6ea16-39e2-4f30-92b0-f58cbd6769d8","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":163,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"75e26007-0a23-4ea3-a2ba-ad8ddea727c4","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":163,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"92819557-1962-4c68-a3d2-a78f3e527da9","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":163,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"419789c1-c55c-455f-adb3-72f61633df7f","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":163,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"c2f9d724-3def-4415-86c8-dce31e56967a","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":163,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"9c3a6b75-1394-4fdf-8377-384d96c74896","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":163,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"c807cffb-ac81-44e2-9b3e-7187f3f0a0a7","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":163,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"d5b76e14-47f2-432c-a86f-5b24fbcc7352","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":163,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"a7a9941d-b549-4d92-a3a9-c6fbd3f8e1af","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":163,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"42d09d0c-9200-4c85-808f-d64cfd18d7d7","block_type":"box","text":"in subsequent taxable years.","page_number":163,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"430d7616-7436-4ba7-8a9c-d8c64eb56ec2","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":163,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"39ae0752-a3e2-4544-b05e-030c5d3bc146","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":163,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"f296905d-e7e7-41d6-a22a-374967f1bc03","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":163,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"a479c152-2463-46d9-a48a-34f875889379","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":163,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"23236459-f1df-4f99-826c-85b54d21cb1f","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":163,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"56681e5f-2c58-42b8-a706-82697b7e6fb2","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":163,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"b9c3c2d7-8894-4987-b6fa-3c896af3489d","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":163,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"0adc39bc-ef50-43fa-83a9-30fc0aa37aa8","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":163,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"91331ab1-3085-4d26-bf51-200042403a91","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":163,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"791c2195-779d-4e2c-8f61-9ed1324dbb60","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":163,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"9885273e-f7a5-4b28-a02d-d8a5d983585a","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":163,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"db10b549-8283-41f7-9f5c-9811f34f751b","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":163,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"f0b6690e-c517-4e35-8232-edf13676a62e","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":163,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"25177120-d052-41f5-9bbd-74ea1228cb6e","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":163,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"a76e1f15-58d2-4209-bbee-1e4b90b7dd5d","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":163,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"1b0cf6f6-1ecb-4993-b3a3-6c59539524b9","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":163,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"7aaf31e8-c27a-424a-83b1-b09d161424ac","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":163,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"a2b8634e-dfca-4e5a-ad61-b48896588430","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":163,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"9fac9d88-225b-4ec0-9377-cb352a0d4abc","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":163,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"b232a6c8-f701-4173-8b1e-18076f57b1af","block_type":"box","text":"dividends under these rules.","page_number":163,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"c9b112e7-6d4d-4d61-a7b4-4315d8e806e2","block_type":"box","text":"II-132","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"229b45db-1a6d-4f44-bed4-f59e32baeb1c","block_type":"box","text":"NM1026U-5982509-163/232","page_number":163,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2c6cd347-9515-42aa-9b13-f8e661d15268","block_type":"box","text":"Distributions to cer tain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":164,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"458c483f-27e0-4764-a136-58a0a5219727","block_type":"box","text":"proper ty interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":164,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"145fb7f6-0f96-4920-853f-93ee3af0b67c","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":164,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"23e27554-6460-407c-93ae-c4ac77fd8000","block_type":"box","text":"real proper ty interests (including shares in cer tain “U.S. real proper ty holding corporations” such as cer tain REITs,","page_number":164,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"13210555-a602-422c-809c-d8881770b731","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":164,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"5cc19ea3-68ab-473f-b08f-7ad2e0c658dc","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":164,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"1e52acf1-d50b-441b-9437-2aa187c0286b","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":164,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"d4a9fbf6-38df-4b20-aaef-2c5ed0437a3c","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":164,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"db7342e3-b7b2-4a9a-91f5-d4386556f285","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":164,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"6b8d3c51-5fc6-4004-90bd-058e5de5f4e8","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":164,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"d0eedee7-c2e1-456b-a23b-c3e278152c8a","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":164,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"74b46056-f6d0-4234-8975-c110f5010aff","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":164,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"b9706551-6b8b-4973-9629-b47311533f8d","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":164,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"25aa7d11-2d06-402b-a855-092a04c9334c","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":164,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"db091581-bb64-4e9c-acd9-b7ad54dea031","block_type":"box","text":"sales or redemptions of shares held by cer tain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":164,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"910c8b6a-3281-4be8-8aba-8ee8f58fd04e","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":164,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"8d20dedc-5508-4e23-a750-7599bb6a35b5","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":164,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"48f226b1-be45-4054-8539-cd4189872233","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":164,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"73f8be62-6e99-4b50-80cd-f42980bc7cf8","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":164,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"9c25adc1-c228-4909-87f2-0667c7aea4a6","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":164,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"cc11fe93-23fe-46b0-8e59-08757ceca8e5","block_type":"box","text":"distributions made in the form of U.S. real proper ty interests (including shares in cer tain “U.S. real proper ty holding","page_number":164,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"0264e478-53fb-4a31-bb47-a943cba15069","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":164,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"0b90e8c9-9567-4f44-836d-d151faf1a348","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":164,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"164c12d8-1d5c-46ab-aa1f-877f0eccda5f","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a por tion of any","page_number":164,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"5deeeb1a-3530-4634-a2c0-1916e68f4bcd","block_type":"box","text":"unrecognized gain in the U.S. real proper ty interests equal to the product of (i) the excess of fair market value of","page_number":164,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"34280ead-e47d-4c4d-ac0f-e3015280cd8d","block_type":"box","text":"such U.S. real proper ty interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":164,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"d969ef71-2a1f-4f32-a124-feda51ee7f47","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":164,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"68443b42-02f7-4831-bdcf-8d5d038c09da","block_type":"box","text":"A foreign shareholder may also be subject to cer tain “wash sale” rules to prevent the avoidance of the tax filing","page_number":164,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"07058137-81d7-4657-aea6-919f849be004","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":164,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"827caefa-7480-4efc-8788-fd3a4a0ce596","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":164,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"55d366a0-0b56-4601-b49a-a49e3a8cd8ba","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":164,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"282ed881-3f62-4bb1-a5b2-be94450cdc0f","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":164,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"101b9f74-a0bc-4ec8-9361-abf9d56a7ffb","block_type":"box","text":"items paid to (i) cer tain foreign financial institutions and investment funds, and (ii) cer tain other foreign entities. To","page_number":164,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"9b5acfb2-868e-4807-82c8-21e10602ece6","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":164,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"e70143a2-2197-4056-8b46-ae8c7987de2d","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":164,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"823263e8-7b51-4b31-9bbf-a93a1cafb75f","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":164,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"fae68d41-899d-463c-9ba2-e89269d3b288","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":164,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"549475c4-d001-4149-a617-a5ce35e3179e","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":164,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"d2b17715-bec4-46dd-a607-8bf2d190a725","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":164,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"cf9bbeef-d60b-4a39-a5e2-b4f65a924e63","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":164,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"bc751574-8158-44a2-b318-d5f39d96320b","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":164,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"7a5c5029-dbf7-415c-99c8-c6dc3fe064e8","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":164,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"61a2d280-ab3e-4bbf-9893-a6420bcc5aae","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":164,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"2bbf8c17-fac5-4499-9250-217b7493ec63","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":164,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"79f5b43d-126b-48bb-9714-4e8f4802412d","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":164,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"1a33477e-e9bf-4793-838c-42f5e60b1158","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":164,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"f1e27e3a-417b-4f95-ba93-f6962b695eeb","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":164,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"438aeb88-c576-4fa4-a1e7-19ad58b8cf97","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":164,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"31bc6fbc-3373-44d8-8533-4a91b4774cd3","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":164,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"311d7d94-b2d7-4665-bffe-4c45b323c8fe","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":164,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"87aedda8-50e1-4bda-889b-eebed6dd6d0c","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":164,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"666dcaf1-651b-4afd-a4d2-f0178fc37164","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":164,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"84be1c84-32bf-4825-8611-233dbf9498bc","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":164,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"55622275-b898-4fde-b3d2-3b5a40e8db0e","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":164,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"2a15b4cd-28d5-4ad4-8d6b-5e7c01bbd7dc","block_type":"box","text":"II-133","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d7b3645e-9b09-4732-b57f-0dd884b664ee","block_type":"box","text":"NM1026U-5982509-164/232","page_number":164,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"39d560cd-b0ea-4f70-baa2-ff4a7f83cd5d","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":165,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"ef0a6e33-a2b9-46c9-9246-ff06fc225ae7","block_type":"box","text":"mor tgage pools or other investments may cause the Fund to repor t some or all of its distributions as “excess","page_number":165,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"8713a29f-8425-475a-b64f-68d6b1f96b34","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":165,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"9f88d764-45eb-407d-a095-45d156464844","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":165,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"233f1872-156b-4aec-840a-235570db9522","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":165,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"6dd2edce-b734-40cf-9cb6-52792ae8cf58","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":165,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"dc80a2db-88d4-4aeb-9576-1d0b85dec043","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if cer tain “disqualified","page_number":165,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"f769368c-b6c1-48d3-80e7-80245abd2700","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":165,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"23b4d1a4-5063-4f85-bce2-01fa7606fe12","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":165,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"3bb2a14e-70d0-492c-a539-e0717a2d3727","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":165,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"0483379a-cd3e-4b90-8f52-984575bc6e00","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":165,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"f4293ae1-6d62-4010-97a0-65c38720af5d","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":165,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"50055b32-e5fa-4fb5-ace8-f2a43b994ff1","block_type":"box","text":"investment oppor tunities.","page_number":165,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"f4fc1b64-b9e5-49a3-9394-fc8ae969bbce","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":165,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"277c8951-870c-4ff1-a207-45c4bb8f406e","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":165,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"07e5d8b9-f269-4739-bd4f-ac65b2bd8386","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":165,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"a96f6bae-69e3-40cd-b0fb-5c5779c3294f","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":165,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"884198eb-e355-45e0-8fa3-a3641fc92c93","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":165,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"e71bb8b0-7026-4747-937f-099f0beeff6e","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":165,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"8abb2bef-fba2-4dfd-a07a-59db59adf331","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":165,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"7afa4e3d-5558-4671-b3c2-1f0327e98f56","block_type":"box","text":"respect to a security only if the holder of the security meets cer tain holding period requirements. Both the","page_number":165,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"f57a8768-cb72-4bb3-bfe2-4591510168fa","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":165,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"7a5e3fef-92d4-4c7c-8e5b-ce4055a25133","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":165,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"9d4cfe99-1bcd-40e6-bff6-61c0e723d202","block_type":"box","text":"the Fund. Fur ther, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":165,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"64ecc980-e962-4aa3-a5cc-0cc37d078384","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":165,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"e685d04b-7dc9-42ba-a987-b46db6269fe6","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":165,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"a1c5ac22-dc6e-427e-ad76-ac0a8e44a38c","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their propor tionate shares of such foreign","page_number":165,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"144eaa53-838a-4e20-bd1c-0ab7e7ccd710","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such propor tionate shares as taxes paid by them, and","page_number":165,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"b138f4b6-2818-4c52-8a06-bee26e3d5be9","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":165,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"7b491da5-4786-4bb0-a461-dde0f409ba38","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":165,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"00d59f9f-e670-4e2a-8fcc-03e6a27c3b80","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":165,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"97cf2f69-6d73-4640-a888-64a53ffea486","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":165,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"5cf02cd3-eef2-4564-a4d2-34c76716ffc9","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":165,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"9eec7576-841d-466e-b9aa-a6a082171857","block_type":"box","text":"having been paid by such shareholder. A Fund will repor t annually to its shareholders the amount per share of such","page_number":165,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"985f25e2-5aae-4b13-a1c0-fbbbbcf9d309","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":165,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"898ffebc-b0a2-4e27-b74b-c86d53b98e59","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":165,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"c389e471-0fb7-4ae2-844d-c0aaacc35a19","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":165,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"df089fcb-b919-41e6-9210-1a26cd35dbfa","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":165,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"86c66620-9148-4158-a0fe-cb587bd10404","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":165,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"7d44e1df-fa75-4c18-acf7-510a96c169f7","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":165,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"88b8baf0-b60c-4816-a8e9-fb8d9d0e4c04","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":165,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"e2602de4-71b2-4d70-a92e-791c37162288","block_type":"box","text":"positions in its por tfolio (","page_number":165,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"b888d240-80ac-48bf-addb-917070a0c323","block_type":"box","text":"i.e.","page_number":165,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"acc6bcb1-3d2a-4e34-8811-f39cd7a97567","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":165,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"47526bea-3e06-4bfb-b0a8-58c437d551ed","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":165,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"697faf6e-a664-4832-aa7e-c1ad0f2d2fce","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":165,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"19232d07-3fc4-4ff3-9ec3-6860dcea5f42","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":165,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"bd6f121f-b09e-4935-8572-9fef5cb57021","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":165,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"6f845c77-0603-41f9-ba43-5f5f625fb54a","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":165,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"01418836-bb27-4b05-bdb1-25067ed0ccd0","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":165,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"7e5480a1-11b8-4bf1-8af2-ab7c272dc001","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":165,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"c078b883-f764-4fa6-a652-9a36566aaf55","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":165,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"ea909404-ca12-4488-ad26-679fb79d4c91","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":165,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"a9819897-e728-41cf-8b79-8800fc317578","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":165,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"ac1d7b0e-028f-4772-8cdd-334e9c6166dd","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":165,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"f2d959da-d083-45d2-9ec5-817e9c7aa6e6","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":165,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"9bd77b31-5db3-48f6-b87e-ff57e73f5d43","block_type":"box","text":"II-134","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2f7c7f05-197a-41fc-ab3a-696a528b2260","block_type":"box","text":"NM1026U-5982509-165/232","page_number":165,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e757ce68-d303-49ae-84e3-a97095a48d50","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":166,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"18b53c45-9f6f-4dee-b416-94219c82af70","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":166,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"0256e5f2-59ad-4a6c-b0ed-5a6607356ea8","block_type":"box","text":"capital asset.","page_number":166,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"2af3f3ae-1261-4ec4-89c0-493a5d933212","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":166,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"8a4f916a-190f-40aa-8f26-46bc59950ba8","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":166,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"2c03c29d-37dd-44e8-bee6-9a0207a1c9c0","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":166,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"c0d11505-922b-4d6f-8277-0dd68a787aa7","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":166,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"eb8fe764-1de4-406c-b848-a97502280a4c","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":166,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"2c09e8c1-13c1-4175-8a61-b57450877f9d","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":166,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"14c66de7-e4b4-42f4-9584-158c6f330ec5","block_type":"box","text":"Fund were to invest otherwise.","page_number":166,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"5084f8f5-31a7-45d7-94e8-70f8ee5afd32","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":166,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"9f9b6037-5b66-421c-a16c-5f34d1cc8b82","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":166,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"156e3439-01e4-4702-ba0e-c7230e3fe027","block_type":"box","text":"income will be “subpar t F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":166,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"403f4183-160e-4baa-bc1f-025535acfaa6","block_type":"box","text":"to repor t all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":166,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"36b5ce3d-7865-45cb-8167-244db813f76c","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":166,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"07de1e6a-076a-440f-9774-873c1fd4c061","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":166,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"31d8d318-7a1f-41fd-b000-dd628c87d5c8","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":166,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"34f391c8-25fa-4d0c-978f-b8125bd393a3","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":166,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"e24c9c90-80cf-4b6b-8207-e410caf03ce4","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":166,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"4ae5b266-a7ed-41ca-aae4-2a7ec67f889e","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":166,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"fbe1c3f2-d0f5-4e01-92b0-cd8b750a6275","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":166,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"9d947bec-623b-437d-8b70-57f18c69b165","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to cer tain distributions from such","page_number":166,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"ef5a64f4-5fe4-4d37-bcbc-0066c1e835f5","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":166,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"c6194000-310b-4a9c-84d4-48299231b30f","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":166,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"63d275a8-6013-491a-81ca-2f2660cac761","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":166,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"a97a8d3e-b07d-4622-a486-f4d554897357","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":166,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"8bb32aa5-96d0-49ff-a2ad-7516975a7d41","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":166,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"b48b52bf-68c4-488e-9b87-9fda47cb0af5","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":166,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"91d6338e-a640-42c8-b1aa-24e0b3ebef67","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":166,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"d8d62430-7a4c-4ba7-a23a-1e4d7300e36f","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":166,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"d27b2e5d-b185-4b8c-b06c-ce592d2da032","block_type":"box","text":"PFICs, but in any par ticular year might be required to recognize income in excess of the distributions it received from","page_number":166,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"7c20ef33-5a31-4ef6-8946-bb83e27eab0b","block_type":"box","text":"PFICs.","page_number":166,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"e23714ae-4d7d-4dbe-859c-e2b2f59a0ef9","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":166,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"79d44422-23be-40b9-95a8-d321160de4de","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a por tion of the ordinary","page_number":166,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"1bf95011-c8a2-48a4-b041-300bfc7cecb6","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":166,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"290bd6d1-5297-4f47-ae11-ac7ea9b67e71","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":166,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"69dc94ec-035b-4686-9e33-9d0570d4dcad","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":166,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"d0f6dba5-292e-43dc-800b-120e0e41a5a7","block_type":"box","text":"difficult or impossible to obtain.","page_number":166,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"f158beba-137a-490a-bfe8-ee9f6cb38edd","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":166,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"c8719af1-46d0-48e4-9c27-f7fba93fc5f0","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":166,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"0ec8576e-a15e-41a4-bcad-e372807aaad7","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":166,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"63ee6e40-a25a-4a5e-b9a7-9190ab8be2ed","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":166,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"dc2ce2b2-8028-4f9f-a2ef-287c9319ecd3","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":166,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"c41a944d-1de8-4142-b569-df9a4417054f","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":166,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"1f351a98-292e-4ae5-ad46-8be9943d9ed9","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":166,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"2420fecd-950d-4788-9df6-8868d7497fe5","block_type":"box","text":"Municipal Funds","page_number":166,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"2a2f651f-0779-45bf-b264-d20facee49cc","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":166,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"f09c96fe-4f8a-4802-aefc-3843430786f9","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":166,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"43b4c5db-068e-4c1e-a35b-091a6dfbc7a3","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":166,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"81e3d996-f6a1-428a-ac8f-c6d7cbeb1564","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":166,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"2aaf21e0-0958-427e-83df-3450103dae5c","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":166,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"79e5f027-503d-418d-b64a-cc2ea5c012c4","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":166,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"a02ed543-f0d8-483b-a114-497aa7e1bfb3","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":166,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"7986f8d5-72b6-4995-8bb9-639debb20e6f","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":166,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"7114b4d7-5b91-4cad-a525-7ccd4243bce5","block_type":"box","text":"II-135","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b4b9d783-d457-4c93-8c28-4bc4ede2397d","block_type":"box","text":"NM1026U-5982509-166/232","page_number":166,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"06b94863-61cc-4e96-8eda-8ca2d84a5d63","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":167,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"ff0746be-5586-4d8f-89ed-51ea2aa79949","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":167,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"e11a0c85-640d-40b7-a118-149673c449b3","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":167,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"f096c700-b3df-4dad-b3f6-fef1597ac187","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":167,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"0d08e9f4-cc17-473a-b53f-40dcfd671e74","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the por tion, if any, of a person’s social","page_number":167,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"17a83774-30e1-4ea4-8ca7-2eb76ab81b1f","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":167,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"57951ae0-c53b-4748-933b-179aa3a2303c","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":167,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"e53b1251-f2fd-42e4-bda7-0984c9398ea6","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":167,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"dabb3e59-e3f4-4bf7-befb-02d77cb2df25","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":167,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"12b41fd7-6455-4b8a-afbd-414582e7e7f2","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":167,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"4138b086-46b7-464d-b833-9bbabb18f58b","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to proper ty financed with the proceeds of an issue","page_number":167,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"a8016639-1f0f-4dd6-ae6d-04770500e01a","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":167,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"464280d1-4370-4ad0-9374-db476828c5f4","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":167,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"038d8732-6a9e-43df-a6ed-c832423e9be1","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":167,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"094ce9dd-790d-4a30-a88e-491a56f772f0","block_type":"box","text":"constitute exempt-interest dividends.","page_number":167,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"6766ab50-88e3-472f-9f5d-0f552549bcd6","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":167,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"2421166c-2513-49d8-b8b0-726368ab307c","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":167,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"719d234e-c329-42d3-bf46-ce9f0def4e08","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":167,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"40aea08b-69c0-4403-9976-a6f51d832ef4","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":167,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"6badb06d-da84-4b89-ab9a-a11d39a77234","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":167,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"9bb38c2a-253d-496d-80af-e14586cc7e69","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":167,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"e3f035e5-399e-406c-b095-f61921923f25","block_type":"box","text":"All or a por tion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":167,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"09d78102-10e9-4c09-8314-0d4f26d5061a","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":167,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"a29395b1-610c-4f02-ac65-23117ab59897","block_type":"box","text":"income dividends received by shareholders.","page_number":167,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"28d8b079-4332-4f18-9ab9-e3676ae82db8","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":167,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"709e0ebf-a300-403c-ba24-79c3cb028f29","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":167,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"f240396b-3782-45d9-b04b-136c40cc993c","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":167,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"6bbf72db-4b51-4b7b-b70d-053b914a9c8e","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":167,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"5365b807-85ef-4b29-aef7-248e3a348e22","block_type":"box","text":"the accrued market discount.","page_number":167,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"85ae53bb-603a-4549-91dd-0a3f81830308","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":167,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"15488f8a-e342-4e98-afa2-56f622566639","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on cer tain “PABs” issued after August 7, 1986. PABs","page_number":167,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"994cbc31-0177-4e8b-8574-2612530a6f2b","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":167,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"bcb00166-7213-42da-bc05-a9a431625289","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":167,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"dd7dfd48-eadc-4844-a514-fba6ddc145c5","block_type":"box","text":"e.g.","page_number":167,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"3323d744-e02d-4e40-bc3d-6e90c7d54c27","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":167,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"d98a4903-63b2-4cf2-a0e9-168273f81c94","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject cer tain investors in","page_number":167,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"2d79509f-4923-40c3-9105-6e939bb63c95","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":167,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"34e41242-1cd3-48a9-a4fd-8786f31e9a24","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":167,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"02561d80-4ee4-4636-bb0e-ff9bd5ae7c13","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":167,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"38cd8e11-ac30-4edc-9d02-0efb2b5a49bd","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":167,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"770deada-9372-4aa5-ab75-fda5fa1dc66e","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":167,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"e8f8acfd-c95b-409d-b5fa-2b26e8de23ba","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":167,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"ee920f43-96b7-4a18-9baf-94aed71ac311","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":167,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"1ee00792-9904-4902-bb1a-dba1eb06bd32","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":167,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"808c7d7a-5bec-458c-b9ba-70444c4db650","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":167,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"c17a9b97-f59b-426b-8d65-8c79eccd765b","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":167,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"aa9fe607-c97b-4c62-857c-02d8221dd025","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":167,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"ad263f1b-07c1-4a2a-bfe8-5d9e4fc3d5cb","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":167,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"1b2b6aa3-7a2e-4619-97bb-146cbde3c56b","block_type":"box","text":"within each applicable state.","page_number":167,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"caf9edcc-6728-4ed5-b26c-e3f031da3ff3","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":167,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"64d7251b-a734-4fba-96b4-23c2c9c6be52","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":167,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"874394cc-5231-44a3-abe8-bf05f58878c6","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":167,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"316bd2f3-8dc1-4969-adda-bcb43e2d3cd4","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":167,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"2d751654-858c-4002-b7f6-14dda275cd60","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":167,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"d04cef83-93f1-4317-b95c-a854df3e5236","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":167,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"38d97835-9392-4af2-872c-67b8154e39fc","block_type":"box","text":"II-136","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8ab2cb0a-1e3f-491a-9bac-b8e769150281","block_type":"box","text":"NM1026U-5982509-167/232","page_number":167,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cce6941e-4631-446c-b49a-e0a0c5e58898","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Por tfolio and to retain an investment manager to manage","page_number":168,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"3b955406-731d-429a-b0ad-78bb63d6b592","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":168,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"00930155-070c-428e-89d0-e55e33fefc60","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Cer tain states exempt","page_number":168,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"c0713a95-a7c3-4475-a72b-93ba735dbe4c","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":168,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"08881b94-385c-4f06-b4c2-340b6ed9b3ec","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":168,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"d9987950-5812-461b-88db-06488e44c363","block_type":"box","text":"exempt from state income tax.","page_number":168,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"ea43867b-1d20-46f1-b187-513e7f2d4bee","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":168,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"e21de067-4e9d-4267-9e1a-29f784dd67d8","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":168,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"607cd970-a380-4acc-9308-a3d7dee31b21","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":168,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"6568a90f-fb5a-4f23-8f59-188a0917fc55","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":168,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"7398497d-b5a0-4a17-9eec-4bce25645353","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":168,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"5e88bab2-45bc-4bfc-9162-d340b634adc9","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":168,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"6c9f0a82-5f8a-45c4-80cc-f9fe6eeefd15","block_type":"box","text":"decisions may have a retroactive effect.","page_number":168,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"08c256b2-97ba-4bad-a044-8fd151631529","block_type":"box","text":"PERFORMANCE DATA","page_number":168,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"443e3cb4-09af-4436-a838-65636b7e0dfc","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":168,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"c0cb5af3-a261-4034-b64d-af3665b3c633","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":168,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"6cc62924-005a-4825-9d77-9fc8ef6b558c","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical per formance and is not","page_number":168,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"525c8313-9b2f-45bf-9aeb-a83fa4213d1e","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":168,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"1bf06d94-9c6e-4e64-b41e-3b9bf2b6106f","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":168,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"8158c26b-5449-45ea-94c1-2b71c3deea53","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":168,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"d51ef07b-73ff-4f5b-9126-d8b057c80c51","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":168,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"bfccfd19-ba6d-4ccf-99a1-d713f68020ff","block_type":"box","text":"gains or losses on por tfolio investments over such periods) that would equate the initial amount invested to the","page_number":168,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"7e33f771-f030-4a92-99c0-9a1b6de0bcf2","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":168,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"6ddb6886-f006-4ad4-be24-6d39a7e9776e","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":168,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"e3a0bda3-c4bc-4e00-a4da-1e76636d51bc","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":168,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"bee0b5c4-dfe1-4808-9991-04bcbe885e9e","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":168,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"5d782b8e-4b1a-4cda-98d2-91a47eb5c2ba","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":168,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"16629c47-94b5-49d1-a3be-daf3e8577dd2","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":168,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"a99ddaaf-00d0-4f6a-94df-f4bd226dc4a4","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":168,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"76d0aff4-d25a-41e0-8e7c-c32be236a798","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":168,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"a4466ece-44b4-4142-a3a3-d06e8dfb68b6","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":168,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"9e06b15a-3543-4760-bcf9-e6eee3fdec3c","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":168,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"330b6392-5a57-410f-91b3-b6a923b34b84","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":168,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"aec2a53e-5312-4721-b660-3b9414dbc2ce","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":168,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"871a8aab-dd1b-4773-99bb-6773a366f3e9","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":168,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"77f14371-3df6-4874-b2e8-dc960338e3fa","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":168,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"14a0c77f-1b7a-483f-bb0e-beb30ea32d3a","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":168,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"2643df66-e68a-4ae2-ba76-141294936064","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":168,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"73b2d4f5-19ec-4ee1-b956-8494d41fa0cb","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":168,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"8c9f63a3-b09e-46b0-9cf2-1e5de0cd6735","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":168,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"24f836eb-b541-479f-9c0e-32a8c6773e1e","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":168,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"fd31cf5f-569b-4462-a340-e0501459b360","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":168,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"2fd3b859-213e-430b-8ddb-9e746c07ad9a","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":168,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"d325265b-e50a-4e8b-9da9-641d29f7ff60","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":168,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"83d44c37-fb9c-4204-8393-0bfb8fa768e9","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":168,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"671c1a7e-c2c3-431a-a47d-8d699db081b2","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":168,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"dcb2ad6a-4272-4ec8-84a4-0fc92f1cc129","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":168,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"6992bb86-4511-456b-ad6f-5a9377340e4c","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":168,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"8fbad891-93e7-4daa-b709-00e0780fb107","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":168,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"bccb6445-6335-428b-91e6-c909c8bf8ec7","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":168,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"e40bc6bb-4db5-4401-9543-41dfe3d2e97c","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":168,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"9df933a4-3106-454f-967c-65b206adfc9c","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":168,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"5bd3293d-29b3-451b-9f31-18f02418a9a1","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":168,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"b38eaef0-a83e-4ecb-bd75-89c88dff8ac8","block_type":"box","text":"II-137","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b99ab909-83f3-432f-82e3-934e0cc1f993","block_type":"box","text":"NM1026U-5982509-168/232","page_number":168,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"778d280e-77d2-41ed-83f0-5a88c91d6571","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":169,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"d0ecf82c-1357-46d2-96dc-fb563f652913","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":169,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"cdaeb99c-2457-495f-8d8c-2ea73f21de97","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":169,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"be5c8a95-f2de-46f9-afbd-c71df55dfab3","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":169,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"c5f7380b-19c4-48c1-bb1c-3084e380b36d","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":169,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"a5f8000c-270b-458c-b94c-b61c72466a5b","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":169,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"4374d304-bac2-4a0d-a191-3592db2c0793","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":169,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"88052481-3dd7-4fe7-a0a5-79489fed5cfb","block_type":"box","text":"per formance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":169,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"af3db38e-dac2-4502-9543-683531ba9a5a","block_type":"box","text":"some other amount, for various periods other than those noted in Par t I of each Fund’s SAI. Such data will be","page_number":169,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"93737524-e469-462c-9eeb-1a16fc4ab92b","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":169,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"7ee0f3ef-9053-49e3-a463-397d08f05f06","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":169,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"9e3d4bb6-acc4-4e0d-9704-d7723c728057","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":169,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"510f25f1-4ebc-4489-b4b9-3ab02850c10b","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":169,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"0790c1ae-3ca6-4876-b0dc-e31543991ec9","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":169,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"9f4eec43-ff23-4b62-9e7d-3d5aad6e0ce2","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":169,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"0d77cff9-d655-4ab3-a414-525670aa905f","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":169,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"80974a66-2777-40cb-85f3-c4a42258be37","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":169,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"843878ec-12d0-4c68-99c1-de8d17c1587a","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":169,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"98905262-da00-4832-8093-af28b303c5df","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":169,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"e3263315-5869-4fc5-90e4-e74a5bffc7fb","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the par t of a Fund’s yield that is tax-exempt by (b) one","page_number":169,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"c4231cda-99b4-4bc0-ad14-3a28fd7d60dc","block_type":"box","text":"minus a stated tax rate and adding the result to that par t, if any, of the Fund’s yield that is not tax-exempt.","page_number":169,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"98366839-5a10-454f-8c9c-48b673fdb6a9","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s por tfolio, a","page_number":169,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"dd79ddb0-a526-4293-b105-80fffa3f30bc","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":169,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"da92413e-7229-495a-8cd0-6f8e96137af5","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be wor th more or","page_number":169,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"0a191b8e-49ff-4927-8630-7cba36290f26","block_type":"box","text":"less than their original cost.","page_number":169,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"d1492582-00af-41d9-91e8-e16717cc9ea5","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":169,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"6f716388-5f19-4999-b16f-ea8ccc4e15f1","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":169,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"1db0e650-84ab-4f07-972d-8ca9db6bcb67","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in adver tisements directed to such investors may","page_number":169,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"29e894fe-fca0-4763-9ff5-4f641e9390f9","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":169,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"75e9cb36-f3f1-4640-b9cd-7318a911c921","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":169,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"f4ca9c0c-bb71-40d9-923f-b8cbc61ab895","block_type":"box","text":"lower amount of expenses is deducted.","page_number":169,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"9b33e40f-36f4-4d67-8c0e-86ed71ef619b","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":169,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"7b4ef956-b1fd-4211-8932-4d907b071c47","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":169,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"7988fb5f-a49f-4299-a77f-0c35451fcbe4","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":169,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"d4b0a3eb-9a1f-4176-9c92-b92e705a89d9","block_type":"box","text":"Money Magazine, U.S.","page_number":169,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"df31df83-7c43-4617-bf8c-5f01584589c9","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":169,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"bf33251d-c190-49cd-ae94-26709bbdd0a4","block_type":"box","text":"or other industry publications. When","page_number":169,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"88dd90e1-be3b-4137-b22b-f5ada3184119","block_type":"box","text":"comparing its per formance to a market index, a Fund may refer to various statistical measures derived from the","page_number":169,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"e026dfa6-6c09-4485-b922-c5b9b0bdb0fa","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":169,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"b0a1d389-3701-4361-a323-937ed4d4071e","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":169,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"d5396125-8eaf-419d-a77b-06d5ceaba6c6","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":169,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"3fb2807c-f020-427e-842a-492d151643c7","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":169,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"ff0d18ef-670e-4ea8-b319-17cfa8deae33","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":169,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"2dd3bf57-8a96-4606-bd67-f48557ba77eb","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":169,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"35638d52-c8c1-46bb-b5f0-51f0323c5f9c","block_type":"box","text":"developed by Fund management.","page_number":169,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"e86e1e11-3634-46f4-be7a-ef943ec4bd1b","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":169,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"3e091727-bbf4-41bf-9074-b76c6896d519","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":169,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"cfc7f4df-8a72-4afa-8090-94fb3715bac7","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":169,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"c8b39b68-89eb-4bf4-bfbc-ffb3e67a0d03","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":169,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"207d884f-cf4b-4103-8678-bca5f13bedee","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":169,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"710c72cc-25a6-46f0-bdcf-1082a6287caf","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":169,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"371e1a8d-99e7-483d-8b1b-34265b831ef7","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":169,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"172af0ce-f66e-4ba9-9a85-13cd66c109e0","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":169,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"4524e741-cada-4619-8a63-8087cecf83a6","block_type":"box","text":"II-138","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4d1e40df-7220-4a4f-a7c0-b8d128b78c5c","block_type":"box","text":"NM1026U-5982509-169/232","page_number":169,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"074cedae-a086-46e3-996c-dc180b607058","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":170,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"edb0d1e8-191a-412a-b127-c7463d714bef","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":170,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"48b66812-4ea7-4bc0-91ee-12071e57b839","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":170,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"f3f2a64d-6e28-4063-a6b6-46d53badc165","block_type":"box","text":"Policy”), with respect to cer tain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to cer tain other","page_number":170,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"6a5f0ab0-a189-440d-b81a-5500eda3ddcd","block_type":"box","text":"Funds, as applicable. Please refer to Par t I of this SAI, which discloses the policy applicable to each Fund.","page_number":170,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"43f24a38-e66a-4c19-af47-a75195242016","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":170,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"949706a9-ebf3-4f68-80a4-3c852bcc5d6f","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":170,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"b06d510a-a623-49be-9c97-3b1c86fb0880","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Par t I of this SAI, follow supplemental","page_number":170,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"f0a33040-6562-47b4-9f97-ced5f00ce879","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":170,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"1e494a29-d9f5-4957-9be7-c7f8022bfc5e","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":170,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"2818e560-9b5e-4eb6-bacf-15c11f05e3cb","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":170,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"f7ebbc26-c6e5-460b-a189-df14defc7173","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":170,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"5fb0d18e-b78e-45cf-8f87-4225e177a1f0","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":170,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"cd04a8af-7bc7-464e-b72b-58fe7d6afaaa","block_type":"box","text":"addition, cer tain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Par t I of","page_number":170,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"be7b3185-de56-4e7a-af29-a6f73e96f5f6","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":170,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"b6655664-13fe-441b-926a-0650ec996555","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":170,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"e053b68b-b86c-4de3-b151-6bac54725463","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":170,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"e90d88a3-917f-4401-a714-a7e01757187b","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":170,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"19322835-c922-41f2-8cfc-1c0d83c12f9a","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":170,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"7d14eb46-fcab-4711-9e5b-ed47795bb287","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":170,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"8b398774-3bad-49bd-bc1a-58f0a2916ad6","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":170,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"b7758b54-f980-4eef-8a53-b80b302dda57","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":170,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"03067815-79dd-4481-8599-505aaa1fea6e","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a par ticular Fund pursuant to the","page_number":170,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"236e944c-081b-45e4-8060-2cf1b2187950","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a par t of the","page_number":170,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"e3d02ddc-d6f2-4caa-8718-8f7882a4ae2f","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to por tfolio securities during the most recent 12-","page_number":170,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"31272283-c0f5-4dc8-934c-d8f17ef48257","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":170,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"20e57b38-932f-47cb-967d-8eb2bc00f1b8","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":170,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"537b6694-2f4f-4a88-955a-d16795212f95","block_type":"box","text":"GENERAL INFORMATION","page_number":170,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"8f777948-09dc-4f23-822c-3970d097e533","block_type":"box","text":"Description of Shares","page_number":170,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"9f9e283a-b129-43e0-990a-3714906d1748","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":170,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"a8408e17-e8ce-4061-9492-748e359445f1","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":170,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"8be1ccb4-cf31-4d85-8f84-9bf3c9457acf","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":170,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"425cb792-85ca-4e44-9b07-5b6ae84d4e77","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":170,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"5cafc7d4-4be5-44c9-8752-3d5b42f89031","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":170,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"36b733eb-013f-4aea-94d0-6a561b4491c3","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":170,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"3b1b96f0-6223-4bb1-8d15-8703b3698b58","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":170,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"1255cbc3-8540-461b-a719-9243b8fc9cb8","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":170,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"4f632044-6dff-4079-8ea8-803e291ebb72","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":170,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"42eb42f7-6233-49fc-b177-9115fba13fac","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":170,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"4800a9ab-a948-4f17-8a91-e648a85cfbdc","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":170,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"cb1f3ffb-e9a4-4ad2-a06b-3132e59416bf","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":170,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"e3228aa6-ec42-40c4-9548-5653383f0cf7","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":170,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"f244ecc8-bdbb-4375-97ec-3fbbca02b91b","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":170,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"c6519bbc-1380-4e80-958d-1c35a7857503","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":170,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"15d4fde4-0cab-487a-8a22-c5f1a2c3b09b","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":170,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"40505d09-5e07-4ee2-9008-6c54c2749790","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":170,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"897d8ef4-4946-4555-8a43-1d398e2ef0bb","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":170,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"fb263fd4-005c-43f6-8c9a-821a8d10b194","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":170,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"ea37b145-bffa-4164-b045-07c408ea4bdc","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":170,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"495e1ab5-88ba-4fa7-9e44-24308285c40f","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":170,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"422d8b3a-9488-4c3d-b19f-5ec2836d7624","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":170,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"7abe1dc2-aee3-4e5a-8d27-44ed76c79eb5","block_type":"box","text":"II-139","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f746b839-2a46-42db-b579-6053bc627468","block_type":"box","text":"NM1026U-5982509-170/232","page_number":170,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4f554c0d-ddd8-43da-93dc-f1a52fb4e29c","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":171,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"9b049ff2-8830-4fb3-99dc-c2f2582ee0e2","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":171,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"bcfbce7b-17fc-47be-8107-1ab72390048f","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":171,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"7f36b8e9-68e9-4f8c-8312-468db90a27bf","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":171,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"191fbec8-2332-4003-a86c-eb3aeecbb173","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":171,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"13346aa6-650b-4872-b220-5cabbdfe2ab1","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":171,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"be429783-9178-44cc-ac26-9c13ad776b35","block_type":"box","text":"Additional Information","page_number":171,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"addfdc23-7125-4cf3-80b9-ad8a823ba162","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":171,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"fb7b78eb-cc7c-404c-aa7e-9d2666dd776e","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":171,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"be3a0e52-598b-4980-b59b-d98d1a3e42d0","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":171,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"f00e865b-193c-471e-bf55-1c66a54bdf69","block_type":"box","text":"such name to any other company.","page_number":171,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"138932f9-f227-4041-8e3c-dcac22897b78","block_type":"box","text":"II-140","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"dee2157c-6c25-478c-97e6-4a4a24c3066e","block_type":"box","text":"NM1026U-5982509-171/232","page_number":171,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"57f44f88-0265-4b79-9e8e-2316a05594c3","block_type":"box","text":"APPENDIX A","page_number":172,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"aa91d660-f97a-474e-89e3-03ba8e3cc167","block_type":"box","text":"Description of Bond Ratings","page_number":172,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"56c9e45f-7cdb-450b-a662-1979a15222eb","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":172,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"5fd4fa9b-33f8-4843-8f55-0d2b62dcad09","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":172,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"ae958fd5-7394-4c37-8983-d54b95b1311f","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they under take no obligation to do","page_number":172,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"82f93635-c58f-4271-a2cb-4637e0f6b998","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":172,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"e3d3b3b6-570b-4df0-960e-20f4eccd5c5c","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":172,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"345ad672-a637-4376-8a35-12a3cb13beb2","block_type":"box","text":"NRSROs may rate specific investments (","page_number":172,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"1f0ada80-3938-49b4-a84d-4f744737ffa4","block_type":"box","text":"e.g.","page_number":172,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"0c7d0983-b787-4978-b75c-0ef72ef09a9b","block_type":"box","text":", bonds), issuers (","page_number":172,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"0a1a2c46-0d64-401d-9144-c84404eb6cbf","block_type":"box","text":"e.g.","page_number":172,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"5dea0d38-707b-4500-a37e-720b4db91987","block_type":"box","text":", corporations, governments and financial","page_number":172,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"47d0fc1e-5300-4379-a63e-b6ab015ca705","block_type":"box","text":"institutions) and/or programs (","page_number":172,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"7bbf9ae3-f2f5-4564-a476-47f48e8eeb1a","block_type":"box","text":"e.g.","page_number":172,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"1feac7c0-f991-44ec-99d5-67c029077a83","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":172,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"c309f8b8-6175-4f6f-9a95-3ead4c3775ae","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":172,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"3307fd4b-1137-4521-bdc1-9358c08e6817","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":172,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"9de57430-e057-4c81-9774-19880003d536","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":172,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"85fa7b6d-3455-447f-b7f1-ac47e9b54d5b","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":172,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"0e62d97e-3120-407e-a798-d2cfef8dbb54","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":172,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"68b1e546-63d3-48fd-bd2c-42d61d4ad416","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":172,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"8b23250e-8039-4d90-9a44-50bfdc442a78","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":172,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"967745f6-a193-4942-afb8-a8c6cf83d98f","block_type":"box","text":"security (","page_number":172,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"2204b659-77d1-45ac-9d0d-1efb63d20d76","block_type":"box","text":"e.g.","page_number":172,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"df1f1f1f-4bb0-4a5e-8afe-cba5312680df","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":172,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"af261ca2-b176-4baa-a667-d6f82e59cdee","block_type":"box","text":"highest of the multiple ratings.","page_number":172,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"e2c9f906-5636-4ab5-98a4-897aa021ff68","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":172,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"3a2363d7-1428-4d9c-af61-91834afa2123","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":172,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"f3480aa1-d10e-41dc-b43c-c3fd6159acf6","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":172,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"dd25f55c-3d21-4cee-9fb9-45f297df39da","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":172,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"57f28665-48ad-4fa9-b264-514ec39297e1","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set for th in the","page_number":172,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"f7331b12-31de-4506-8168-ecad73b5774d","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in","page_number":172,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"f2427464-6b4a-4511-acf8-bd251f0e3c38","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":172,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"52525fec-0e28-412b-9c66-eb162cc82787","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":172,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"f09ad564-c8e9-499b-bc53-93bf5461e154","block_type":"box","text":"Where the investment objective of a fund is to track the per formance of an index that includes credit ratings","page_number":172,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"6c531307-1174-4dbb-97d6-94d150fa98e9","block_type":"box","text":"eligibility criteria as par t of its index methodology, the fund may purchase any security within the index, such security","page_number":172,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"dafaa12f-e10f-4539-ab74-474aa542186e","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":172,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"e2e0ebb6-658f-4fad-b63f-5d42c610ea78","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Fur ther, the fund may","page_number":172,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"2f531697-43d3-4961-8a43-d18ed097a5b8","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":172,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"2237b03e-297a-4197-9dad-7f511644b99c","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":172,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"b66d06a4-2155-4e86-9227-24a98a72698d","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":172,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"a19e30ca-10f9-4a6b-a819-2180a39cba68","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":172,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"ac5a68a8-1597-48c7-a8f7-c9f7eb8c21cd","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":172,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"055903ed-fa98-42d8-9ea3-abbf7ed9404a","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":172,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"ed0dc02f-8c8d-46c6-9e44-e22bbc34b3c9","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":172,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"372b425c-409c-4213-80e5-f4a59e967138","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":172,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"02ba9b9d-9158-40d8-8f45-4526cdc8cbe2","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":172,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"adedba89-07ca-4b71-88e3-8503e8765ffa","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":172,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"f9e4e5aa-4c1d-4012-849d-4878f7b88817","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":172,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"599d9bf5-6c4d-4d63-8aea-8251065f150e","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":172,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"398e73f1-0c96-4537-9a57-b80005320c59","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":172,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"b0afe6f7-518b-4779-9055-0182233e2ec6","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":172,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"a1d9dfb2-6fff-4bff-9f44-2044715c509e","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":172,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"b5b0607e-1b62-4337-9d42-4bd25cd6dfe3","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and shor t-term rating scales and are forward-looking","page_number":172,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"dad82a28-aaa8-4071-b655-8a32ceb3ef8a","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":172,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"b5612f44-fd88-4483-9b3a-772b5c9f7577","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":172,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"15e1e263-c39b-4f97-9bf6-bd8a7ab15732","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":172,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"d852ecbc-1008-4e1c-a685-6efbf08d158e","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":172,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"4b373528-3558-4ff0-9537-b24ce1ac5e44","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based","page_number":172,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"49b1f358-a5ac-4c0c-95bb-0b2d42e62ff9","block_type":"box","text":"upon standard sources of variation (","page_number":172,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"772f8551-0581-4958-a726-2a32e3701e8f","block_type":"box","text":"e.g.","page_number":172,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"7d8f5157-decc-46f5-9c68-d4368d7ab596","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":172,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"3351ad1e-f789-4291-9ac6-16946a87323c","block_type":"box","text":"A-1","page_number":172,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"dac8d227-b4c0-432b-8d67-02c6be2a5fc7","block_type":"box","text":"NM1026U-5982509-172/232","page_number":172,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8251f2c7-823f-4b6b-88a9-4c65c959625d","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":173,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"8c7c9db8-cb72-4eb3-8ccb-9188ea169791","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":173,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"a6bd0603-3254-4b9e-ba59-51aa477c7128","block_type":"box","text":"e.g.","page_number":173,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"65211ee8-bf55-4d94-b585-073251facf55","block_type":"box","text":", equity indexed), absent","page_number":173,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"81d82a5b-8774-4018-8190-f4d583221cc3","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":173,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"0da9d862-597c-49a5-baff-810d2c5fff21","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":173,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"cd46cf56-fc5a-480e-b56b-1333438e7ba8","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":173,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"2e8bfbc5-7e28-4db8-8fc4-36efb8802d88","block_type":"box","text":"the event of default or impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen","page_number":173,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"7d4ff376-7f76-4843-b5de-3ef6d5acfa88","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":173,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"219ffe3d-fadb-4581-98c2-3b3da2c7d3cd","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":173,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"72803284-ef07-41aa-9c11-9555106c2f60","block_type":"box","text":"and instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly","page_number":173,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"f82d86de-d0a6-45af-b127-4c6516357f9b","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":173,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"4770b281-0d79-47f6-bd53-c8ceaad3940d","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":173,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"f44b266c-87bf-4f44-b71b-1ce8963e791b","block_type":"box","text":"i.e.","page_number":173,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"2697d272-8c76-487f-9a9b-8ce0bac9c6e1","block_type":"box","text":", ratings on nonfinancial","page_number":173,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"615feda5-8d53-48e2-acec-65905209947a","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":173,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"41408fb2-db48-4d53-8cb3-de55d554aa28","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":173,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"f525f22b-5c57-4375-945e-fc6e1ab84f95","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":173,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"8e4cebc0-23bd-4bd5-9095-fece70e90ef3","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":173,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"797abc80-331d-48c1-950c-95db8b38cc0a","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":173,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"d4e105fe-4c7b-4013-bede-3d649da76b38","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":173,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"cbbc15db-0263-4175-b935-754482aa5ecf","block_type":"box","text":"of time.","page_number":173,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"3831b63f-24ee-45e2-b732-16191a7daf65","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":173,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"2247a697-0991-44db-a23e-cbe8aed82f17","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":173,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"15cb3298-dab9-4c4f-bb91-78e485a102ff","block_type":"box","text":"risk.","page_number":173,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"1c30d1e0-468d-4bd8-9ede-ffb71c236aef","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":173,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"8e2ec1cf-b4b2-4933-b7f3-697d534cae63","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":173,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"82dcc9e2-ca57-482e-8c5a-945089b8a150","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":173,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"e5972b87-c329-4259-a70e-cdc8489a68e3","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":173,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"afde5e86-b56d-4788-8b13-8566133b5d11","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":173,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"99187b51-1546-4e51-974e-fa88e678449d","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":173,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"ba787367-7ecb-4861-a12e-98d27c79474c","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":173,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"9112a05d-3bf0-47c0-b8c6-a973080499f6","block_type":"box","text":"credit risk.","page_number":173,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"7d51d52a-ca2c-473c-887b-b668681c603d","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":173,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"dfac1288-028f-47a5-a901-0aecf43f0afd","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":173,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"cfa584c5-e47d-4be2-8ac0-7dc438c024a2","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":173,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"557cb2e4-0905-4dd4-8c3f-7cf2a5d00ff0","block_type":"box","text":"of principal or interest.","page_number":173,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"e701f27e-5ec1-4949-84e4-9bf34f47081e","block_type":"box","text":"Note:","page_number":173,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"42e57372-dec6-4fdd-bba4-70afc989c8a9","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":173,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"25f3555a-ca52-4ff0-afe1-52f21d60afb6","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":173,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"5fa83519-285a-49c7-88c6-4240bc3501d0","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":173,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"a46658b2-25f6-408f-a103-0a07edf61fb8","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":173,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"933d501a-dbd6-48ba-b28b-fb6b13372509","block_type":"box","text":"companies, and securities firms.","page_number":173,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"dc4acc9e-df82-4ec9-9e1e-52b16547301f","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":173,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"b0d21f74-c2d0-441a-a196-ecb33bd2323e","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":173,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"0dc3b976-e7c3-4c9e-89a9-6f693d0c2b23","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":173,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"75663f82-333d-4b45-98fb-3132daa012d2","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":173,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"2d04df46-2bb1-4da3-8cb3-807c37d7ec8b","block_type":"box","text":"that security.","page_number":173,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"9c919f08-ea25-4930-9be1-98e9b2a13ad5","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":173,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"e2768ca9-88da-4c26-ba44-52c3f5fdc657","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":173,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"84fecbf7-453c-4ef3-8dd7-8d35bccde963","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":173,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"ddd87852-9110-483b-98f7-e8b6ccdb2ab9","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":173,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"1f593979-e4d8-429f-a3e2-4df9fbcd68f5","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":173,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"0727ba20-233a-46b3-bee1-4f12a10ebcec","block_type":"box","text":"categories.","page_number":173,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"60714523-5d11-4c2a-a5ee-9ba36aa4e8a2","block_type":"box","text":"A-2","page_number":173,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"d2fb908b-866f-4aff-b656-6b6b1819d7e3","block_type":"box","text":"NM1026U-5982509-173/232","page_number":173,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"89d182ba-91c5-45d7-b20c-07b9b1742107","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":174,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"090fba62-9200-462e-8227-e790439d3459","block_type":"box","text":"Moody’s uses the global shor t-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":174,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"ba92972f-e424-42e6-b23a-7cea127071a0","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":174,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"29bb7118-04ac-4fdf-a614-ace86c7cc552","block_type":"box","text":"an issuer’s self-liquidity.","page_number":174,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"e188f909-551c-434c-beae-02a6cabe4688","block_type":"box","text":"For other shor t-term municipal obligations, Moody’s uses one of two other shor t-term rating scales, the","page_number":174,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"e2bcfcd0-48ab-4dfb-8c02-a250493eb046","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":174,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"77b1f40e-9fc0-4dc7-9c0b-1293b761d509","block_type":"box","text":"MIG Ratings","page_number":174,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"aabe4e99-c74d-4157-8f87-6591a3411348","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and cer tain other shor t","page_number":174,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"628c53c4-6a34-4deb-92e6-54efd3aaae95","block_type":"box","text":"term obligations, which typically mature in three years or less. Under cer tain circumstances, Moody’s uses the MIG","page_number":174,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"379a8e9b-6abc-4718-b00c-d1f68ef0c4a2","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":174,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"3a37aeeb-6a83-4742-9c67-78a5bef33ce5","block_type":"box","text":"MIG Scale","page_number":174,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"f54c518f-18e6-4645-8dd0-0da2d80cbc83","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":174,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"13271258-0be0-416e-821d-6a1213abefc0","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":174,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"4424f894-7c3c-4d3a-9471-b65f1db1f0d8","block_type":"box","text":"refinancing.","page_number":174,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"57870f9e-115f-4427-b291-90e0579002c2","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":174,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"8ba6273c-e492-4f5f-8a32-d3bce494d447","block_type":"box","text":"large as in the preceding group.","page_number":174,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"c263fafc-793a-4375-adea-8c545481db37","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":174,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"94303cd0-8d10-46ff-b7ba-493321451cff","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":174,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"7625e489-016c-484e-8f48-3abe9506ad75","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":174,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"477489e2-9fee-4af3-8b98-2898f7f2dd05","block_type":"box","text":"lack sufficient margins of protection.","page_number":174,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"5216253c-64d3-4fd0-9176-bc27278153ac","block_type":"box","text":"VMIG Ratings","page_number":174,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"3735fad6-94bf-4274-b27a-09a9ee45398a","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":174,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"2b3f9b2b-99b5-426e-8043-07cac2db027b","block_type":"box","text":"are a long-term rating and a shor t-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":174,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"699ac576-3009-43e0-9a80-331b4f017172","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":174,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"747f3f74-adba-4d0b-8219-7c0cde5baca8","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":174,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"f5f7271a-2a58-4e65-97cf-9a159c53f715","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The shor t-term demand obligation rating uses the VMIG scale.","page_number":174,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"13f259ab-6baf-4e18-8602-783e45127154","block_type":"box","text":"VMIG ratings with liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t","page_number":174,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"b7fba70c-1008-4eae-bf30-6890742597ea","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of","page_number":174,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"7b7dc5ef-48be-4edc-9661-411b1740a144","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":174,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"16b3367d-21fc-4384-b90e-5f9a9380f59c","block_type":"box","text":"reflect the risk that external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment","page_number":174,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"61337a8f-852c-4c4b-b448-56a6822d2a37","block_type":"box","text":"grade.","page_number":174,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"f682bda2-66ab-42fb-b374-2bce23f8c8a3","block_type":"box","text":"Moody’s typically assigns the VMIG shor t-term demand obligation rating if the frequency of the demand feature is","page_number":174,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"74388f19-d16e-499f-ae93-a6fa1bd86511","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":174,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"d1765747-c2fe-41df-ad69-62edfb992b27","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":174,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"5c9f35a6-d5aa-400f-854d-c206362d70ad","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":174,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"36b1af4e-8369-43b0-87b9-835420418b12","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":174,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"697dd2ba-668b-4e1b-a715-1f4e53b352cd","block_type":"box","text":"liquidity of the corporate obligor.","page_number":174,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"ca6ec666-16bc-4f8c-b974-8b34c7b81452","block_type":"box","text":"VMIG Scale","page_number":174,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"f48653fd-1bb9-4b39-b93f-003884ebda06","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":174,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"64053bdb-d14f-4f1b-a094-aafb739b7d36","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":174,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"9dc2d362-ef1d-4e39-9a83-585bee25d1ac","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":174,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"7dc6d2bc-788d-473e-9624-2d5d7dededb7","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":174,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"eb13b318-98ae-4eb5-a6db-3cc632ff4f34","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":174,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"64a56b3f-75bb-4423-880b-30bbb65b227b","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":174,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"3ff09ade-e310-4ab5-850c-87d208239b4f","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":174,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"9f8f7316-8b43-4975-9f77-fa73a6ad48da","block_type":"box","text":"may be suppor ted by a liquidity provider that does not have a sufficiently strong shor t-term rating or","page_number":174,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"c656457b-dc65-446c-bedb-17ca9494381a","block_type":"box","text":"may lack the structural or legal protections.","page_number":174,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"21603dd1-5264-4fdb-9bba-d4e73ab3d04d","block_type":"box","text":"A-3","page_number":174,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"db22a2ab-c913-4a1d-8cea-2e7565b3ebd3","block_type":"box","text":"NM1026U-5982509-174/232","page_number":174,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e241dc5c-526f-4b58-ba5e-f13c74c7f2ef","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":175,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"79140aa1-a83f-455c-8ac6-9507c361bce5","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditwor thiness of an obligor with respect to a","page_number":175,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"cb77e222-b8e3-4050-93e2-642ab337ddc2","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":175,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"c194206b-d3ae-4574-ace6-6fee7b7f65df","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":175,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"504f1a2d-ec12-4b89-8135-ec5fa51205fd","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":175,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"cbe5b09e-b183-440c-b1a7-b51851c47d48","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":175,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"cb6a8c39-ef0a-40f5-83fc-5d494219aed0","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":175,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"ff39ab92-7140-4a3f-858c-8680aa8c1d33","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":175,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"bef7fd49-7f6b-4fd5-80c7-1797722a20c2","block_type":"box","text":"Issue credit ratings can be either long-term or shor t-term. Shor t-term issue credit ratings are generally assigned","page_number":175,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"13869411-714e-4b3f-abbe-b6156d0cbe0d","block_type":"box","text":"to those obligations considered shor t-term in the relevant market, typically with an original maturity of no more than","page_number":175,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"3545c29f-97ff-423f-80f3-c94f2ad2f5cb","block_type":"box","text":"365 days. Shor t-term issue credit ratings are also used to indicate the creditwor thiness of an obligor with respect to","page_number":175,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"5a299f74-8c80-4bec-a87f-14c4cf7ba081","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":175,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"3c874fef-96d4-438a-837d-3860911c568d","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to cer tain instruments may diverge","page_number":175,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"0d4c249f-d62f-4be0-8230-d420a5952995","block_type":"box","text":"from these guidelines based on market practices.","page_number":175,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"55a5d3dd-31d9-4d46-b5d4-6745b29a352e","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":175,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"b02e1967-7954-47c2-a456-a1dc8eddb250","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"985dc78a-fb9d-48ac-b8d4-1c53884bcec9","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":175,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"32b02f7a-4ad2-4f07-9acc-f0d71260a4a4","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":175,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"63b1a9a0-104e-4357-84d7-d3a9726f06c2","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"a89cc4d5-6d05-460d-a8fb-781def8099d4","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":175,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"ab3283da-8f0d-4de9-b578-b3d3cf39c407","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"e3b26ac4-e57e-4c3e-972f-08e06d8e1e7a","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":175,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"d71d43a5-cee5-47da-8864-5711988a503b","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":175,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"dbc0c7b6-8cea-4d77-992f-a6cecd866000","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":175,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"2b1cf05b-a036-4675-ab79-2a559f2585c2","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":175,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"47f457b7-8c9b-4d8e-bcd1-f9095866d9ef","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":175,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"c2fac35c-5fac-458f-aac5-3380ba0201ff","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":175,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"0db2f68d-b623-47af-b965-53ce1af67dae","block_type":"box","text":"obligations.)","page_number":175,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"71ca0d41-88a3-44e4-8943-4fa74ff7229f","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":175,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"bfdec23c-e65a-43c9-9066-f1a0a30a35f2","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":175,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"cf54ac1a-d8b4-4533-8642-917ef84b74cb","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":175,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"d4b2b546-2c2b-4381-aac2-e1b6d1c51d12","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":175,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"2bbf5c57-2cf2-4185-856c-6d4cc1b19f52","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":175,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"a933352d-1934-42ed-84f0-f8091d2f7e0f","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":175,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"cca536b0-4444-4aac-bbc6-a8c1288d7477","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":175,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"02cbaeea-d3e2-41c4-804f-1b627ad7d2fb","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":175,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"471c042d-4756-4145-97ec-600afe66a54a","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":175,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"a9ad7158-02ef-4d5f-880f-7d4b7cf28b38","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":175,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"65d613ab-ba3b-4df7-9192-2d4e56a434cb","block_type":"box","text":"financial commitments on the obligation.","page_number":175,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"f815c619-53d9-4d8a-b007-79d029cafe6f","block_type":"box","text":"BB,","page_number":175,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"ea618269-654f-45f7-9dfa-6b59679bada7","block_type":"box","text":"B,","page_number":175,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"e0cea1a6-5416-4b8c-9032-5e8f53b08815","block_type":"box","text":"CCC,","page_number":175,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"6d994e4a-a587-4316-99c7-88fea81d4362","block_type":"box","text":"CC,","page_number":175,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"2f9408d4-0854-40a6-b840-6861d9de38e0","block_type":"box","text":"and C","page_number":175,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"2a3c9738-a8e0-46d6-9f8f-45f77022a275","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":175,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"211acb92-6cbc-4550-b04a-ed04fe8ae814","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":175,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"465f2297-79a3-4498-ad62-d763817e7b0e","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":175,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"a4a0ce13-4563-40c9-a232-97eb75473839","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":175,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"f1a732f0-438f-47e3-a9e7-fbcf2778911c","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":175,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"f6631bbe-ff46-42a0-8684-66e17b4b82bc","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":175,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"a7955b08-8c85-4d54-ad4a-4b7da5735169","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":175,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"89d9a0f9-b0f0-4a63-aa2d-02c37d8c2d49","block_type":"box","text":"on the obligation.","page_number":175,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"8e595be2-a97b-4237-9759-50c3746799cf","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":175,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"8632a636-60bc-4ed8-abaa-6f8fb406ed90","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":175,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"a01fb71c-baec-4cfe-9d93-3f8664c12160","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":175,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"9e60bdc0-1971-4382-8ef2-1a7d8159f23f","block_type":"box","text":"financial commitments on the obligation.","page_number":175,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"36db9421-3b1d-4baf-bc11-f49ff01afb83","block_type":"box","text":"A-4","page_number":175,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"8bd0b8c3-f5dd-4955-a35a-a5f95517d120","block_type":"box","text":"NM1026U-5982509-175/232","page_number":175,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"38c0f92d-c532-452c-a99b-51a98ac4a9a1","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":176,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"a4f0ebd1-c206-4f8d-a34c-1e609d642c6d","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":176,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"367c4af8-e931-4403-90c5-c96002d2cb49","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":176,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"3b195351-8325-4ec4-846b-54d1262dcf4c","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":176,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"d59de6f5-de35-452b-b0ce-5f0a1973539d","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":176,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"243e0704-69d5-49cc-82ad-cbd404439400","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a vir tual cer tainty, regardless of the","page_number":176,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"c69448c8-2e8f-4ba2-abf3-b543cf1fc931","block_type":"box","text":"anticipated time to default.","page_number":176,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"fc0c580a-9dfc-4204-bc57-f6eed7e67ea5","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":176,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"3baaae24-ba44-4104-9019-9757f280a733","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":176,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"8dac3f37-07b6-45df-ad8d-8ee451e777e9","block_type":"box","text":"higher.","page_number":176,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"7a3a008c-9870-481d-a9ea-a7db19d7ab66","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":176,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"7a4ced70-2ec4-45db-ae6a-540000e48893","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":176,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"cffaaee4-2a2a-4485-bea5-df624cb3129e","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":176,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"27511fb1-3674-4dec-918a-e8cc20ef0b20","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":176,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"3434c0f4-e556-4c0f-893d-eb72a2267318","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":176,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"cbb2550b-0261-4b0f-9b26-74b243c72d3a","block_type":"box","text":"action and where default on an obligation is a vir tual cer tainty, for example due to automatic stay","page_number":176,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"c619c6b1-7801-446c-9d3c-13739ae09089","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":176,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"4bc87cab-687f-4b2e-ba97-11f6177a88b4","block_type":"box","text":"restructuring.","page_number":176,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"7349f0c5-673a-4a40-9ec8-224e3a8c5445","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":176,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"bc05d735-18b6-4088-a26a-0a8d7fe0b2f6","block_type":"box","text":"standing within the rating categories.","page_number":176,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"9db3f61d-2f6d-448a-9ad4-20f2b9564bd9","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":176,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"4f4fe83d-aa4b-4e40-a4ba-063bc2704fb5","block_type":"box","text":"A-1 A shor t-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":176,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"518d40a4-04c4-4ed0-b298-7ff75f08b556","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":176,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"bd9da764-62bf-454b-95c5-5c2108389fa7","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":176,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"f2cdac31-1132-4810-a948-d1212047c38e","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":176,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"3f04d57b-d78a-4788-8086-ae1f52ddea87","block_type":"box","text":"A-2 A shor t-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":176,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"fcafe1b0-3fc8-43ac-aeb3-3030acb3dec1","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":176,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"ec3525ed-9edc-4cca-a6c6-16847a45de42","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":176,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"7618474e-c6c3-418c-8eda-2cae2cb0dc37","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":176,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"732030bc-7eaa-4312-95ed-eb40d6698fd6","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":176,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"bb5527fc-0be8-4f5a-9225-c6440c623899","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":176,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"01ce79d4-a583-414b-828e-7af975f56709","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":176,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"6057d318-eee7-4651-9ea0-3eed1113c80c","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":176,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"c6d1d625-ce3e-479d-9071-a31d122be5fb","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":176,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"8060777d-edd2-440b-bc33-14db38ff7572","block_type":"box","text":"financial commitments.","page_number":176,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"1893049c-4d93-4a62-804e-d89f66137493","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":176,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"270abe6b-263f-46eb-a8d4-a6f82c4a3caa","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":176,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"e0423236-a016-4c12-9a61-3fc3eba166ab","block_type":"box","text":"commitments on the obligation.","page_number":176,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"0d60edbf-9d7a-4de4-ad55-92da9199cbc6","block_type":"box","text":"D A shor t-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":176,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"82fbcc5c-3260-44e6-8a2a-9f0bd7f8ce96","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":176,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"f3c52ab9-ca5c-4163-bee2-7118b074dd45","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":176,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"a8382543-b63c-4dc7-ae38-fb7008fc04f6","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":176,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"d7bfca46-dbdc-40f9-b016-4fbcd2cf987c","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":176,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"98830a9d-6bd8-4fdc-8497-d24309d8837a","block_type":"box","text":"of a similar action and where default on an obligation is a vir tual cer tainty, for example due to","page_number":176,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"08842afd-c20e-4e94-bafc-71ee85bfb06e","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":176,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"802e18ee-fa90-4ab6-b49c-8c64a3793f17","block_type":"box","text":"debt restructuring.","page_number":176,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"7c4fec01-fad3-4369-a106-11484798bdc3","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":176,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"b1b88561-0fcf-4f89-b7c2-4a3641c6abbc","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":176,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"3a20b483-aebd-4de1-a598-425af6b270ce","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":176,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"c5c01f93-0148-4f50-a26e-be58ac7bc944","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":176,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"8955f692-a610-421d-83b5-9b17cf56c4c5","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":176,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"c496a9ed-2e75-49fe-ba27-5ffbd7e9fa4a","block_type":"box","text":"A-5","page_number":176,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"50c99226-a2cd-4b1e-886c-f4ca5fa2e216","block_type":"box","text":"NM1026U-5982509-176/232","page_number":176,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7d01d246-79f0-41e9-a7ab-6d302f6ae2d2","block_type":"box","text":"•","page_number":177,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"8af56918-a5e3-41e6-a4d6-19e3ace7f383","block_type":"box","text":"Amor tization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":177,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"b91e9c62-f20e-40c5-a707-473685086368","block_type":"box","text":"as a note; and","page_number":177,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"69077b45-cecf-41fa-8ddb-94cad8e6ef37","block_type":"box","text":"•","page_number":177,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"6d0f743d-ac32-42b6-90f1-df6cf2821ce5","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":177,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"458e234c-20d5-4005-91a6-a2351c988d13","block_type":"box","text":"treated as a note.","page_number":177,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"ed328f7a-5bd4-49c2-ae88-d63dfaec1a71","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":177,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"519ce17e-4efb-48d7-b66c-aeef10e7d64b","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":177,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"357fa104-db74-4b6e-ab8d-d73159ab309d","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":177,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"6474a6ef-eddb-4e22-a5c1-285590db2a3a","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":177,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"1065496b-3111-414b-9eef-a623aec00b1c","block_type":"box","text":"economic changes over the term of the notes.","page_number":177,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"0571a620-d78d-4436-8da2-71804de37ebe","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":177,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"68d1e160-9897-4420-992a-b76cab1c1869","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":177,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"974a7ef2-7424-4c51-b89b-8936f348fd2d","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":177,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"b89d53f0-dc5a-4c83-9af4-0dd136d77046","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":177,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"3fc24299-97b1-4ef6-be6c-632dab04fa59","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":177,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"0faad824-ed35-423e-bf8d-eba4750006c2","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":177,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"69f6be58-2c62-4abf-947d-464ba0413ef5","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":177,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"5e1e660f-d2a5-4cc7-b539-8fcd044a6670","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":177,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"923e903e-4eef-4efa-8b41-bf3f3f09b3f6","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":177,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"3bfdaef9-1a8c-4c00-bcae-e6186466f71d","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":177,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"9fcbbf3d-6984-4a1e-a223-09339f8afc73","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":177,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"393a6e43-63dd-4c57-9ae8-6b2821e9326a","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":177,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"84051bd7-1646-40a1-bc26-27a5470cf541","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":177,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"94a2bf6a-19cd-4481-923f-5c1961cd385c","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":177,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"62a0336d-cb81-4b27-bb25-d8fee6069e92","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":177,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"99494789-b73e-405f-b240-9e58a31a5ddc","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":177,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"01acfd33-e416-4a53-a198-a9342d73de1c","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":177,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"c184d450-917b-4c55-be36-908299c25159","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":177,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"af773cb2-c77d-4b8a-bdd5-621bfe2065a6","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":177,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"bacdc48f-8070-4a81-b220-337851ef3686","block_type":"box","text":"receivables or other financial assets.","page_number":177,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"130b66b1-6f75-45a1-b50a-394c62492b3c","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":177,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"0b9f0d57-18a8-413b-b4fc-21b147863cf6","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":177,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"8b5dac7b-d87c-4521-b367-82e35a9108cf","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":177,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"2f6f9bab-7c22-4194-87aa-3207381c9a5f","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":177,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"3007bb7a-c27d-4e37-b210-83b04aaa04cb","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":177,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"dee0e719-6083-4d47-8768-b891d868a327","block_type":"box","text":"occurred.","page_number":177,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"a5390f82-732c-4c46-851a-1cc284704932","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":177,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"ac47e9eb-7244-4122-beea-cd635792f7e5","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":177,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"3ed39868-0dd8-4eb5-ba1d-71dd5db8b67e","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":177,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"c527777e-547d-48dc-b0bc-fa50a02d2eab","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":177,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"72978920-9c50-4d4a-9a8f-441b1f42868a","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In par ticular, ratings do not deal with","page_number":177,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"e5d36d00-8ce8-4828-baa1-0cfd5b0d247c","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":177,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"e401ef58-95fe-49b1-9e4a-d1471fd3c712","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":177,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"be099e11-d339-4c1e-85c1-b649b0558be2","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":177,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"e7477118-e200-4c6c-81c7-ba293e4038ba","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":177,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"b80820d4-bda8-457b-b23b-61c0fe855bf7","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":177,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"b7829c11-04d5-48e3-9827-bfc1974b54d8","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":177,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"ad0f1f6f-6e4e-488b-a77c-ce03e7013b17","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":177,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"dcc09cb7-d175-4982-9fc1-f48da378c622","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":177,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"2ab95a98-c043-410d-a4c6-8e1062078940","block_type":"box","text":"i.e.","page_number":177,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"a009c982-5b69-4a69-bb1b-450e905b98b1","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":177,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"622904b3-9ed9-4b12-b6b9-d09d46290dff","block_type":"box","text":"the obligation’s documentation).","page_number":177,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"7eb635f6-0f1e-4807-82a1-04048e3a958e","block_type":"box","text":"A-6","page_number":177,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"a2073bfe-0dde-4059-b54f-bbef236de694","block_type":"box","text":"NM1026U-5982509-177/232","page_number":177,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8dbc1c95-0864-47d8-bac4-ac50faf7dc32","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or cer tain note","page_number":178,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"a926505c-cf5f-4a54-9ef6-d4a85dfd6879","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":178,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"c25357b2-f581-4644-82b4-0f497a4f230f","block_type":"box","text":"agents in the form of a rating letter.","page_number":178,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"ae87e3a3-e00b-4d21-9af3-4e257e114465","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":178,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"759ff1c2-c0b8-43ca-a223-039e827c1cab","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":178,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"737699f7-4374-451b-9dea-c440a95ced45","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":178,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"8ab47644-07cd-4c1d-9bc3-db36ad6a550e","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":178,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"583f617b-a5a5-4d16-9e56-0ba911828e9c","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":178,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"5ae0eacb-c9a6-4814-a8a4-32ae88435483","block_type":"box","text":"e.g.","page_number":178,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"439c1cfb-4597-4463-8909-749dbbebe93a","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":178,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"2daa0712-1428-4be1-a3ec-259ed27ddbdd","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":178,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"fbe44d82-0d4c-4495-8148-3d1c47c59afc","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":178,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"ca4b1749-6f12-4c72-83e5-5755224a45df","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":178,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"00f3029c-1766-4892-abb8-5ff5efc39ca0","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":178,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"41c149e2-1811-444a-97ee-cc3aafcc3651","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":178,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"6bbb571a-e59c-4492-9a5a-bf80f1924a86","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":178,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"c6cab00c-fa92-4226-a8fb-933bf34b5f46","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":178,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"25164854-20b1-46f6-bdef-e830b1b795e8","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":178,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"e97b9ff8-6585-4658-8f63-5001ca62ffcb","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":178,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"8c104233-081a-4049-8c1a-b6e24b829bc9","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":178,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"4cb3f2b1-b4f2-49a0-b324-a74f75f91abe","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":178,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"1563ff10-0b53-4590-8b85-275ec628a1b1","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":178,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"ff5bb13a-f52e-4af9-836f-32d554b9c8b1","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":178,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"f016378b-c260-42dc-9127-a465079c20c8","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":178,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"67a91556-e4a8-48f2-b226-eb95f9ac3358","block_type":"box","text":"Ratings.","page_number":178,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"605bf769-a3ae-4473-a297-158db00487d1","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":178,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"66d1972b-7f7e-4dd1-a9e7-059bc6e23ac8","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":178,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"ac84ee74-a9de-4096-a378-c7899ed55cb4","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":178,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"89d8e946-bd50-4ec0-aeee-c6dcef7f1fe1","block_type":"box","text":"obligation ratings.","page_number":178,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"0ea3d054-0bad-4faf-a4c5-c6ff2091d605","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":178,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"bc0ed1c3-891c-4b41-b169-1b33174d6dce","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":178,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"da008238-1a25-4cff-b6e5-588b6093f00e","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":178,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"40fca1c4-88e8-4fb1-ad4d-859128edea73","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":178,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"0af7a603-2af7-4c52-8b5c-9cd04d229063","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":178,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"8a8bfb63-30ea-48da-b7ea-db3778d15700","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":178,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"d58088bb-7f2c-46a6-aff2-a3fc37717d70","block_type":"box","text":"to foreseeable events.","page_number":178,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"e7a53d01-f316-45e0-acca-a68a8dd760ab","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":178,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"8f8c2572-15f8-4ef0-aa83-4df7ae0eba37","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":178,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"d15ac3b5-aa95-4d2f-a12c-e3344e20ce76","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":178,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"ecbb459a-a3f9-40f9-9737-49cf9c6118c9","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":178,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"1a175053-5da2-4af7-a95f-2d7a73264eae","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":178,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"955f6dbe-09be-496a-935e-0008cfcc0dda","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":178,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"2944f5b4-ccdf-46ad-89c9-9c4a04351770","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, par ticularly in the event of","page_number":178,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"beb265d1-eb9d-48a0-a76e-6807d06af0f5","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":178,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"56fe2839-cc28-4faf-bb96-ca5e8bb0fa88","block_type":"box","text":"flexibility exists that suppor ts the servicing of financial commitments.","page_number":178,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"5cde0b64-5afb-4cb0-9b6c-e041b576fb18","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":178,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"3b9744b1-bd93-4b50-bfd6-77f9d5ff2971","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":178,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"0a9e5585-e187-4669-a48c-a38568e4c841","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":178,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"4f5ca589-3bdb-4e2c-8a0c-7f53a48b6191","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":178,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"4e16841f-9128-4415-9abc-feaaca9658d1","block_type":"box","text":"possibility.","page_number":178,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"177cc3da-f640-4416-aeb6-221cb3b1d80e","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":178,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"8dea8bc9-4ea8-40d1-a836-76ffcca77363","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":178,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"7cc4b1d6-e0cc-4e0b-997b-fbbde26bfb1c","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":178,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"f1e5ccfa-45cb-49c8-b180-ae1ccbd5501a","block_type":"box","text":"A-7","page_number":178,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"b121d717-2099-4f31-9b91-0a6f1e370cb4","block_type":"box","text":"NM1026U-5982509-178/232","page_number":178,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d83d8fca-381c-4698-84aa-24f54a9ef278","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":179,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"94cf31c1-19be-47df-ac95-d3c0f7202763","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":179,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"edd7f764-2591-45fd-a841-706b860653c4","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":179,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"f416aa1c-5cd9-4881-8531-7c0ed54379bc","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":179,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"6e7fc61c-5e34-4b20-bd1d-30e3804af25e","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":179,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"326602ff-3b87-4a3c-acdf-27ab650f5ff3","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":179,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"0ab12f9c-cc19-4674-92c9-075750111c73","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":179,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"91ee74cc-1880-4e4b-bf54-d6ff9882ff06","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":179,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"2327f927-c6ea-43b1-bc84-57a88574b131","block_type":"box","text":"relative status within major rating categories.","page_number":179,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"a098a080-cdf0-44df-a35c-62b91586b61b","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":179,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"893e0664-feef-4fcc-86df-cebf65409e86","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the shor t-term rating","page_number":179,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"8094caaf-b652-4ef0-8b3f-d92a8b493b02","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":179,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"ae36dd3a-87e2-46fc-b28e-faba9a41e6d2","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":179,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"1bfd97c7-70fa-4013-99ce-649fbe49fed0","block_type":"box","text":"A shor t-term issuer or obligation rating is based in all cases on the shor t-term vulnerability to default of the rated","page_number":179,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"29d7a7e6-0a2c-4f3f-918f-9acb4d265f72","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":179,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"131f0265-8914-42ec-9ef0-39bd3558f709","block_type":"box","text":"relevant obligation. Shor t-term deposit ratings may be adjusted for loss severity. Shor t-term ratings are assigned to","page_number":179,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"354cde34-8ba6-4e14-89b1-c166de26d656","block_type":"box","text":"obligations whose initial maturity is viewed as “shor t term” based on market convention. Typically, this means up to","page_number":179,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"f474d5ee-48c4-40b7-8340-9cd76b00eafd","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":179,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"06baf41f-6a4d-406a-9327-a06cc8e96e7a","block_type":"box","text":"finance markets.","page_number":179,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"5339f0ce-450b-491e-bbf1-005674ad1292","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":179,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"a169dbf9-9c2c-4052-bc74-75534d195372","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. 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The intrinsic capacity for timely payment of financial commitments is","page_number":179,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"4ad2563e-bcc2-4e9a-ab49-80d755e8b386","block_type":"box","text":"adequate.","page_number":179,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"069de32b-45a3-4579-96ec-cefd289e0c8f","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. 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with","page_number":184,"box":{"x":69,"y":83,"width":785,"height":11}},{"id":"457b21cd-5f9d-483d-ad21-9b9b22a7bb22","block_type":"box","text":"issuers.","page_number":184,"box":{"x":70,"y":98,"width":54,"height":9}},{"id":"2bf3b91f-96ac-472b-a315-9a1dc9274273","block_type":"box","text":"1","page_number":184,"box":{"x":131,"y":94,"width":4,"height":4}},{"id":"890d2532-5e0d-46d4-9e06-8c665f8d38e4","block_type":"box","text":"BAIS works in par tnership with BlackRock’s investment teams, excluding index equity","page_number":184,"box":{"x":141,"y":98,"width":606,"height":11}},{"id":"792ecddf-2597-4920-86de-79202ed2285e","block_type":"box","text":"2","page_number":184,"box":{"x":747,"y":98,"width":4,"height":4}},{"id":"d1759eeb-3007-44f3-8889-e43ee4964637","block_type":"box","text":", providing exper tise","page_number":184,"box":{"x":753,"y":98,"width":143,"height":11}},{"id":"64180ef8-6b4b-44dc-bc85-f1fe1e52c656","block_type":"box","text":"on investment stewardship and engaging with companies alongside and on behalf of those teams when appropriate.","page_number":184,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"3ccb36fa-a987-4354-850d-f25bdb45f617","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":184,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"61270ba9-bf55-4db0-b044-54dd45eab3ba","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":184,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"32104768-e630-4931-9776-fcf07832eaa5","block_type":"box","text":"makes to BlackRock’s active por tfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":184,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"3252cff8-90f2-4707-a432-98948c323e22","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":184,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"b0caaaa0-dbd9-46db-a7b0-34a9667e8e10","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":184,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"09027596-e9e8-49b9-a6a2-1d20ebb040d4","block_type":"box","text":"The guidelines are not prescriptive as active por tfolio managers have discretion as to how they integrate these","page_number":184,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"cb144d45-8367-452f-81e7-f96ef0cd61ab","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":184,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"93cd39d4-1105-4b27-8dd9-aa1587bb23e7","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":184,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"266329cd-912b-43b7-85ae-1f70f98ee41a","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":184,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"7209b6de-50b3-4088-9d12-f7ff392b0261","block_type":"box","text":"1","page_number":184,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"090a0f59-6a50-47eb-8810-b237862b60d2","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":184,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"0f7e208d-c4b8-4d8d-a35c-e6611a2d289d","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":184,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"550f1ca3-3047-4502-80ba-0dbc3de4f0cc","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":184,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"0b82fea7-5a19-4724-8ffe-1df543248ade","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":184,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"5585e85d-ff9a-4199-a088-8d219b513861","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":184,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"54133360-a467-47b5-a7c3-ab605f12686d","block_type":"box","text":"2","page_number":184,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"57d9df68-c56f-4376-a865-41cb3617585b","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as par t","page_number":184,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"ea468d20-7e46-4e65-9b6d-f201303a3600","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. 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The money BlackRock manages is not its own — it","page_number":185,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"3e3c13dc-5d60-45d2-a4ca-2488f0040c63","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":185,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"ae000010-0b46-4f9c-a073-ec2f48d245d0","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":185,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"bc3092bc-70b7-4fb2-a5a6-780d375026ca","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":185,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"b43e9fe3-848c-41f7-8f9a-2244e44a7e26","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":185,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"a2ef2790-da88-49ad-ab27-b374296a5924","block_type":"box","text":"this work with research, data and analytics.","page_number":185,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"a813a76d-9669-403a-9ff6-97f7d3cf061e","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":185,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"70c95753-945e-465f-aba4-cb62d7846286","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":185,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"e320363f-d474-41b6-9bf4-6d6927eb2378","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":185,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"86342888-6080-4058-9d29-b0ec2bd91e26","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":185,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"857297d1-c89b-490c-b58a-784dfb656181","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":185,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"206e0327-0721-4a63-9fc0-24aa9cb6452a","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":185,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"b0d012e1-d465-42db-8982-512392cc3f9c","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":185,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"358c87bf-3aee-4893-95aa-aaaa848811f8","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":185,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"ffb98153-7cde-4118-96d8-2790b87787fe","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":185,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"bd502920-b26b-47a9-8b1b-9504d1370910","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":185,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"500cf663-5c44-4b76-b826-e62c03590c7b","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":185,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"15997695-fcb8-45ee-a217-7705b31e6de5","block_type":"box","text":"shareholder meetings.","page_number":185,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"75e29b0c-cea6-4495-8146-63c6bbfd1692","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":185,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"2f608ffe-8f5b-45cf-91c2-141af561e26f","block_type":"box","text":"investing.","page_number":185,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"23c4827d-2451-4e00-94c8-e33de8092cd9","block_type":"box","text":"3","page_number":185,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"3ba78644-aba7-4025-b586-87b7eaf2987b","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":185,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"5a7dc10c-3d4f-44b8-a04e-f3ffe92b4da6","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":185,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"6dd7be20-4d22-4287-9098-7bb85fd5ce6c","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":185,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"c591d982-155d-41f8-94af-ee97413d8945","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":185,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"cbf2e20b-7016-4bd2-90f0-0a62351ad34c","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":185,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"c33442ea-bae0-4f4b-a172-019caa1778e2","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":185,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"59bc10e7-2d53-40ad-80b6-f59e17605d2b","block_type":"box","text":"suppor tive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":185,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"a5e8923c-a970-4503-b3f7-1c5ae99ee151","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":185,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"cc786bc6-d6f4-476d-8217-8f1ba8bf1ddc","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":185,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"d1076b8d-9c05-418d-a65e-a83bdfe7aedc","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":185,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"8d0a4916-de9b-4b8a-ae79-9188ce2ae836","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":185,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"1219162b-c270-4663-8ec3-66675bec1732","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":185,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"e7966b42-0fc6-4091-be8a-c99a59b45af0","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":185,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"bcf8a06c-8478-428e-991b-084bf7fa1796","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":185,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"1c977713-35f2-400b-9b0d-8c0bb9c55855","block_type":"box","text":"management teams and board directors","page_number":185,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"003cd05f-5253-4b61-b79e-ac41913b3ded","block_type":"box","text":"4","page_number":185,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"850310a3-9490-49b0-8790-ec34f030a3be","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":185,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"ae1ada69-f5bf-4b80-85f1-8f0d024c8a62","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":185,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"8d51bd8a-940f-4eff-811a-3a57e54c0165","block_type":"box","text":"applicable elements of governance that suppor t a company’s ability to manage material risks and oppor tunities and","page_number":185,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"0399f271-71f0-4077-beda-bf4fb4b6ea91","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":185,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"c817b4d1-9081-434d-b23e-07c82a623e8b","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":185,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"8d893838-e658-4437-803b-37aaa70928cb","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":185,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"7a5c009c-b6bc-426e-980f-a2cdde88aabd","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":185,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"4bdff1e2-556d-4195-a917-12683cfbdbb5","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":185,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"b8a16506-8678-4b03-b937-f254ebe3343d","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":185,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"3e111e42-c6a6-4e67-9925-cf9db9867827","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":185,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"f5e3b1a8-3c40-4de8-a760-754f35f7e920","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":185,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"edb9bba9-3c9a-4442-8f7d-0b5a288016aa","block_type":"box","text":"suppor t for, or concern about, a company’s per formance. As a fiduciary, BlackRock is legally required to make proxy","page_number":185,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"5a617773-2111-42de-b9c9-d527952be679","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":185,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"6415cde2-3e86-41fc-81e0-d3043db18923","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":185,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"277ac93e-e8a1-4749-b6f4-502250394161","block_type":"box","text":"3","page_number":185,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"b35d62a9-85d8-410f-9ce9-d43af94462d5","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":185,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"916b4f77-43e9-4b44-84f4-cad00d895f12","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":185,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"20fc9167-d296-4999-9164-afaf2327c0b2","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":185,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"29453158-330d-412a-a3dd-d3a42381e1ae","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":185,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"658bd8a3-d6ae-4fa3-8b14-238ef3003662","block_type":"box","text":"4","page_number":185,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"738efa0a-f44b-46c8-a080-704fd63a0f29","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":185,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"fc61ecbe-0fc5-47d3-ae13-ca04aab90620","block_type":"box","text":"boards and their members, where relevant.","page_number":185,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"85624528-fca7-46c8-9659-d33bb3a08170","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":185,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f6b484d4-724e-4144-9e59-4a6b07f84168","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":185,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"05f2deb3-3233-4583-ab1d-b809f4ad67c6","block_type":"box","text":"NM1026U-5982509-185/232","page_number":185,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b4338fce-7c4a-4ded-9094-e217f785e379","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":186,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"2b2afa2f-c493-4b23-9c20-2617bf048092","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":186,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"177924be-6741-4163-a17b-35dc081cdb06","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":186,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"6ea0bc34-1037-4d17-a23e-d1f44c3b2c2a","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":186,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"cf491e36-0909-4757-b3e9-4d0d86e49e10","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":186,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"a4e6ff8b-ea9e-4b77-8b76-9b32cee264e4","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":186,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"2cd37162-c915-4153-8443-e0605ce49f41","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":186,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"cfb1a005-6165-4127-aaa0-fb451006b47e","block_type":"box","text":"5","page_number":186,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"41854847-feb9-4fb5-9318-b171cca59477","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":186,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"5333d709-cbef-4bb6-8e4f-92517da03c00","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":186,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"f71bbef2-a353-4373-a7bd-d3e6133885ae","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":186,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"297155ff-8387-4f2b-9157-342c4c3e67c1","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":186,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"f6d004d1-878d-43eb-8730-cc8a82813659","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":186,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"6cdfd663-0add-49b9-b3e1-b9103cbaaf3f","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":186,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"0a2b3205-16af-4b07-a472-22bd8de94ab6","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":186,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"e581310a-4c0b-464d-bdd5-3f7fafda19e3","block_type":"box","text":"5","page_number":186,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"6b3ac7eb-dd4c-43de-bdc6-3d20270196ae","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":186,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"8b4ad2cc-05b0-4bb6-a17b-6cc70e6b1b4d","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":186,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"9a247b7b-bf47-442f-b5b2-a14597aca4d0","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":186,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"43430b22-00cc-4181-bdb6-e72d4ff4cd33","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":186,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ea1299a2-40fb-41dc-ab58-c64506cb8196","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":186,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"0dd5cbcd-9886-45b1-9e5d-c9e37ef53f50","block_type":"box","text":"NM1026U-5982509-186/232","page_number":186,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d1419bdf-6646-4398-8a05-582a3d273644","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":187,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"093415d1-c90b-48e2-9fa0-d2e36ec14b64","block_type":"box","text":"Roles and responsibilities","page_number":187,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"84834a42-d7ab-4ae8-af86-cf10dba42ca3","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":187,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"2ca39e21-adc9-491f-95c2-a03676fece18","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":187,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"8407218d-9caf-4fe4-9b6d-0022092da9da","block_type":"box","text":"6","page_number":187,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"b63f83da-46fa-419d-92d8-30e0012e50a3","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":187,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"fd882000-0e4f-41d7-8fc4-9257e0770415","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":187,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"74985847-70ef-4611-9971-9f3c3131d7d8","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":187,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"79e38212-9147-4715-b06f-94e9a93c50b2","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":187,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"30c2de8d-ad3e-4df6-9575-a1f5453cc5ca","block_type":"box","text":"per formance over time.","page_number":187,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"9c4d3395-f2ac-4194-b6ab-16ac84c79f2e","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":187,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"307f6c34-e9ce-4c47-8937-169c004265aa","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":187,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"388a1474-04bb-46cf-907e-81853d366094","block_type":"box","text":"One of the most impor tant responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":187,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"5f0b08f4-1d6a-4f26-b98e-db52cbc83ced","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the per formance of the CEO","page_number":187,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"3b2c66c9-e344-4f68-9f85-7d026da48610","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":187,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"78d0cd99-2409-4e9b-a77c-77f8060abea6","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":187,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"780ed4d4-ef38-4847-8a15-e54e040e8256","block_type":"box","text":"Composition and effectiveness","page_number":187,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"d1333e5a-7213-4ff2-8b15-8d851117cb43","block_type":"box","text":"Appointment process","page_number":187,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"a6a53b96-5b39-4cd0-a609-26cc111d451a","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":187,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"5664ca7c-e45f-4ab3-995d-609786c7285a","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":187,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"a9c348a2-b2a1-4319-b43e-adbb4fdfef58","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":187,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"98ed3161-9963-4e5e-9ffe-754edd88d1a1","block_type":"box","text":"e.g.","page_number":187,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"3d25159e-cc52-4bfb-9fda-f3b5bb79ee35","block_type":"box","text":", sector, maturity, geographic","page_number":187,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"74cbb159-bc2c-4c4e-b52c-ceb917ea2686","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":187,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"ae012d07-5212-4865-a275-b33522438dbe","block_type":"box","text":"e.g.","page_number":187,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"3bb1fafd-14b8-4c5a-ab59-274087184675","block_type":"box","text":", financial exper tise, industry track record). To","page_number":187,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"77d86f55-8f51-4529-b083-2983be9bf0b7","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":187,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"1d690416-6379-400f-898a-8d51b9275be5","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":187,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"6dc40473-93ba-45bd-bcc6-4b3fa5dc8427","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":187,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"135a607d-f1fc-4406-89fc-4fe815e02cce","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":187,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"a271c2a6-8bf0-4e8e-9932-737bb3c09a79","block_type":"box","text":"and local market requirements.","page_number":187,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"b8cdd743-4db5-4929-9a19-0e8b78c2333c","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any par ticular board","page_number":187,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"6aca6744-3b89-4e12-b884-7c81a5ae8ae6","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":187,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"a32cc28a-c04a-47a5-94b8-2f076e1f5bdf","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":187,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"7b15ddbe-bc6e-4dbf-8c48-6a9c21bf130b","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":187,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"a68c57a6-29d7-48d1-b68a-b424dc63c27e","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":187,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"d78d9176-96a3-462d-84f9-38279ba7033b","block_type":"box","text":"per formance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":187,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"75efe5af-d533-4659-8b2a-7196d6fcc749","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":187,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"1411129f-bde0-4552-a13f-5aeca48e923a","block_type":"box","text":"Independence","page_number":187,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"19bede87-bb93-4e69-8de3-bd60a8c5135b","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":187,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"19d2a39f-015a-4c7d-872f-bbf6fb43b0a0","block_type":"box","text":"e.g.","page_number":187,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"ac49a6e0-7c4c-4a07-8a7d-1d77427ce80f","block_type":"box","text":", government or","page_number":187,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"60721c31-af61-474b-9360-78574c97dded","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":187,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"311b547a-4f73-4053-bdb3-29b7b64619d1","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":187,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"3a44c26b-16b5-43a4-ac0d-e54993b1fb66","block_type":"box","text":"conflicts of interest or undue influence.","page_number":187,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"0a8e167b-4c81-4837-9422-c2529e16e3cf","block_type":"box","text":"7","page_number":187,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"37057746-098d-4677-8ca0-a3eb6d1e7d31","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":187,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"92ce1578-dd70-4a8d-a30d-35b39dac4f70","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":187,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"ce0e553b-ab9d-402e-8670-c8983d72af3f","block_type":"box","text":"independence should meet those local requirements.","page_number":187,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"5681a4b4-388d-4686-a506-e1b3b165f60b","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":187,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"b7d43247-5bff-44c4-a8ff-e51e89dc60cc","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":187,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"179da286-7a04-4469-b65c-18a1134accf4","block_type":"box","text":"composition if this is a perennial issue.","page_number":187,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"2481ff03-68df-4e0c-8156-c34f6f773697","block_type":"box","text":"6","page_number":187,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"acbbf1e5-d991-446a-87a3-43114b3588ef","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":187,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"543fdbdb-3613-44d0-a8f0-be7c54159f17","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":187,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"2038022a-ed23-4b8e-9096-bc40ee7163b3","block_type":"box","text":"7","page_number":187,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"4f4e387f-34a1-4303-9f1c-e5292a94a066","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":187,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"e447f10b-2c4d-464d-8e6e-494d47c6936a","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":187,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"1437191e-6c3e-49d5-9473-8ccff4be8123","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":187,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"e80e4e22-835b-48cf-854f-81577b53779b","block_type":"box","text":"could, or could reasonably be perceived to, materially inter fere with a director’s ability to act in the best interests","page_number":187,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"fc933c73-3e8f-4fc2-8ca8-f68f873bdd36","block_type":"box","text":"of the company and shareholders.","page_number":187,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"006d121a-34cd-43b6-b5ad-1a7a2a97bf6d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":187,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"010b0743-2782-4bd3-a4c2-eb83220d71ae","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":187,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"e91e055f-47f8-417b-a01a-c99c4966c020","block_type":"box","text":"NM1026U-5982509-187/232","page_number":187,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"81f313b8-db91-40f8-b827-e2938989c69b","block_type":"box","text":"Independent board leadership","page_number":188,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"c8863022-93e7-42d8-9829-1712c8704b1d","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":188,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"f417e876-8535-4600-87ca-d1ac149a068b","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":188,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"2a3f3ad6-f4d6-4456-b34e-50a814e69cbe","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":188,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"d0747816-5c9a-478e-bc5e-7c1089098ca1","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":188,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"0f8a228e-327b-4963-89be-aa61c31d77e3","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":188,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"4d897610-aef3-4d60-9fa9-af18052566f9","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":188,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"981b3de0-a509-456d-840c-929daa2d8de8","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":188,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"f3c18503-6d7b-4e09-96bc-aa95b6f04199","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":188,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"2af51c09-3ba5-4c41-a552-c2fd81232900","block_type":"box","text":"how it serves the interests of shareholders.","page_number":188,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"be873f26-1365-401d-896c-4c379d0918b7","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":188,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"cdb57926-495e-4931-8f41-f6af2a793955","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":188,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"16aebd6c-4cf3-4003-88b8-9d5795760cfe","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":188,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"8a3df7f7-c4b5-45b7-ad37-fc8c2252a2d9","block_type":"box","text":"Tenure and succession","page_number":188,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"1914fb2d-bc72-4fcb-ae5f-13f7a2859f54","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":188,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"d70e0171-df8f-4680-82d2-557036c6da6f","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":188,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"99ca64c6-a1d1-48bf-a8d8-727647f11614","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":188,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"d0c7e512-8712-4d98-94c0-92a00f87bfc1","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":188,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"b12b5fed-6dad-47be-bf82-e392f86d9dc8","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":188,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"7202e258-316e-47f7-a4c0-af5062f0004a","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":188,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"ee55c046-062b-4ed6-930a-de8adfaccaeb","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":188,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"2c97eff7-e97e-43d6-b7d1-1d202e1fae25","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":188,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"899dfda9-b07e-40c6-8691-1a5af30364a6","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":188,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"c26dcae7-7d2c-4965-a36b-8c9e17fcb84e","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":188,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"33f6d693-ac52-4b5b-95f7-5f83b296e2ae","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":188,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"2fdd4164-d022-44c0-9a67-35e7ff71bece","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":188,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"3977c56b-b6c8-4d7c-9ff6-df65c33df603","block_type":"box","text":"for their continued service is not evident.","page_number":188,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"f1e40bc3-2e26-4f74-b892-0b4d24bb12ca","block_type":"box","text":"Capacity","page_number":188,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"0262e895-de16-407f-a8be-f48cffdf7cef","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":188,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"10204ab7-c396-442c-a9c0-b76e37f722fb","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":188,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"99ed1e17-bc79-4f6b-aaaf-1e41fcfac53f","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":188,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"7c12d234-9aa3-4a5c-85f0-f67d7e33264d","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":188,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"7e3b3a89-5142-4e71-a66a-82e8f22ad150","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":188,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"393f7bb5-cc81-4002-bd41-5c44e72d75b2","block_type":"box","text":"determinations across markets.","page_number":188,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"37d72f94-3fa1-4b12-9133-56ce4d1a4b48","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":188,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"4476581e-9f0f-48f9-ae88-ef0da1c00590","block_type":"box","text":"their duties to the board and company.","page_number":188,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"3b141ac3-17bc-480d-9e90-6417977f8e0b","block_type":"box","text":"Director elections","page_number":188,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"b2525766-8fa6-4a84-81e0-292e6d85cf4f","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":188,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"36a999c9-68fb-4059-9e05-f8a0e1832fde","block_type":"box","text":"structure","page_number":188,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"2dc731e0-0671-4da0-ad03-43d1183e0490","block_type":"box","text":"8","page_number":188,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"c544291b-e75f-4a1c-bc5e-62ef69c34567","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":188,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"7ca6a4f0-d597-48f8-a874-2dd3e273eb0f","block_type":"box","text":"basis of its business model (","page_number":188,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"0546fc42-9bf9-402b-92f2-d393f93c0ba4","block_type":"box","text":"e.g.","page_number":188,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"35dc4ce8-0c80-402f-9e88-c59db80a1314","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":188,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"7a8b64bb-df59-4471-93bb-67ab66287440","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":188,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"4c48afaf-0c03-4343-a902-e822f24bbd0c","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":188,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"ef457be0-7882-42bc-b788-04668634bc0e","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":188,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"4a9697bc-8760-4535-a972-dbfe848d0c3c","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":188,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"39f73d9b-f961-4e40-8ba8-f404bf7b1982","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":188,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"2a897805-5145-4024-ac42-a9f5929c3c4c","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":188,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"5a9bef2b-647d-4e32-91a9-2a52773eef5b","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":188,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"b760989f-b0c4-4c4d-8140-9d6c86f97f90","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":188,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"a55db5b5-02d9-4c31-97da-fcda0d9c6bb2","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":188,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"c7d15493-b44f-455c-a779-edc623c86786","block_type":"box","text":"par t of a single slate if we have concerns about the profile or per formance of an individual director.","page_number":188,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"d170d271-f8fb-4610-80e9-0d7052032d05","block_type":"box","text":"8","page_number":188,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"56fafc6e-ee30-4381-8f17-30292d6dbc29","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":188,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"1fb4bad6-6f80-4aa6-9296-b09e95b6924c","block_type":"box","text":"directors stands for election in any one year.","page_number":188,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"55a2a97e-a0d7-4189-8f1b-45e6b839873f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":188,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"50999261-6c8c-4343-978e-98c1d1fbed15","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":188,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"759400a8-78e1-452d-bb94-d89b525aa86b","block_type":"box","text":"NM1026U-5982509-188/232","page_number":188,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2fe6b0d2-2d5f-468a-8e6f-adb6f9143897","block_type":"box","text":"Committees","page_number":189,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"f10225a2-639e-40a1-8c1a-a741f4f9a682","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":189,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"42903547-7f17-4dbf-b412-43360157fbbc","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":189,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"497e6267-807f-4c09-a0f7-5bf241830442","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":189,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"118621ff-d0b2-4165-9d90-40b9b3a54fc1","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":189,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"913bca27-2078-46f6-ae50-34ef32a1f219","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":189,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"39d3f5ef-4b25-4d41-bd7d-41fb278faa8b","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":189,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"d0f22c26-b462-44a9-8ad2-68f100dc5bdc","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":189,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"9de747d7-12b3-4727-b796-289e1c206b70","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":189,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"61c6de18-fd27-427b-abbb-4708e02090d3","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"2e0bee26-adbe-44d3-8a03-bf943a5c3ad0","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":189,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"c6c93222-0ad4-4535-8e57-2b71fec1588a","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":189,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"1600e298-0c0d-4842-b794-55acc11dbc4a","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":189,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"7b0b412e-369f-4819-bb5f-bd8b462fa1fa","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"32949497-1c6a-4fbb-86a6-90b7311772d5","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":189,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"532730d4-c671-4043-9f08-b674566d23b4","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":189,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"2deab3bc-ade6-411d-a13c-7d2bdc8c2d07","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":189,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"9bf0aa7e-6947-49e9-a493-a8eb7c0d1b7b","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":189,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"a709b19b-a8c5-46f5-871a-25cd33693045","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"9e519108-7611-4f3d-bb95-c9fef71a482a","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":189,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"faba8706-1273-4cb4-8968-50c49c36cd8a","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":189,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"7cca7a23-8e1a-48c9-8890-3ff5e81955c4","block_type":"box","text":"firm-wide compensation policies.","page_number":189,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"533cd8bd-5e8f-4bf2-877d-449f917ce07a","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":189,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"e877ca8b-73d6-4b7a-9b20-9ae572ffb053","block_type":"box","text":"to convey concerns about how a committee has under taken its responsibilities. We may vote against the election of","page_number":189,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"1c4aab6f-e9b0-403a-808e-94a96636a701","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":189,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"7c5ed177-7ade-4033-9566-101a8026cc02","block_type":"box","text":"Board and director evaluation","page_number":189,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"fbc6b251-384c-452b-bba3-c011054de006","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the per formance of the board, the","page_number":189,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"c722b28b-cd77-403e-af94-4306e8abd05a","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":189,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"26ba1f06-21cc-4d5b-9ca7-2f01e00a92a7","block_type":"box","text":"par ty able to bring objective perspectives to the board on governance and per formance. We encourage companies to","page_number":189,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"7747cabb-bfc4-4178-b3e6-ee379a58ef66","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":189,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"ceb7f611-d4a2-4d6d-a7e9-2efb04e338a1","block_type":"box","text":"a result.","page_number":189,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"ceab3203-e3db-4604-ab35-cd6ebd5f274d","block_type":"box","text":"Access to independent advice","page_number":189,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"8851c788-1e31-4ed9-9724-76dcf67ed422","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":189,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"fb019cab-c7b7-465e-85a1-90efaa877287","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":189,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"2619e727-5519-40c7-99d4-0c521939ca1b","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":189,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"57253439-53d5-422b-be81-f92f9084f6bd","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":189,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"ffa4c776-4c2d-4582-abeb-85d4612d483e","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":189,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"a905e45b-71b4-4294-bdb7-05478b827905","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":189,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"67842c08-51e8-4a7a-9b34-66735e5cbc02","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":189,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"2c4a202d-70d7-40c2-8f7d-167694fb609b","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":189,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"d9961464-aa6d-4156-98eb-22eb4ad20eb2","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":189,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"19233a5b-d46e-408a-b251-7399c51bbabd","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":189,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"ae975321-fa40-4472-8f23-92f66ad5fee9","block_type":"box","text":"per formance.","page_number":189,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"a9986f73-577c-4d60-87a0-f399cbfecd29","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":189,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"2db1c875-02c4-4423-9128-8e53c1f25eb2","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":189,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"206fd7be-f0dc-4bb1-a21b-10038037866a","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":189,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"dfe6357c-3c72-4de9-96c7-eb7d7ddb72d5","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":189,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"89b35cd2-746b-457b-8186-01a6c9ca8758","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":189,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"68f5f7b9-d6d6-4930-a619-eb69ebed088b","block_type":"box","text":"recruit and motivate.","page_number":189,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"139ee853-a5e0-4fc0-a161-f2e2393af02c","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":189,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"99fbe916-f85f-44ad-b734-757b84d75edd","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":189,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"1f3a6392-fec0-4e90-ab81-785ffa9345db","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":189,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"421b437a-6ed3-4c4d-83b0-fabc791f64fd","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":189,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"caf8ab98-7bdb-4972-a1a2-f3e206a50f4d","block_type":"box","text":"arrangements include:","page_number":189,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"e18e39d4-f1fb-4016-a921-831c4bd33454","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"ed962f86-2585-456f-83c7-d22cfc261dd7","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":189,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"90cd5019-52c6-44e4-9d6c-8226bd45a1ae","block_type":"box","text":"the company’s size, sector and market.","page_number":189,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"aac2181b-426f-45d9-92d5-d942fb783a24","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":189,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"55c5a858-41af-4d52-b8ae-ec075087f22e","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":189,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"8d77ef2f-422b-4e82-9091-5ed668d5b06b","block_type":"box","text":"NM1026U-5982509-189/232","page_number":189,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2c7e39b4-5855-4851-9ac8-af2da1e53f20","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"d02e2413-b491-4e07-b432-76109aec2aab","block_type":"box","text":"Variable pay subject to per formance metrics that are closely linked to the company’s shor t- and long-term","page_number":190,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"ed594523-3da1-40f6-8a0a-f8138e83e08d","block_type":"box","text":"strategic objectives.","page_number":190,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"1b297a65-694a-46f3-8062-235d37f42cab","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"5b850196-3a8d-4231-9ea4-bbb42c2cac8f","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":190,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"b9a89909-6574-4610-98f7-1fee4be95ea4","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"1f08e886-dcb1-4e25-80f4-15ad2e141939","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":190,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"4b7c4661-bf92-4d59-b128-7d1999d37fdb","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":190,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"83fd0d79-2f5a-4eda-9e37-62cf891b16ac","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"25e2de02-0d9b-4650-a305-0e2c3f5fdc9f","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":190,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"d8172fed-52c9-4db5-bc5e-f74f3cd9df1f","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"063f48b9-9f38-4826-811d-7d3d4d9fc88a","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":190,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"94818668-5568-422f-9252-a838fa06f15c","block_type":"box","text":"transparently.","page_number":190,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"a20e756a-300e-45bb-a4ef-4d43d4979600","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"aaf37946-979f-482d-9365-88e8e0f102c1","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":190,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"5b00bd18-4477-4462-9680-34243119c7e5","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":190,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"71da57e2-a175-4e8d-be2a-da65387f8474","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"04ba7e30-c8ac-4533-acea-715694c88f68","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":190,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"a913c48a-fd8c-44f4-a42b-b19c8c76d238","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"5eae66f1-ff02-4225-8e7e-a4eae96841d9","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":190,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"7d8db99e-362a-49b6-b663-dff4d7a6d53d","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":190,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"ba98a67d-adb4-410f-99c6-6d1b5670d2cf","block_type":"box","text":"misconduct.","page_number":190,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"e3cbc3a8-e67f-4db6-80a8-5a276575e098","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"15b3186d-24dc-4a10-966d-f12db62e664f","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":190,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"669d83c9-9200-4511-a528-f2987b999384","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":190,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"71f37535-610f-4c30-a1aa-a5f5807f4818","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":190,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"a32a06b5-7396-43ce-bc43-eed1beeb65d7","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":190,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"8e021846-9997-48c1-acdc-2e6681dcb59b","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":190,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"ba762eea-9d7f-4bb4-a700-50e1489e36ea","block_type":"box","text":"committee, or the most senior independent director.","page_number":190,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"b89f5eb1-3d8a-4260-a063-3e9248d5db1e","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":190,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"b2b9d07d-b4f8-4b66-8428-064dababd293","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":190,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"54e389da-6a83-4857-87cc-a880030cf4c7","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":190,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"4bee5bf2-1cf4-4c7e-b14b-f993253b5dce","block_type":"box","text":"do not suppor t non-executive directors par ticipating in per formance-based incentive plans as doing so may create a","page_number":190,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"8251e101-22e2-458b-bdaa-601fe8d1b242","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":190,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"69e1165a-88fc-4c02-80b4-2fd2fa5f6d92","block_type":"box","text":"CAPITAL STRUCTURE","page_number":190,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"f9f7a393-df44-4747-8b4a-d31166b61b6a","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":190,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"200f86c2-13e5-44b8-8549-664951108bc2","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":190,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"c78dfd9f-13a8-4eab-a827-da763fb76b51","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":190,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"e2db67ff-42a5-4c81-a30b-e58a7760bac2","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":190,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"f833d37d-aae6-4407-b49a-8fd381eb962c","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":190,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"d0c0efb9-8f9b-410b-a32a-b871a60dbbe1","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":190,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"52db81e0-1594-4a6a-9f4c-9070f7e44947","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":190,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"f35ccc12-e964-4f0e-9ca7-f9ba328577b0","block_type":"box","text":"Share issuance","page_number":190,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"3362b141-5304-4d86-9ec3-671bb57a36c6","block_type":"box","text":"We assess requests for share issuance for par ticular transactions on a case-by-case basis. We will generally","page_number":190,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"213eb212-bf98-4b32-9f2c-8474707af8e3","block_type":"box","text":"suppor t authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":190,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"db08fb2c-882d-4c0f-934f-30031f040ec0","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":190,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"9c25737e-1f2f-4afa-8e50-0e089348d408","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":190,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"4a723861-980e-4892-9a27-cb8a111f7586","block_type":"box","text":"market environment.","page_number":190,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"dbd38e23-5a1f-4abb-99e7-2d469e35418a","block_type":"box","text":"Share buybacks","page_number":190,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"682ced14-8eb3-4d87-bc83-7d977a35f294","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":190,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"12f60f94-08fb-4e46-b838-f8da754d835a","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":190,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"f814953f-82fe-4c20-94b4-f71b5d36d11d","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":190,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"14b2fbd7-4f95-4f9c-86c5-5020b8c9c2fd","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":190,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"287a5e50-b3e5-4f7a-81b7-67b0560b551e","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":190,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"44f4b3bc-e712-440f-8964-77f64eb2645f","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":190,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"8d25e518-63a3-4c83-b9fb-f050a505c818","block_type":"box","text":"of the company and the market environment.","page_number":190,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"7c8b665a-488d-4936-91bf-533be3d4aa88","block_type":"box","text":"Dividends","page_number":190,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"f5614826-d1d3-4226-873d-9356433c19ab","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek fur ther clarification","page_number":190,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"3d277631-9291-4c1b-b869-c5b709370ee4","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":190,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"f6f092be-6321-470e-9973-1867bc126114","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"971b1582-ff8e-4c05-ba7f-33aa70993f4a","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":190,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"d4235fbe-4fb8-4287-9663-a550b4ef42d1","block_type":"box","text":"NM1026U-5982509-190/232","page_number":190,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0d00cd68-66d1-4fe5-878f-ec3e84f2888e","block_type":"box","text":"Differentiated voting rights","page_number":191,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"5a6d7bb8-3ab0-4425-962a-77bc08fa5d5e","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":191,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"4562e1a1-5794-4f9f-9fb5-b3cd34e59d8d","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":191,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"ae054353-9d48-427c-9e74-c39d718a5eeb","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":191,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"65fef78c-a237-44df-9945-c6008c164610","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":191,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"5cd16d6d-bf84-40a5-8c6a-78e0b4777b08","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":191,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"62a6535c-3b5b-4c6b-8890-3e389180f696","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":191,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"c5387c14-034b-4903-b3b3-eba40e5a234f","block_type":"box","text":"analyses of proposals.","page_number":191,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"7acb84ef-fabe-432b-852d-057772cb8fe2","block_type":"box","text":"Mergers and acquisitions","page_number":191,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"6e31af00-441a-403c-8856-d2de61bab8bc","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":191,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"8360e129-e809-47ab-9444-0ff0ec264432","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":191,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"0e1c2a04-f4f7-48c0-85cf-b02b63c27a52","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":191,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"6fe6c560-d696-4187-959f-120c1819970b","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":191,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"c7da0f1e-5ee4-4310-bca5-1a0ce4b4d4e2","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":191,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"b446575a-b0b1-4cc7-a9d2-f73465797a9d","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":191,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"949b6f6b-4945-4395-b53c-446dab76e0ba","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":191,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"b4c183e7-9124-44d4-857b-04814404eff3","block_type":"box","text":"Anti-takeover defenses","page_number":191,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"48de48eb-b3df-4157-8651-e96687fbf676","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":191,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"2af3a1d8-72fe-4bfa-acdc-180587dbb20f","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":191,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"2b5d33af-8db3-4b6e-8ac0-f8080880cc79","block_type":"box","text":"shareholder value. By exception, a poison pill may be suppor ted if its purpose is to delay a takeover that is","page_number":191,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"f72c07db-5fb8-4f35-aee3-4fad668813e6","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":191,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"0a370fe6-13c5-434e-9819-6e1fa6bc5116","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":191,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"a055c223-df59-453f-ba26-5a2c4954cd29","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":191,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"4de0c32f-3bd9-4526-8c05-542b3cc2595b","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":191,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"485ae267-ed88-476e-bd59-f2565792f40d","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":191,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"e4528a7c-ec56-440f-a03f-40b46a9b4c9a","block_type":"box","text":"Shareholder activism","page_number":191,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"0f6e2d6b-0b3a-49e9-b30a-646f9c0eec15","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":191,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"848401ba-7887-4143-a67f-4feda7cc77cc","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":191,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"e7ed5ef5-64bd-4b1f-b8d5-942004288ae9","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":191,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"a42b9576-489b-4ab8-b371-dc28f65dd0e7","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":191,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"cb43f2d8-dc21-454a-893f-5ead9aae071c","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each par ty’s candidates. We evaluate","page_number":191,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"a12f2e08-64d2-4756-868d-2191c511657b","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":191,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"ee49304e-b0c3-46d1-bb8b-273e3463506e","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":191,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"a6959a86-2a14-401e-adca-64644ec74513","block_type":"box","text":"the relevant por tfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":191,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"1889bc81-3efe-40ae-812d-c8b61ce7491e","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and exper tise or have a poor track record of","page_number":191,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"5b00ce82-b75e-482c-826e-fa0d1aa9ebdf","block_type":"box","text":"protecting shareholders’ interests.","page_number":191,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"80395d30-734d-44cb-9d13-5ca94b2ec56e","block_type":"box","text":"Significant shareholders and related party transactions","page_number":191,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"ff1f1db6-74cc-4b8e-bf2d-4791e5ce3577","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":191,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"380113a2-a436-400b-89e1-be5c6043fba9","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":191,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"22981a60-e199-4bd4-a8e8-276465cedc78","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":191,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"99860e7b-2a68-4c90-b062-0cedc8681266","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":191,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"1e22fa9d-c13f-47bb-9a8a-e70e2c9104f7","block_type":"box","text":"have been agreed with a non-related par ty. In our view, such transactions should be reviewed and approved by the","page_number":191,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"1526d001-c885-4688-8c84-308746e12c52","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":191,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"75498209-99d3-4c07-8e69-7993adb11a0c","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":191,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"af6c8457-929b-4fe8-98ad-266b95db7df7","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":191,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"c39d5c58-0eb0-464b-b217-75ca56ffc756","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":191,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"3e1efc31-dbbe-4a63-8229-2af5c9002d43","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":191,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"927b3665-d5d8-4326-bff9-08a768deaee2","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":191,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"f72cb982-e7ee-444f-9794-f31d3d085979","block_type":"box","text":"audit.","page_number":191,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"673d3882-f661-48d1-9a08-0741874c2cde","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":191,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"4bbe21d2-c2fb-478d-939c-7a2f4bc876dc","block_type":"box","text":"on its financial per formance and position. It should provide an accurate and balanced assessment of the risks and","page_number":191,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"dc6ad5fa-c505-4a73-b1b4-f5f16d19ee17","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":191,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"37f4bb64-513a-4c3b-abe8-ad1026c40c0a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"14d15bb7-4429-4ab3-9e2c-8f8964f2ee58","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":191,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b89d3282-1b51-423d-8fa7-6da44591a117","block_type":"box","text":"NM1026U-5982509-191/232","page_number":191,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"364d9518-2885-495c-804d-420258b0e4a6","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":192,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"9187c791-5efd-413f-9e08-39f3af8980cd","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":192,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"b4c5ae60-b4f6-4a00-aee1-6a8b0ea2b306","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":192,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"d2b2fb51-f5dc-4101-801b-f4a5f384ce88","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":192,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"0384b199-451d-4878-9ca2-334a123d72a3","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial repor ting system by providing","page_number":192,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"f85a459b-13d1-41e9-8885-c8137a444162","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":192,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"a01558de-75a1-445c-841e-8face220a9be","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":192,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"2fb3f5db-3404-42e2-81bc-fc98f3c2b8b3","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":192,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"2e498f41-e656-4949-8fee-3b36a9be1468","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":192,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"2da524fc-81ae-44b8-ba18-d04e6e23dea9","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":192,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"aa257f2a-b616-4ea2-be08-5aa4d4109655","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":192,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"55024172-7def-49da-9334-6431519ce5fe","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":192,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"05cc2f6e-a019-4511-bc40-e8d6438782fe","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":192,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"ab561d6d-7c74-43b6-ad3e-f3544ff2fbd3","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":192,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"6452f919-d95a-4bec-828e-92f8df07d63c","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":192,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"c0cc8199-6900-44fe-9e7f-c1933fb724dd","block_type":"box","text":"9","page_number":192,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"e5d0faba-e4c9-4463-80bd-58da43c9e3dc","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":192,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"667b085c-f17d-4b45-ad09-e592ee51dcb0","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":192,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"7b9d788e-47f5-4c1b-ad35-0ba471fb5b36","block_type":"box","text":"standards specified by policy makers.","page_number":192,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"a3bfe730-86c0-4241-bf5f-fb660d854325","block_type":"box","text":"10","page_number":192,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"51adffc0-66bb-44b2-bb29-730d11b9aea9","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":192,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"660f080c-ad5e-412e-821a-5a6c33e87f9c","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":192,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"f51ea4ae-cc4b-48bc-bc55-5b59e45c3efd","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":192,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"76229989-7cee-4e37-a3ac-cd1fc727c187","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":192,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"4566f6e0-48a6-4c7d-ae60-adf4589a34c6","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":192,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"5e7e0746-046c-4736-8c74-74d8856967b7","block_type":"box","text":"of corporate repor ting. It is helpful when the audit repor t gives some insight into the scope and focus of the audit, as","page_number":192,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"9b5c4019-18da-4b60-b8bd-868611386198","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":192,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"78149f33-5e35-4de1-96b3-2be052353f5e","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":192,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"5ff7c01c-bb44-44da-a2c9-8bde0ea98e38","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":192,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"dacbdb8e-ae26-40d9-bf2f-8bb54d0fdce9","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":192,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"9be82a5b-6767-43cf-a22d-f979de16f5f7","block_type":"box","text":"remained independent.","page_number":192,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"3aece61a-0dc9-4c68-a9d4-74a2c0547062","block_type":"box","text":"We may vote against the election of the responsible directors if corporate repor ting is insufficient or there are","page_number":192,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"23307cd3-3f46-4ff2-b1fb-799a1eb26577","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":192,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"aa5cd93b-b6b1-4704-b443-ff89cb50ef96","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":192,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"de5615e5-fd39-4fda-979a-56d7633dbc1d","block_type":"box","text":"repor ting or the audit. We may vote against proposals to appoint the auditor, ratify the audit repor t, or approve the","page_number":192,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"80fd1f57-5c52-49bf-a59f-c9db22f159e0","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":192,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"4781a1c5-e883-4fe2-8449-dcb6b0c8e39f","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":192,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"4a413f5a-d3e5-4dbd-a2b6-05670a877297","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":192,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"18ed2c80-7c68-48f1-a9d7-23c8b26d32c0","block_type":"box","text":"General shareholder meetings","page_number":192,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"3b237bd1-6eb6-42c0-8b12-fbcf1fae0722","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":192,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"73ffb96c-2d78-48d9-8c6d-d2997f4b51ff","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":192,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"d38cb625-39c0-47bb-9421-07bf97569a97","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":192,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"7775bee5-aebd-4975-9dc6-11258d4f9043","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":192,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"19fb8d03-e1fd-4591-88fd-a8ec891c6535","block_type":"box","text":"meeting vir tually which, whilst welcome, should not limit the rights of shareholders to par ticipate as they would during","page_number":192,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"acc1cbaa-003d-4541-a571-0eab66e1455a","block_type":"box","text":"an in-person meeting.","page_number":192,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"da98a952-052a-482a-b56a-94f0c80dd1ab","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":192,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"11224c35-ee2b-421a-86fc-44f91e54fb69","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":192,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"9a423993-ffa4-4b55-8311-65d86845948e","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":192,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"d18f5123-df69-45cf-b569-65c82409364f","block_type":"box","text":"par ticipation.","page_number":192,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"4b8a47d7-1b8d-4ad6-8754-1c6c73eaa06b","block_type":"box","text":"9","page_number":192,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"b58f27fb-c637-4d99-88ca-74691864e9f6","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":192,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"a4393b67-d722-4886-afd9-a80d7dd29196","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":192,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"094adc64-7855-45d7-a360-a4a3ae22f7b5","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":192,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"79d7ddd4-5f2c-4daf-99c0-8bb180dbe624","block_type":"box","text":"Disclosures.”","page_number":192,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"657f79f4-8e03-4f4c-b5b2-d358d7c25ba9","block_type":"box","text":"10","page_number":192,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"5e3b7402-a9b0-4d43-9245-58dc3e8fbc8f","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":192,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"77c07bed-532f-42cc-bfcb-0b9b5571c2a1","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyrepor ting\r\nandaditing/companrepor ting/corporatesstainabilitrepor tingen","page_number":192,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"b7d73e16-d50e-4354-804f-f9ebbe68453d","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":192,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"428dd914-be94-4071-81d3-5eb225e1a38c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8ae6c436-9ee6-45d0-bf60-838c8f965563","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":192,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"10f6cf57-c9b7-49e9-97c7-c47b7e17f7a4","block_type":"box","text":"NM1026U-5982509-192/232","page_number":192,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7535a0f2-5261-45ae-b3dc-ba6b10ba5bda","block_type":"box","text":"Bylaw amendments","page_number":193,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"2d001204-318a-4918-b68e-17e6fd6db8fe","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":193,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"eb9ef021-ae5d-4b77-8f6d-fbb8ea63e194","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":193,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"8712ee86-dd9d-4057-81da-d7324318e46c","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":193,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"7d58de90-3ce6-40f8-a184-39790fee5b52","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":193,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"60e718e2-b1ad-4250-ab72-b4b53dead70b","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":193,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"40eb8c0a-9da8-40ba-9fad-be2c871665d6","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":193,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"3c0681d2-d210-4103-bc93-c13e10219fdb","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":193,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"93e46b06-1430-4e84-9f9f-863f7b545344","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":193,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"883a25b4-9920-4735-ae38-05699641dcd0","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":193,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"c072f169-f96d-44bf-aca5-0d0db4d5d1f7","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":193,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"b8fc163a-a65e-4fd6-a4aa-5ac0889ec3ad","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":193,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"734e194a-c5f2-411c-aa95-1c1138e11f4a","block_type":"box","text":"nomination process.","page_number":193,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"a7bea93e-6ffd-4d40-9ea1-dd8769156b77","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":193,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"5a22b076-95d3-46d9-bf1c-d808391a2b2c","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":193,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"acb53f52-80dd-4553-bb4a-6d69e7849f37","block_type":"box","text":"Change of domicile","page_number":193,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"e79138eb-c395-4fc6-a122-2e550cb9bb97","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":193,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"46713321-9613-4c31-8801-72bb9d1a9f3d","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":193,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"a60ecffa-6d8e-45f4-98e7-a4399978c497","block_type":"box","text":"immaterial.","page_number":193,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"778c0da0-fbbd-4780-b99a-2b119b29a9b1","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":193,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"b17f1cba-d5ac-4181-96d3-a58449862f13","block_type":"box","text":"with our clients’ financial interests.","page_number":193,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"c99eaae5-fcfc-428b-ad0d-992f3aece28c","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":193,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"182335fe-8413-49b9-86aa-d426bd8adc36","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":193,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"999980b4-e59e-4861-845d-073ad052e3b5","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":193,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"72fe2cda-bc94-47e5-8673-bb76b805419b","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":193,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"f8b8ba5a-c834-4a2a-999b-dfe453adf11d","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":193,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"56076d78-ff9a-4f52-8d18-944ba4778eef","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":193,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"f502d782-c529-4930-b4a7-a9728072f2ad","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":193,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"2214503c-20fe-4f1b-b712-daeff5bf5405","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":193,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"1299f83e-b22e-47b3-903a-34f7267ce7b3","block_type":"box","text":"general shareholder meeting asking a company to take a par ticular course of action subject to the proposal being","page_number":193,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"c7d17426-47d1-4d3b-ad0f-72d417099b07","block_type":"box","text":"suppor ted by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":193,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"82564255-84af-47e6-b76e-81d6dd4db42e","block_type":"box","text":"relevant to a company’s business.","page_number":193,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"584e1d7c-84e7-4290-8d74-c0b6fa0e514a","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":193,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"b8f26f6a-fd60-4ef4-918f-1e0c85c03495","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":193,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"27432933-bb82-49c2-b081-ef1740f2107d","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":193,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"f3d14287-8a72-47d1-b162-eb1bd0583143","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":193,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"cd5c29a8-e9ad-4914-ace5-52fc737de103","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":193,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"b4ec2b42-d012-4376-82c8-43fd6fb7d982","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":193,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"6c5b6fb4-8591-450f-9b51-d0bfcd054b40","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":193,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"58483da4-0cf0-4177-9bc0-41705d664470","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":193,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"c2af7aea-4a7a-4dff-a048-67a9b31fa466","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":193,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"97d7a46c-ff77-401b-9e47-281f40795759","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":193,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"8c200961-270d-4e9e-98c2-fb229027204d","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":193,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"836504ee-630a-4472-9908-1788dee5cc49","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":193,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"6453dffa-1e62-4f00-b2f8-66af9b9b7488","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":193,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"04409b31-5ba9-4d5d-9b65-93fedc5f3f94","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":193,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"8d379381-2a7b-48f4-84bc-92dd2badbb15","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":193,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"924d575c-e05e-4324-b855-285d918034aa","block_type":"box","text":"in which they engage. When a corporation repor ts material financial risk related to policy and or regulatory changes,","page_number":193,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"0493ce19-1f95-48f6-9609-67cf9f503d94","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":193,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"0fc68514-099e-46e1-9266-6cc24fa75a47","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":193,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"7d76a053-731c-4a60-8538-57209d76f3f3","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":193,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"2726f39a-1faf-4fe4-8174-55b9ea4d41c8","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":193,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"c54d3856-c147-4fc3-a25f-1826fe7ede23","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"bc10be98-d560-47cc-9ed8-3c38601d6efe","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":193,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"9c3bf11e-bf7e-4889-8d45-b294ae57ab4a","block_type":"box","text":"NM1026U-5982509-193/232","page_number":193,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cfb30cc3-81fd-4ca6-b82f-025b26a89e85","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":194,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"ed57f99e-f24e-442a-94a3-88ecff725b34","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":194,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"c5032d4a-da77-4c26-ba68-68ab1fc7682a","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":194,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"829215fa-7628-4509-b0b8-41e3f78592bd","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":194,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"c710b75e-819f-4059-b4c9-e5b1dbc41249","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":194,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"772e6bfb-fcae-49b8-ac1d-906f26965f83","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":194,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"a6a5e263-16d2-48b6-b3ea-caf3283410c0","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":194,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"91936c07-e480-4dd9-968b-4eb94f50425d","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":194,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"2504e01e-12f8-4048-869e-e61b0b319d47","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"214acb4a-8fe6-4fc0-92e1-274757c33904","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":194,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"c7e4b4a1-7c88-4351-b8db-9e5f4f495fd5","block_type":"box","text":"NM1026U-5982509-194/232","page_number":194,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f01bd710-290a-4a96-8604-ddf4fdb9a278","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":195,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"47839764-0714-4b3a-9c38-ffbcc851117f","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":195,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"fa671ac3-ea9a-4b58-9f2a-f15e4d8e4c3f","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":195,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"fa344a65-cdbf-42d3-9318-02e6b55e2ce4","block_type":"box","text":"11","page_number":195,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"a7bce29e-8a6b-4880-a308-466f9a668a69","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":195,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"dfb74c0f-daf6-4080-9f21-7f8dc81b8adc","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":195,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"8d978178-36e8-484f-8287-762530de32f4","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":195,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"2c74a2c7-44e5-4419-a235-8bdff0000a41","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":195,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"c8c8072e-3ead-4b87-b8b2-03cfef7d569e","block_type":"box","text":"regulatory requirements.","page_number":195,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"467dbb2d-4bb6-4b28-b8be-35f575256198","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":195,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"bb5f61f0-2ebf-4a96-8611-dbf3a63aa47f","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":195,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"1d785b2b-1f27-4626-a595-9b0c31ee9d58","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":195,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"2a9aea22-bf24-46e3-9453-bb0e3a34c5ff","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":195,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"39d9d34e-14cd-4c0e-841f-96bf81001c5e","block_type":"box","text":"Doing so helps us under take a more holistic assessment of a company’s potential financial per formance and the","page_number":195,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"8c084ec8-3d66-48f2-af60-bb5f73138dfd","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":195,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"03529f90-e624-4360-b5f8-8d71a08941b5","block_type":"box","text":"We may vote against directors or suppor t a relevant shareholder proposal if we have concerns about how a","page_number":195,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"cacba0a2-371c-4ea7-8cda-f8086f0a4248","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":195,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"b01395df-bdce-41cc-a28f-a63c2ec0d96f","block_type":"box","text":"returns.","page_number":195,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"2aa2dabe-cb33-4957-9f0d-51a260a2464d","block_type":"box","text":"KEY STAKEHOLDERS","page_number":195,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"3734bda9-b219-4b30-bbdf-c2f0959ee913","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":195,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"7ea4f84a-2884-451b-ad3e-03e13a2be3cf","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":195,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"5f5c9b81-4d9b-4386-a65d-e542f256b902","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":195,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"bd10ecc8-b0af-432a-9e63-15682949394e","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":195,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"26a431a1-2223-4fa1-a341-8d2e0a00bbd7","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":195,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"442488be-4b8b-4f3b-80b6-6f765e4206b0","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":195,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"c4babb9b-baef-4369-891e-67d35af1bd00","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":195,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"0f0428c3-01e6-4507-83b2-59ba633c81b9","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":195,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"7701148c-6073-4d54-ab70-371affd0d9f5","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":195,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"0989e9be-6a5d-42b6-8c86-a4cdb03c8dba","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":195,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"66c9502c-eed0-4407-9100-4d012969b575","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":195,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"a3ead5b0-35e4-4b41-b3b8-2bee67bf5a05","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":195,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"ea536b00-b055-4ef3-b084-491d64c8dbf9","block_type":"box","text":"i.e.","page_number":195,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"9dbad1c5-a720-4e8f-b03c-013bc5bac06f","block_type":"box","text":", one in which global","page_number":195,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"e994d670-b7e7-4ace-aa92-17112d41031b","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":195,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"ea8c9583-fc62-48c9-b078-12edcedd73f6","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":195,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"29004045-e4c7-430d-bddf-fc7286dfa551","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":195,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"5e101f92-ea2a-4662-b86c-9553f562fef2","block_type":"box","text":"client.","page_number":195,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"c3f98a81-e40a-460e-a2a8-aeb77e587c90","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":195,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"2511f0cc-13d3-4aa6-a1fd-0abac001fa8d","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":195,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"0d93ff07-f9d8-4243-9e9e-0b4966ed3caa","block_type":"box","text":"the low carbon transition, based on repor ted and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":195,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"8c022744-0d5d-4831-b9d4-cbe88e6aa302","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":195,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"454ac820-bca3-4189-84e9-b466dbe1d55d","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":195,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"148e0ecc-5eb7-4df2-be1d-52349b80afef","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":195,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"7560c763-3e7b-4f86-8440-f36f2ab66834","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":195,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"2a09723c-4787-44be-9dd5-4694f945e291","block_type":"box","text":"1 and 2 emissions.","page_number":195,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"73393477-31e0-40dc-95dc-ce3f0302b59e","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":195,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"cd6a4313-d891-43a8-a92e-0768fd8a725c","block_type":"box","text":"suppor t for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":195,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"655d740a-4c4b-45f9-9a87-dbee538ccf54","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":195,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"c94e16df-ca18-4a18-b468-e7e145d93ef7","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":195,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"0cad73dc-4629-4ac5-801e-5327a5e7dc63","block_type":"box","text":"11","page_number":195,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"a25dc409-a43a-4d9d-84c5-5614de6080c5","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":195,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"a52a0e38-7547-4a04-806e-c36e07397b88","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":195,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"7581b3fc-8244-409b-b1d2-f8db98a6aff6","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":195,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"e4bdbbfb-1a97-43f7-8a59-f96a0e1cee45","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":195,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"2e3f7702-38ff-4a08-929c-391d40715805","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":195,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"57d91b5e-2b9b-4222-8897-9381092ec1c3","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":195,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"97b5b0c7-7251-4ef6-af1c-bdc88397b9eb","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":195,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"0e5ef5d8-5859-4c49-af87-5134701ebaa1","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":195,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"c0856ef3-20c2-4e86-b8dd-a9a9278a75c1","block_type":"box","text":"sound governance framework.","page_number":195,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"a28b0253-489b-4c89-aab7-eb1b47b06268","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"d9d26c37-73e8-46b9-916d-bd8d9853a113","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":195,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"134404db-1d08-4ac9-986a-3eaf3de37638","block_type":"box","text":"NM1026U-5982509-195/232","page_number":195,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"73e8b85d-1d88-4dc3-ba15-7b58d655628c","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":196,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"72116fc4-a024-40f6-919d-bc54e90aa9ea","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":196,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"281ba16e-eb2c-4ffc-b4e1-905eb23bb2e8","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":196,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"34175784-5f59-4e80-b48a-8163db451507","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":196,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"0dc58cd2-c14e-4a90-b00c-19a64ce31ddf","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":196,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"5820fd37-46c6-4e3e-aabd-808d74ed8cbd","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":196,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"1f1f048c-ddaa-4e8d-9ea5-65935362c43f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"72308dff-545e-4406-95e7-1a829d1b213a","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":196,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"d47e610b-2de7-4bcd-aa83-14e57ad916e2","block_type":"box","text":"NM1026U-5982509-196/232","page_number":196,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a916ae5a-0751-4941-b3ae-2a2a4825f2fe","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":197,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"c791941a-c1e5-4636-8616-962ad68b0b83","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":197,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"41441105-4872-471a-abc6-404f1bf091f1","block_type":"box","text":"Oversight","page_number":197,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"772047be-13e3-4835-bf0a-d7ea71567a77","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":197,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"29fac106-e4a8-4d9d-9e52-a2a1d73d7775","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":197,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"fd19b75c-dd03-489f-ba3d-68de059b8062","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":197,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"a399c4e5-2c3d-4ca8-ac5b-464594383a45","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":197,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"35263087-c847-4719-94ef-f11fe09a8f48","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":197,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"7db919bb-1525-4e9b-9d66-6ecbbd5803b9","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":197,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"4d3363f5-6659-41bf-83d5-dcd38fbb9b1a","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":197,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"62798059-825f-4978-a644-16108d3e1f61","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":197,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"af98c9b3-f5dd-4194-a91c-a254f5301ced","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":197,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"299db8a1-f868-4e21-a2bf-4b52ec896d98","block_type":"box","text":"relevant active equity investors.","page_number":197,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"277052b8-5b0a-450a-96bd-06857a6fa00a","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":197,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"638f7bdb-6b1b-4e10-ac2d-0ac00eb868c6","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":197,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"c59ca7d2-84cf-4161-a1e3-20b6279bb1c3","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":197,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"7e798f31-dd50-4e2d-88dc-4b9d94921766","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":197,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"b54ae5bb-6de9-465a-8197-e3fb3bddb2f8","block_type":"box","text":"par ties for cer tain of the foregoing activities and per forms oversight of those third par ties (see “Use and oversight of","page_number":197,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"fa429342-9f94-4215-83ec-cac75844dfae","block_type":"box","text":"third-par ty vote services providers” below).","page_number":197,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"73d6104a-fdb9-49ba-a2f9-297742366486","block_type":"box","text":"Voting guidelines and vote execution","page_number":197,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"e229469a-d6e1-4ffa-9c85-2028cc7c1365","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":197,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"970dbfd7-2869-4e60-af57-069ad7bc9e4d","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":197,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"6e121053-7b19-451b-8ef9-038b9c303323","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":197,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"307a6577-d2bf-4597-abc7-3ad1c780f394","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":197,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"5e36860b-7d1c-48d4-825d-ef90865e17e1","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":197,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"baae35ea-a816-401d-b2a3-44204f6e217d","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":197,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"c4931e60-384f-4663-82aa-9d5d5824f5f0","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":197,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"f945f78a-1510-48f7-9a3f-3a4d78bd32a9","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":197,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"41e68a54-fa13-46a9-acdf-9d5ef5cf1fa4","block_type":"box","text":"although por tfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":197,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"f2802f52-38b8-474c-80a1-a7df661fb0d3","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":197,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"d4c455bc-214e-4dab-bef8-15d81cb9a37a","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":197,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"c24842bd-087b-4a31-8f99-11aedb6c5df2","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":197,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"a7031030-6312-4d0f-943e-0070ef8d0749","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":197,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"3e197be5-297c-4e48-9586-b14592060710","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":197,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"d05bd7ef-fdd2-403b-bd5f-274a2c466c41","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":197,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"19b8cc74-78f1-4600-8045-782a9fc5deb9","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":197,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"4cebb0d5-8936-4048-a669-3ef86fa95bba","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":197,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"f0fcb128-728d-4f89-baca-ef557cd81fff","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":197,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"fe4ceeaa-d1b2-46f6-bb27-b08d9bd17e9b","block_type":"box","text":"well as the desirability of voting such proxies. 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We are not suppor tive of impediments to the","page_number":197,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"a2e2278b-29d5-4de2-bf8b-fbef760ee223","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":197,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"475539d4-ab1b-43c6-a11c-d969350949a8","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. 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outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":201,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"7fefc651-0054-482f-84ec-a9fe4d46b336","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":201,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"dfc04687-6f62-4a17-a671-0d26c67e3f60","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":201,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"40bc5494-b26c-4034-938e-0666b86c01cf","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":201,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"5c29bb66-50de-4079-86ee-79b4eee993c8","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":201,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"2c2e8020-f8ba-40f3-9d75-fd26af3d67de","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":201,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"f8bd4eaa-e712-4786-91d7-b0a674641b8e","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":201,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"212ddafa-2b29-492d-b4ba-a5a145e47121","block_type":"box","text":"Appendix A.","page_number":201,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"378c00ba-1ab0-47a2-8609-1f90d0b300b4","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":201,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"b2cd0a49-d837-42c3-bc7f-c00f6424bd5c","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":201,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"2f73dbe2-3e43-4f1a-9acf-16b779b2f769","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":201,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"cd35f9a9-b328-4ecb-8d81-3b606abcd994","block_type":"box","text":"Conflicts Management","page_number":201,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"ccc7589f-2b92-46b5-a8d4-1a98e6a471a7","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":201,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"076dc649-cdb9-4b81-9e45-964d70d1d09e","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":201,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"02310b6f-f64b-4283-8127-02e3e06f0a91","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":201,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"6d9246d4-949e-4759-afa9-eed0e0aa8489","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":201,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"cf6017b7-c6ea-45ba-af5c-97fcd37c02de","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":201,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"8dd5325e-e335-4501-97fe-9ed7cbb02b05","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":201,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"a895f73e-6a41-4558-bd23-680f5777281c","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":201,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"2ac93965-d04c-430d-b9a8-d496a0453782","block_type":"box","text":"In cer tain instances, BIS will engage an independent third-par ty voting service provider to make proxy voting","page_number":201,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"ceeb41f0-c018-4abb-b56a-e1e9bcf8c1f8","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":201,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"0b344dc2-8ab8-44e9-875b-3aa39a8c8619","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":201,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"0a2c0b99-cfe0-43cb-8282-73b3ef60dd92","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":201,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"dec2568f-5c95-4ac8-bb46-7d48f99e412e","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":201,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"c42e36a7-c3cf-4aef-a69a-97079d7362f6","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":201,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"82150cad-429b-4cf5-94e6-e928a9f06a4f","block_type":"box","text":"connection with proxy voting.","page_number":201,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"5b05fa64-b848-4252-b686-410e2b9ed1b5","block_type":"box","text":"Reports to the Board","page_number":201,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"77c03a05-fc89-46c2-b687-acc4c26b66d7","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":201,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"acf8667c-cfa6-4d8d-b547-3871ca0cd41f","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all votes","page_number":201,"box":{"x":102,"y":822,"width":794,"height":11}},{"id":"efb2c9bf-9f2c-4477-aacc-2ef2e6a217f1","block_type":"box","text":"were in accordance with the Guidelines and the BlackRock Climate and Decarbonization Stewardship Guidelines,","page_number":201,"box":{"x":101,"y":837,"width":802,"height":11}},{"id":"bdab9230-57e3-499c-8c3d-f58a158d5fd7","block_type":"box","text":"as applicable (2) any material changes to the Guidelines and the BlackRock Climate and Decarbonization","page_number":201,"box":{"x":102,"y":852,"width":747,"height":11}},{"id":"d344e1dc-5a53-4e8d-b911-29d54cf88ec7","block_type":"box","text":"Stewardship Guidelines, including material changes to conflicts management practices, that have not previously","page_number":201,"box":{"x":102,"y":866,"width":798,"height":12}},{"id":"83caef4e-f241-4a81-9faa-1b75b5af3f63","block_type":"box","text":"been repor 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Reporting on our activities to inform clients","page_number":205,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"1ddc94bb-05d1-4966-81b5-c52c551def1f","block_type":"box","text":"about our stewardship effor ts on their behalf through a range of","page_number":205,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"727c3c0b-e7c9-4dfc-a7cb-ad3c044ab8ae","block_type":"box","text":"publications on our website and direct client communications.","page_number":205,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"2d90c7db-ded0-40ad-bd10-fd2461a7e759","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":205,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"5c8f6561-5cf1-4599-830f-8826120e3e4a","block_type":"box","text":"voting on corporate governance matters and other material risks and oppor tunities under BIS’ Benchmark Policies.","page_number":205,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"3cc836f1-fa1e-4c16-84a2-a639e36dd047","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":205,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"88655a24-a059-4266-88b9-317642dedf05","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":205,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"08c422cf-522b-4436-9ee7-f98b71a65de6","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":205,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"affb3db6-ee5e-48c0-9654-17ad1a677184","block_type":"box","text":"2","page_number":205,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"d83f63aa-a895-4bfd-9970-14c35020119a","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":205,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"a5901c60-8213-4ab2-a972-dc10ddaef153","block_type":"box","text":"Sound governance is critical to a company’s ability to create long-term financial value. 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Through stewardship, we assess how companies are creating long-term financial","page_number":205,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"37653ffd-39c7-4006-b527-a9bc60cbb3e7","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. 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Engagements provide companies with the","page_number":205,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"16475c2d-67aa-4074-be0e-8a771adf72a8","block_type":"box","text":"oppor tunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":205,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"655cfe2f-1bb4-428a-a178-857156bf5e3a","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":205,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"7189c269-2e6d-4db0-beaa-38a381bcd16a","block_type":"box","text":"1","page_number":205,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"9eddaba4-b14d-498a-ae41-c9c455bfc7b0","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":205,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"a9cec766-13ae-41dc-9ef7-d8d4bda979e8","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":205,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"75f86b06-da29-4431-b49f-b9f253d12a81","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":205,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"67a6805c-d851-429e-85da-e607a830be6b","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":205,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"00d38eb5-8aa3-41a1-a8be-e9e0858b1ff8","block_type":"box","text":"2","page_number":205,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"f78bce63-3422-46f2-af25-b0fa669731d7","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":205,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"e9392417-209d-4a9c-aa35-976df41ad617","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":205,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"690cc3b8-e900-4637-831a-5e9c088bc39d","block_type":"box","text":"material business risk or oppor tunity.","page_number":205,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"b31b3ffc-c721-46f3-bb27-8a030e065f80","block_type":"box","text":"BlackRock Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9666e93b-f1e6-4e3a-8bd2-3ae416d63767","block_type":"box","text":"Global Principles | 3","page_number":205,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"5952fb4c-e880-43dd-bb49-0dd13ef83dae","block_type":"box","text":"NM1026U-5982509-205/232","page_number":205,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8b193157-ac4c-4aba-868b-96bb42c5f7b7","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":206,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"1e62c68f-e666-46fe-952a-f331505e1c9a","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":206,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"3028167c-d4c1-4820-9ef6-1fe8db01e5f0","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":206,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"010870aa-7c17-411a-8a53-001053c40cae","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":206,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"8c4ed7b7-278a-46be-aab8-a99bf3a722fd","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. Our vote decisions are often informed by several","page_number":206,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"19f98378-73b6-4ed2-967e-025fef796d04","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-par ty research,","page_number":206,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"e4d1c898-02bd-40ee-a9a4-e4b810b61678","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":206,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"f7b0fbee-1380-4633-8986-34dcff9299ce","block_type":"box","text":"Generally, BIS suppor ts the vote recommendations of the board of directors and management at companies","page_number":206,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"669731d2-711d-4d81-8c91-3636241427f7","block_type":"box","text":"which have sound corporate governance and deliver strong financial returns over time. When we determine it is in our","page_number":206,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"0d35302c-5a4e-43a2-a98a-c9c4cae91989","block_type":"box","text":"clients’ financial interests to convey concern to companies through voting, we may do so in two forms: we might not","page_number":206,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"1b125a81-e7bb-404b-8328-caa459f2317d","block_type":"box","text":"suppor t the election of directors or other management proposals, or we might not suppor t management’s voting","page_number":206,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"fee84b1b-6395-4bf8-b6aa-31dc4c27c0b1","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":206,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"06d07c55-67d9-4627-97b3-e392d335a9af","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":206,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"9b4b716b-bbdb-4e42-b374-3f769a7c9177","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by cer tain rights attached","page_number":206,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"f4223418-099f-4799-b0a0-8429fab50211","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":206,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"62bdcf1f-1dee-4f08-97c3-fcee4c24bd7a","block_type":"box","text":"3","page_number":206,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"0b7048b7-dfae-4486-bb65-95db6db0cf07","block_type":"box","text":"For example, in","page_number":206,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"db52369c-b0f0-4baa-98a5-72dc7a84b0e6","block_type":"box","text":"most markets, shareholders have the right to:","page_number":206,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"099ccb14-dfb7-4035-a633-9cdc9ec9f274","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"41853006-c72a-4c5d-8968-88dec0bea6dc","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":206,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"b44c4b6f-70e2-4e6c-ad2e-42e53a9d3e26","block_type":"box","text":"char ter or bylaws.","page_number":206,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"ddb0eb88-3df1-4da1-b30b-43f3701135dd","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"196dc5fb-563d-4ddd-aa91-26f9fcb7147b","block_type":"box","text":"Vote on key board decisions that are material to the protection of their investment, including but not limited to,","page_number":206,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"083c1543-4ee7-48df-a3fc-eb2e79668b76","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":206,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"94c1d0b2-989f-4f1e-978c-d915e66cb9f6","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"0193652a-383b-44ff-8563-4be94ad653b2","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":206,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"f933ae2b-2528-4e3f-8008-f65206c22aa0","block_type":"box","text":"are material — to make informed decisions.","page_number":206,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"1bbafd4b-fde2-42fa-abcb-699689db917d","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":206,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"d168fb1c-9744-4a67-8995-ad8a04615e79","block_type":"box","text":"In our experience, there are cer tain globally applicable elements of corporate governance that contribute to a","page_number":206,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"4a69d126-33a0-4be3-a2f6-fa093e29585d","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":206,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"3d66cefa-e418-4a84-9020-84da859a7701","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":206,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"5f77ea5a-a063-487d-b2d4-c6de519233f6","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"2eacda9e-6cdc-492a-9aa4-116d4b231af5","block_type":"box","text":"Boards and directors","page_number":206,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"4b597de3-d8d7-4b2e-b96f-2b4764a8fd2b","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"e8be82bc-eeb0-4992-948c-b20bc18cc30f","block_type":"box","text":"Auditors and audit-related issues","page_number":206,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"a3e6dde8-1faa-4760-895b-6ce9bdec40c0","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"0f9334d4-3363-4899-8a18-b9842ee3f160","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":206,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"85ce7265-460c-4149-8418-538f83b8be18","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"770bd8e3-e58f-4e27-a18a-3a84dbf31d82","block_type":"box","text":"Executive compensation","page_number":206,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"d3bab35c-0843-4f76-a14b-6b7aaec07d01","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"a93ce797-5097-432a-bd88-cd82891d5032","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":206,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"e6165d38-933b-42f7-bd25-bd78a9d3ef71","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"b434d2e1-7f52-4b0f-b810-7abb163a64b3","block_type":"box","text":"Shareholder proposals","page_number":206,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"31408501-1813-4b89-868f-8b30ec837f1f","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":206,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"c0250c29-c047-4eb5-8719-eb1cf9cc5b54","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":206,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"0fd67226-c777-43e7-adb8-deec2497a9ff","block_type":"box","text":"which companies operate.","page_number":206,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"abff22a9-86ed-4d04-b880-46d60655ef56","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":206,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"376f64c9-ce67-49da-8bbd-4a608f9e0e3f","block_type":"box","text":"in their domestic market at a minimum, and we ask that, if they do not, they explain how their approach better","page_number":206,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"def96d53-c992-4b4a-922e-2734869c870e","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":206,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"8521651b-131c-40a6-816c-faf48529cf54","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":206,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"6215c695-befa-4407-a705-0284dc71a149","block_type":"box","text":"4","page_number":206,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"e54fc0cc-f495-43f3-92ba-698f3f37b767","block_type":"box","text":"3","page_number":206,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"7f8e749b-40a4-45ca-9bcb-9efd5c8253c8","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":206,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"30e9cd5c-2c02-4388-89e1-5a82778ed69d","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":206,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"cb2870cc-ca2c-4bfe-a0ba-7e690f854aa9","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":206,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"f426cb03-1b70-4682-9407-c3630df1b883","block_type":"box","text":"4","page_number":206,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"e8f154e7-faeb-41b7-be7f-5534b6825f02","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":206,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"e0db9e2a-0e36-45c5-a896-ce21a57e35ec","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":206,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"e79c7842-614a-416f-81a0-448f54277c9e","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":206,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"6f0ba87a-46bd-419e-a054-28306cdc3638","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":206,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"ff0df6a6-3cdb-4a73-9ebf-84674163ae98","block_type":"box","text":"guidelines.","page_number":206,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"f725dfcb-5625-41a9-b6dd-b4ba17f5c128","block_type":"box","text":"BlackRock Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d594d6f8-301e-43ae-b490-9f31c9670633","block_type":"box","text":"Global Principles | 4","page_number":206,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"e2c3b527-fcec-455c-a87e-791e27fc7683","block_type":"box","text":"NM1026U-5982509-206/232","page_number":206,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6d08b877-4f46-4fb5-9c59-32878c4dfd0b","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":207,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"a293c4a2-fd6c-4d9c-9799-c49ab441e05a","block_type":"box","text":"Oversight role of the board","page_number":207,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"d0d8986d-49a8-4efb-af13-5592bf0cfef3","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":207,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"49b3ad11-174f-4b13-beb8-8d34c4d115fa","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":207,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"305ecb1d-5def-476b-8ae5-640f03fae90b","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":207,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"93743ad8-4709-40f8-a2af-e36343d9b664","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":207,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"cf2589a1-cb5c-4e4b-b168-b2d132d605ae","block_type":"box","text":"long-term financial per formance.","page_number":207,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"5966dbdf-6b09-4a18-9272-9f9be435ffcf","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":207,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"208fcb28-ef17-4619-b778-bf53806f6596","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":207,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"b4a07cd6-65cc-4712-8252-d7fe4babe35e","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":207,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"495ad63d-eac0-49f4-b607-c59ba713af34","block_type":"box","text":"the business environment in which a company is operating.","page_number":207,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"f329a03d-3da4-4fd5-9e02-950ebd57a668","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":207,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"35c699e6-09c2-45e7-8dbd-cd6d2c05617b","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":207,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"1e3533af-eb1d-46c9-b49e-1b8172911ba8","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":207,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"877c116c-40de-4520-a22d-76c9958bef07","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":207,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"fef74e3b-fe41-40bb-b2b8-bc0cba4cf136","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":207,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"e6786bbc-f9bf-4ddb-bd6d-7c5dea136fb8","block_type":"box","text":"mitigating such risks.","page_number":207,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"138fc0f6-8915-4216-8119-fccd2d7e08bc","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":207,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"6eb43b45-a8d2-4cb9-a965-a2820b8845d6","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":207,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"8a654bb6-fcae-48b8-8bcb-a686f46d3be1","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":207,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"cd1c1d83-7c66-4017-ba4d-479e9079053f","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to ar ticulate the effectiveness of these","page_number":207,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"5ddc9d44-7567-43d2-a2bf-93805661c20c","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":207,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"5856077d-3888-4898-a66e-451ddb9212f5","block_type":"box","text":"strategy.","page_number":207,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"76a260de-bd66-40bb-acbb-51e61d0a2d17","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":207,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"ea68b134-5cca-4bb6-8e4b-60d7b8831ab2","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":207,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"642a7548-081e-4539-aaf8-e2125ca7fc78","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":207,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"54056144-b588-41ef-a73e-9cfd07a168e1","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":207,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"ff4e3dc1-6642-48f4-9425-2ecc61bb1d2e","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":207,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"76d56162-c109-4856-bf97-bdf76d6b7de0","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":207,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"4d455cdd-ea90-4470-908c-66c1013b7672","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":207,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"65c63094-c11a-4043-b7dc-bdfafb77d6d2","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":207,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"9edb43ce-4c06-43d7-8f0e-d41c7d7b6d88","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":207,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"c38cbf22-8bbf-454d-91e3-e5fd74d7f6f3","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":207,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"fb27d162-da37-4615-8104-6c7cfac159d8","block_type":"box","text":"Regular accountability through director elections","page_number":207,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"42f13a55-bcf3-4770-b37a-79f3698c33e7","block_type":"box","text":"The election of directors to the board is a right of shareholders and an impor tant signal of suppor t for, or","page_number":207,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"6e383937-7610-4392-8cb6-0b8f5dba010d","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":207,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"457ca160-ba90-4f9a-9c2b-04d87edc965e","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":207,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"f14b5866-4227-4703-8675-a67b06e35995","block_type":"box","text":"5","page_number":207,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"a3378140-7b5e-4bc4-8065-cb40e9f0bf21","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":207,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"6c7bf97d-844f-4279-8408-ec8599c2e97f","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":207,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"5a64dbb6-ed5e-4269-b828-969315248b32","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":207,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"591cd30e-269d-4cda-bff0-77682da9dbcc","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":207,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"679b1c1a-1baf-4e02-9bcb-2a7121d67fb1","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":207,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"4d5273e0-9adc-403b-96f7-5da3b98a77ad","block_type":"box","text":"Regular director elections also give boards the oppor tunity to adjust their composition in an orderly way to reflect","page_number":207,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"7c7ef28b-ef7c-40ad-aab0-5b55854e0888","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":207,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"06d189db-9b32-4c6e-ba15-49a3325fa5d7","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":207,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"c8607b23-3a5e-484e-87d0-32e355809675","block_type":"box","text":"5","page_number":207,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"7c8f2763-cb6a-46d3-a76a-b7390b33e14c","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":207,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"8eb97f1c-b21f-44fc-ae87-09636f724f96","block_type":"box","text":"market regulation or voluntary best practice.","page_number":207,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"245e8269-0490-498b-93ef-d3e0a94ca807","block_type":"box","text":"BlackRock Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5bc6ddc6-5f8e-403c-8c2c-dd6f904017e5","block_type":"box","text":"Global Principles | 5","page_number":207,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"3c429af7-359e-4f5e-9eb4-43a8a5f2a188","block_type":"box","text":"NM1026U-5982509-207/232","page_number":207,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"464a0473-0309-400e-b9ce-1230d312d457","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":208,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"f22be08b-343d-489e-8ddb-eccfb39b2d0a","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":208,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"08ba45c9-d78b-4f36-acc4-47fd301d2a17","block_type":"box","text":"recently.","page_number":208,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"3cd76d7a-e63b-4464-aed3-094f95e015d4","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":208,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"1fbbc204-97d0-4f75-b2dd-bf4ed238aedd","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":208,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"ec115690-6064-44a7-a8e7-888213fc9c60","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":208,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"d386c9d7-00b3-41ec-bf47-82125093c072","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":208,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"2cfd40f0-2d91-475a-80a1-9bc86fb90221","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":208,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"7bd72511-96e5-4dc5-9c2b-b9f2396d7168","block_type":"box","text":"Director independence","page_number":208,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"a6ce9d18-7bf8-4148-acf7-c89177d55215","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":208,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"183afbed-d9d2-4c51-b203-b6a0fc330d04","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":208,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"c3995b6f-61bd-4f35-a29a-c7bc51c0e74c","block_type":"box","text":"6","page_number":208,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"d4f79d74-d10e-434c-92f1-0df45e205afb","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":208,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"a7775ff9-7ef6-4daf-90b3-f641534b3003","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":208,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"208876e2-8aa4-4a40-81fe-18b6239df65d","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":208,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"5642b447-fa40-4e57-ab0b-90cc1ddeda69","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":208,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"355c0da8-d5cd-4379-9161-9948327aa8f8","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":208,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"429ad6d3-4f22-4210-84de-63946b0b9a63","block_type":"box","text":"•","page_number":208,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"5c63853d-ce7d-4db5-b098-9bc53448633a","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":208,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"7e567c4c-bf4d-4984-933b-fd8d5abf4ef4","block_type":"box","text":"•","page_number":208,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"635cd4fe-01e0-4ad2-8f39-80488329b869","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":208,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"d8817dc0-66d5-4f6c-8505-1b1c1aba6633","block_type":"box","text":"•","page_number":208,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"66c5eb6c-fc48-477a-8d5c-7ea01b9eaa75","block_type":"box","text":"Interlocking directorates","page_number":208,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"ecf0e6e8-cc57-452b-89c1-67e96eb80216","block_type":"box","text":"•","page_number":208,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"ddad735f-2e35-47b3-9592-ec91d50574b4","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":208,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"7af30f66-754c-43e2-ad3a-dbd63fbfa463","block_type":"box","text":"materially inter fere with a director’s ability to act in the best interests of the company and shareholders","page_number":208,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"d014437d-1b8d-471f-9600-4c88d93ee70e","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":208,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"33a41952-a2ed-4e49-957d-7502a5dbad87","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":208,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"2e50d8d0-0c93-4638-a4d6-a07a6713fe6c","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to suppor t independent board","page_number":208,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"19e4a5e5-9660-4701-9823-4ed75f8fc79c","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":208,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"8591651c-57e9-44cc-a1f8-35c6ceb49e9a","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":208,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"90b6653e-48f7-4aeb-8793-9380fba55e61","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":208,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"fc532a40-183f-4dba-bb7a-b97840a0e3d0","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":208,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"3789e356-1369-4adf-8e5b-e86227793f42","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":208,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"e119bc71-81c7-47e6-a58b-39c93391098e","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":208,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"2201393f-ca39-4cae-85f6-1eb488c1617a","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":208,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"ce7e1b60-4d50-41b9-9296-631a81080c28","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":208,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"aeb0de67-0c0a-4c57-923b-598df29eaf5e","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":208,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"f6265fbc-14e8-4e79-b04c-dc0a12ae3115","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":208,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"1c23946a-cdf9-4174-823a-0a3fe73c9ba8","block_type":"box","text":"Sufficient capacity","page_number":208,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"7c87a48d-9179-4f83-ad2e-bce932d4bd16","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":208,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"aa89b9f5-1821-48dd-ab78-953b19d2b2a3","block_type":"box","text":"appropriate amount of time to board and committee matters. It is impor tant that directors have the capacity to meet","page_number":208,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"10e142fe-14dd-4bf2-a147-e78afc383696","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":208,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"e216fe2f-b060-477a-8861-a301a468743f","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":208,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"af6e63fd-ebf9-4b6c-81a1-97e861bbaa66","block_type":"box","text":"Board composition","page_number":208,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"1face63a-d00c-4a4f-97e6-afb02613ef99","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":208,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"1e1ad5c0-d08a-42ac-b0f4-40d3161ec7c5","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":208,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"0f2b4432-2837-4775-aa7e-4598cd15cba2","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":208,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"d063a7c6-10a4-45b1-9285-2da9e9d163b9","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":208,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"3c419432-ea42-4986-9867-4911fcf19393","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":208,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"eab9bc51-b60b-4a9f-b325-8c91194e5d60","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":208,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"ce8f84b8-0cd7-4f3b-8166-4eb430bb586c","block_type":"box","text":"board, as well as the par ticular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":208,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"e3fefa69-e68c-43a8-828d-a0e663a83b32","block_type":"box","text":"6","page_number":208,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"5dfaf9bd-b1c7-4472-8a58-66377e7228e6","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":208,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"296666cc-89e0-4f58-a6fe-6ec7123564e6","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":208,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"a27caa19-15b3-430f-95eb-889f666aa5bc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8fa997e4-0aea-4460-92bf-6a2fed0ea968","block_type":"box","text":"Global Principles | 6","page_number":208,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"b6b5e3d3-d23a-4d09-bc50-fd301876b234","block_type":"box","text":"NM1026U-5982509-208/232","page_number":208,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7527bf3e-7b04-40f3-be8b-967039f653fd","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":209,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"94ace72b-2e27-4492-aa64-65f0ac3bce8f","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":209,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"49e602c4-1dca-412a-96e3-3f4bde791fbe","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":209,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"33928fb2-35b8-45da-b662-37c909d15ed2","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":209,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"735182c9-fcdc-42bd-b406-53b67fcf2914","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":209,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"8d3b526d-ff08-4413-bdbb-0ad2078a9553","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":209,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"0551fbb1-cdfb-4349-884d-ca7cd1b6b264","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":209,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"92b82f0a-1a55-4d60-a595-22f836e3db7c","block_type":"box","text":"BIS recognizes the critical impor tance of financial statements to provide a complete and accurate por trayal of a","page_number":209,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"552c8092-1811-4aa3-99ab-38f190b5d608","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":209,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"b7351235-96e6-4bd1-a70f-d1e5881ffcf6","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":209,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"91b95266-3fb0-4cd1-9864-01d793107fb8","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":209,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"1e0424c4-51a1-4e41-88df-630fc6c1a50b","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an impor tant role in a","page_number":209,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"0043d597-4fb0-48b9-9ebd-8e1c435c2940","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":209,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"d4699842-5508-47d7-9402-14797ac511b6","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":209,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"f9741161-14af-469b-a5b8-d2644e06bc19","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":209,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"f2746593-ae29-4ddd-96aa-fee3234b3571","block_type":"box","text":"systems.","page_number":209,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"acc229f9-beb1-4ee6-820d-2b69a731e3ad","block_type":"box","text":"7","page_number":209,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"01a89c7e-3fe0-48dd-a2dc-d77ecf4fc26d","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":209,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"95d54611-28a5-48f4-bccb-4fda492aca09","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":209,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"541926e6-f8cc-4b37-b563-559b90642699","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly ar ticulated char ters that set out their","page_number":209,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"486dc2f7-254b-4583-9a37-06c7140efc4c","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":209,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"526cfd33-a9ff-42c8-bc1f-e13c21769bb9","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":209,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"1acf4fc6-1e7b-4d6c-994e-2d86d378a779","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":209,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"5ff88f71-c847-4ef9-8282-d5efa4301cf6","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":209,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"c1e1555a-d3ff-4854-b50e-55ea92f31972","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":209,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"d7589bb6-ec04-4fcc-9002-01e4c9f4f2fa","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":209,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"f504cd7c-fe77-4913-a3d3-f8eeb6336b0b","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":209,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"481d28ae-bb66-4b23-ae14-ab1c794a0b3a","block_type":"box","text":"or internal audit function.","page_number":209,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"62fdbdc0-f75f-452c-bd02-cdf80643d83a","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":209,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"141c2dfb-6e14-47d5-8c10-dedf681598c2","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is impor tant that auditors are,","page_number":209,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"0d8c2c1c-a2fc-4b25-ac8e-ae4874e28dbc","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":209,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"3f64b602-efaa-45e2-be7a-552a11dfeb51","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":209,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"8fe61612-bd01-46cd-a36e-1cfbac31a9c2","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":209,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"05c0fc51-5d4f-4046-945a-b74742103dbd","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":209,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"de1b1247-0129-4f3d-b049-60de761be290","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":209,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"5688df72-0756-40d2-8d88-bf68a9ab6627","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":209,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"9c8170d0-6054-425c-a3c9-1d910759ebf8","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":209,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"02794c79-9dd9-4f16-a95a-cd3e89761678","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":209,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"a33e169e-cbc6-44df-b06c-62c3b050bf26","block_type":"box","text":"risk.","page_number":209,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"9013e083-1659-438c-9b99-4ec05b69006f","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":209,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"052a9c39-6554-4c65-bd55-02b185c2654f","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":209,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"11c05fd3-a615-41ee-97cc-96f81c99ad62","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":209,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"a69a46a1-845b-405f-b308-e4d31c0f84b8","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":209,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"71dfb771-d318-48a0-a3cd-72642ce14ea6","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":209,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"74d9dc19-c025-4bde-946e-2d218c5da5e7","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":209,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"02d44449-74f0-4652-9ecb-6db02186135f","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":209,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"73805cb2-ff93-49a6-95e7-c284b6e5e6ad","block_type":"box","text":"7","page_number":209,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"9ace7498-6869-472d-9c5b-a4c3e9a94ba3","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":209,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"1d351071-12f1-4e2e-ab4e-c1f09aebc94f","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":209,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"8d229c61-0ee9-48d9-87f9-9cd139d0461b","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":209,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"78f0c56a-7dd7-44a2-831e-db8ddfb1a0ea","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":209,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"e1044efb-629a-4461-b0dd-6242674e436f","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":209,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"2e0e1b47-8678-4bcf-a345-ceb1a12c3ccb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"90cb7342-b0ed-4be1-aff2-5167a07ffd9d","block_type":"box","text":"Global Principles | 7","page_number":209,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"62713257-63e6-4ca9-a83b-13606f9b6da6","block_type":"box","text":"NM1026U-5982509-209/232","page_number":209,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"af2ebf06-2440-444b-a2bc-5f120da637eb","block_type":"box","text":"However, we recognize that in cer tain markets, at least for a period of time, companies may have a valid reason","page_number":210,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"48e785f8-6b5b-49f1-9a65-f5e1f09b8910","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":210,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"eab26533-0dfd-4030-a446-49ee5b1318c2","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":210,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"d325a86b-4c72-486b-872e-a58bd76cc59e","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":210,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"8367b307-348c-4e67-8999-8696cba01acb","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":210,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"4f5367f1-3648-4915-8457-4e7ca2b5dae9","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":210,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"f2f64027-1bf4-4cf8-80f9-ea98cdc5a63e","block_type":"box","text":"minimizing costs to shareholders.","page_number":210,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"40014709-cecc-456d-9c9e-38a303156e61","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":210,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"2fddee2f-4fa3-4292-912c-1165414e9f69","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":210,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"1d50b4c1-782b-46bb-9e35-9a3217f22760","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous suppor t of the","page_number":210,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"bab5e59c-d46e-4cc8-b23e-bd4aa053a584","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":210,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"b101c889-f3f6-40a7-bca0-29ed8dc179a2","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":210,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"1c683a3b-9e42-4daf-a22e-0c8e37dfdfe9","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":210,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"54774ebd-e30f-4193-a30a-29522297d17f","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":210,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"ef907e73-45db-4da0-8b5f-a0421871eb6a","block_type":"box","text":"suppor t should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":210,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"387beb70-6351-42d6-8fa3-a4f30ea8a218","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":210,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"1196323a-c511-4216-90a9-30b4756b3116","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":210,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"bd29ab7e-dbbd-4803-892c-8a51f8943074","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":210,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"0621bcb1-7dae-4d08-a725-4879dcccfcaa","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":210,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"4873b773-1dc8-4550-8155-2dd68d184487","block_type":"box","text":"ability to sell their shares are contrary to basic proper ty rights. Such mechanisms can serve to protect and entrench","page_number":210,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"23e87442-6103-45da-83d5-31f5aaf31fd6","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":210,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"7a09e0b0-b224-4e25-bcc9-c13fb188648a","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":210,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"9f2f1da5-751d-4856-94e9-0bc359a37b2a","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":210,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"8a5a15e6-5b03-4496-a261-ded6a8b2d696","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":210,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"8b263ba8-7bf7-4a73-8969-07d6ff186d06","block_type":"box","text":"Executive compensation is an impor tant tool used by companies to suppor t long-term financial value creation. A","page_number":210,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"f32758f1-aad1-4180-b87b-2d1dcf180baa","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":210,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"83f9ee7a-eddc-4699-9020-742b9d70ece5","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":210,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"7cf960be-3bbc-4c58-bee3-899ebf4dea26","block_type":"box","text":"ownership.","page_number":210,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"bef90071-d441-45fd-8061-1a539877405d","block_type":"box","text":"8","page_number":210,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"c092ab76-11c3-4642-bd78-888a1fff62d3","block_type":"box","text":"We look for a clear link between variable pay and operational and financial per formance that suppor t sustained","page_number":210,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"b66e2d5a-db24-4392-9eb7-e8683802a199","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":210,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"bdd78058-e748-4dad-942d-1c915f11a5b2","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":210,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"86e50e17-88d3-49c1-9505-6fca19d354a0","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":210,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"47290316-5c2d-4ef3-98b2-66f3f33831a6","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":210,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"bbe3b694-bfff-43a7-a52a-b1aac324751b","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":210,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"9fb76994-fa9f-4ee3-ba3e-417897dcd8a0","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":210,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"20b45c4e-9aa3-417e-84ec-6d2a6c9d91bf","block_type":"box","text":"results over a period of years.","page_number":210,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"ca8770ad-3ab8-408b-969b-29f3f5425481","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":210,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"1081b3a8-16f3-41c4-8a18-9c2e706c4ceb","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":210,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"d82ef657-f353-4c48-9fe8-3d1b19ce6a0a","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":210,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"bd5f516c-9f1f-4f5a-bcce-335640cf3d6d","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":210,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"cb71169e-74fb-4d62-a45a-4b5d3fc93eba","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":210,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"a723240f-6364-4c2d-9d52-67a884500b39","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":210,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"62aca529-12e7-474d-881a-097d95c2ec72","block_type":"box","text":"executive compensation strategies.","page_number":210,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"fdd4d4d6-21c7-474c-90b9-63e021fabbc1","block_type":"box","text":"We are not suppor tive of one-off or special bonuses unrelated to company or individual per formance. Where","page_number":210,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"0bdbdc78-3186-474b-a133-cfeaafc73fb1","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":210,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"76eededd-5562-4e6a-bfc3-56015f57e207","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":210,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"a1ccbb30-6904-4a83-bedc-374da0316abc","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":210,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"3086c4c1-0db3-43c6-879c-8ca96e69e703","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":210,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"f2a40d9e-c9b7-4971-8f2f-cbba30266456","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":210,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"0c21fae7-f94a-407d-ac9d-aedfb83c3038","block_type":"box","text":"8","page_number":210,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"d9a69cd3-8aaf-4ce6-8bae-8eba54e6f0d3","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":210,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"4f6595ff-4dd1-4494-9244-904697b4560e","block_type":"box","text":"different markets.","page_number":210,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"07ea69a6-5db5-4c5f-bc8b-6314fa0e080c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"843652b0-0c6d-40e7-b82d-76224b592dd9","block_type":"box","text":"Global Principles | 8","page_number":210,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"882b14b7-8ecb-4f52-a2ff-68c6597662ce","block_type":"box","text":"NM1026U-5982509-210/232","page_number":210,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1f982c80-27f1-46af-a31b-49cd872d51c3","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":211,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"437cbe81-d2f3-4a89-b98b-e48dca4e605a","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":211,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"0715d0c8-e007-484d-a091-5e8fd083ee31","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":211,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"260e16a1-b02b-42ea-9876-ddd964bfc08b","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":211,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"046f4a69-25a9-4cbc-a1b8-7f9126db4948","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":211,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"cfa1d663-a828-4af4-891d-18283035becb","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":211,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"d1e20a44-cc76-42cf-a8ca-3f7bc32ba1e4","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":211,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"f606340f-59d8-4707-a854-83c602a25524","block_type":"box","text":"whom they are charged with overseeing.","page_number":211,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"b7e1a3cc-e6bf-4842-b090-3367b5ebd69b","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":211,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"b3ba6c22-3e09-45bf-810c-818fb418eff7","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":211,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"d04c0a80-50a1-47c0-9846-e9b58de4c5d0","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":211,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"f6919c5e-14b5-4cc8-9b71-4931a468ee7a","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":211,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"265ed675-bc06-4696-8f45-382f41d51775","block_type":"box","text":"suppor t management’s proposals to approve compensation, where they are on the agenda. We may also not suppor t","page_number":211,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"16c13e6f-f954-40f2-91f4-e466c30816cb","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":211,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"1aeb4005-0830-4eb9-b432-059d694f5cf0","block_type":"box","text":"structures.","page_number":211,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"3fbfbaad-fbb3-46e9-82a3-97df6da529d8","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":211,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"34f24643-54bf-4bae-a622-5dd1ee431b1e","block_type":"box","text":"Corporate form","page_number":211,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"48c0b9dd-b123-4b0e-b2a7-c24d523d6ad4","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":211,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"0903208e-f4bd-404d-92b2-dd610b6714e8","block_type":"box","text":"the company’s purpose and business model.","page_number":211,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"f8a71bac-6516-43b4-b94e-23bdadb202de","block_type":"box","text":"9","page_number":211,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"b52834e8-50f4-4cfa-a808-cc2e3bba7a8d","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":211,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"df57896c-6276-4801-9896-f8107f9715bc","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":211,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"c2741885-689f-480a-b6e9-51714f9ec8a9","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":211,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"2abbe7c3-831f-4b76-997d-227baf96b80b","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":211,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"eb6276dc-514f-4d74-9ed6-b5aa9073e16b","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":211,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"e68f8874-5eee-4d73-bad3-098be712566b","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":211,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"422c1da2-086d-496f-b5a1-d9c7aae23b24","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":211,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"6c37bdbd-ab76-46d8-8296-d25e8aa0a927","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":211,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"bb6bf090-8e6b-44d5-8498-3ef1a2d8ec1e","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":211,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"bf56222a-fd77-403c-966b-65d350683fdf","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":211,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"7020bec3-73d8-4127-998f-1113cdf5334e","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":211,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"6aaf5827-ff5a-47f3-8e10-312efc3720ac","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":211,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"bcc5af83-171f-4347-bc94-d39147ce4648","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":211,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"c4cc7c04-277e-4032-a343-707f6712ebd1","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":211,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"70b6e402-10db-4b2a-a36e-462706a07094","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":211,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"b6539dc3-78b6-4c18-8b82-732b88da3d25","block_type":"box","text":"may suppor t shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":211,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"bc6d516d-77e5-478b-a193-296d0e1db7a7","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":211,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"4e6f75ec-42e3-4788-8e49-623b4b9a7459","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":211,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"91e09968-e897-4d75-a2e4-14b504a8e3e8","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":211,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"74b6a46c-6eb8-45f7-8775-cfbb8352c2c9","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":211,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"eec36c2b-540d-4d0e-9ab9-5bd8cede1853","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":211,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"97bcc536-d7fd-4549-86bf-55d8dfa6908e","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":211,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"701d65f1-0a48-438e-bcbd-1561b7e80f83","block_type":"box","text":"BIS does not suppor t shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":211,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"7bb612d3-8dd0-4ad1-b8f5-a0bd19306539","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":211,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"216772bf-0a3a-4e14-bc67-782acb1a729f","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":211,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"1ebfcd83-1276-457e-bacc-8498a1ab516b","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":211,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"7bf7621e-a571-4e05-a41a-09fe174a5456","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":211,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"bc3e7205-78cd-40de-912c-f4bd64491d42","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":211,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"ded05c43-b056-4d59-b00d-b99598afa751","block_type":"box","text":"requests. Fur ther, the proponent’s suppor ting statement may refer to topics that are not directly related to the","page_number":211,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"6293f6f9-641a-45e9-9fc4-5af72271527c","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":211,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"50857621-7c54-4567-8097-d9bac47004f1","block_type":"box","text":"the proponent. Therefore, when we vote in suppor t of a proposal, we are not necessarily endorsing every element of","page_number":211,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"4c84120c-914b-4863-bfb7-47fcce7fcec6","block_type":"box","text":"9","page_number":211,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"3fe2ef58-0d09-4913-89c5-8d9ef9b707a7","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":211,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"34216d71-9b67-4ff0-a908-f931f9d816ac","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ebad290a-9ed7-4096-a770-4b716998ef3b","block_type":"box","text":"Global Principles | 9","page_number":211,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"0333dbf5-125d-43a4-b51f-20e654614228","block_type":"box","text":"NM1026U-5982509-211/232","page_number":211,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d1852dbb-b43b-4809-a276-5f0ca2665beb","block_type":"box","text":"the proposal or the reasoning, objectives, or suppor ting statement of the proponent. We may suppor t a proposal for","page_number":212,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"0b9acc32-3431-4fd0-b5a7-0f665b6a072b","block_type":"box","text":"different reasons than those put for th by the proponent, when we believe that overall it may advance our clients’","page_number":212,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"33274d21-ecc6-43d6-a2c1-6d1f708120aa","block_type":"box","text":"long-term financial interests.","page_number":212,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"f2f1a177-4842-4750-ad52-8f96bc3a36b7","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":212,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"b709da0e-74de-4f25-bc11-69f2a459efd1","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":212,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"7d0ba386-24d6-466f-a3f8-915664e6255a","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":212,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"fce184ed-2c9b-465c-843e-d2c16b34e707","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":212,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"3bb88d16-c6df-4263-b060-79b20a6e4667","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":212,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"64ae8d37-5b36-497c-ba0c-e74e46792b77","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":212,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"48cc6820-61ee-45e3-a23c-82112b4fa2d8","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":212,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"07ad3e01-c949-4726-831a-fbda7b81c65f","block_type":"box","text":"term financial value creation.","page_number":212,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"a0a6af86-0594-404d-880a-c809bd1a2d6a","block_type":"box","text":"10","page_number":212,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"c8016d92-f71c-4300-91ce-2d81744859de","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":212,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"910b7314-53a8-42f4-9b66-0f0693756c47","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":212,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"4ea0fc58-abf7-4741-91e7-4e31715c29fa","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":212,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"ab08de0e-776c-44e1-9c7f-fe371dec86ea","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":212,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"3455f282-8093-4bf4-9bd6-7c399dc7bb1a","block_type":"box","text":"industry-specific metrics.","page_number":212,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"d95f837e-4caf-4dd4-ba8b-d0ea7a21970c","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":212,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"3e5e8858-6e08-4203-b2f9-c106c5b99c6a","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":212,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"eca8f145-aeed-4e9f-baf1-95f2b9ee6fcd","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":212,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"fb3014d8-9971-4612-befe-91e982a28135","block_type":"box","text":"11","page_number":212,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"507a3dc5-f7dc-4fee-91fd-07d1b48cd239","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":212,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"9f0f8440-59b0-4969-a77a-6bba2793946c","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":212,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"40f5855e-b046-4885-ae0b-21b76fc4ad1e","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":212,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"e88205a9-c7b7-4379-a389-b83319870df4","block_type":"box","text":"specific.","page_number":212,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"6cce7b00-32b8-49ad-8ad4-c7c0528f1546","block_type":"box","text":"We also recognize that companies may be phasing in repor ting over several years. We do not prescribe timelines","page_number":212,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"381c5e03-5ee4-42e5-bfe1-3511b7278e9e","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":212,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"4758d9df-50e2-47b9-8a04-0a684936645f","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":212,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"18154d3b-5c92-4377-a8b5-3a27fd3bd3f5","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":212,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"437206eb-d70c-4571-b4f2-51412ebab0cc","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":212,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"1ef5f637-fe54-400c-b29d-40ffc3f43f7e","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":212,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"eaa66007-aae0-4338-8a2d-53b322637e1f","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":212,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"fc32e9a0-4ed1-4838-a875-7003b93a316c","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":212,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"31f91974-045f-4ed5-ae44-49af26d8a0c3","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":212,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"01f8c7d2-1477-4347-b4cb-9f2390a50e3d","block_type":"box","text":"10","page_number":212,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"32349f5d-5950-48f2-8ad3-c0536180ded9","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":212,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"c72e00e9-fecb-42e1-a734-8be1d1af569a","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":212,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"653bfd6a-ee89-41c4-bea3-6ee36bc4219d","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":212,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"ea0ea094-d286-440a-84bb-7116a0dfd31a","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":212,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"ac6d8605-18a7-4f5b-9e53-60a678c6a6fe","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":212,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"97b5ad7e-1dd7-4f67-a016-9bcee167d426","block_type":"box","text":"11","page_number":212,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"11cb93ef-f4dc-4e08-897f-a60480f0aec6","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":212,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"0e423bb1-b4dd-45dd-be82-60bb54fcc9ae","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":212,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"beb37387-7b86-4886-93b1-bb19ebf87dcb","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":212,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"493c60ce-0c76-4f55-b4e3-e7466f62c493","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":212,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"7cd6abfe-7dc5-49f2-a265-cb665806287e","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":212,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"d1fab5c9-7dfd-4ea8-bd41-a0ff86d50499","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":212,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"6dcbaa71-20f8-4982-916a-02b0ddc5365a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6a55df4b-44be-4637-82f0-6e7f6f3c5595","block_type":"box","text":"Global Principles | 10","page_number":212,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"c949f1f1-55af-4ad0-95fa-3d37258d2c2c","block_type":"box","text":"NM1026U-5982509-212/232","page_number":212,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"14c3b479-43da-4bde-92d0-2004271d60d8","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":213,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"4ffcb817-ef0d-49bf-84b1-fdd6251742da","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":213,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"6d51b564-a934-48d6-9731-f09e0333a30e","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":213,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"b207a722-f98b-48e0-aab1-ce9cbe548082","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":213,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"8f613154-561b-4b1d-9a20-e9b1f15f497f","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":213,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"ee386e6b-fb71-4c49-a5d6-ee68d07e371e","block_type":"box","text":"12, 13","page_number":213,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"d5b70a53-8148-4c14-958b-06e871d4a971","block_type":"box","text":"From company disclosures and","page_number":213,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"6c09b4ba-e2c3-44f1-b395-4c4b5804bdc1","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":213,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"162daac0-d850-4356-838b-54f152e94cd0","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":213,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"c1d11bb3-c3a8-4ed1-a632-15916404a835","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":213,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"34ecd5ca-dca9-4fa4-8cb3-f7c7be2824cd","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":213,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"31685336-92c3-4f7b-a32e-60043430cafb","block_type":"box","text":"viewed as best practice in the market.","page_number":213,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"f09cc702-7f88-46ee-80e2-dce491fc8005","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":213,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"572b8074-3ca9-4ebe-967e-3d3a7f73c420","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":213,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"6e5c43a4-d062-4bee-9da3-91e2bd0a5d64","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":213,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"ea7a32d9-9b61-4dcc-86a5-c9bc5b6d2b9a","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":213,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"a53ff6da-9de7-4323-92e7-ea40d95cc08a","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":213,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"a144e934-80a2-47a8-8a90-3c0965f22c2b","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":213,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"de6b80cb-45c2-456e-b533-4e71a195e581","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":213,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"a7a5b230-a6bb-445c-834e-001e007f81a1","block_type":"box","text":"interests of their investors.","page_number":213,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"94dce343-e36e-4b71-b154-7c0eded1d81c","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":213,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"78954fd0-19af-4b97-817e-fd0467fbc0c8","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":213,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"a7510da8-cb20-44f1-a335-30f21e872e08","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":213,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"b7220570-ab12-43de-90fd-dafd41780482","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":213,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"717cd9ce-cfb1-4a76-80df-124e920b8daa","block_type":"box","text":"good-faith basis as methodology develops.","page_number":213,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"f73a155c-1800-4620-bafc-22ab3c8dd003","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":213,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"3ed08090-3cbc-49cb-893a-856a4c2dbe54","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":213,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"909726e1-c9be-45a4-930f-1cc0e1b2cc45","block_type":"box","text":"generate long-term financial returns.","page_number":213,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"36e18990-7ac0-4970-907b-51cb55e55238","block_type":"box","text":"14","page_number":213,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"ec000c20-464c-4e7f-9ead-785949b898d8","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":213,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"a576fd3d-ea14-4a10-a249-3dc68e1be938","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":213,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"c07e42d2-0820-4a91-a528-ff1e5e26bdf9","block_type":"box","text":"15","page_number":213,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"62d2e264-f0c5-4069-8360-a27fe4b1c8bd","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":213,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"56b0d9e0-9b5b-45be-b1d5-395e92c04d42","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":213,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"7e590338-5610-4782-b33d-b9fd7fbb980d","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":213,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"a145ced0-f611-4fda-b13a-df7580b6a153","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":213,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"c450a438-8e8e-476f-9fcc-1c65eab6ca9b","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":213,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"a8334072-b6fc-4766-ba41-f63ed0093a11","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":213,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"da26a6dd-3830-44be-b3d2-9a577fb9daaf","block_type":"box","text":"12","page_number":213,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"9ba781a4-10a2-4384-94bc-fae016101dff","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":213,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"ccafbac4-7d1c-47ae-b734-839418e09c99","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":213,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"0a647b8e-c4f9-434b-9258-b69829c0cebf","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":213,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"e84baea1-e53a-4887-be7b-442d4ff90921","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":213,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"17c3ce8a-9878-418d-acd4-adb9d724c6cf","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":213,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"3f3f251b-aeaa-48f4-b11f-cc1b6fab4dc1","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":213,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"95874102-a5a8-4a61-8f74-8003dce149e4","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":213,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"dc342e12-5740-4d25-beb4-821e6c251c6e","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":213,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"1400b4c4-b220-446a-b545-5173baee31c9","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":213,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"25183c1e-7627-4a97-8827-dfce367b8997","block_type":"box","text":"13","page_number":213,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"72483183-a61b-4e37-aa47-65ad299a72f2","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":213,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"c2dd92f4-065e-45be-a88c-db53238895a5","block_type":"box","text":"2025.","page_number":213,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"463babad-6207-4bc5-ac6c-9203208ab6c3","block_type":"box","text":"14","page_number":213,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"ff9e806c-8b19-4082-a8b4-83442e161110","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":213,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"b9ee015a-ef88-434c-958b-17844fb7fb18","block_type":"box","text":"2025.","page_number":213,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"e30fae8a-6127-4188-b11b-68a6c02fea03","block_type":"box","text":"15","page_number":213,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"cdceb0f9-99b6-4189-add5-2c4665ebb265","block_type":"box","text":"Given the growing awareness of the materiality of these issues for cer tain businesses, enhanced repor ting on a","page_number":213,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"59f61103-b7c8-402d-b3af-ca42ea4e5fe3","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":213,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"477ac8f0-539f-47f9-89f7-0899b5ceb1b4","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":213,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"9377a714-3fb9-4988-9ef7-c6ebf3862be9","block_type":"box","text":"some companies may repor t using different standards, which may be required by regulation, or one of a number of","page_number":213,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"b3ae7a6a-af92-40ce-a2a3-0dc03727c4e7","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":213,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"c29739da-6e0e-4168-837e-5fbd52975d39","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"15360184-739f-4080-b233-567b9317e0d1","block_type":"box","text":"Global Principles | 11","page_number":213,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"54ba413d-9b38-4813-9d2d-3b966ba02f39","block_type":"box","text":"NM1026U-5982509-213/232","page_number":213,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fce0495f-8e03-4ad1-ab7f-0b67059801a5","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":214,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"2a262103-a919-430e-bf19-7709dfbbaea5","block_type":"box","text":"This is par ticularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":214,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"bff7edd3-cdb0-4b31-b7b6-76bb16f27bab","block_type":"box","text":"16","page_number":214,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"cdff3329-385e-4250-93c3-95a6e2686019","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":214,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"a41b8e4c-20f1-40a3-8c8a-10561d2afc7d","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":214,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"315dcc3e-16ea-4f2c-9b0a-b4d387003df3","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":214,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"4efdd0a0-f92e-4067-a319-b9068ca7188a","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":214,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"0253e2d1-4271-4d57-8683-45b6d89f1934","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":214,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"6de42fdc-8742-40e2-94b4-69466bdf2a58","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":214,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"374c1cc3-bd8a-48ef-8eb6-4e857524fe91","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":214,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"eac6be02-45ff-45af-859a-65dd64e63edb","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":214,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"a6d818bf-f8f5-4708-95bf-02758a4acf28","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":214,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"28719700-e009-4c1f-96c5-8ce77824e2b4","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":214,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"37b9f2fb-52ab-460a-8ea0-696a530e3d4a","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":214,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"67664ad0-02d2-4474-b782-b81dc10556fd","block_type":"box","text":"impacts.","page_number":214,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"82b2bbe0-5eab-490a-ab39-8ca980be6268","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":214,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"7e2f69ef-c48f-4701-bf8d-762a3a96522e","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or suppor ting a business relevant","page_number":214,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"778cd7c0-9bb3-483a-b7ac-781938274eea","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":214,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"1f9d4335-d9eb-4982-8b7a-72557e063929","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":214,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"bc166ba2-e26d-4a9b-b114-348b23692166","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":214,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"0108a10a-c2e4-4056-94a6-909fb2bf345e","block_type":"box","text":"clients at the global and regional level.","page_number":214,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"403d25f9-46fd-4ef0-a431-2d474a85b881","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":214,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"a6f4cf0b-5a79-4664-b80a-84818846266d","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":214,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"f6a2e025-7797-4514-b771-8516cf0aecd6","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":214,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"8b52f0cc-4fbc-46aa-8654-8219145521cc","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":214,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"3922afe2-ef1b-44cd-be95-aeb38ca11998","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":214,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"01300edd-77d7-400d-b9aa-c92e0e0ab58e","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":214,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"4f0b4a21-45bf-4e07-8fe6-ee283ca0d9e0","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":214,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"94733107-2c2c-4dd2-bd7b-a50181404358","block_type":"box","text":"are independent from the investment stewardship function.","page_number":214,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"ce6f3307-44e7-4519-b505-b833e2a11ac6","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":214,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"ccfd9654-fb6f-4da8-9ede-e428220da7b1","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":214,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"674c65cf-1b7c-4a51-8aa4-cd06a688c1df","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":214,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"c0c2115b-5cae-4733-9a49-a7bace580149","block_type":"box","text":"VOTE EXECUTION","page_number":214,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"721f5f65-1d0f-408e-9414-b8f7269d1856","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":214,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"47d2e385-d2fc-4a3c-b521-c390ba733b0e","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":214,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"55298f2b-38e4-4a64-aa9a-a826bb0c2224","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":214,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"3c8130fa-6af6-4c63-9649-9f572419ada5","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":214,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"db5ab4ef-c45a-4b84-90f5-76beeef59435","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":214,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"f097d7a7-d3a6-499f-913d-31c3564503c6","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":214,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"099e828d-1eff-493c-9c1a-85325e79ded6","block_type":"box","text":"management policies and procedures,” below).","page_number":214,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"7c147e40-6b66-446f-9e57-f5d1ae04aa1b","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":214,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"af4ce679-a395-4644-ba07-f11ffd20ec3d","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":214,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"b20adb88-545c-453b-96e4-b3e07120e603","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":214,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"bc4e7c00-e035-446e-aba8-a3a73d8f15f8","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":214,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"e38c09a8-3887-4966-999e-8ee269e065bc","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":214,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"bf6cd3fb-ef4c-4a44-8426-3bd0325c1b89","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":214,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"f980466a-7ca5-4285-b077-8a454c81084a","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to","page_number":214,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"b57adbc1-8b71-44c8-ae57-83d541b69334","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":214,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"6eaa0de4-d9c5-4847-a7a5-987c24f089b0","block_type":"box","text":"16","page_number":214,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"b7cadbe2-5f74-436a-9eab-e0ccc169a42b","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":214,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"36d58fcd-3360-4131-81bf-5b4a91b78ac5","block_type":"box","text":"December 2025.","page_number":214,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"e34c2e37-3fc2-48f9-bc43-c3130b3d946f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"93a724ed-abb2-461f-b793-b198fe12d871","block_type":"box","text":"Global Principles | 12","page_number":214,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"d351649c-773a-4ee7-9052-cd54e93d36a7","block_type":"box","text":"NM1026U-5982509-214/232","page_number":214,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9e574d2f-4868-45e7-a43a-afbc37958983","block_type":"box","text":"BIS votes proxies in these situations on a “best-effor ts” basis. In addition, BIS may determine that it is generally","page_number":215,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"147a6df3-0af9-4eb8-bbc2-31c8a8bb90dc","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":215,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"c6b1de40-b225-431b-9d80-aa3ee284a275","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":215,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"505d4f98-2acb-435a-905a-372667636310","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":215,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"878823d8-47fb-4526-9f0d-dca87032fdde","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":215,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"606fda36-37a2-4459-bd17-945214eecc2f","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":215,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"a2f8406e-da32-46ef-bd4c-12b16e8cf558","block_type":"box","text":"enterprise-level vendor management activities.","page_number":215,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"6262d32e-e67a-49c6-b146-40e1a7422912","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":215,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"8e312912-2c54-4591-b765-b1263016e42c","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":215,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"f62f5769-ae08-4c0e-9156-ef2ae87a9ce2","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":215,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"e369b5f3-4eb1-4c16-8618-50c3a309c49f","block_type":"box","text":"BlackRock employees.","page_number":215,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"d787ead9-50d3-4b1b-b23f-f90d8fe40d95","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":215,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"739e0435-e9cc-4430-933a-2391f2eb1656","block_type":"box","text":"SECURITIES LENDING","page_number":215,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"5cefd1dc-e1e8-4c85-86d7-a9f601cef558","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":215,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"7a42e882-a197-4054-9c74-64f8d0f18819","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":215,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"36a6b9f6-bbe9-4652-a454-d083c5e705fb","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":215,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"22cad1ae-85fc-425f-8d6b-9e34b3329a81","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":215,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"fe6d82d4-1e40-4b0d-9f89-9def5e863765","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":215,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"922e2c80-22b9-4cbd-b518-2a8288ee79d9","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":215,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"c176ca92-f2cd-4a8e-b671-b88c9506eb77","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":215,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"914fda08-aa5f-4b30-a649-a2d1d5456fb4","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":215,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"1ebc8078-8693-4363-92d3-02254c5259cb","block_type":"box","text":"recall securities on loan as par t of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":215,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"a4664f32-22f7-4417-a35d-d46a25a148ab","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":215,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"b84c936d-3792-4961-8b37-78b7add0a7dc","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":215,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"4206dda6-ac9b-4f4e-ac5c-389fb6e40640","block_type":"box","text":"of recall consideration).","page_number":215,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"9785bff2-7965-43ea-b26a-6b5abb4680a9","block_type":"box","text":"17","page_number":215,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"c0f51a4c-b3ab-4929-a783-ffe1416e10a3","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":215,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"198dc496-889b-440b-a31b-27e44d1c5221","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":215,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"32475604-9c27-4cae-b585-e6b39994c090","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":215,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"222aa771-d8a7-4f3b-a7a2-da54d47e4e95","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":215,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"fa38aec2-e646-45e1-9be2-aa0da8cf88f6","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":215,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"fd73eace-ee0a-4cdc-8851-8916868332b5","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":215,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"87cee1f5-ce03-4ac3-9060-dcb346d66713","block_type":"box","text":"impor tant to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":215,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"4a68a775-dee6-4ca8-a8af-92fd18151103","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":215,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"cb5a7dd7-0e6d-4e14-b864-975f175ca0fd","block_type":"box","text":"and may modify it as necessary.","page_number":215,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"ab5e4be5-d03e-4548-ab4a-ec6726f7b4ea","block_type":"box","text":"VOTING CHOICE","page_number":215,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"ddbcef72-b18b-43d5-80f2-2ec2b623ce65","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":215,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"dad1209e-4e9b-4b89-92e3-7f6010e731bc","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":215,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"7f344d9e-01a8-4c9a-a145-343c9e1d8b12","block_type":"box","text":"18","page_number":215,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"43305d92-1e1a-4969-81a2-747bdc68bd33","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":215,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"c9171daf-7f21-411c-af7a-935219651b06","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":215,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"e362dc21-cdbd-4385-93d1-1f9d3117dec2","block_type":"box","text":"17","page_number":215,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"8d84c450-a499-4a03-892b-9d0695b49787","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. 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Net zero commitments are sourced from respective","page_number":220,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"cb2584ca-62bb-402a-a0e8-4d159734516c","block_type":"box","text":"company websites, as of January 2025.","page_number":220,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"6160ae21-299b-43e9-8343-0c5c4d774d6d","block_type":"box","text":"5","page_number":220,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"41398210-5167-48db-bf76-0710119eb8a1","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":220,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"ef0a184c-afe8-4fbf-99f4-be126134e8f1","block_type":"box","text":"6","page_number":220,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"188356ef-92f6-4398-92ad-8fe67ca1c32d","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":220,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"8cf82af9-d717-4369-b469-1a67c3b4cc87","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"aaa7ad7a-2853-4200-b470-01584c62b0b2","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":220,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"584642e0-4b4c-4920-b99d-765d69f74a00","block_type":"box","text":"NM1026U-5982509-220/232","page_number":220,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5fbaee62-108e-4406-9e47-3fdb97b4534f","block_type":"box","text":"par ticularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":221,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"1d7cb5c3-66cd-4480-88d9-dd11cd8f361b","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":221,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"6c5f5037-2f72-40e4-acb5-14bff11a17a7","block_type":"box","text":"7","page_number":221,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"ef5596a8-a743-48e3-975d-347dca22a8ff","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":221,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"1588b1bf-f306-4d3f-9fb6-d5abefb97509","block_type":"box","text":"Benchmark Policies.","page_number":221,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"87a2f30b-2992-4cd3-86e4-bf077b73453e","block_type":"box","text":"8","page_number":221,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"469a8783-2303-4db5-968c-8c74cc9b5e39","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":221,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"988c8cd3-9ffa-4ac2-9502-c6430a1d5372","block_type":"box","text":"decarbonization as an investment objective, BIS under takes our stewardship responsibilities in line with our","page_number":221,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"c4faae1e-b3e3-4a9e-a47e-7927e2472f1a","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. 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In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":222,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"4c469ba4-76a5-4a5e-a911-350b136174fd","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":222,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"6149a68d-c9ee-4191-83dd-05876a164662","block_type":"box","text":"14","page_number":222,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"d0d51a62-19e6-43b6-92cb-a050cae926c2","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":222,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"b096a9fa-da73-4b94-89c2-6bdc12b3cef2","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":222,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"77e69d5d-8d6c-46a8-885c-e5a77347daea","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":222,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"7d23e714-b421-4120-8ac8-4a05c885e3b4","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":222,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"b0f2afea-e390-4521-bad0-5054f7fc09a6","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":222,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"37228771-b052-4900-8d75-f60e3a805d56","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":222,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"dfff60b9-350d-4317-b02a-84f1a34fe384","block_type":"box","text":"15","page_number":222,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"f17f0714-6d7f-4058-b262-94462c67f1bf","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":222,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"4fc66d84-43ed-4be1-b8fa-4065cf768273","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":222,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"d4beb33c-ee65-4744-913f-f5fb000b8f7a","block_type":"box","text":"companies may repor t using different standards, some of which may be required by regulation. In such cases, we","page_number":222,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"6c8ebb8a-5731-437a-bede-62b9f1d1a940","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":222,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"0b13e4b6-ae48-46cf-b939-f750a7d7627a","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":222,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"378d1a0d-4e1b-4899-9463-cb742ff5435f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"89f84444-4f60-4cf2-9183-561f538c9b32","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":222,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"0544024b-a15a-4c89-a020-4bc2926b53e1","block_type":"box","text":"NM1026U-5982509-222/232","page_number":222,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ce37355c-a040-4c42-87ba-fcbcba0852ab","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":223,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"031bff3e-40f8-4114-892c-fa0a0f328d9c","block_type":"box","text":"16, 17","page_number":223,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"4d26f89d-7668-4ce0-bd70-749845476def","block_type":"box","text":"In addition, the dedicated team looks to","page_number":223,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"eb763baf-3304-4f03-96f6-7230dc4dcf2e","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":223,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"2c5efc9e-c0d2-49ee-8931-b4ddce873119","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":223,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"9c674c95-6359-499d-9d3e-f22fd122183c","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":223,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"57634c3f-c4e0-416b-871d-0e2ecd4dd6e5","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":223,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"9bc443e9-e951-4f83-8add-fe00902eb51a","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":223,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"dfa0ac62-9eae-4992-8f2b-bcf84ea06fbd","block_type":"box","text":"18","page_number":223,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"189151fe-7867-4faf-9544-95e76503096a","block_type":"box","text":"However,","page_number":223,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"644bf917-900b-45de-a97b-15dfeeca843b","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different par ts of","page_number":223,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"497dcc79-d210-43e7-8534-2a50bf020ed0","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":223,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"9e8e6ddf-a82a-4853-8f1d-de6da5515d1e","block_type":"box","text":"their decarbonization targets. For some companies that play an impor tant role in the low-carbon transition, scope","page_number":223,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"28637fdb-b5a9-409e-badd-a651e72f3682","block_type":"box","text":"3 may represent their only significant source of GHG emissions in the value chain. While we do not believe","page_number":223,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"3fe43b3f-f368-4327-b099-c5d3bcc85437","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":223,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"40dfdb17-bcd0-4462-8c1d-681db60ca536","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":223,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"2af45748-ba4b-4980-952e-fd9fa310e5a3","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":223,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"9d3cc798-2563-4a14-ab37-01080fc84a79","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":223,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"e6e63909-c208-49ca-be5c-0c9fe5b14ab8","block_type":"box","text":"transition risks.","page_number":223,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"f967f5bc-7b76-4458-8f67-b97a345e33df","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":223,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"b44b24a0-8fba-4a4d-8a2f-61fba22d51af","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":223,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"81b986d0-d5b9-4b42-a163-0254daea8868","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":223,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"386ee7c4-4728-4e43-9693-9bc241f5568c","block_type":"box","text":"Transition plans","page_number":223,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"186ad85f-3a97-45b4-887d-a535229ccee6","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":223,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"1ebb7c78-82dc-4aa8-bed0-a26e6a5408ab","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":223,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"0f0ee560-d0aa-4a6f-99f4-3ce3039c00bd","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":223,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"76e2beb6-947e-4108-9951-cb1962db7785","block_type":"box","text":"(see Appendix 1).","page_number":223,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"f5f729f0-6314-448d-b31b-8b7cd503f31a","block_type":"box","text":"19","page_number":223,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"f889a4a2-2ac3-41e1-8637-200c97475896","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":223,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"d5bd0c13-f256-4607-8b97-c844909426a9","block_type":"box","text":"transition plans.","page_number":223,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"4ef7843c-af27-4822-9b5f-953c9e2686dd","block_type":"box","text":"20","page_number":223,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"fbcfdec9-f3d7-4c80-a5e8-f1c4cbb55df9","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":223,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"2729f8eb-7304-4aa6-83ed-68175f21b985","block_type":"box","text":"repor ting approaches.","page_number":223,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"67d54a9d-0fad-4799-abe3-e64fb30b32b1","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":223,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"89181edc-e83b-422f-b92a-b5aa46e8ea8d","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":223,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"1fd89c9b-da00-4ffb-9e7c-408c61db1959","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":223,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"4734f5f4-87a5-4ba3-86ad-b08b69053554","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":223,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"abc01ba2-23ce-45a6-be02-4f5aebb1fce8","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":223,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"09fef669-3893-4202-8f43-a6e81381709e","block_type":"box","text":"informed voting decisions.","page_number":223,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"8e02913c-9cbc-43cc-bd2d-0fd70b306589","block_type":"box","text":"16","page_number":223,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"671edeca-ca68-4511-9383-0629d7e9d265","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":223,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"c00dedca-7345-4e3b-9d96-a09031be41e0","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":223,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"a0764980-0b04-49cb-9785-62d1220454d0","block_type":"box","text":"December 2025.","page_number":223,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"e375eb4e-e1e6-480b-8e51-cc5b9d50c329","block_type":"box","text":"17","page_number":223,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"b1284ca1-7d70-48c1-84e0-c1c27deb0874","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":223,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"12ca83b8-2198-49d1-8e60-985b6143a72a","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":223,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"65527525-3838-4fde-b7c1-06badd4a2df6","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":223,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"c9fe78bb-974c-40cb-8e52-4b88a53fa312","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":223,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"b74719fb-64cd-4097-a137-b7997a3bb982","block_type":"box","text":"18","page_number":223,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"49237b7b-9a3e-4e89-9817-29450204419a","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":223,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"fbc5f6c9-effb-4324-9905-4ac29e7abc4c","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":223,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"292a2003-e363-433f-8abc-dd803f9f53f3","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":223,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"26b68fd1-9492-4577-bd47-e12bd658e61c","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":223,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"0ef0072f-07bb-473c-9086-7f60f792ca31","block_type":"box","text":"material to their business models.","page_number":223,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"bb05ebab-798c-4c18-aaa5-fae8165fe395","block_type":"box","text":"19","page_number":223,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"37d2289e-bb0a-4e75-a7eb-50f0abde357c","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":223,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"6a317188-0cba-4b95-b3c5-6946bc8c30a8","block_type":"box","text":"December 2025.","page_number":223,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"af0b8f8e-8630-49cb-a729-1bcc6ad43f91","block_type":"box","text":"20","page_number":223,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"13adf97f-166c-4920-b198-c206fb141ebf","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":223,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"41d71fc5-e799-47c4-9ce3-74d5eb033a5b","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":223,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"79c84a49-1804-47a3-ba0d-951f286e33d3","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":223,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"718a37a4-90f0-4259-95b7-b5b9ef849204","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":223,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"cddf3f58-7b59-448d-b2d8-b4a01acac920","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":223,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"69c7eb36-9366-4bc1-85dc-58b7b2b0aa9e","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Under the Guidelines, the team may suppor t","page_number":225,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"f9f0a5ff-28d6-4340-8569-4844a9caab2a","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":225,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"8b58112f-6d8c-4857-90d5-f02df249e877","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"93036cb6-81d9-4916-a396-364a0aff45e0","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":225,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"a69368aa-bd77-4082-a2cc-5296a0b58ff0","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":225,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"ee75ed37-3938-4108-afb4-b09a607ff4d4","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"d6ee1333-1281-406e-8d2d-61559b578d8e","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":225,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"ee54c97d-6ee0-40c0-a7c1-24bc407e6f76","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":225,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"fcdc7745-7180-4b6f-a37c-0c02560fe9e0","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"51355fb3-5888-4dbc-9d81-b98395364a51","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":225,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"5b503b3b-0523-4b17-a27e-5117a8417bc1","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"aa03ae9b-b180-4fb9-9e6f-01e589d61e97","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":225,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"e2ac5ee7-23de-405d-927f-18266aa834b8","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":225,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"d569baae-4031-4ca6-98ac-a5295a3f385c","block_type":"box","text":"25","page_number":225,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"b62b76ed-61cc-45bb-8ea5-cea94ef82309","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":225,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"2189dbdb-7fee-4697-95e5-33fc3f7180cc","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":225,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"63bb2c8c-b27b-452f-9cf6-429edb617004","block_type":"box","text":"RELATED MATTERS","page_number":225,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"c2188929-9fcc-41df-b797-130f215777c1","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":225,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"3e618038-75b1-460a-8541-8baa24919de0","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":225,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"2b42a7ae-6560-4cd9-aae8-5304750d7cb4","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":225,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"f21db4b0-2fff-4b2f-9e12-71981e752cae","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":225,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"f0f290b0-a11d-4321-a7aa-352ee0eca921","block_type":"box","text":"Executive compensation","page_number":225,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"c515ec44-a8bf-4618-80bd-d380e05b758e","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":225,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"53210ec2-41d8-4640-9e92-77241a90794d","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":225,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"e3c8ce1b-cf83-4b8d-9beb-069621da6175","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. 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The dedicated team will continue to take a","page_number":225,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"0d046439-59d7-46cd-92ec-ee533937fc25","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":225,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"d5825c5e-494c-4c71-bfec-58c9bb9295b4","block_type":"box","text":"25","page_number":225,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"c912d58f-b74f-40d0-8833-6df2c85cab15","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":225,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"d39a4ae4-f38a-455e-9825-957967b6e1fa","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":225,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"b928ca08-d8ee-4980-b04b-ea519576032e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"cd88b6ee-c113-40a4-8e41-1f3e0a95cd07","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":225,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"81205c76-4324-48be-9c7a-35ae81c244a1","block_type":"box","text":"NM1026U-5982509-225/232","page_number":225,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"72145733-e513-4948-bcbc-8d9fd85c665f","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":226,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"96198104-5c0a-4134-997f-003913830358","block_type":"box","text":"strategy and risk management.","page_number":226,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"ed3dd7b8-e1a7-4ead-a0cf-eb7b39e18ab3","block_type":"box","text":"Auditors and audit-related issues","page_number":226,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"b228ba50-7352-4728-b0ec-cf477db6ba9e","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":226,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"22652a8d-e0ec-4b4b-afc2-b5cc57d5df18","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":226,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"64936be9-5b32-476c-b599-78439e73bf82","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":226,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"8b325726-d862-45ee-a119-bec50075851b","block_type":"box","text":"context of its audit repor t. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":226,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"ce0ee990-6053-4801-91b5-eede8532e841","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":226,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"2bd0a99e-d23e-4350-8f7d-ba8c27273b6f","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":226,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"e031a616-124b-4f93-b2f0-218e8707c8fd","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":226,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"64cd7d74-39c4-451c-95f9-0e87084e0b65","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":226,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"654ef307-74aa-4d60-8a9f-98a7742e624f","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":226,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"eb5aeecb-fc2e-4124-bcd6-fdd7aaaf6523","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":226,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"fd0300f4-e2a7-4461-989b-3586b478bb81","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":226,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"27d27702-c836-4742-a107-6456b7c36bc3","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":226,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"3203ace0-3d51-4a7f-8fb1-d2769fd6ba99","block_type":"box","text":"sustainability-related risks and oppor tunities that may be relevant to a company’s business model and long-term","page_number":226,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"9ec27c75-b59f-4bf2-8e7a-2846dd979680","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":226,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"61c94df5-8aa2-4ef1-bba4-3adac3bf9a24","block_type":"box","text":"stakeholders.","page_number":226,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"d75e7dfc-a086-433d-b38a-414dd7942f68","block_type":"box","text":"26","page_number":226,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"3721bfd9-1643-4676-9046-c34a744d3864","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":226,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"5588f9fa-ecc9-431c-828c-baa10fa7aea7","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":226,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"bd45e567-f6b9-4890-8f8d-9a9dfc0505f9","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. Similarly, the","page_number":226,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"ab22fce1-38b0-47db-bc8a-8f30148934a5","block_type":"box","text":"team may engage companies that face risks and oppor tunities related to land use and deforestation, access to fresh","page_number":226,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"ede4b357-d185-4bea-bd94-5cef80326598","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":226,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"60acf0c8-4ca7-43ff-8445-32c8ae41ba73","block_type":"box","text":"26","page_number":226,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"04e0bbde-9819-4481-bf66-a95374599c5e","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":226,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"d5307f10-585b-492f-9618-77974f7bbac7","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":226,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"26b680fe-c33b-4621-a881-2bc4a650235b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e92fe528-7f2b-4148-a9cc-812981c40944","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":226,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"8d91ed66-443f-469d-a1ef-bdcb7c088fd2","block_type":"box","text":"NM1026U-5982509-226/232","page_number":226,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d69385d4-b039-423d-ba54-fe823b7b21bc","block_type":"box","text":"Appendix 1","page_number":227,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"b4baf7a8-5654-48f1-86c1-6660ed85fbd0","block_type":"box","text":"Terminology","page_number":227,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"16ff3491-ea11-40bf-aab8-b81a2334b5b1","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":227,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"8a176fff-5b83-459a-818d-5c665a076b26","block_type":"box","text":"Climate risk:","page_number":227,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"d0e16144-5b81-481a-bd4c-85a10c542d06","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":227,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"c1099f12-b7a7-47af-929e-a86fe9da0522","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":227,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"1ccfb5ab-0d03-460d-86d0-29bf2ebb8a7a","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":227,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"824e3af6-b246-4033-a1e3-c77314c0b6a1","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":227,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"d0308eee-a74d-4e55-a750-ee79dbfe8171","block_type":"box","text":"The global economic shift toward lower","page_number":227,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"3d2b21b6-227d-4863-a797-6b5cd10b500b","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":227,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"5a1c8a21-898b-4e5a-94d7-c295ffecdfa1","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":227,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"321f32b0-2ac7-459d-9f41-811566fb063a","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":227,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"5d98d1ef-669c-407c-a5b4-2333ced37b7c","block_type":"box","text":"Decarbonization:","page_number":227,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"fdcf8d6b-f3bc-474e-8034-3eec31f918f0","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":227,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"f09c69bd-b4a7-4065-81f7-d10ca453b5d6","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":227,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"ec412da7-f6dd-4efb-a424-294c10f08b67","block_type":"box","text":"individual consumers. 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