{"annotation_id":"ba44331d-1323-4493-9693-2b0db3969538","file_hash":"b59051812ad603d26cfec4bf232392ced517e01b1926acd900b416b576179172","schema_id":"open/document-extraction","schema_version":"0.5.0","record":{"extraction_type":"boxes","producer":"pdf-extractor-v0.5.0","blocks":[{"id":"f9081374-de32-4103-87e1-03a86ab6ea94","block_type":"box","text":"BlackRock Advantage Global Fund, Inc.","page_number":1,"box":{"x":116,"y":87,"width":296,"height":12}},{"id":"38852018-f8b4-44e0-9371-c91109a13519","block_type":"box","text":"BlackRock Advantage SMID Cap Fund, Inc.","page_number":1,"box":{"x":116,"y":103,"width":325,"height":12}},{"id":"9fa21784-2113-47a6-8dd3-4b6f9ad2ff7b","block_type":"box","text":"BlackRock Allocation Target Shares","page_number":1,"box":{"x":116,"y":118,"width":266,"height":12}},{"id":"f40e3ce3-34c0-43b9-aa1a-0d1d64952fa3","block_type":"box","text":"BlackRock Balanced Fund, Inc.","page_number":1,"box":{"x":116,"y":134,"width":232,"height":11}},{"id":"cdbd1cd9-f575-4d66-b01d-421a8ab952f8","block_type":"box","text":"BlackRock Bond Fund, Inc.","page_number":1,"box":{"x":116,"y":150,"width":203,"height":11}},{"id":"bec44e4d-2eaf-48c1-9f16-ab00a2c00966","block_type":"box","text":"BlackRock California Municipal Series Trust","page_number":1,"box":{"x":116,"y":165,"width":331,"height":12}},{"id":"f910df26-19d7-495f-94e6-3d3cbfa2bbd8","block_type":"box","text":"BlackRock Capital Appreciation Fund, Inc.","page_number":1,"box":{"x":116,"y":180,"width":317,"height":12}},{"id":"9f4b035b-9650-4f55-8ec8-5d1f376974b2","block_type":"box","text":"BlackRock Emerging Markets Fund, Inc.","page_number":1,"box":{"x":116,"y":196,"width":301,"height":12}},{"id":"a62a304b-c121-40ae-9729-ffd8061c1a99","block_type":"box","text":"BlackRock Equity Dividend Fund","page_number":1,"box":{"x":116,"y":212,"width":248,"height":11}},{"id":"8fc42f9a-72e4-490d-b04c-6b5a774e676d","block_type":"box","text":"BlackRock Financial Institutions Series Trust","page_number":1,"box":{"x":116,"y":227,"width":332,"height":9}},{"id":"921b7b21-efdd-4862-a56d-4effc397bb54","block_type":"box","text":"BlackRock Funds","page_number":1,"box":{"x":116,"y":243,"width":127,"height":9}},{"id":"91cec9d6-d66c-49b6-bec6-f218cb8c6b84","block_type":"box","text":"SM","page_number":1,"box":{"x":244,"y":242,"width":15,"height":6}},{"id":"e31337dd-2966-43ec-8b0e-fc2a03d62d28","block_type":"box","text":"BlackRock Funds II","page_number":1,"box":{"x":116,"y":258,"width":149,"height":9}},{"id":"2734e294-f2fa-4e39-b078-321992749bdf","block_type":"box","text":"BlackRock Funds III","page_number":1,"box":{"x":116,"y":274,"width":155,"height":9}},{"id":"a934f517-e0ea-42a9-ae79-eea547ef69b1","block_type":"box","text":"BlackRock Funds IV","page_number":1,"box":{"x":116,"y":289,"width":154,"height":9}},{"id":"5b22a9bc-c693-40e5-b858-5834dd2b8da9","block_type":"box","text":"BlackRock Funds V","page_number":1,"box":{"x":116,"y":305,"width":148,"height":9}},{"id":"f7780a92-e259-4e7f-bdcf-0c10591e2314","block_type":"box","text":"BlackRock Funds VI","page_number":1,"box":{"x":116,"y":320,"width":154,"height":9}},{"id":"4c2e0ebb-4354-4d0c-bd66-eeaa09dc0ab7","block_type":"box","text":"BlackRock Global Allocation Fund, Inc.","page_number":1,"box":{"x":116,"y":336,"width":292,"height":11}},{"id":"9f25173b-e480-4ac5-9863-f428b8cad083","block_type":"box","text":"BlackRock Index Funds, Inc.","page_number":1,"box":{"x":116,"y":351,"width":213,"height":11}},{"id":"fe7ed4bd-bb65-44bc-909e-935b7f15e4d2","block_type":"box","text":"BlackRock International Select Equity Fund","page_number":1,"box":{"x":520,"y":87,"width":324,"height":12}},{"id":"8801f763-e0a3-40ba-b69e-705862e21106","block_type":"box","text":"BlackRock Large Cap Focus Growth Fund, Inc.","page_number":1,"box":{"x":520,"y":103,"width":349,"height":12}},{"id":"035dbfdf-319e-43bc-b1ad-89389dadd4dd","block_type":"box","text":"BlackRock Large Cap Focus Value Fund, Inc.","page_number":1,"box":{"x":520,"y":118,"width":335,"height":12}},{"id":"5a86c517-9f8d-49e9-b51c-385fb29162a6","block_type":"box","text":"BlackRock Large Cap Series Funds, Inc.","page_number":1,"box":{"x":520,"y":134,"width":296,"height":12}},{"id":"61602e55-2441-449e-9d27-5a86d36b2d71","block_type":"box","text":"BlackRock Liquidity Funds","page_number":1,"box":{"x":520,"y":149,"width":203,"height":12}},{"id":"acc35550-d234-47c0-a34f-5405616776b5","block_type":"box","text":"BlackRock Mid-Cap Value Series, Inc.","page_number":1,"box":{"x":520,"y":165,"width":282,"height":12}},{"id":"a1a3b03e-be9c-4387-960d-f8e3ae60ea35","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust","page_number":1,"box":{"x":520,"y":180,"width":339,"height":12}},{"id":"7daf9fd5-f5ab-4871-b025-27c6fb4d7e6e","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc.","page_number":1,"box":{"x":520,"y":196,"width":282,"height":12}},{"id":"6914d90a-2452-4ab9-a76a-01bfb5e842ef","block_type":"box","text":"BlackRock Municipal Series Trust","page_number":1,"box":{"x":520,"y":211,"width":252,"height":12}},{"id":"6aba3e9c-b699-4d5e-914d-02edb96f5a46","block_type":"box","text":"BlackRock Natural Resources Trust","page_number":1,"box":{"x":520,"y":227,"width":264,"height":9}},{"id":"b3a45b6f-f80b-4141-a797-53042f4cca02","block_type":"box","text":"BlackRock Series Fund, Inc.","page_number":1,"box":{"x":520,"y":242,"width":208,"height":12}},{"id":"5371bcbf-5e8f-412f-865b-62153acbcfad","block_type":"box","text":"BlackRock Series Fund II, Inc.","page_number":1,"box":{"x":520,"y":258,"width":226,"height":11}},{"id":"d413dc5b-e242-44e9-a014-e231e969ba03","block_type":"box","text":"BlackRock Series, Inc.","page_number":1,"box":{"x":520,"y":274,"width":166,"height":11}},{"id":"1f084751-f6c9-4a62-ab92-de84bfa7a3c7","block_type":"box","text":"BlackRock Strategic Global Bond Fund, Inc.","page_number":1,"box":{"x":520,"y":289,"width":325,"height":12}},{"id":"9ea494a8-bc3b-46a1-959e-4f54f71c694f","block_type":"box","text":"BlackRock Unconstrained Equity Fund","page_number":1,"box":{"x":520,"y":305,"width":288,"height":11}},{"id":"0702930c-111f-4d46-ad41-f92042a7f32c","block_type":"box","text":"BlackRock Variable Series Funds, Inc.","page_number":1,"box":{"x":520,"y":320,"width":282,"height":11}},{"id":"726db9b1-3358-4e47-b927-58d265bb5b3a","block_type":"box","text":"BlackRock Variable Series Funds II, Inc.","page_number":1,"box":{"x":520,"y":336,"width":299,"height":11}},{"id":"d6646b76-9b1a-4f10-83b9-68f8a3c95827","block_type":"box","text":"Supplement dated October 16, 2026","page_number":1,"box":{"x":372,"y":378,"width":260,"height":12}},{"id":"0c462f00-86d3-4579-bda4-7a3a11ba785b","block_type":"box","text":"to the Statement of Additional Information (“SAI”) of each of the funds listed","page_number":1,"box":{"x":221,"y":394,"width":561,"height":11}},{"id":"0a733eb2-8a70-4e7a-9e8b-0223f1525ebf","block_type":"box","text":"in Appendix A (each, a “Fund”), as amended from time to time.","page_number":1,"box":{"x":271,"y":409,"width":461,"height":12}},{"id":"aae1cfa3-ad33-482c-9355-9e752b10846d","block_type":"box","text":"Each Fund’s SAI is amended as follows:","page_number":1,"box":{"x":116,"y":436,"width":292,"height":9}},{"id":"e307a3af-9801-49eb-baaa-2d7feb857b34","block_type":"box","text":"The list in the section entitled “Purchase of Shares - Additional Payments by BlackRock - D. Service","page_number":1,"box":{"x":116,"y":463,"width":722,"height":12}},{"id":"f3e99a37-3cd4-431c-9cd3-5b9ea5fe2dad","block_type":"box","text":"Organizations Receiving Additional Payments” in Part II, or in the section entitled “Miscellaneous -","page_number":1,"box":{"x":116,"y":479,"width":721,"height":12}},{"id":"3b96ffe6-2b17-4f78-9e24-f515ee9c19d4","block_type":"box","text":"Additional Payments by BlackRock - D. Service Organizations Receiving Additional Payments,”","page_number":1,"box":{"x":116,"y":494,"width":695,"height":12}},{"id":"010f0642-6f25-42c0-bb10-4ead94d5cd56","block_type":"box","text":"“Investment Advisory Arrangements - Additional Payments by BlackRock - D. Service Organizations","page_number":1,"box":{"x":116,"y":510,"width":734,"height":12}},{"id":"9f1ec31b-4437-42bb-be73-d563213cf714","block_type":"box","text":"Receiving Additional Payments” or “Investment Adviser and Other Service Providers - Additional","page_number":1,"box":{"x":116,"y":525,"width":712,"height":12}},{"id":"933c3435-118a-4e2b-813b-484f40439e20","block_type":"box","text":"Payments by BlackRock - D. Service Organizations Receiving Additional Payments,” as applicable, of each","page_number":1,"box":{"x":116,"y":541,"width":771,"height":12}},{"id":"ecbb7588-913a-4dd6-bc8e-9407e51f59e1","block_type":"box","text":"Fund’s current SAI, is deleted in its entirety and replaced with the following:","page_number":1,"box":{"x":116,"y":556,"width":557,"height":12}},{"id":"50710610-b428-451e-bbed-3ddb3b6da4d9","block_type":"box","text":"&Partners","page_number":1,"box":{"x":116,"y":584,"width":72,"height":9}},{"id":"ccde6608-5b8f-440c-b98a-cab18790fc64","block_type":"box","text":"AccuTech Systems Corporation","page_number":1,"box":{"x":116,"y":599,"width":219,"height":12}},{"id":"d0661d4d-ae0d-4ecb-aca1-1e064a83999d","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":1,"box":{"x":116,"y":615,"width":173,"height":10}},{"id":"bd336b4a-0dcb-4834-b13c-6be1308eb24e","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":1,"box":{"x":116,"y":630,"width":215,"height":12}},{"id":"aa612146-873a-4388-9dae-c070f23f920d","block_type":"box","text":"Advisor Group, Inc.","page_number":1,"box":{"x":116,"y":646,"width":140,"height":11}},{"id":"7bc42961-1219-4200-b030-f42c2bdaaba2","block_type":"box","text":"AE Wealth Management, LLC","page_number":1,"box":{"x":116,"y":661,"width":207,"height":12}},{"id":"430f34eb-fc79-4b22-985c-4c7b797e90d2","block_type":"box","text":"Alight Solutions LLC","page_number":1,"box":{"x":116,"y":677,"width":146,"height":11}},{"id":"0b3de08e-9c34-4739-a6f8-fe44e470971d","block_type":"box","text":"Allianz Life Financial Services, LLC","page_number":1,"box":{"x":116,"y":692,"width":250,"height":11}},{"id":"3b061c4e-59b1-44a9-9ba6-f6d0bfbd8e46","block_type":"box","text":"Allianz Life Insurance Company of New York","page_number":1,"box":{"x":116,"y":708,"width":314,"height":11}},{"id":"a762308a-6550-4984-8d9a-6806fa0180d1","block_type":"box","text":"Allianz Life Insurance Company of North America","page_number":1,"box":{"x":116,"y":723,"width":345,"height":12}},{"id":"870cdc2b-74ec-4fcd-8ed9-2134771fca5a","block_type":"box","text":"Altruist Financial LLC","page_number":1,"box":{"x":116,"y":739,"width":154,"height":9}},{"id":"bc10ea9b-8d41-4e70-bf6b-7da8aea9ab46","block_type":"box","text":"American Enterprise Investment Services, Inc.","page_number":1,"box":{"x":116,"y":754,"width":313,"height":12}},{"id":"0cdf041f-f59c-4d19-99df-976cc1a4e819","block_type":"box","text":"American General Life Insurance Company","page_number":1,"box":{"x":116,"y":770,"width":295,"height":11}},{"id":"6cf62c00-2f98-45e5-8ebd-7cc8c7bc1957","block_type":"box","text":"American United Life Insurance Company","page_number":1,"box":{"x":116,"y":785,"width":288,"height":12}},{"id":"8052151e-ed58-4087-9032-004c8edff07c","block_type":"box","text":"Annuity Investors Life Insurance Company","page_number":1,"box":{"x":116,"y":801,"width":292,"height":11}},{"id":"9ac54eed-a6bf-45c1-b771-373e4cd04da5","block_type":"box","text":"Anthem Securities LLC","page_number":1,"box":{"x":116,"y":816,"width":160,"height":9}},{"id":"240400e8-1696-42ee-b05a-95ab49cdaa07","block_type":"box","text":"Argent Institutional Trust Company","page_number":1,"box":{"x":116,"y":832,"width":246,"height":11}},{"id":"79ffcde8-c0ee-49fa-9ad3-596951b4012e","block_type":"box","text":"Ascensus Broker Dealer Services, Inc.","page_number":1,"box":{"x":116,"y":847,"width":263,"height":11}},{"id":"b6d60e12-97e7-4c32-90be-559ea4c31674","block_type":"box","text":"Ascensus, Inc.","page_number":1,"box":{"x":116,"y":863,"width":102,"height":10}},{"id":"cd433bce-deb8-4638-816d-e1431daa7f66","block_type":"box","text":"Atomic Brokerage LLC","page_number":1,"box":{"x":116,"y":878,"width":165,"height":12}},{"id":"8dae18f8-da04-41d9-b589-20ed243d24fb","block_type":"box","text":"Avantax Investment Services, LLC","page_number":1,"box":{"x":116,"y":894,"width":242,"height":10}},{"id":"59d8a08a-a6a7-45ba-a609-73122d673bed","block_type":"box","text":"Bancroft Capital LLC","page_number":1,"box":{"x":116,"y":909,"width":147,"height":12}},{"id":"ac8e781f-fad4-4b0f-9183-11be8522271d","block_type":"box","text":"Bank of America, N.A.","page_number":1,"box":{"x":520,"y":584,"width":161,"height":10}},{"id":"68102bb1-0e78-402a-a09e-ec1e35c77f44","block_type":"box","text":"Bank of New York Mellon","page_number":1,"box":{"x":520,"y":599,"width":185,"height":9}},{"id":"c67d5a9f-e0ed-4ba6-a5b9-daa23d90f2e8","block_type":"box","text":"Barclays Capital Inc.","page_number":1,"box":{"x":520,"y":615,"width":146,"height":11}},{"id":"6c65d228-2759-48bc-a0f6-8cd57288d05a","block_type":"box","text":"Benefit Plans Administrative Services, Inc.","page_number":1,"box":{"x":520,"y":630,"width":295,"height":11}},{"id":"7b35ca36-67f3-4596-86ad-c53a136cf651","block_type":"box","text":"Benefit Trust Company","page_number":1,"box":{"x":520,"y":646,"width":163,"height":11}},{"id":"8a68ea86-3bbd-430f-8222-f6609f23c407","block_type":"box","text":"Beta Capital Securities LLC","page_number":1,"box":{"x":520,"y":661,"width":190,"height":12}},{"id":"172afd3d-56be-4cc1-a1ba-7486a0dfa386","block_type":"box","text":"bfinance US Ltd.","page_number":1,"box":{"x":520,"y":677,"width":114,"height":9}},{"id":"55c68053-8e1b-4e7a-a709-7a727fb04eaf","block_type":"box","text":"BlackRock Advisors, LLC","page_number":1,"box":{"x":520,"y":692,"width":179,"height":11}},{"id":"d9af92f2-de54-4fc5-8192-82613908c6b1","block_type":"box","text":"BMO Capital Markets Corp.","page_number":1,"box":{"x":520,"y":708,"width":191,"height":11}},{"id":"799e42f2-ec16-4670-844b-de8f2c57f3cb","block_type":"box","text":"BNP Paribas","page_number":1,"box":{"x":520,"y":723,"width":85,"height":9}},{"id":"61458d55-026b-45d5-b2aa-1e3463d910f9","block_type":"box","text":"BNP Paribas Investment Partners UK Limited","page_number":1,"box":{"x":520,"y":739,"width":311,"height":9}},{"id":"c753fde4-a4fa-4f16-8054-8ec5e8b22481","block_type":"box","text":"BNY Mellon, N.A.","page_number":1,"box":{"x":520,"y":754,"width":128,"height":11}},{"id":"142006c2-a3c6-40a2-99ee-7adecf244651","block_type":"box","text":"BofA Securities, Inc.","page_number":1,"box":{"x":520,"y":770,"width":141,"height":10}},{"id":"ee429b43-fb1b-4a81-beb3-b031cfd09835","block_type":"box","text":"BOKF, N.A.","page_number":1,"box":{"x":520,"y":785,"width":84,"height":11}},{"id":"6c491d16-89de-4abb-8a51-f928fd7b2299","block_type":"box","text":"Brighthouse Life Insurance Company","page_number":1,"box":{"x":520,"y":801,"width":253,"height":11}},{"id":"75cd6fcb-1dbe-4d31-97b5-c5ef626b84e4","block_type":"box","text":"Brighthouse Life Insurance Company of NY","page_number":1,"box":{"x":520,"y":816,"width":300,"height":12}},{"id":"e1524119-6535-444e-a962-4f79904180ef","block_type":"box","text":"Broadridge Business Process Outsourcing, LLC","page_number":1,"box":{"x":520,"y":832,"width":327,"height":11}},{"id":"359435b9-fac3-432d-8629-a6d38886c153","block_type":"box","text":"Brown Brothers Harriman & Co.","page_number":1,"box":{"x":520,"y":847,"width":226,"height":9}},{"id":"b74947ac-4888-4117-9788-79e38fb8e992","block_type":"box","text":"Cabrera Capital Markets, LLC","page_number":1,"box":{"x":520,"y":863,"width":210,"height":11}},{"id":"6253a8fe-33a2-4960-94de-5037f5d05c50","block_type":"box","text":"Capital One, N.A.","page_number":1,"box":{"x":520,"y":878,"width":126,"height":12}},{"id":"e9008a8f-110d-4f87-9f6c-c88f03668065","block_type":"box","text":"Cetera Advisor Networks LLC","page_number":1,"box":{"x":520,"y":894,"width":212,"height":9}},{"id":"9980baba-b3ea-44f7-949c-25692be4db4b","block_type":"box","text":"Cetera Advisors LLC","page_number":1,"box":{"x":520,"y":909,"width":144,"height":9}},{"id":"3137febf-7b7c-4407-baf4-ea3992ca772e","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":1,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"60ce871a-c788-4870-be3e-21ced20b7616","block_type":"box","text":"Cetera Financial Group","page_number":2,"box":{"x":116,"y":88,"width":162,"height":11}},{"id":"322ea742-687a-4936-96ad-23f564d67a1d","block_type":"box","text":"Cetera Financial Specialists LLC","page_number":2,"box":{"x":116,"y":103,"width":227,"height":12}},{"id":"38067a4a-9d24-402e-b5a3-cf82c451c043","block_type":"box","text":"Cetera Investment Services LLC","page_number":2,"box":{"x":116,"y":119,"width":224,"height":9}},{"id":"a18c0930-e745-4241-8b3a-4ccbc2778eb1","block_type":"box","text":"CF Secured, LLC","page_number":2,"box":{"x":116,"y":134,"width":123,"height":11}},{"id":"9fd5c96d-2722-45e0-b449-5bc2b3da2521","block_type":"box","text":"Charles Schwab & Co., Inc.","page_number":2,"box":{"x":116,"y":150,"width":192,"height":10}},{"id":"34540d4c-bf44-447e-9060-560ec6696e63","block_type":"box","text":"Charles Schwab Trust Bank","page_number":2,"box":{"x":116,"y":165,"width":192,"height":9}},{"id":"dd5e5899-2269-43fc-a7d3-ceab6baed547","block_type":"box","text":"Chicago Mercantile Exchange Inc.","page_number":2,"box":{"x":116,"y":181,"width":238,"height":11}},{"id":"75a9204a-fb7f-495e-95ac-9f4c9e1cc7ed","block_type":"box","text":"CIM Investment Management, Inc.","page_number":2,"box":{"x":116,"y":196,"width":241,"height":12}},{"id":"392d56ed-1105-4074-a425-b20ae6c75e88","block_type":"box","text":"Citco Securities, LLC","page_number":2,"box":{"x":116,"y":212,"width":151,"height":10}},{"id":"248228ae-8ba9-44ea-8ce1-9f6aa98b75f0","block_type":"box","text":"CitiBank, National Association","page_number":2,"box":{"x":116,"y":227,"width":215,"height":11}},{"id":"aa225397-80a2-4ec8-8151-04635cd9d8ee","block_type":"box","text":"Citigroup Global Markets, Inc.","page_number":2,"box":{"x":116,"y":243,"width":212,"height":11}},{"id":"9f424075-c988-4741-80f9-71f99b6fa073","block_type":"box","text":"Citizens Bank","page_number":2,"box":{"x":116,"y":258,"width":99,"height":9}},{"id":"54847cec-cb10-4299-bb3a-a3ccf3b92f07","block_type":"box","text":"Citizens Business Bank","page_number":2,"box":{"x":116,"y":274,"width":163,"height":9}},{"id":"d1cfb487-5da9-4f27-9c6b-13f2cd43e192","block_type":"box","text":"CME Shareholder Servicing LLC","page_number":2,"box":{"x":116,"y":289,"width":231,"height":12}},{"id":"eabfae22-7c1f-4263-9507-2f8d76ba7ad6","block_type":"box","text":"CMFG Life Insurance Company","page_number":2,"box":{"x":116,"y":305,"width":223,"height":11}},{"id":"9f4ee3ae-011c-48e2-9e4b-446e984895d1","block_type":"box","text":"Comerica Bank","page_number":2,"box":{"x":116,"y":320,"width":109,"height":9}},{"id":"af791b06-36c1-4f26-b29c-95eeaf8d129d","block_type":"box","text":"Commonwealth Financial Network","page_number":2,"box":{"x":116,"y":336,"width":242,"height":9}},{"id":"976c407c-bb1b-4aa2-86f4-2c14396981d2","block_type":"box","text":"Computershare Trust Company","page_number":2,"box":{"x":116,"y":351,"width":216,"height":12}},{"id":"4bfad61b-3e40-41cd-964d-97ade7dce698","block_type":"box","text":"Conduent HR Services, LLC","page_number":2,"box":{"x":116,"y":367,"width":198,"height":10}},{"id":"10086905-5382-43aa-9f8d-8ac7def8ac37","block_type":"box","text":"Delaware Life Insurance Company","page_number":2,"box":{"x":116,"y":382,"width":240,"height":12}},{"id":"08e7a88c-9565-4d37-b580-7b283e61709d","block_type":"box","text":"Delaware Trust Company","page_number":2,"box":{"x":116,"y":398,"width":178,"height":11}},{"id":"449ef428-ff5d-47fd-ab60-ebf05b1a86f6","block_type":"box","text":"Deutsche Bank AG","page_number":2,"box":{"x":116,"y":413,"width":135,"height":9}},{"id":"13d2c67b-3bf2-4daf-87dd-89f0b6400a3a","block_type":"box","text":"Deutsche Bank Trust Company Americas","page_number":2,"box":{"x":116,"y":429,"width":285,"height":11}},{"id":"f1355e00-8989-41ae-8c2a-872bb7072764","block_type":"box","text":"Digital Retirement Solutions, Inc.","page_number":2,"box":{"x":116,"y":444,"width":232,"height":12}},{"id":"8c364bba-9a50-41d8-9edb-a143724ba98f","block_type":"box","text":"Dunham & Associates Investment Counsel, Inc.","page_number":2,"box":{"x":116,"y":460,"width":328,"height":10}},{"id":"43de16be-f6b6-41a7-83ef-58a90e1ee004","block_type":"box","text":"Dynasty Financial Partners LLC","page_number":2,"box":{"x":116,"y":475,"width":223,"height":12}},{"id":"a1d8c698-12cd-4f08-85c5-d8dd3d6cb77f","block_type":"box","text":"Edward D. Jones & Co., L.P.","page_number":2,"box":{"x":116,"y":491,"width":200,"height":10}},{"id":"042a5a11-e5c3-4fab-aed9-b01facf5665f","block_type":"box","text":"Empire Fidelity Investments Life Insurance","page_number":2,"box":{"x":116,"y":506,"width":298,"height":12}},{"id":"3631d806-c558-4845-abc7-cef1c1ca8eda","block_type":"box","text":"Company","page_number":2,"box":{"x":116,"y":522,"width":69,"height":11}},{"id":"d4cab9c7-faef-433f-8f3d-1a9e9caaaa84","block_type":"box","text":"Empower Annuity Insurance Company of America","page_number":2,"box":{"x":116,"y":537,"width":349,"height":12}},{"id":"1f737cd8-9c80-40c1-894a-2e17ba3b6e83","block_type":"box","text":"Empower Financial Services, Inc.","page_number":2,"box":{"x":116,"y":553,"width":232,"height":11}},{"id":"4b2d4db0-8325-49b6-939b-250c6dd4a8b4","block_type":"box","text":"Empower Life & Annuity Insurance Company of","page_number":2,"box":{"x":116,"y":568,"width":336,"height":12}},{"id":"da7bd4df-a39f-445b-96ad-914c04d01bcb","block_type":"box","text":"New York","page_number":2,"box":{"x":116,"y":584,"width":74,"height":9}},{"id":"e8da0c4b-8fe2-472a-9a36-a805be42aeb1","block_type":"box","text":"Empower Plan Services, LLC","page_number":2,"box":{"x":116,"y":599,"width":205,"height":12}},{"id":"63436959-0cdf-4d38-b8b0-239ec1aa2f75","block_type":"box","text":"Envestnet Asset Management, Inc.","page_number":2,"box":{"x":116,"y":615,"width":238,"height":11}},{"id":"9f3d0b65-de40-415a-9b8d-f62960a32f63","block_type":"box","text":"Equitable Advisors, LLC","page_number":2,"box":{"x":116,"y":630,"width":174,"height":12}},{"id":"f7420d22-b2b7-42ee-a39b-4e0020372f44","block_type":"box","text":"Equitable Life Insurance Company","page_number":2,"box":{"x":116,"y":646,"width":240,"height":11}},{"id":"479c5b7d-e7f4-4289-81e1-b661ce213131","block_type":"box","text":"E*trade Savings Bank","page_number":2,"box":{"x":116,"y":661,"width":150,"height":12}},{"id":"cbbce3bd-48db-40b7-8d4c-37b1983fa9bf","block_type":"box","text":"Federal Deposit Insurance Corporation","page_number":2,"box":{"x":116,"y":677,"width":262,"height":11}},{"id":"2d674afd-ae43-4797-85ed-24059ff99091","block_type":"box","text":"Fidelity Brokerage Services LLC","page_number":2,"box":{"x":116,"y":692,"width":223,"height":12}},{"id":"5da4881b-593b-42e2-939a-e091f2bfe03c","block_type":"box","text":"Fidelity Investments Institutional Operations","page_number":2,"box":{"x":116,"y":708,"width":301,"height":11}},{"id":"f18c136e-99b2-4382-b0f2-7045197e5cb7","block_type":"box","text":"Company, Inc.","page_number":2,"box":{"x":116,"y":723,"width":98,"height":12}},{"id":"b00751d0-64e2-4587-915e-9a1d736a90d5","block_type":"box","text":"Fidelity Investments Life Insurance Company","page_number":2,"box":{"x":116,"y":739,"width":309,"height":11}},{"id":"6196b4a9-e4e2-421e-b19e-1180f067775e","block_type":"box","text":"Fifth Third Securities, Inc.","page_number":2,"box":{"x":116,"y":754,"width":178,"height":11}},{"id":"d0d80ebe-a02a-4301-aa6c-3868a552bf21","block_type":"box","text":"First Allied Securities, Inc.","page_number":2,"box":{"x":116,"y":770,"width":181,"height":10}},{"id":"94e7d968-9f10-4287-a89e-441be4262e9d","block_type":"box","text":"First Command Financial Planning, Inc.","page_number":2,"box":{"x":116,"y":785,"width":269,"height":12}},{"id":"76d35f32-516d-47bf-8e99-bca5435ed360","block_type":"box","text":"First Hawaiian Bank","page_number":2,"box":{"x":116,"y":801,"width":139,"height":9}},{"id":"0245d464-f8f9-408e-b601-5c236dc18675","block_type":"box","text":"First Republic Bank","page_number":2,"box":{"x":116,"y":816,"width":136,"height":12}},{"id":"71d75477-20f3-45c6-8d14-85d84a20220c","block_type":"box","text":"First Security Benefit Life Insurance and Annuity","page_number":2,"box":{"x":116,"y":832,"width":339,"height":11}},{"id":"7aa31651-800c-430f-b01d-523f8678778b","block_type":"box","text":"Company of New York","page_number":2,"box":{"x":116,"y":847,"width":162,"height":12}},{"id":"6f9f362b-b95c-4247-a8cf-84cc258721cd","block_type":"box","text":"First Symetra National Life Insurance Company of","page_number":2,"box":{"x":116,"y":863,"width":348,"height":11}},{"id":"de079873-067f-4b19-a05f-295d6b6ba494","block_type":"box","text":"New York","page_number":2,"box":{"x":116,"y":878,"width":74,"height":9}},{"id":"92620fb8-c260-4b2b-a674-b59a70d7aefe","block_type":"box","text":"First-Citizens Bank & Trust Company","page_number":2,"box":{"x":116,"y":894,"width":262,"height":11}},{"id":"04203a53-c1b2-4a5e-8192-1eb23590fdf4","block_type":"box","text":"FIS Brokerage & Securities Services LLC","page_number":2,"box":{"x":116,"y":909,"width":283,"height":12}},{"id":"a8ddf81f-f62a-4165-8791-c87370c6b1b4","block_type":"box","text":"FNEX Capital, LLC","page_number":2,"box":{"x":520,"y":88,"width":141,"height":11}},{"id":"c9c701af-7d51-4fc0-a21e-d5f0593c1b0d","block_type":"box","text":"Forethought Life Insurance Company","page_number":2,"box":{"x":520,"y":103,"width":258,"height":12}},{"id":"b3abbbc2-5ddb-40ac-9f20-a8a6113df54d","block_type":"box","text":"FSC Securities Corporation","page_number":2,"box":{"x":520,"y":119,"width":190,"height":11}},{"id":"d392c374-95f3-4013-aaf8-066d3fa74b6d","block_type":"box","text":"Genworth Life and Annuity Insurance Company","page_number":2,"box":{"x":520,"y":134,"width":331,"height":12}},{"id":"14aae765-6f7c-42d8-8411-cd573513a33b","block_type":"box","text":"Genworth Life Insurance Company of New York","page_number":2,"box":{"x":520,"y":150,"width":336,"height":11}},{"id":"6da91b2e-3711-4e17-8db5-518457f6360b","block_type":"box","text":"Global Atlantic Distributors, LLC","page_number":2,"box":{"x":520,"y":165,"width":233,"height":11}},{"id":"17d6a693-c49c-4436-9bb0-c7fe48e35132","block_type":"box","text":"Goldman Sachs & Co.","page_number":2,"box":{"x":520,"y":181,"width":156,"height":9}},{"id":"a4873549-8d97-48ff-bb11-4100e61549a0","block_type":"box","text":"Great Pacific Securities, LLC","page_number":2,"box":{"x":520,"y":196,"width":203,"height":11}},{"id":"c75f2b71-c624-4c3e-be43-3f830b3b6838","block_type":"box","text":"Guardian Insurance & Annuity Co., Inc.","page_number":2,"box":{"x":520,"y":212,"width":275,"height":11}},{"id":"1da8ada1-2439-47b1-a378-61532dd15a9b","block_type":"box","text":"Hancock Whitney Bank","page_number":2,"box":{"x":520,"y":227,"width":166,"height":12}},{"id":"0dff6b7d-9542-4b11-832e-2b44b324e03b","block_type":"box","text":"Hartford Funds Management Company","page_number":2,"box":{"x":520,"y":243,"width":269,"height":11}},{"id":"cbc654fa-2184-4942-b056-50d0f873188a","block_type":"box","text":"Hartford Securities Distribution Company, Inc.","page_number":2,"box":{"x":520,"y":258,"width":322,"height":12}},{"id":"90e28719-7b80-49a6-a8ad-625727b8046f","block_type":"box","text":"Hazeltree Fund Services, Inc.","page_number":2,"box":{"x":520,"y":274,"width":203,"height":10}},{"id":"18e0f62e-a28e-448d-9b32-97b740fac5cc","block_type":"box","text":"Hightower Securities, Inc.","page_number":2,"box":{"x":520,"y":289,"width":181,"height":12}},{"id":"bc9573d5-f698-4674-b9e1-6c1ff448d350","block_type":"box","text":"Hilltop Securities Inc.","page_number":2,"box":{"x":520,"y":305,"width":152,"height":11}},{"id":"22630447-ab29-4538-9054-3c2c1c8d8b7e","block_type":"box","text":"HSBC Bank USA, N.A.","page_number":2,"box":{"x":520,"y":320,"width":166,"height":11}},{"id":"95cf421e-4d07-4991-a784-fb256ec6cb01","block_type":"box","text":"Huntington Securities, Inc.","page_number":2,"box":{"x":520,"y":336,"width":186,"height":11}},{"id":"a767e711-3e09-482c-9caf-cfc2238b0405","block_type":"box","text":"Institutional Cash Distributors, LLC","page_number":2,"box":{"x":520,"y":351,"width":249,"height":11}},{"id":"dec49cbf-bac9-4053-8645-e5b6b59be020","block_type":"box","text":"Integrity Life Insurance Company","page_number":2,"box":{"x":520,"y":367,"width":234,"height":11}},{"id":"28b69afe-1c57-4200-afce-afd5ab125aa0","block_type":"box","text":"Interactive Brokers, LLC","page_number":2,"box":{"x":520,"y":382,"width":174,"height":11}},{"id":"3ea410ba-f0b4-4d38-b268-3b7eaeb3633d","block_type":"box","text":"Investment Trust of California","page_number":2,"box":{"x":520,"y":398,"width":209,"height":9}},{"id":"bc84c5aa-af1a-441d-9dee-d628acebd0ef","block_type":"box","text":"J.P. Morgan Institutional Investments Inc.","page_number":2,"box":{"x":520,"y":413,"width":287,"height":12}},{"id":"7482e275-3d58-4877-a4ac-bb7e1717341c","block_type":"box","text":"J.P. Morgan Securities LLC","page_number":2,"box":{"x":520,"y":429,"width":193,"height":11}},{"id":"49fccb3d-33ab-4696-8381-f84dfd9f1d56","block_type":"box","text":"Jefferies LLC","page_number":2,"box":{"x":520,"y":444,"width":97,"height":9}},{"id":"4bb6966e-584b-49bf-91a4-b84a2dc9ab3a","block_type":"box","text":"Jefferson National Life Insurance Company","page_number":2,"box":{"x":520,"y":460,"width":300,"height":11}},{"id":"dd3ab9b1-7807-4e40-9cfc-1ea3dd3248e6","block_type":"box","text":"Jefferson National Life Insurance Company of New","page_number":2,"box":{"x":520,"y":475,"width":354,"height":12}},{"id":"b60000bc-eb2c-4d8e-a177-3633b6f83dac","block_type":"box","text":"York","page_number":2,"box":{"x":520,"y":491,"width":39,"height":9}},{"id":"e212c34a-54c6-4c62-8b03-dfbfcf96e4f1","block_type":"box","text":"John Hancock Life Insurance Company (U.S.A.)","page_number":2,"box":{"x":520,"y":506,"width":333,"height":12}},{"id":"8b8b2045-c1af-48d0-b975-60f0bfee68de","block_type":"box","text":"John Hancock Life Insurance Company of New York","page_number":2,"box":{"x":520,"y":522,"width":365,"height":11}},{"id":"ac25d4b5-b29a-4da4-922b-35149c89a9bb","block_type":"box","text":"John Hancock Trust Company","page_number":2,"box":{"x":520,"y":537,"width":209,"height":12}},{"id":"402920cd-d69e-4b5e-aa6f-d0386b1c4fd1","block_type":"box","text":"JPMorgan Chase Bank, N.A.","page_number":2,"box":{"x":520,"y":553,"width":199,"height":11}},{"id":"fa9f4b37-f5b0-4f5c-8be6-748bc112a419","block_type":"box","text":"Kestra Investment Services, LLC","page_number":2,"box":{"x":520,"y":568,"width":229,"height":11}},{"id":"66a74669-63d1-437a-b9c3-269af68c1356","block_type":"box","text":"Lincoln Financial Advisors Corporation","page_number":2,"box":{"x":520,"y":584,"width":274,"height":11}},{"id":"53e10d3e-f68e-4df6-9426-bf6a36e8d187","block_type":"box","text":"Lincoln Financial Securities Corporation","page_number":2,"box":{"x":520,"y":599,"width":280,"height":12}},{"id":"b0fe8431-8dd2-4105-9d07-65b35b548a51","block_type":"box","text":"Lincoln Life & Annuity Company of New York","page_number":2,"box":{"x":520,"y":615,"width":328,"height":11}},{"id":"23828b4e-7e54-4f6c-9d70-cf5b5e5c8638","block_type":"box","text":"Lincoln National Life Insurance Company","page_number":2,"box":{"x":520,"y":630,"width":290,"height":12}},{"id":"4745d25b-905c-412e-8f42-da8ebb0422d2","block_type":"box","text":"Lincoln Retirement Services LLC","page_number":2,"box":{"x":520,"y":646,"width":233,"height":9}},{"id":"11db44a4-aa73-47c2-99cc-4b19530585a5","block_type":"box","text":"Lombard International Life Assurance Company","page_number":2,"box":{"x":520,"y":661,"width":328,"height":12}},{"id":"ee30828c-e20f-47a6-bd1d-f9dd145f2852","block_type":"box","text":"LPL Financial LLC","page_number":2,"box":{"x":520,"y":677,"width":132,"height":9}},{"id":"7ea76814-ebd6-43f9-8621-63cb704fe197","block_type":"box","text":"M&T Securities Inc.","page_number":2,"box":{"x":520,"y":692,"width":138,"height":9}},{"id":"f780eabf-e814-4dbe-8e24-0e1eba352e68","block_type":"box","text":"Manufacturers and Traders Trust Company","page_number":2,"box":{"x":520,"y":708,"width":291,"height":11}},{"id":"0d92173d-d00a-47a2-bc67-2c5a05989da7","block_type":"box","text":"Massachusetts Mutual Life Insurance Company","page_number":2,"box":{"x":520,"y":723,"width":321,"height":12}},{"id":"eecdbcaf-0beb-42b1-b360-3ca8290dc416","block_type":"box","text":"Members Life Insurance Company","page_number":2,"box":{"x":520,"y":739,"width":235,"height":11}},{"id":"90b2bfe2-6312-4b3b-97bb-e6dd0615e5d0","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith Incorporated","page_number":2,"box":{"x":520,"y":754,"width":353,"height":12}},{"id":"09db3508-a7fb-4431-a3d5-0d12c70384d9","block_type":"box","text":"Metavante Corporation","page_number":2,"box":{"x":520,"y":770,"width":156,"height":11}},{"id":"96f865b3-4a24-43ed-bfb2-521144c5caf7","block_type":"box","text":"Metropolitan Life Insurance Company","page_number":2,"box":{"x":520,"y":785,"width":259,"height":12}},{"id":"cc6f52ed-652b-4fca-9921-a467f973a885","block_type":"box","text":"Mid Atlantic Clearing & Settlement Corporation","page_number":2,"box":{"x":520,"y":801,"width":328,"height":11}},{"id":"348c14e1-a500-4673-9372-3dcdd0abd74e","block_type":"box","text":"Midland Life Insurance Company","page_number":2,"box":{"x":520,"y":816,"width":228,"height":12}},{"id":"b0060116-97b4-4924-aef8-2544831c8101","block_type":"box","text":"Minnesota Life Insurance Company","page_number":2,"box":{"x":520,"y":832,"width":247,"height":11}},{"id":"2bf87f59-37f1-4271-b3eb-e7bde1b62473","block_type":"box","text":"Mischler Financial Group","page_number":2,"box":{"x":520,"y":847,"width":178,"height":12}},{"id":"7501718d-ef2d-4ac6-9491-03e515d83416","block_type":"box","text":"Mizuho Securities USA Inc.","page_number":2,"box":{"x":520,"y":863,"width":195,"height":9}},{"id":"dcb28726-d98d-4c02-a82b-205ae625657b","block_type":"box","text":"MML Distributors, LLC","page_number":2,"box":{"x":520,"y":878,"width":169,"height":11}},{"id":"f158248f-4be1-4c85-8b11-246d70162319","block_type":"box","text":"MML Investors Services, LLC","page_number":2,"box":{"x":520,"y":894,"width":212,"height":10}},{"id":"636ebdbd-54bc-4a69-a326-ba466f2cf9c4","block_type":"box","text":"Morgan Stanley & Co. LLC","page_number":2,"box":{"x":520,"y":909,"width":189,"height":12}},{"id":"dbb77377-ad52-49e3-9a61-bde33d6af384","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":2,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d24362de-6349-49af-8b9f-c76aa06c8f5f","block_type":"box","text":"Morgan Stanley Distribution, Inc.","page_number":3,"box":{"x":116,"y":88,"width":232,"height":11}},{"id":"799fc49d-23f5-477f-b7d4-560bdb12f445","block_type":"box","text":"Morgan Stanley Smith Barney LLC","page_number":3,"box":{"x":116,"y":103,"width":245,"height":12}},{"id":"31f6bcd0-cd68-4e06-8800-ef4de465562f","block_type":"box","text":"MUFG Union Bank, National Association","page_number":3,"box":{"x":116,"y":119,"width":289,"height":10}},{"id":"8b421477-dfaf-46ff-a483-04e3fe54a773","block_type":"box","text":"Nassau Life Insurance Company","page_number":3,"box":{"x":116,"y":134,"width":224,"height":12}},{"id":"56e9c3f5-5bb8-4743-b633-26255c28d74e","block_type":"box","text":"National Financial Services LLC","page_number":3,"box":{"x":116,"y":150,"width":226,"height":9}},{"id":"f61b5e52-bac3-4d2b-b4f3-38d53ddbafb8","block_type":"box","text":"National Integrity Life Insurance Company","page_number":3,"box":{"x":116,"y":165,"width":296,"height":12}},{"id":"107c5d7b-20fb-49a3-9cad-3bad7dc8d8fa","block_type":"box","text":"National Life Insurance Company","page_number":3,"box":{"x":116,"y":181,"width":234,"height":11}},{"id":"cbf07642-d44d-4f81-b434-21f8359c1ac1","block_type":"box","text":"Nationwide Financial Services, Inc.","page_number":3,"box":{"x":116,"y":196,"width":245,"height":11}},{"id":"d68a9601-1cc6-4c93-aa4b-d23af604bb36","block_type":"box","text":"Nationwide Fund Distributors LLC","page_number":3,"box":{"x":116,"y":212,"width":242,"height":9}},{"id":"7404e2b5-a3e0-4e19-86d3-0f37e4971616","block_type":"box","text":"Nationwide Retirement Solutions","page_number":3,"box":{"x":116,"y":227,"width":230,"height":9}},{"id":"59bca0ba-2a62-42d1-8d5b-1d235ac09e71","block_type":"box","text":"NCB Federal Savings Bank","page_number":3,"box":{"x":116,"y":243,"width":191,"height":11}},{"id":"aa60f084-ebbf-4df9-8e3d-edae09d2abec","block_type":"box","text":"New England Pension Plan Systems, LLC","page_number":3,"box":{"x":116,"y":258,"width":288,"height":12}},{"id":"e6a526a4-8607-4527-b9f2-5dc4b99d2950","block_type":"box","text":"New York Life Insurance and Annuity Corporation","page_number":3,"box":{"x":116,"y":274,"width":350,"height":11}},{"id":"7e82b119-333c-419e-8f92-68a07e669e14","block_type":"box","text":"Newport Retirement Services, Inc.","page_number":3,"box":{"x":116,"y":289,"width":237,"height":12}},{"id":"d5cf1db0-81b9-48dd-bc8f-3d3e04b8267f","block_type":"box","text":"Northbrook Bank & Trust Company","page_number":3,"box":{"x":116,"y":305,"width":249,"height":11}},{"id":"c8f77b43-6a70-4153-a638-03c3120c39e0","block_type":"box","text":"Northern Trust Company","page_number":3,"box":{"x":116,"y":320,"width":174,"height":12}},{"id":"98ddb5c7-09e3-4bcf-a1b6-d44a46cb7466","block_type":"box","text":"Northwestern Mutual Investment Services, LLC","page_number":3,"box":{"x":116,"y":336,"width":329,"height":10}},{"id":"c06b4e7a-28fd-4059-862f-9b0746b5cabc","block_type":"box","text":"Northwestern Mutual Life Insurance Company","page_number":3,"box":{"x":116,"y":351,"width":320,"height":12}},{"id":"24809aba-f366-4ce0-9d05-66909c83c749","block_type":"box","text":"NYLife Distributors LLC","page_number":3,"box":{"x":116,"y":367,"width":177,"height":9}},{"id":"0a422748-4b11-4a25-b294-ace6e70da210","block_type":"box","text":"Oppenheimer & Co., Inc.","page_number":3,"box":{"x":116,"y":382,"width":175,"height":12}},{"id":"cb7f7ee3-7c9c-4d9c-9a18-674a6789bed0","block_type":"box","text":"Orion Advisor Services, LLC","page_number":3,"box":{"x":116,"y":398,"width":203,"height":10}},{"id":"1d17a749-6921-46a7-b271-124b7300a613","block_type":"box","text":"Osaic Wealth, Inc.","page_number":3,"box":{"x":116,"y":413,"width":129,"height":11}},{"id":"7bc93fe6-9e33-4fc8-a872-7b0d586a022e","block_type":"box","text":"Pacific Life & Annuity Company","page_number":3,"box":{"x":116,"y":429,"width":230,"height":11}},{"id":"526eb42a-a9a2-4a0d-b13d-07b7d951d737","block_type":"box","text":"Pacific Life Insurance Company","page_number":3,"box":{"x":116,"y":444,"width":223,"height":12}},{"id":"c7655efc-6f7f-406a-9623-2d9000a380ff","block_type":"box","text":"Pacific Select Distributors, LLC","page_number":3,"box":{"x":116,"y":460,"width":221,"height":10}},{"id":"9b2f5ca3-2ca7-4550-b0aa-75e301638fcd","block_type":"box","text":"Park Avenue Securities LLC","page_number":3,"box":{"x":116,"y":475,"width":198,"height":9}},{"id":"461d842b-2451-43fd-b007-7bc8d78b9d58","block_type":"box","text":"Penserra Securities LLC","page_number":3,"box":{"x":116,"y":491,"width":169,"height":9}},{"id":"81babb48-51e9-4194-a010-8ba4c39b45a0","block_type":"box","text":"Pershing LLC","page_number":3,"box":{"x":116,"y":506,"width":99,"height":12}},{"id":"3eefe363-a94c-406e-9aa6-492bd40a1b43","block_type":"box","text":"PFPC Inc.","page_number":3,"box":{"x":116,"y":522,"width":73,"height":9}},{"id":"77ff6734-6ca8-4f67-99de-b9a643b0df00","block_type":"box","text":"Piper Jaffray & Co.","page_number":3,"box":{"x":116,"y":537,"width":136,"height":12}},{"id":"e49705dc-79fe-4d65-899e-4bb2f3379741","block_type":"box","text":"PNC Bank, National Association","page_number":3,"box":{"x":116,"y":553,"width":226,"height":10}},{"id":"4c4a979a-f802-4e7c-a16a-aff4690b13f9","block_type":"box","text":"PNC Capital Markets LLC","page_number":3,"box":{"x":116,"y":568,"width":185,"height":12}},{"id":"01bc7186-83ca-43f2-9a18-c9364aa2c702","block_type":"box","text":"PNC Investments LLC","page_number":3,"box":{"x":116,"y":584,"width":158,"height":9}},{"id":"9ac2bfa6-63b5-4dd7-8058-dfed038254ec","block_type":"box","text":"Principal Bank","page_number":3,"box":{"x":116,"y":599,"width":105,"height":12}},{"id":"b0bbbc58-49dd-4ca6-8f3f-747045759251","block_type":"box","text":"Principal Life Insurance Company","page_number":3,"box":{"x":116,"y":615,"width":237,"height":11}},{"id":"d70af442-4fd2-446a-8107-777f8fcde68b","block_type":"box","text":"Protective Life and Annuity Insurance Company","page_number":3,"box":{"x":116,"y":630,"width":332,"height":12}},{"id":"82d7e90a-6e69-4b10-9c56-aef40aff1626","block_type":"box","text":"Protective Life Insurance Company","page_number":3,"box":{"x":116,"y":646,"width":244,"height":11}},{"id":"30b381da-4e74-4ee7-9fd7-89c1e17da27b","block_type":"box","text":"Pruco Life Insurance Company","page_number":3,"box":{"x":116,"y":661,"width":210,"height":12}},{"id":"12bf9836-2230-4828-8dfc-a523695b074f","block_type":"box","text":"Pruco Life Insurance Company of New Jersey","page_number":3,"box":{"x":116,"y":677,"width":311,"height":11}},{"id":"d4bd7b6e-b1c3-4f6d-a19d-d5a651605114","block_type":"box","text":"Prudential Annuities Distributors, Inc.","page_number":3,"box":{"x":116,"y":692,"width":257,"height":11}},{"id":"548d68e2-ea74-48df-a592-233a26c84440","block_type":"box","text":"Prudential Insurance Company of America","page_number":3,"box":{"x":116,"y":708,"width":289,"height":11}},{"id":"6309b1d8-2dc9-4bd9-a76d-0e01143b62fe","block_type":"box","text":"Raymond James & Associates, Inc.","page_number":3,"box":{"x":116,"y":723,"width":237,"height":12}},{"id":"6cae0ca3-72ba-40e2-9471-9dccc501d0b9","block_type":"box","text":"Raymond James Financial Services, Inc.","page_number":3,"box":{"x":116,"y":739,"width":272,"height":11}},{"id":"371f92ba-8493-4e77-b5ff-cae628166be9","block_type":"box","text":"RBC Capital Markets, LLC","page_number":3,"box":{"x":116,"y":754,"width":185,"height":12}},{"id":"f676fc92-1c38-4b73-b6aa-e793f0b36a9d","block_type":"box","text":"Regions Bank","page_number":3,"box":{"x":116,"y":770,"width":95,"height":11}},{"id":"466c58a3-4366-40af-89c1-b18a2393ffb6","block_type":"box","text":"Reliance Trust Company","page_number":3,"box":{"x":116,"y":785,"width":168,"height":12}},{"id":"2090ff23-78ee-48ad-b8bf-a12f6588ea14","block_type":"box","text":"Reliastar Life Insurance Company","page_number":3,"box":{"x":116,"y":801,"width":231,"height":11}},{"id":"803d3a3d-b4c4-409f-a929-4a454e3c052c","block_type":"box","text":"Reliastar Life Insurance Company of New York","page_number":3,"box":{"x":116,"y":816,"width":325,"height":12}},{"id":"d5e54cf6-ed98-49f1-9624-ad91add0e63d","block_type":"box","text":"RiverSource Distributors, Inc.","page_number":3,"box":{"x":116,"y":832,"width":207,"height":10}},{"id":"33a58ca2-4487-428e-a27a-2a72a616d673","block_type":"box","text":"RiverSource Life Insurance Co. of New York","page_number":3,"box":{"x":116,"y":847,"width":311,"height":9}},{"id":"f8d2c84e-0ff3-4f9f-97a1-6bf0c3a1fb6c","block_type":"box","text":"RiverSource Life Insurance Company","page_number":3,"box":{"x":116,"y":863,"width":260,"height":11}},{"id":"ae3828f1-fa46-42ee-b8a5-4b764f3afb8e","block_type":"box","text":"SagePoint Financial, Inc.","page_number":3,"box":{"x":116,"y":878,"width":173,"height":12}},{"id":"e9292180-b6f3-47a9-b2df-4d497d212968","block_type":"box","text":"Sammons Retirement Solutions, Inc.","page_number":3,"box":{"x":116,"y":894,"width":252,"height":10}},{"id":"10d78ab1-e7a6-4f97-bf40-8a197798532b","block_type":"box","text":"Sanctuary Wealth Group, LLC","page_number":3,"box":{"x":116,"y":909,"width":207,"height":12}},{"id":"803485f1-6cee-43e4-8075-53398327f04c","block_type":"box","text":"Santander Bank, N.A.","page_number":3,"box":{"x":520,"y":88,"width":152,"height":10}},{"id":"cc620f4b-7ee1-43db-9b10-483e82d596da","block_type":"box","text":"Saturna Trust Company","page_number":3,"box":{"x":520,"y":103,"width":165,"height":12}},{"id":"9ec7fa55-ece0-4087-be8e-9971f1977fc0","block_type":"box","text":"Securities America, Inc.","page_number":3,"box":{"x":520,"y":119,"width":167,"height":10}},{"id":"1bc38f17-9773-4b91-9b6d-16b421671e0d","block_type":"box","text":"Securities Finance Trust Company","page_number":3,"box":{"x":520,"y":134,"width":238,"height":12}},{"id":"0ed25f31-2bc2-4581-8942-de246a603e35","block_type":"box","text":"Security Benefit Life Insurance Company","page_number":3,"box":{"x":520,"y":150,"width":286,"height":11}},{"id":"440ebc85-0493-4ccd-9a74-f8ffc9985374","block_type":"box","text":"Security Financial Resources, Inc.","page_number":3,"box":{"x":520,"y":165,"width":235,"height":12}},{"id":"2bc0dd29-fbda-4a86-9970-a4cb10d41234","block_type":"box","text":"Security Life of Denver Insurance Company","page_number":3,"box":{"x":520,"y":181,"width":304,"height":11}},{"id":"6a6a1fe6-f6cf-4b10-8866-152043da7248","block_type":"box","text":"SEI Private Trust Company","page_number":3,"box":{"x":520,"y":196,"width":191,"height":12}},{"id":"f4523d9c-aece-4203-984e-b67bc79463ff","block_type":"box","text":"SG Americas Securities, LLC","page_number":3,"box":{"x":520,"y":212,"width":205,"height":10}},{"id":"6b2be7fe-8f43-4903-a15d-260801ab4272","block_type":"box","text":"Silicon Valley Bank","page_number":3,"box":{"x":520,"y":227,"width":141,"height":12}},{"id":"8508d151-1754-443e-8687-d08ad078bdcf","block_type":"box","text":"Standard Insurance Company","page_number":3,"box":{"x":520,"y":243,"width":203,"height":11}},{"id":"52a882b1-1f59-4b87-bb18-d86219afe96d","block_type":"box","text":"Standard Retirement Services, Inc.","page_number":3,"box":{"x":520,"y":258,"width":239,"height":11}},{"id":"786952c6-7b98-435e-b9a9-da388c8389e1","block_type":"box","text":"State Farm Life and Accident Assurance Company","page_number":3,"box":{"x":520,"y":274,"width":347,"height":11}},{"id":"d683eef7-b156-40c2-be50-e16564b9cc00","block_type":"box","text":"State Farm Life Insurance Company","page_number":3,"box":{"x":520,"y":289,"width":249,"height":12}},{"id":"c0a7de75-4dff-4513-88f4-94c3914c2e81","block_type":"box","text":"State Farm VP Management Corp.","page_number":3,"box":{"x":520,"y":305,"width":237,"height":11}},{"id":"2f0610dc-4bfb-4030-b114-d02cb2856f77","block_type":"box","text":"State Street Bank and Trust Company","page_number":3,"box":{"x":520,"y":320,"width":259,"height":12}},{"id":"26299473-b9ba-40ef-bbfb-f7eb7f725a5f","block_type":"box","text":"State Street Global Markets, LLC","page_number":3,"box":{"x":520,"y":336,"width":231,"height":10}},{"id":"31a0d3c3-d117-4442-88ee-2f1e52caf4a5","block_type":"box","text":"Stern Brothers & Co.","page_number":3,"box":{"x":520,"y":351,"width":147,"height":9}},{"id":"2e95efd6-99b3-4a53-9787-323a3245c7ef","block_type":"box","text":"Stifel, Nicolaus & Company, Incorporated","page_number":3,"box":{"x":520,"y":367,"width":290,"height":11}},{"id":"844c2cdc-d8c6-48dc-a514-8a7471586357","block_type":"box","text":"Summit Brokerage Services, Inc.","page_number":3,"box":{"x":520,"y":382,"width":227,"height":12}},{"id":"413a7da8-c63a-4183-b3a5-5979863d32b7","block_type":"box","text":"SVB Asset Management","page_number":3,"box":{"x":520,"y":398,"width":170,"height":11}},{"id":"613c1932-31de-4124-b782-526da704f65c","block_type":"box","text":"Symetra Life Insurance Company","page_number":3,"box":{"x":520,"y":413,"width":232,"height":12}},{"id":"de4a49fa-0a0c-4d42-9b99-07a4071255b2","block_type":"box","text":"Syntal Capital Partners, LLC","page_number":3,"box":{"x":520,"y":429,"width":200,"height":11}},{"id":"64605daf-79c5-4cc7-a2bc-b868de5be256","block_type":"box","text":"T. Rowe Price Retirement Plan Services, Inc.","page_number":3,"box":{"x":520,"y":444,"width":310,"height":11}},{"id":"6f5f8df7-31f3-48ff-969c-25a7d78200e6","block_type":"box","text":"Talcott Resolution Life and Annuity Insurance","page_number":3,"box":{"x":520,"y":460,"width":319,"height":11}},{"id":"958d83e0-92ee-444e-b43a-734cca4836a5","block_type":"box","text":"Company","page_number":3,"box":{"x":520,"y":475,"width":69,"height":12}},{"id":"e823cc2c-4659-44f8-8f83-d3ff5586d6eb","block_type":"box","text":"Talcott Resolution Life Insurance Company","page_number":3,"box":{"x":520,"y":491,"width":301,"height":11}},{"id":"893d37f6-f3b5-4eed-b1a1-5c585c336a42","block_type":"box","text":"TD Ameritrade Clearing, Inc.","page_number":3,"box":{"x":520,"y":506,"width":204,"height":12}},{"id":"f77461e3-aac5-4df3-b689-056603eabe25","block_type":"box","text":"TD Ameritrade, Inc.","page_number":3,"box":{"x":520,"y":522,"width":141,"height":10}},{"id":"a6097220-3cac-4c8b-abdb-a5059f2d24e2","block_type":"box","text":"TD Prime Services (US) LLC","page_number":3,"box":{"x":520,"y":537,"width":205,"height":11}},{"id":"1e8aad77-751c-4640-8441-9a1b900cfdff","block_type":"box","text":"Teachers Insurance and Annuity Association of","page_number":3,"box":{"x":520,"y":553,"width":325,"height":11}},{"id":"7cb0b122-57fa-4533-909c-7ded3353637d","block_type":"box","text":"America","page_number":3,"box":{"x":520,"y":568,"width":62,"height":9}},{"id":"b61460a7-fb1b-4d30-8d5d-35b7d243a580","block_type":"box","text":"Tigress Financial Partners, LLC","page_number":3,"box":{"x":520,"y":584,"width":220,"height":11}},{"id":"4668d382-c831-4f26-b50c-78c1537eaaaf","block_type":"box","text":"Transamerica Financial Life Insurance Company","page_number":3,"box":{"x":520,"y":599,"width":335,"height":12}},{"id":"5c73d3f2-ad02-44d7-847d-1f7ae754f826","block_type":"box","text":"Transamerica Life Insurance Company","page_number":3,"box":{"x":520,"y":615,"width":268,"height":11}},{"id":"afd9a738-9a66-4194-8052-d2306c00b127","block_type":"box","text":"Treasury Brokerage","page_number":3,"box":{"x":520,"y":630,"width":138,"height":12}},{"id":"83272b71-9c3b-44b5-97e8-49c4c88ddd17","block_type":"box","text":"Triad Advisors, LLC","page_number":3,"box":{"x":520,"y":646,"width":146,"height":10}},{"id":"70e572f9-1bdb-4560-8086-14fd1a1edab5","block_type":"box","text":"Truist Bank","page_number":3,"box":{"x":520,"y":661,"width":80,"height":9}},{"id":"00dbde4a-50db-4ab3-af25-1181bb74f141","block_type":"box","text":"U.S. Bancorp Investments, Inc.","page_number":3,"box":{"x":520,"y":677,"width":210,"height":11}},{"id":"e6b28ab6-2d4d-433e-a2b6-e95450de27a4","block_type":"box","text":"U.S. Bank, National Association","page_number":3,"box":{"x":520,"y":692,"width":219,"height":11}},{"id":"55468779-d8c2-4de0-a95f-c40d1aad878a","block_type":"box","text":"UBATCO & Co.","page_number":3,"box":{"x":520,"y":708,"width":113,"height":9}},{"id":"047f1ffe-f370-4f0b-b694-565773c289fc","block_type":"box","text":"UBS Financial Services, Inc.","page_number":3,"box":{"x":520,"y":723,"width":194,"height":11}},{"id":"e08d0e44-a651-4442-8176-2375d84c0436","block_type":"box","text":"UBS Securities LLC","page_number":3,"box":{"x":520,"y":739,"width":139,"height":9}},{"id":"c824b387-590f-4f01-8259-0a7a26632889","block_type":"box","text":"Ultimus Fund Solutions, LLC","page_number":3,"box":{"x":520,"y":754,"width":200,"height":11}},{"id":"0f72f4ed-0ca6-4194-90b4-003335b0d45b","block_type":"box","text":"UMB Bank, National Association","page_number":3,"box":{"x":520,"y":770,"width":228,"height":10}},{"id":"118d035c-e4f0-4ab0-a691-aaa87ca742f6","block_type":"box","text":"United States Life Insurance Company in the City of","page_number":3,"box":{"x":520,"y":785,"width":356,"height":12}},{"id":"9fa751bb-1ca6-45c0-8034-0b3493966d2d","block_type":"box","text":"New York","page_number":3,"box":{"x":520,"y":801,"width":70,"height":9}},{"id":"1e09b220-9211-4110-b4ba-d77b5382550d","block_type":"box","text":"VALIC Retirement Services Company","page_number":3,"box":{"x":520,"y":816,"width":261,"height":12}},{"id":"c881495d-3b5f-462a-b09a-f59466499244","block_type":"box","text":"Vanguard Group, Inc.","page_number":3,"box":{"x":520,"y":832,"width":152,"height":11}},{"id":"ded638fd-c64b-4ec9-b7ef-a512df80844e","block_type":"box","text":"Vanguard Marketing Corporation","page_number":3,"box":{"x":520,"y":847,"width":230,"height":12}},{"id":"832663d8-f320-4d3b-a668-7611ed8ce37e","block_type":"box","text":"Voya Financial Advisors, Inc.","page_number":3,"box":{"x":520,"y":863,"width":207,"height":11}},{"id":"0e34373c-2b90-4831-901d-0a3b73f5c489","block_type":"box","text":"Voya Financial Partners, LLC","page_number":3,"box":{"x":520,"y":878,"width":207,"height":12}},{"id":"6f47b7da-4652-49f8-8363-17ed51c3c550","block_type":"box","text":"Voya Institutional Plan Services, LLC","page_number":3,"box":{"x":520,"y":894,"width":262,"height":11}},{"id":"e18d04d3-4c95-48f9-b0bb-0ccd90147c0e","block_type":"box","text":"Voya Insurance and Annuity Company","page_number":3,"box":{"x":520,"y":909,"width":263,"height":12}},{"id":"a6b58226-d7c6-46be-b7cc-595a398c8b8e","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":3,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"cd821244-138f-4cbd-a78a-f5d6ada4f960","block_type":"box","text":"Voya Investments Distributor, LLC","page_number":4,"box":{"x":116,"y":88,"width":245,"height":11}},{"id":"61b97fc8-3c8d-46eb-bad1-1e605686e524","block_type":"box","text":"Voya Retirement Insurance and Annuity Company","page_number":4,"box":{"x":116,"y":103,"width":347,"height":12}},{"id":"37cb2657-628c-44fe-b339-81dfd4e4441c","block_type":"box","text":"Waddell & Reed, Inc.","page_number":4,"box":{"x":116,"y":119,"width":151,"height":10}},{"id":"92db4d77-a562-4e43-b492-0fe3013f0bf1","block_type":"box","text":"Wells Fargo Advisors, LLC","page_number":4,"box":{"x":116,"y":134,"width":192,"height":12}},{"id":"19380009-f044-47ad-ba18-01e4b719f80b","block_type":"box","text":"Wells Fargo Advisors Financial Network, LLC","page_number":4,"box":{"x":116,"y":150,"width":322,"height":11}},{"id":"02166345-a6ec-4035-82b6-8c3fc0e5969a","block_type":"box","text":"Wells Fargo Bank, N.A.","page_number":4,"box":{"x":116,"y":165,"width":168,"height":12}},{"id":"e7e45096-bffb-4418-8167-66a103fd9045","block_type":"box","text":"Wells Fargo Clearing Services, LLC","page_number":4,"box":{"x":520,"y":88,"width":251,"height":11}},{"id":"1e5bfeb3-ec39-4859-9d55-21b93b00e14a","block_type":"box","text":"Wells Fargo Investments, LLC","page_number":4,"box":{"x":520,"y":103,"width":213,"height":12}},{"id":"e6565e3c-f06a-4ba1-bd75-6012c3ed25d4","block_type":"box","text":"Wells Fargo Securities, LLC","page_number":4,"box":{"x":520,"y":119,"width":198,"height":11}},{"id":"d8e99805-1e82-4db0-9f52-84d172d2a171","block_type":"box","text":"Wilmington Trust, National Association","page_number":4,"box":{"x":520,"y":134,"width":275,"height":12}},{"id":"0122ec02-6d8b-432d-8c48-03eda7737c02","block_type":"box","text":"Woodbury Financial Services, Inc.","page_number":4,"box":{"x":520,"y":150,"width":238,"height":11}},{"id":"30fe164d-dafa-4179-813f-f736aca8c3d3","block_type":"box","text":"ZB, National Association","page_number":4,"box":{"x":520,"y":165,"width":176,"height":11}},{"id":"bdea6b8b-e367-4972-a9cb-601a6809dc3d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":4,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"59639ff4-7b15-42f0-8468-8a2ee7b72df8","block_type":"box","text":"Appendix A","page_number":5,"box":{"x":456,"y":87,"width":91,"height":12}},{"id":"a9284ba6-46b1-4342-9c7e-f72f570b29d0","block_type":"box","text":"BlackRock Advantage Global Fund, Inc.","page_number":5,"box":{"x":116,"y":118,"width":296,"height":12}},{"id":"a7ad570a-f94e-4b20-a017-1d2400eafc0f","block_type":"box","text":"BlackRock Advantage SMID Cap Fund, Inc.","page_number":5,"box":{"x":116,"y":149,"width":325,"height":12}},{"id":"15d97b13-c7e4-446e-a352-cf50a219b0e1","block_type":"box","text":"BlackRock Allocation Target Shares","page_number":5,"box":{"x":116,"y":180,"width":266,"height":12}},{"id":"2f619448-ec3f-4001-be49-924346fee9a7","block_type":"box","text":"BATS: Securitized Total Return Series","page_number":5,"box":{"x":150,"y":196,"width":267,"height":9}},{"id":"8a0fb504-ce36-4cdc-be8f-000299fb087e","block_type":"box","text":"BATS: Corporate Credit Total Return Series","page_number":5,"box":{"x":150,"y":212,"width":304,"height":11}},{"id":"53c86527-516e-48d2-8c19-e9b4b0bd993d","block_type":"box","text":"BATS: High Income Municipal Series","page_number":5,"box":{"x":150,"y":227,"width":263,"height":12}},{"id":"98de8893-45aa-4901-81aa-f2bf36b34ec0","block_type":"box","text":"BATS: High Income Taxable Series","page_number":5,"box":{"x":150,"y":243,"width":248,"height":11}},{"id":"0ec121dc-790f-4f9a-a18e-a50dd4b11017","block_type":"box","text":"BATS: Mortgage Total Return Series","page_number":5,"box":{"x":150,"y":258,"width":256,"height":12}},{"id":"57430eb4-5388-44a8-9fce-cf7c6aec1294","block_type":"box","text":"BATS: Interest Rate Hedge Series","page_number":5,"box":{"x":150,"y":274,"width":235,"height":11}},{"id":"5a7d4641-e354-4716-aa52-0b4cb9c8a9ee","block_type":"box","text":"BATS: Short Duration Taxable Total","page_number":5,"box":{"x":150,"y":289,"width":254,"height":9}},{"id":"49edf2fe-2965-4818-aa09-b5fda6e1cf6f","block_type":"box","text":"Return Series","page_number":5,"box":{"x":150,"y":305,"width":95,"height":9}},{"id":"4d71ea2d-ca1d-4dd1-a254-d51a0e8e71a4","block_type":"box","text":"BATS: Short Term Municipal Income Series","page_number":5,"box":{"x":150,"y":320,"width":306,"height":12}},{"id":"12d66220-fc76-44c6-a313-c81b6320b183","block_type":"box","text":"BlackRock Balanced Fund, Inc.","page_number":5,"box":{"x":116,"y":351,"width":232,"height":11}},{"id":"db7e82e9-338f-476b-b335-0c668470d0cc","block_type":"box","text":"BlackRock Bond Fund, Inc.","page_number":5,"box":{"x":116,"y":382,"width":203,"height":11}},{"id":"15974221-3fc5-44b6-8625-06a1ab0d11f6","block_type":"box","text":"BlackRock Total Return Fund","page_number":5,"box":{"x":150,"y":398,"width":207,"height":9}},{"id":"fe5ee31a-315f-4ccd-8ad1-1fbdf95b608d","block_type":"box","text":"BlackRock California Municipal Series Trust","page_number":5,"box":{"x":116,"y":429,"width":331,"height":11}},{"id":"12c55947-5129-4c68-a4d1-70675f09cd1f","block_type":"box","text":"BlackRock California Municipal Opportunities","page_number":5,"box":{"x":150,"y":444,"width":321,"height":12}},{"id":"c960f685-d0b0-4c0f-9d06-89177f298a4c","block_type":"box","text":"Fund","page_number":5,"box":{"x":150,"y":460,"width":38,"height":9}},{"id":"8febc946-138f-484d-8196-b145a06fc8fe","block_type":"box","text":"BlackRock Capital Appreciation Fund, Inc.","page_number":5,"box":{"x":116,"y":491,"width":317,"height":11}},{"id":"4477a6c2-4bf0-4a90-ae9e-4b6f17626d6a","block_type":"box","text":"BlackRock Emerging Markets Fund, Inc.","page_number":5,"box":{"x":116,"y":522,"width":301,"height":11}},{"id":"09b5e67c-ac0b-4763-9aee-d78f10cf5728","block_type":"box","text":"BlackRock Equity Dividend Fund","page_number":5,"box":{"x":116,"y":553,"width":248,"height":11}},{"id":"21597fc9-7893-47b0-a923-e7ed1962d5d3","block_type":"box","text":"BlackRock Financial Institutions Series Trust","page_number":5,"box":{"x":116,"y":584,"width":332,"height":9}},{"id":"e05ba838-e9fa-4aaa-a0c8-824d481f6194","block_type":"box","text":"BlackRock Summit Cash Reserves Fund","page_number":5,"box":{"x":150,"y":599,"width":278,"height":9}},{"id":"4f52133c-854e-4292-9946-978f511e09b2","block_type":"box","text":"BlackRock Funds","page_number":5,"box":{"x":116,"y":630,"width":127,"height":9}},{"id":"5dcd83e4-a714-412f-ba54-6500f8b4dd57","block_type":"box","text":"SM","page_number":5,"box":{"x":244,"y":630,"width":15,"height":6}},{"id":"5adbcd63-5879-4160-9d80-af4881b2a88d","block_type":"box","text":"BlackRock Advantage Emerging Markets Fund","page_number":5,"box":{"x":150,"y":646,"width":325,"height":11}},{"id":"abd90547-3e56-4763-8db6-3286871e4ca6","block_type":"box","text":"BlackRock Advantage International Fund","page_number":5,"box":{"x":150,"y":661,"width":281,"height":12}},{"id":"b2faa85c-8b10-477e-8864-072f23841004","block_type":"box","text":"BlackRock Advantage Large Cap Growth Fund","page_number":5,"box":{"x":150,"y":677,"width":320,"height":11}},{"id":"24be04ab-00ce-41f5-a480-4f735f351a8a","block_type":"box","text":"BlackRock Advantage Small Cap Core Fund","page_number":5,"box":{"x":150,"y":692,"width":302,"height":12}},{"id":"c8c1b4e2-43df-4a33-ab7e-96b3d8f2dc5b","block_type":"box","text":"BlackRock Advantage Small Cap Growth Fund","page_number":5,"box":{"x":150,"y":708,"width":321,"height":11}},{"id":"75793be9-2853-4e66-aed8-e6cb9b20fd47","block_type":"box","text":"BlackRock China A Opportunities Fund","page_number":5,"box":{"x":150,"y":723,"width":271,"height":12}},{"id":"b65aef7d-b1e5-4512-80e1-fadba3547f25","block_type":"box","text":"BlackRock Commodity Strategies Fund","page_number":5,"box":{"x":150,"y":739,"width":268,"height":11}},{"id":"d02b8c33-15e6-463e-8adb-3971fd4fa0d2","block_type":"box","text":"BlackRock Daily Reinvestment Stablecoin","page_number":5,"box":{"x":150,"y":754,"width":288,"height":12}},{"id":"253e6595-98ee-4032-9f19-01bece39d9a5","block_type":"box","text":"Reserve Vehicle","page_number":5,"box":{"x":150,"y":770,"width":110,"height":9}},{"id":"d2133e02-cb9f-4e13-b547-47a805524e68","block_type":"box","text":"BlackRock Defensive Advantage Emerging","page_number":5,"box":{"x":150,"y":785,"width":294,"height":12}},{"id":"f96c9550-e2f4-4ced-be90-73e68d7ec6d7","block_type":"box","text":"Markets Fund","page_number":5,"box":{"x":150,"y":801,"width":93,"height":9}},{"id":"4213d720-4551-49b4-9c7b-f0fa48105eff","block_type":"box","text":"BlackRock Emerging Markets ex-China Fund","page_number":5,"box":{"x":150,"y":816,"width":309,"height":12}},{"id":"0e9309e9-d6a5-420f-beba-ce050d161e42","block_type":"box","text":"BlackRock Energy Opportunities Fund","page_number":5,"box":{"x":150,"y":832,"width":267,"height":11}},{"id":"2a754c49-bf7b-416d-94f1-f14e56070363","block_type":"box","text":"BlackRock Exchange Portfolio","page_number":5,"box":{"x":150,"y":847,"width":213,"height":12}},{"id":"7be85116-a9bd-4cad-a386-2f1f824a4333","block_type":"box","text":"BlackRock Global Equity Market Neutral Fund","page_number":5,"box":{"x":150,"y":863,"width":324,"height":11}},{"id":"1c7f8196-5be5-4314-a880-cf592eac5759","block_type":"box","text":"BlackRock Health Sciences Opportunities","page_number":5,"box":{"x":150,"y":878,"width":288,"height":12}},{"id":"db874a57-d1f3-4df7-ac3a-60cab677f8ee","block_type":"box","text":"Portfolio","page_number":5,"box":{"x":150,"y":894,"width":63,"height":9}},{"id":"56f80ceb-1840-4613-bcc6-6dfed5556d70","block_type":"box","text":"BlackRock High Equity Income Fund","page_number":5,"box":{"x":150,"y":909,"width":255,"height":12}},{"id":"2206acce-7a18-413b-889c-45bcddd0c54c","block_type":"box","text":"BlackRock Mid-Cap Growth Equity Portfolio","page_number":5,"box":{"x":554,"y":119,"width":312,"height":11}},{"id":"527b5d95-d73e-4aeb-ba4f-1a92636ba2e1","block_type":"box","text":"BlackRock Real Estate Securities Fund","page_number":5,"box":{"x":554,"y":134,"width":269,"height":9}},{"id":"1119f384-7fa6-45ef-bcd1-2480845b3d3e","block_type":"box","text":"BlackRock Short Obligations Fund","page_number":5,"box":{"x":554,"y":150,"width":241,"height":11}},{"id":"341df857-8887-4018-86de-9b6feebc4d3d","block_type":"box","text":"BlackRock Sustainable Aware Advantage","page_number":5,"box":{"x":554,"y":165,"width":287,"height":12}},{"id":"97e350c7-201b-4268-a467-ae18d505ced5","block_type":"box","text":"Emerging Markets Equity Fund","page_number":5,"box":{"x":554,"y":181,"width":218,"height":11}},{"id":"8a1dc12f-006c-4e41-940b-779b061f7151","block_type":"box","text":"BlackRock Sustainable Aware Advantage Large","page_number":5,"box":{"x":554,"y":196,"width":330,"height":12}},{"id":"354692fb-312e-4f84-ae10-f484de4e178f","block_type":"box","text":"Cap Core Fund","page_number":5,"box":{"x":554,"y":212,"width":106,"height":11}},{"id":"d52b1cb0-adcf-486e-8f20-d60bdf643390","block_type":"box","text":"BlackRock Tactical Opportunities Fund","page_number":5,"box":{"x":554,"y":227,"width":273,"height":12}},{"id":"48285b98-71b9-4c2a-9fcb-6e92a93bc2e9","block_type":"box","text":"BlackRock Technology Opportunities Fund","page_number":5,"box":{"x":554,"y":243,"width":299,"height":11}},{"id":"6845854d-9a8a-4d12-84f1-7b0eedfa7e8e","block_type":"box","text":"BlackRock Wealth Liquid Environmentally","page_number":5,"box":{"x":554,"y":258,"width":298,"height":12}},{"id":"d6f80c80-4286-4972-8aab-6c291e6e6c69","block_type":"box","text":"Aware Fund","page_number":5,"box":{"x":554,"y":274,"width":87,"height":9}},{"id":"8693aef3-9cd7-4510-9157-0ceda235a75d","block_type":"box","text":"Circle Reserve Fund","page_number":5,"box":{"x":554,"y":289,"width":142,"height":9}},{"id":"38ac6ce8-51e0-4d06-9b11-be40f8690d6b","block_type":"box","text":"iShares Developed Real Estate Index Fund","page_number":5,"box":{"x":554,"y":305,"width":292,"height":11}},{"id":"d26e0945-0e68-470a-a9e3-95d59e5b5ade","block_type":"box","text":"iShares Enhanced Roll Yield Index Fund","page_number":5,"box":{"x":554,"y":320,"width":280,"height":9}},{"id":"91bbc76e-13ab-45d2-ad98-934e6e6c4fcd","block_type":"box","text":"iShares FTSE NAREIT All Equity REIT Index","page_number":5,"box":{"x":554,"y":336,"width":322,"height":11}},{"id":"40215fd2-2cab-4ae0-bf48-3563fd8b54b0","block_type":"box","text":"Fund","page_number":5,"box":{"x":554,"y":351,"width":38,"height":9}},{"id":"278e5524-ebd5-420a-9d9c-1259704dab2e","block_type":"box","text":"iShares Municipal Bond Index Fund","page_number":5,"box":{"x":554,"y":367,"width":249,"height":11}},{"id":"fb5b164c-3e48-4fee-8610-64d8fd3c5c01","block_type":"box","text":"iShares Russell Mid-Cap Index Fund","page_number":5,"box":{"x":554,"y":382,"width":254,"height":12}},{"id":"5446eb8e-d9f4-4e34-9404-5132c3909c9f","block_type":"box","text":"iShares Russell Small/Mid-Cap Index Fund","page_number":5,"box":{"x":554,"y":398,"width":298,"height":11}},{"id":"da2c3208-c7b4-43ea-a63a-5ef0b6a278c2","block_type":"box","text":"iShares Short-Term TIPS Bond Index Fund","page_number":5,"box":{"x":554,"y":413,"width":297,"height":9}},{"id":"b24bb016-0160-47ba-b66c-54954cf1bafe","block_type":"box","text":"iShares Total U.S. Stock Market Index Fund","page_number":5,"box":{"x":554,"y":429,"width":304,"height":9}},{"id":"bc713670-816f-4265-aa75-e6c2d4d86f3a","block_type":"box","text":"iShares U.S. Intermediate Credit Bond Index","page_number":5,"box":{"x":554,"y":444,"width":306,"height":9}},{"id":"326808ab-0460-40f0-934b-8951be00d784","block_type":"box","text":"Fund","page_number":5,"box":{"x":554,"y":460,"width":38,"height":9}},{"id":"2220c7b0-a391-47c2-a2f4-af71c8a1e5f0","block_type":"box","text":"iShares U.S. Intermediate Government Bond","page_number":5,"box":{"x":554,"y":475,"width":306,"height":9}},{"id":"3812d6ae-af71-439a-9db4-7c7b691c3a80","block_type":"box","text":"Index Fund","page_number":5,"box":{"x":554,"y":491,"width":81,"height":9}},{"id":"eba0c810-5aea-499b-8c3a-a26e9a081ac2","block_type":"box","text":"iShares U.S. Long Credit Bond Index Fund","page_number":5,"box":{"x":554,"y":506,"width":296,"height":12}},{"id":"32e2cd45-09a8-462f-8061-255de8a9153b","block_type":"box","text":"iShares U.S. Long Government Bond Index","page_number":5,"box":{"x":554,"y":522,"width":299,"height":11}},{"id":"b8860cd6-361c-43e5-8dc2-f237496c5cc4","block_type":"box","text":"Fund","page_number":5,"box":{"x":554,"y":537,"width":38,"height":9}},{"id":"41070fba-4b64-40c9-babf-2fce4c892347","block_type":"box","text":"iShares U.S. Securitized Bond Index Fund","page_number":5,"box":{"x":554,"y":553,"width":290,"height":9}},{"id":"249355a3-58ba-4fbb-b456-f0e0b83a53ae","block_type":"box","text":"BlackRock Funds II","page_number":5,"box":{"x":520,"y":584,"width":149,"height":9}},{"id":"e6b2a794-3298-44c1-93ad-1d855b6cab0d","block_type":"box","text":"BlackRock 20/80 Target Allocation Fund","page_number":5,"box":{"x":554,"y":599,"width":283,"height":12}},{"id":"e3364175-f48b-4022-af78-81380a7585d2","block_type":"box","text":"BlackRock 40/60 Target Allocation Fund","page_number":5,"box":{"x":554,"y":615,"width":283,"height":11}},{"id":"4248723f-dc30-4ff1-950e-4d3cf02b4b88","block_type":"box","text":"BlackRock 60/40 Target Allocation Fund","page_number":5,"box":{"x":554,"y":630,"width":283,"height":12}},{"id":"63cca6bb-35da-4817-8f58-b86ec809b54a","block_type":"box","text":"BlackRock 80/20 Target Allocation Fund","page_number":5,"box":{"x":554,"y":646,"width":283,"height":11}},{"id":"94f274a2-5484-42bf-a688-d26c90179459","block_type":"box","text":"BlackRock Dynamic High Income Portfolio","page_number":5,"box":{"x":554,"y":661,"width":296,"height":12}},{"id":"899106eb-0c3a-4dfe-94ca-0f58f75211ea","block_type":"box","text":"BlackRock Global Dividend Portfolio","page_number":5,"box":{"x":554,"y":677,"width":255,"height":9}},{"id":"3e174e89-f21d-4eca-a43d-41bcf0fe314b","block_type":"box","text":"BlackRock Managed Income Fund","page_number":5,"box":{"x":554,"y":692,"width":235,"height":12}},{"id":"2d03d84a-aa84-48b0-b067-15271e36c895","block_type":"box","text":"BlackRock Multi-Asset Income Portfolio","page_number":5,"box":{"x":554,"y":708,"width":277,"height":9}},{"id":"5e9b1bf9-d47a-46f7-8d59-0ee8afef3a98","block_type":"box","text":"BlackRock Retirement Income 2030 Fund","page_number":5,"box":{"x":554,"y":723,"width":285,"height":9}},{"id":"16a30267-328a-4f3e-b30f-3083a6b048db","block_type":"box","text":"BlackRock Funds III","page_number":5,"box":{"x":520,"y":754,"width":151,"height":9}},{"id":"e49ee45b-d159-4657-8446-76b6824376e1","block_type":"box","text":"BlackRock Cash Funds: Institutional","page_number":5,"box":{"x":554,"y":770,"width":247,"height":9}},{"id":"a7d4f2cb-07ff-43ed-ace8-365e9f0dc286","block_type":"box","text":"BlackRock Cash Funds: Treasury","page_number":5,"box":{"x":554,"y":785,"width":226,"height":12}},{"id":"bb53a096-ceae-4d6b-a5a2-5186dab518c8","block_type":"box","text":"BlackRock Diversified Equity Alpha Fund","page_number":5,"box":{"x":554,"y":801,"width":288,"height":11}},{"id":"e477bf85-4522-4a35-9043-1a8df867c149","block_type":"box","text":"BlackRock Diversified Fixed Income Fund","page_number":5,"box":{"x":554,"y":816,"width":290,"height":9}},{"id":"5a6d4582-184f-47f3-baa5-eb6123ede1f6","block_type":"box","text":"BlackRock LifePath","page_number":5,"box":{"x":554,"y":832,"width":136,"height":9}},{"id":"d7861006-d6c0-4548-8ad2-85e182f46e27","block_type":"box","text":"®","page_number":5,"box":{"x":691,"y":831,"width":9,"height":6}},{"id":"3a761d64-f6ad-404f-bd62-6a0e750d0022","block_type":"box","text":"Dynamic Retirement","page_number":5,"box":{"x":700,"y":832,"width":149,"height":11}},{"id":"2a992fa4-bf96-4622-a233-44bb7e102cde","block_type":"box","text":"Fund","page_number":5,"box":{"x":554,"y":847,"width":38,"height":9}},{"id":"90aff16b-01c3-452a-a816-5f8ff6f98580","block_type":"box","text":"BlackRock LifePath","page_number":5,"box":{"x":554,"y":863,"width":136,"height":9}},{"id":"499f3cfa-5046-4f8b-8e47-aaedc8e6db83","block_type":"box","text":"®","page_number":5,"box":{"x":691,"y":862,"width":9,"height":6}},{"id":"1593b159-b363-46b8-abe4-9fcd4c83767d","block_type":"box","text":"Dynamic 2030 Fund","page_number":5,"box":{"x":700,"y":863,"width":147,"height":11}},{"id":"32ed2a7c-2337-428b-8d5e-eb9c86885bff","block_type":"box","text":"BlackRock LifePath","page_number":5,"box":{"x":554,"y":878,"width":136,"height":9}},{"id":"556afe50-15fe-46cd-84e8-bd8061508645","block_type":"box","text":"®","page_number":5,"box":{"x":691,"y":877,"width":9,"height":7}},{"id":"a092294b-dcd4-45ef-8efd-cb6ac6c0a49c","block_type":"box","text":"Dynamic 2035 Fund","page_number":5,"box":{"x":700,"y":878,"width":147,"height":12}},{"id":"c10a4772-3412-433b-8222-c3930092c906","block_type":"box","text":"BlackRock LifePath","page_number":5,"box":{"x":554,"y":894,"width":136,"height":9}},{"id":"228efd4e-8117-40df-90b3-576fb7693bc4","block_type":"box","text":"®","page_number":5,"box":{"x":691,"y":893,"width":9,"height":6}},{"id":"fb73d2ba-766d-41f6-8b19-01dc1c3c17e5","block_type":"box","text":"Dynamic 2040 Fund","page_number":5,"box":{"x":700,"y":894,"width":147,"height":11}},{"id":"7eb716eb-66f5-41ff-9513-c8ea5d3c7557","block_type":"box","text":"BlackRock LifePath","page_number":5,"box":{"x":554,"y":909,"width":136,"height":9}},{"id":"a7ef3ff3-7d9f-4ed6-9bfa-80b9f3eff4fe","block_type":"box","text":"®","page_number":5,"box":{"x":691,"y":908,"width":9,"height":7}},{"id":"c25533d5-2cfb-4655-acd2-f19ce8beb302","block_type":"box","text":"Dynamic 2045 Fund","page_number":5,"box":{"x":705,"y":909,"width":138,"height":12}},{"id":"936104d2-3a98-49bb-aa97-14efdcf47e03","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":5,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"51d911c4-12a0-4ded-9be5-7ee2753203a0","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":88,"width":136,"height":9}},{"id":"15d361f7-fd88-4ec1-9938-284ebe0c7225","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":87,"width":9,"height":6}},{"id":"cac370a4-a53f-4560-9994-ae14aa7e97c2","block_type":"box","text":"Dynamic 2050 Fund","page_number":6,"box":{"x":296,"y":88,"width":147,"height":11}},{"id":"337b4b54-b33a-41fa-8289-3301e872aeec","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":103,"width":136,"height":9}},{"id":"2b3a0b9d-1a47-4f2b-a778-16f8e95f482d","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":102,"width":9,"height":7}},{"id":"43c62d16-c774-41c3-88f6-f8b085554001","block_type":"box","text":"Dynamic 2055 Fund","page_number":6,"box":{"x":296,"y":103,"width":147,"height":12}},{"id":"dd4e45a1-471a-4a12-8695-e98fea8e000e","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":119,"width":136,"height":9}},{"id":"a57d04a5-b608-4403-8f60-d13d2a246a1d","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":118,"width":9,"height":6}},{"id":"db3cd2bf-b46b-4a0a-ba19-cf30e481a783","block_type":"box","text":"Dynamic 2060 Fund","page_number":6,"box":{"x":296,"y":119,"width":147,"height":11}},{"id":"dad23de8-5757-40aa-9e02-da9fa74aaa12","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":134,"width":136,"height":9}},{"id":"6f3acc80-9c56-4e34-ac48-6575ab581bd2","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":133,"width":9,"height":7}},{"id":"3fae9e12-f90a-4114-8a2e-16e57e9d279d","block_type":"box","text":"Dynamic 2065 Fund","page_number":6,"box":{"x":296,"y":134,"width":147,"height":12}},{"id":"8488bc3a-cc3a-4994-ab3d-c84248d78692","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":150,"width":136,"height":9}},{"id":"c9e20aa6-8022-4c3b-bc14-3a561b48d12a","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":149,"width":9,"height":6}},{"id":"ed89216b-0d4d-4e9e-b10e-eaa1dd7d5035","block_type":"box","text":"Dynamic 2070 Fund","page_number":6,"box":{"x":296,"y":150,"width":147,"height":11}},{"id":"8e2fb081-d9d5-42f3-899b-45ccd14bdc24","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":165,"width":136,"height":9}},{"id":"a4b84c76-b104-4dfc-8ea2-46226f9ec0fc","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":164,"width":9,"height":7}},{"id":"3a4dbfd6-8e46-4515-8b95-e49c48de4316","block_type":"box","text":"Index Retirement Fund","page_number":6,"box":{"x":296,"y":165,"width":165,"height":9}},{"id":"ce0eacc3-65ac-4233-889e-cb9517be8fd1","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":181,"width":136,"height":9}},{"id":"dae9a780-9c2d-450a-a7d3-8676c00dfdd7","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":180,"width":9,"height":6}},{"id":"5e760400-a357-4eb0-811e-639076763e8a","block_type":"box","text":"Index 2030 Fund","page_number":6,"box":{"x":296,"y":181,"width":124,"height":9}},{"id":"5eb912e0-7680-438c-9cb8-ef69361846fa","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":196,"width":136,"height":9}},{"id":"fbd41f6d-52ab-4aa6-8c3b-c74d8b6dbda0","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":195,"width":9,"height":7}},{"id":"fe6fad9c-465c-4132-8b45-de441872c09c","block_type":"box","text":"Index 2035 Fund","page_number":6,"box":{"x":296,"y":196,"width":124,"height":9}},{"id":"cc2ed104-8767-4d5c-b112-a3b87b57985a","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":212,"width":136,"height":9}},{"id":"180fd3c4-8fdc-4817-b8be-29d3f3340cff","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":211,"width":9,"height":6}},{"id":"2e15274f-4e7a-411f-a26b-a188a7196369","block_type":"box","text":"Index 2040 Fund","page_number":6,"box":{"x":296,"y":212,"width":124,"height":9}},{"id":"a9826d0c-af2c-4b00-81a9-3a5768db2dab","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":227,"width":136,"height":9}},{"id":"dc7f97f5-d91a-491f-88de-fbe25dca680c","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":226,"width":9,"height":7}},{"id":"51af8981-3a79-4e86-b843-1389e6628b14","block_type":"box","text":"Index 2045 Fund","page_number":6,"box":{"x":296,"y":227,"width":124,"height":9}},{"id":"eda3a3bf-0629-4c00-8af7-e4fe71204b81","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":243,"width":136,"height":9}},{"id":"71a4c1d4-5439-4ee9-9eaa-bf325da99ac6","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":242,"width":9,"height":6}},{"id":"8e0954d0-2f1d-48b8-82c3-50cc7a1d4be9","block_type":"box","text":"Index 2050 Fund","page_number":6,"box":{"x":296,"y":243,"width":124,"height":9}},{"id":"1cbb3fb7-495d-48c0-9f94-f72471d92180","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":258,"width":136,"height":9}},{"id":"4aac94f8-5fe2-46f9-8252-d017c7ec757f","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":257,"width":9,"height":7}},{"id":"c95e1e91-be6a-44d2-a460-7d24cb2583a0","block_type":"box","text":"Index 2055 Fund","page_number":6,"box":{"x":296,"y":258,"width":124,"height":9}},{"id":"69ae5c41-3630-4020-bcf0-ebb67c7be2c6","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":274,"width":136,"height":9}},{"id":"36ec003b-5eaf-4e49-83f1-f86dc310cce4","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":273,"width":9,"height":6}},{"id":"2c88f5b7-33a0-46bb-b4f2-c7d9ac4d0f0c","block_type":"box","text":"Index 2060 Fund","page_number":6,"box":{"x":296,"y":274,"width":124,"height":9}},{"id":"df243df6-5174-4278-981c-eb98332de3b9","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":289,"width":136,"height":9}},{"id":"69a3d2b7-d10a-4cd2-bf4e-6d4e773255df","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":288,"width":9,"height":7}},{"id":"8f76a248-e22b-42ff-874b-6ff6faccbb0e","block_type":"box","text":"Index 2065 Fund","page_number":6,"box":{"x":296,"y":289,"width":124,"height":9}},{"id":"10aec397-17ba-4fd1-a64f-d371720d5dfa","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":305,"width":136,"height":9}},{"id":"915657dd-b7d4-44a1-b66a-0cce0f3bd2f4","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":304,"width":9,"height":6}},{"id":"a42d8138-dc68-48bb-9975-383e39f6a2bc","block_type":"box","text":"Index 2070 Fund","page_number":6,"box":{"x":296,"y":305,"width":124,"height":9}},{"id":"7f446cf4-793f-44ca-9377-bf32e262732f","block_type":"box","text":"iShares MSCI Total International Index Fund","page_number":6,"box":{"x":150,"y":320,"width":310,"height":9}},{"id":"a07a36ad-49fe-45b5-b903-422c8a2773a4","block_type":"box","text":"iShares Russell 1000 Large-Cap Index Fund","page_number":6,"box":{"x":150,"y":336,"width":303,"height":11}},{"id":"ee9150dd-acce-4d9b-b97a-24d7ca243e49","block_type":"box","text":"iShares S&P 500 Index Fund","page_number":6,"box":{"x":150,"y":351,"width":200,"height":9}},{"id":"d086e0b1-905f-442b-bd0f-9ae144da7c1c","block_type":"box","text":"iShares U.S. Aggregate Bond Index Fund","page_number":6,"box":{"x":150,"y":367,"width":284,"height":11}},{"id":"8d6634c2-776e-49e6-882e-976d349d1f7a","block_type":"box","text":"BlackRock Funds IV","page_number":6,"box":{"x":116,"y":398,"width":154,"height":9}},{"id":"eafd3881-d726-4c65-9fbd-9e84a8a4d100","block_type":"box","text":"BlackRock Credit Relative Value Fund","page_number":6,"box":{"x":150,"y":413,"width":268,"height":9}},{"id":"4a123343-be71-4b15-8c04-0c1ab8711cec","block_type":"box","text":"BlackRock Systematic Multi-Strategy Fund","page_number":6,"box":{"x":150,"y":429,"width":299,"height":11}},{"id":"ec42d8c6-fb45-4114-a2bd-6f60ec65f3ea","block_type":"box","text":"BlackRock Funds V","page_number":6,"box":{"x":116,"y":460,"width":148,"height":9}},{"id":"c2f2d683-d185-42e9-9c21-19553e18c544","block_type":"box","text":"BlackRock Core Bond Portfolio","page_number":6,"box":{"x":150,"y":475,"width":220,"height":9}},{"id":"71cd3317-a3b8-407d-a086-2b6d4cff0471","block_type":"box","text":"BlackRock Floating Rate Income Portfolio","page_number":6,"box":{"x":150,"y":491,"width":293,"height":11}},{"id":"d6153b32-b2b4-47d1-8dda-5c514b5dbdb2","block_type":"box","text":"BlackRock High Yield Portfolio","page_number":6,"box":{"x":150,"y":506,"width":222,"height":12}},{"id":"ddfc0bf7-0e17-4610-a593-f3f06cc0275f","block_type":"box","text":"BlackRock Income Fund","page_number":6,"box":{"x":150,"y":522,"width":172,"height":9}},{"id":"5c5abdc5-26db-46c9-adcb-a539197fb6c6","block_type":"box","text":"BlackRock Inflation Protected Bond Portfolio","page_number":6,"box":{"x":150,"y":537,"width":313,"height":9}},{"id":"48a30eb5-204c-40fa-8903-03e5123d9f3b","block_type":"box","text":"BlackRock Low Duration Bond Portfolio","page_number":6,"box":{"x":150,"y":553,"width":282,"height":9}},{"id":"511bc459-2536-46fb-b4f8-37f4da837230","block_type":"box","text":"BlackRock Strategic Income Opportunities","page_number":6,"box":{"x":150,"y":568,"width":294,"height":12}},{"id":"3fbd8dd3-5135-4564-84a5-afe54f7f225d","block_type":"box","text":"Portfolio","page_number":6,"box":{"x":150,"y":584,"width":63,"height":9}},{"id":"85242825-f3b4-4255-93c6-99a893b384b2","block_type":"box","text":"BlackRock Funds VI","page_number":6,"box":{"x":116,"y":615,"width":154,"height":9}},{"id":"0157e18a-9e4e-4d75-93b1-91996b1e12e5","block_type":"box","text":"BlackRock Advantage CoreAlpha Bond Fund","page_number":6,"box":{"x":150,"y":630,"width":313,"height":12}},{"id":"ad160e55-1132-45f8-bd53-b4c5c28323e2","block_type":"box","text":"BlackRock Global Allocation Fund, Inc.","page_number":6,"box":{"x":116,"y":661,"width":287,"height":11}},{"id":"bc1b71b9-1e2c-4c28-aa9d-f568e697054c","block_type":"box","text":"BlackRock Index Funds, Inc.","page_number":6,"box":{"x":116,"y":692,"width":208,"height":11}},{"id":"926d9944-56ab-4e90-ba0d-29fbc5e2a965","block_type":"box","text":"iShares MSCI EAFE International Index Fund","page_number":6,"box":{"x":150,"y":708,"width":312,"height":9}},{"id":"b9f1020c-075e-4392-9859-f39c306e9149","block_type":"box","text":"iShares Russell 2000 Small-Cap Index Fund","page_number":6,"box":{"x":150,"y":723,"width":298,"height":12}},{"id":"3d656342-5352-4186-9f62-a0e1b1e7c558","block_type":"box","text":"BlackRock International Select Equity Fund","page_number":6,"box":{"x":116,"y":754,"width":319,"height":12}},{"id":"4221c04d-4c98-4a7f-86d6-864d738d545a","block_type":"box","text":"BlackRock Large Cap Focus Growth Fund, Inc.","page_number":6,"box":{"x":116,"y":785,"width":344,"height":12}},{"id":"c645b369-de49-4e9c-971c-3e0916e57190","block_type":"box","text":"BlackRock Large Cap Focus Value Fund, Inc.","page_number":6,"box":{"x":116,"y":816,"width":330,"height":12}},{"id":"4bea2e89-f470-43f9-a24e-7360b232238c","block_type":"box","text":"BlackRock Large Cap Series Funds, Inc.","page_number":6,"box":{"x":116,"y":847,"width":296,"height":12}},{"id":"607b3729-5d93-403e-8b60-1969be80b19b","block_type":"box","text":"BlackRock Advantage Large Cap Core Fund","page_number":6,"box":{"x":150,"y":863,"width":306,"height":11}},{"id":"24b7221d-744e-494b-b4f0-30ca0460c42f","block_type":"box","text":"BlackRock Advantage Large Cap Value Fund","page_number":6,"box":{"x":150,"y":878,"width":314,"height":12}},{"id":"0cbc9e24-8c4b-4f24-a07f-f772357ffba2","block_type":"box","text":"BlackRock Event Driven Equity Fund","page_number":6,"box":{"x":150,"y":894,"width":261,"height":11}},{"id":"021f03b1-e2d9-4f62-98de-77b47a710f15","block_type":"box","text":"BlackRock Liquidity Funds","page_number":6,"box":{"x":520,"y":87,"width":203,"height":12}},{"id":"44aec8dd-7fb7-4839-a5d5-58cdf3d00b67","block_type":"box","text":"FedFund","page_number":6,"box":{"x":554,"y":103,"width":63,"height":9}},{"id":"2de4aeb9-99d4-4061-abb2-e8cdb9c048a0","block_type":"box","text":"MuniCash","page_number":6,"box":{"x":554,"y":119,"width":74,"height":9}},{"id":"84b8bdbf-fa5f-4800-978b-6f05195ae3cc","block_type":"box","text":"TempCash","page_number":6,"box":{"x":554,"y":134,"width":77,"height":12}},{"id":"2e63b721-924d-43b8-a1f1-15ca1f7ab5b3","block_type":"box","text":"BlackRock Select Treasury Based Liquidity","page_number":6,"box":{"x":554,"y":150,"width":300,"height":11}},{"id":"08fb751e-3b2c-4985-875c-d8ca1b3811c4","block_type":"box","text":"Fund","page_number":6,"box":{"x":554,"y":165,"width":38,"height":9}},{"id":"d8df0c96-23fa-43cf-bcc8-55e05f37a33c","block_type":"box","text":"T-Fund","page_number":6,"box":{"x":554,"y":181,"width":54,"height":9}},{"id":"bcaf823b-26b3-4eae-8366-a7b66eaa02cc","block_type":"box","text":"Treasury Trust Fund","page_number":6,"box":{"x":554,"y":196,"width":142,"height":12}},{"id":"55717b17-901c-4373-bfb8-560048fd492f","block_type":"box","text":"BlackRock Mid-Cap Value Series, Inc.","page_number":6,"box":{"x":520,"y":227,"width":282,"height":12}},{"id":"f84bafab-c2cd-4573-8687-ab72e8e22948","block_type":"box","text":"BlackRock Mid-Cap Value Fund","page_number":6,"box":{"x":554,"y":243,"width":227,"height":11}},{"id":"8fcaa869-7277-4df8-84f9-1b616d4547bb","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust","page_number":6,"box":{"x":520,"y":274,"width":339,"height":11}},{"id":"9d1961eb-5d29-4503-b22b-351cfe4ea175","block_type":"box","text":"BlackRock New Jersey Municipal Bond Fund","page_number":6,"box":{"x":554,"y":289,"width":314,"height":12}},{"id":"e53eaafc-4fb1-4e0f-9dad-4b47326c4b03","block_type":"box","text":"BlackRock New York Municipal Opportunities","page_number":6,"box":{"x":554,"y":305,"width":324,"height":11}},{"id":"2b86def7-a779-4071-9ee1-75745ce3428d","block_type":"box","text":"Fund","page_number":6,"box":{"x":554,"y":320,"width":38,"height":9}},{"id":"50300a5c-2876-4e80-8c87-720d0ed042e0","block_type":"box","text":"BlackRock Pennsylvania Municipal Bond Fund","page_number":6,"box":{"x":554,"y":336,"width":326,"height":11}},{"id":"a6cb5644-6734-4212-8269-23e35e024531","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc.","page_number":6,"box":{"x":520,"y":367,"width":282,"height":11}},{"id":"2f690795-014f-4ffb-a5fd-304d6195cbe9","block_type":"box","text":"BlackRock National Municipal Fund","page_number":6,"box":{"x":554,"y":382,"width":253,"height":12}},{"id":"80247557-8f31-4fdd-97cb-543df104db66","block_type":"box","text":"BlackRock Short Duration Muni Fund","page_number":6,"box":{"x":554,"y":398,"width":263,"height":9}},{"id":"a4c54f79-82a0-4023-9f87-5dad8202063d","block_type":"box","text":"BlackRock Municipal Series Trust","page_number":6,"box":{"x":520,"y":429,"width":252,"height":11}},{"id":"83cdf562-15ad-4c17-99c2-130e87379084","block_type":"box","text":"BlackRock Strategic Municipal Opportunities","page_number":6,"box":{"x":554,"y":444,"width":313,"height":12}},{"id":"5319503d-40f7-4938-b3e3-40036d72eb29","block_type":"box","text":"Fund","page_number":6,"box":{"x":554,"y":460,"width":38,"height":9}},{"id":"03171014-2c46-45a1-94bd-c665f8931c55","block_type":"box","text":"BlackRock Natural Resources Trust","page_number":6,"box":{"x":520,"y":491,"width":264,"height":9}},{"id":"b02ac092-524b-463d-a331-85bc4becfb92","block_type":"box","text":"BlackRock Series Fund, Inc.","page_number":6,"box":{"x":520,"y":522,"width":208,"height":11}},{"id":"b8041797-1b19-4f90-b48d-88dc4e05bc2b","block_type":"box","text":"BlackRock Advantage Large Cap Core Portfolio","page_number":6,"box":{"x":554,"y":537,"width":331,"height":12}},{"id":"2239fe74-63c4-40f5-b81f-f57b4641da26","block_type":"box","text":"BlackRock Balanced Portfolio","page_number":6,"box":{"x":554,"y":553,"width":209,"height":9}},{"id":"eb5888c2-abf4-41bb-93a4-5eaddff9e6ce","block_type":"box","text":"BlackRock Capital Appreciation Portfolio","page_number":6,"box":{"x":554,"y":568,"width":288,"height":12}},{"id":"44626ff7-23fd-46be-8faf-4c71009b63f3","block_type":"box","text":"BlackRock Global Allocation Portfolio","page_number":6,"box":{"x":554,"y":584,"width":268,"height":9}},{"id":"20eb66f0-9f08-452b-a876-f13788e012d6","block_type":"box","text":"BlackRock Government Money Market","page_number":6,"box":{"x":554,"y":599,"width":272,"height":12}},{"id":"a987fb25-6d3f-46bb-a367-2d8d81c2630b","block_type":"box","text":"Portfolio","page_number":6,"box":{"x":554,"y":615,"width":63,"height":9}},{"id":"78ccfd63-7bc4-4cf0-8010-b0fefe6d56af","block_type":"box","text":"BlackRock Series Fund II, Inc.","page_number":6,"box":{"x":520,"y":646,"width":226,"height":11}},{"id":"6e02a452-a372-403f-acdf-6a2049387186","block_type":"box","text":"BlackRock High Yield Portfolio","page_number":6,"box":{"x":554,"y":661,"width":217,"height":12}},{"id":"7b064520-4a01-4cac-ae61-ff4b0f785b97","block_type":"box","text":"BlackRock Series, Inc.","page_number":6,"box":{"x":520,"y":692,"width":161,"height":11}},{"id":"eebdf8cd-938e-45ea-a9a1-85b7c5e3ad9c","block_type":"box","text":"BlackRock International Fund","page_number":6,"box":{"x":554,"y":708,"width":203,"height":9}},{"id":"3b9de1e0-b28c-48d3-beb7-a06cc5d411d0","block_type":"box","text":"BlackRock Strategic Global Bond Fund, Inc.","page_number":6,"box":{"x":520,"y":739,"width":320,"height":11}},{"id":"7ce0ce83-1e56-47ed-897c-931607a4255b","block_type":"box","text":"BlackRock Unconstrained Equity Fund","page_number":6,"box":{"x":520,"y":770,"width":283,"height":11}},{"id":"396813b0-7c91-4c18-95a8-c4c91795cdd3","block_type":"box","text":"BlackRock Variable Series Funds, Inc.","page_number":6,"box":{"x":520,"y":801,"width":277,"height":11}},{"id":"a28450aa-172b-4ee9-8105-1f91dcc892db","block_type":"box","text":"BlackRock 60/40 Target Allocation ETF V.I.","page_number":6,"box":{"x":554,"y":816,"width":304,"height":12}},{"id":"d2dcb371-3ddc-41dc-b5c0-75f0c9b43597","block_type":"box","text":"Fund","page_number":6,"box":{"x":554,"y":832,"width":38,"height":9}},{"id":"c5dbbdba-202d-4e27-aa02-f5cf1d27dae0","block_type":"box","text":"BlackRock Advantage Large Cap Core V.I.","page_number":6,"box":{"x":554,"y":847,"width":298,"height":12}},{"id":"e9148541-2883-4f2f-8f4b-c546bc83cb14","block_type":"box","text":"Fund","page_number":6,"box":{"x":554,"y":863,"width":38,"height":9}},{"id":"f92fc004-02eb-4db8-ab83-1c342272b155","block_type":"box","text":"BlackRock Advantage Large Cap Value V.I.","page_number":6,"box":{"x":554,"y":878,"width":305,"height":12}},{"id":"67bc023c-d5d8-4f42-a1f7-cac7283819e4","block_type":"box","text":"Fund","page_number":6,"box":{"x":554,"y":894,"width":38,"height":9}},{"id":"3f36824d-8da1-4dd4-9d03-41f26644254e","block_type":"box","text":"BlackRock Advantage SMID Cap V.I. Fund","page_number":6,"box":{"x":554,"y":909,"width":298,"height":12}},{"id":"9fefacd2-c9a9-4555-a84b-71216906c14d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":6,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d7b417dc-9215-4b92-a4cb-6b6a9106c6d9","block_type":"box","text":"BlackRock Basic Value V.I. Fund","page_number":7,"box":{"x":150,"y":88,"width":234,"height":9}},{"id":"91baa462-738e-43fe-b326-d98ab6b7e270","block_type":"box","text":"BlackRock Capital Appreciation V.I. Fund","page_number":7,"box":{"x":150,"y":103,"width":293,"height":12}},{"id":"3882f7bb-e940-4a7f-9d65-c5ac32c6c067","block_type":"box","text":"BlackRock Equity Dividend V.I. Fund","page_number":7,"box":{"x":150,"y":119,"width":264,"height":11}},{"id":"fee69e36-0471-4a77-b5fa-5b30f47d6f11","block_type":"box","text":"BlackRock Global Allocation V.I. Fund","page_number":7,"box":{"x":150,"y":134,"width":273,"height":9}},{"id":"804c438f-e7d5-4a41-8a06-78055601e5a9","block_type":"box","text":"BlackRock Government Money Market V.I.","page_number":7,"box":{"x":150,"y":150,"width":302,"height":11}},{"id":"c3301c3a-59e2-49a3-9607-a3da250932ae","block_type":"box","text":"Fund","page_number":7,"box":{"x":150,"y":165,"width":38,"height":9}},{"id":"a4a5dbf5-9d85-4d56-b608-6971c8b84b87","block_type":"box","text":"BlackRock International Index V.I. Fund","page_number":7,"box":{"x":150,"y":181,"width":281,"height":9}},{"id":"bad3776b-3b61-4ee3-affd-ec2e9b3a9285","block_type":"box","text":"BlackRock International V.I. Fund","page_number":7,"box":{"x":150,"y":196,"width":238,"height":9}},{"id":"405b9ef8-a759-4190-a897-91a3e36bbd0a","block_type":"box","text":"BlackRock Large Cap Focus Growth V.I. Fund","page_number":7,"box":{"x":554,"y":88,"width":323,"height":11}},{"id":"af968b31-bbac-43f3-a0e7-9f1a2c128101","block_type":"box","text":"BlackRock Managed Volatility V.I. Fund","page_number":7,"box":{"x":554,"y":103,"width":283,"height":12}},{"id":"2cb379d1-48b1-4cb3-8903-b59df1a3fbf8","block_type":"box","text":"BlackRock S&P 500 Index V.I. Fund","page_number":7,"box":{"x":554,"y":119,"width":256,"height":9}},{"id":"59f45275-13ba-4952-91fa-b4ebdbda5920","block_type":"box","text":"BlackRock Small Cap Index V.I. Fund","page_number":7,"box":{"x":554,"y":134,"width":265,"height":12}},{"id":"113554e5-3ea1-4c68-839b-cc4f6d2a7078","block_type":"box","text":"BlackRock Variable Series Funds II, Inc.","page_number":7,"box":{"x":520,"y":165,"width":299,"height":11}},{"id":"770a1793-b8ae-4c24-ab07-d86eb9dcaa4c","block_type":"box","text":"BlackRock High Yield V.I. Fund","page_number":7,"box":{"x":554,"y":181,"width":227,"height":11}},{"id":"60b93f26-6041-4ffa-be19-c1ad2f4b89d3","block_type":"box","text":"BlackRock Total Return V.I. Fund","page_number":7,"box":{"x":554,"y":196,"width":238,"height":9}},{"id":"3e8d2e37-10c2-4344-970c-6e0b3e6d175b","block_type":"box","text":"Shareholders should retain this Supplement for future reference.","page_number":7,"box":{"x":267,"y":227,"width":470,"height":12}},{"id":"c978aed2-6a90-4533-8d02-0aeceffaea8f","block_type":"box","text":"SAI-GLOBAL-1026SUP","page_number":7,"box":{"x":116,"y":258,"width":175,"height":9}},{"id":"3f6fb45b-bbc0-4a4e-a422-e89e09f9a82a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":7,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a75b0ec5-9618-4ef6-8e71-f586f58f3a24","block_type":"box","text":"STATEMENT OF ADDITIONAL INFORMATION","page_number":8,"box":{"x":271,"y":83,"width":435,"height":11}},{"id":"78f52878-b6ba-45a1-8328-8c77ad931dcc","block_type":"box","text":"BlackRock Capital Appreciation Fund, Inc.","page_number":8,"box":{"x":224,"y":120,"width":532,"height":18}},{"id":"ca348295-8dbf-4848-80e7-950edaf829b2","block_type":"box","text":"100 Bellevue Parkway, Wilmington, Delaware 19809 • Phone No. (800) 441-7762","page_number":8,"box":{"x":118,"y":153,"width":742,"height":15}},{"id":"246b563a-e82b-448f-a948-9b1621e8aeb2","block_type":"box","text":"This Statement of Additional Information of BlackRock Capital Appreciation Fund, Inc. (the “Fund”) is not","page_number":8,"box":{"x":101,"y":211,"width":799,"height":11}},{"id":"1ef2635d-069c-4ac0-aee5-9ed532092c55","block_type":"box","text":"a prospectus and should be read in conjunction with the Prospectuses of the Fund dated","page_number":8,"box":{"x":69,"y":226,"width":676,"height":12}},{"id":"9aab544e-b532-4ed5-b82b-5a7556d703a0","block_type":"box","text":"September 25, 2026, as they may be amended or supplemented from time to time (each, a “Prospectus”),","page_number":8,"box":{"x":69,"y":241,"width":800,"height":12}},{"id":"54e35fdb-9036-48a4-a46e-aa82c3a47477","block_type":"box","text":"which have been filed with the Securities and Exchange Commission (the “Commission” or the “SEC”) and can","page_number":8,"box":{"x":68,"y":256,"width":839,"height":12}},{"id":"7d00b25e-ab5c-422d-b0c8-85f5963decb1","block_type":"box","text":"be obtained, without charge, by calling (800) 441-7762 or by writing to the Fund at the above address. Part I","page_number":8,"box":{"x":70,"y":271,"width":822,"height":12}},{"id":"601ee01e-a7fe-4613-88d8-3a76c42fee91","block_type":"box","text":"of this Statement of Additional Information and the portions of Part II of this Statement of Additional","page_number":8,"box":{"x":69,"y":286,"width":765,"height":12}},{"id":"6b6d2502-20f2-4d8a-b1db-480bd45125fd","block_type":"box","text":"Information that relate to the Fund have been incorporated by reference into the Fund’s Prospectuses. The","page_number":8,"box":{"x":70,"y":301,"width":810,"height":12}},{"id":"15360c33-cc5e-4363-b154-13e3aea203c5","block_type":"box","text":"portions of Part II of this Statement of Additional Information that do not relate to the Fund do not form a part","page_number":8,"box":{"x":70,"y":317,"width":835,"height":11}},{"id":"035bba53-4a15-40da-847f-a5ce897a1903","block_type":"box","text":"of the Fund’s Statement of Additional Information, have not been incorporated by reference into the Fund’s","page_number":8,"box":{"x":69,"y":332,"width":815,"height":11}},{"id":"bbcb1502-7739-4e2f-a635-7a8f97cd4048","block_type":"box","text":"Prospectuses and should not be relied upon by investors in the Fund. The audited financial statements of the","page_number":8,"box":{"x":70,"y":347,"width":831,"height":12}},{"id":"0779e8a3-f0d7-4df0-9b93-f25b29adb68d","block_type":"box","text":"Fund are incorporated into this Statement of Additional Information by reference to the Fund’s Annual","page_number":8,"box":{"x":70,"y":362,"width":777,"height":12}},{"id":"d74b215e-8e2a-4b86-a429-9e762647f192","block_type":"box","text":"Financial Statements and Additional Information for the fiscal year ended May 31, 2026, as filed with the SEC","page_number":8,"box":{"x":70,"y":377,"width":834,"height":12}},{"id":"13370dab-6e6f-4e70-8acb-bcff03371c2c","block_type":"box","text":"on Form N-CSR (the “2026 Annual Financial Statements”). You may request a copy of the 2026 Annual","page_number":8,"box":{"x":69,"y":392,"width":781,"height":12}},{"id":"187a55ca-fc69-4f24-9aa3-8eae6e21b04f","block_type":"box","text":"Financial Statements at no charge by calling (800) 441-7762 between 8:00 a.m. and 6:00 p.m. Eastern time","page_number":8,"box":{"x":70,"y":407,"width":820,"height":12}},{"id":"7a5a5b95-0f42-4770-bf95-32ba257a1c20","block_type":"box","text":"on any business day.","page_number":8,"box":{"x":69,"y":423,"width":157,"height":11}},{"id":"9fab5288-86f9-4e33-a1ad-5500ece0cf37","block_type":"box","text":"References to the Investment Company Act of 1940, as amended (the “Investment Company Act” or the","page_number":8,"box":{"x":103,"y":445,"width":786,"height":12}},{"id":"7f81379e-714f-4b06-8e47-b6648ed54443","block_type":"box","text":"“1940 Act”), or other applicable law, will include any rules promulgated thereunder and any guidance,","page_number":8,"box":{"x":69,"y":460,"width":772,"height":12}},{"id":"56d0db2c-e8b7-4314-b410-68f9b464dfd7","block_type":"box","text":"interpretations or modifications by the Commission, Commission staff or other authority with appropriate","page_number":8,"box":{"x":70,"y":475,"width":804,"height":12}},{"id":"0eb84fc2-3e04-409f-8023-eef1f6619486","block_type":"box","text":"jurisdiction, including court interpretations, and exemptive, no-action or other relief or permission from the","page_number":8,"box":{"x":67,"y":490,"width":819,"height":12}},{"id":"5efb9b10-5134-4b9d-a675-2d8280bd7bfe","block_type":"box","text":"Commission, Commission staff or other authority.","page_number":8,"box":{"x":70,"y":506,"width":378,"height":11}},{"id":"460e54ae-db80-44ff-802e-ec85443bb5e2","block_type":"box","text":"Class","page_number":8,"box":{"x":69,"y":534,"width":31,"height":7}},{"id":"daf3866a-da6b-4fde-99b4-a4f662735665","block_type":"box","text":"Ticker Symbol","page_number":8,"box":{"x":827,"y":534,"width":82,"height":9}},{"id":"ab048a29-3710-4724-a969-67e00378fde5","block_type":"box","text":"Investor A Shares","page_number":8,"box":{"x":70,"y":552,"width":124,"height":9}},{"id":"c58fee15-e51c-497d-88de-de581e1fa40a","block_type":"box","text":".......................................................................... M","page_number":8,"box":{"x":199,"y":552,"width":656,"height":9}},{"id":"b476310e-f27c-46fe-ae62-44ec8670cce3","block_type":"box","text":"DFGX","page_number":8,"box":{"x":857,"y":552,"width":37,"height":9}},{"id":"7ee1d98f-55d6-4f96-be02-361d2860e48e","block_type":"box","text":"Investor C Shares.","page_number":8,"box":{"x":70,"y":567,"width":131,"height":9}},{"id":"ca255ea9-680c-4bbc-baf1-6da9af342f8d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MCFGX","page_number":8,"box":{"x":208,"y":567,"width":686,"height":9}},{"id":"e7c0e314-d8f6-451f-a750-56da4d2307c3","block_type":"box","text":"Institutional Shares","page_number":8,"box":{"x":70,"y":582,"width":137,"height":9}},{"id":"6798facd-9a3e-47ce-aab5-e3d41b13a28a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MAFGX","page_number":8,"box":{"x":216,"y":582,"width":677,"height":9}},{"id":"57292a9b-77ac-4a06-a049-7bc54f3ae222","block_type":"box","text":"Class R Shares","page_number":8,"box":{"x":69,"y":597,"width":109,"height":9}},{"id":"118512bd-54ca-4c7b-b192-ac153d7f3234","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MRFGX","page_number":8,"box":{"x":183,"y":597,"width":711,"height":9}},{"id":"f650ccdc-754b-4de3-82d3-bfec0d7203df","block_type":"box","text":"Class K Shares","page_number":8,"box":{"x":69,"y":612,"width":109,"height":9}},{"id":"2ce9b2b1-5a38-40c9-a7b4-aa7be442da1a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BFGBX","page_number":8,"box":{"x":183,"y":612,"width":709,"height":9}},{"id":"19bba21d-859d-432b-9813-4fe803c10f23","block_type":"box","text":"BlackRock Advisors, LLC — Manager","page_number":8,"box":{"x":260,"y":667,"width":460,"height":19}},{"id":"2a70322d-02b7-4106-806d-447be61718e0","block_type":"box","text":"BlackRock Investments, LLC — Distributor","page_number":8,"box":{"x":222,"y":690,"width":536,"height":17}},{"id":"aff96a6e-bc57-4fae-ba4c-bc67d7230402","block_type":"box","text":"The date of this Statement of Additional Information is September 25, 2026.","page_number":8,"box":{"x":199,"y":749,"width":579,"height":12}},{"id":"9dfe93f4-2203-4135-aa8e-1c6e72e06781","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":8,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"849b517f-226f-4929-825a-0ca481fe82bb","block_type":"box","text":"TABLE OF CONTENTS","page_number":9,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"0c22d726-bd3c-43cb-861a-54dad19d6d61","block_type":"box","text":"Page","page_number":9,"box":{"x":869,"y":73,"width":28,"height":9}},{"id":"c99ad1f6-7180-4a10-8711-62e7262751ad","block_type":"box","text":"PART I","page_number":9,"box":{"x":69,"y":92,"width":47,"height":9}},{"id":"7d45a50c-5054-4f05-aba1-aa5add065d3e","block_type":"box","text":"Investment Objective and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1","page_number":9,"box":{"x":70,"y":108,"width":839,"height":11}},{"id":"742d101d-46e1-456e-9ae6-2574ad72582e","block_type":"box","text":"Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-5","page_number":9,"box":{"x":70,"y":125,"width":839,"height":9}},{"id":"fad457e1-cff3-4d2c-b9ee-a945f2bbdd0f","block_type":"box","text":"Information on Directors and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-7","page_number":9,"box":{"x":70,"y":141,"width":838,"height":9}},{"id":"d3837680-dec8-468c-b177-3a59485b1bf4","block_type":"box","text":"Management, Advisory and Other Service Arrangements. . . . . . . . .","page_number":9,"box":{"x":70,"y":158,"width":469,"height":11}},{"id":"3fe327fa-fc54-42e0-934d-48dd25697dad","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-18","page_number":9,"box":{"x":545,"y":158,"width":364,"height":8}},{"id":"43c16c80-3dc6-4296-a767-b6f2444f565a","block_type":"box","text":"Information on Sales Charges and Distribution Related Expenses .","page_number":9,"box":{"x":70,"y":174,"width":469,"height":11}},{"id":"7baed4f1-3470-4cd6-8f3d-6cf2cadd796c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-22","page_number":9,"box":{"x":545,"y":174,"width":364,"height":9}},{"id":"a6abc3b7-1854-462a-a50b-7fa7331cf2d8","block_type":"box","text":"Computation of Offering Price Per Share . . . . . . . . . . . . . . . . . . . .","page_number":9,"box":{"x":69,"y":190,"width":446,"height":11}},{"id":"d689f834-ca34-4302-bfb1-8b9c5508a06b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-23","page_number":9,"box":{"x":521,"y":190,"width":388,"height":9}},{"id":"539642dd-e8a9-43f5-9fc8-1f928d162d61","block_type":"box","text":"Portfolio Transactions and Brokerage . .","page_number":9,"box":{"x":69,"y":206,"width":283,"height":12}},{"id":"5df847bc-6127-45c8-9770-dafdaa434eb9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-23","page_number":9,"box":{"x":358,"y":207,"width":551,"height":9}},{"id":"6bd580c7-03af-4974-b2a5-0f9299a6bfb9","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":9,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"d6aac0b4-82b2-4074-aee6-827ba1c5d9a2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-25","page_number":9,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"79177f88-8a55-495d-a7b3-28b1edc61370","block_type":"box","text":"Financial Statements","page_number":9,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"57a999e2-d5aa-438f-bc7a-b7fcfaaf4ef1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-26","page_number":9,"box":{"x":227,"y":239,"width":682,"height":9}},{"id":"1370b583-60e4-4c9b-95cf-02bc1bd0fb1c","block_type":"box","text":"PART II","page_number":9,"box":{"x":69,"y":271,"width":52,"height":9}},{"id":"67a3a757-46e8-4ddc-b1e1-80efc3b0b47f","block_type":"box","text":"Investment Risks and Considerations . . . . . . . .","page_number":9,"box":{"x":70,"y":287,"width":330,"height":9}},{"id":"a74b47f7-2c3b-4f98-b4c7-f32e678fd411","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1","page_number":9,"box":{"x":407,"y":287,"width":502,"height":9}},{"id":"ddb0b5ee-f328-4154-8e74-a67e468992a7","block_type":"box","text":"Management and Other Service Arrangements . . . . . . . . . . . . . . . .","page_number":9,"box":{"x":70,"y":304,"width":461,"height":11}},{"id":"7c28a572-3a3b-4a1a-8dd9-06b4ff75b0f3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-82","page_number":9,"box":{"x":537,"y":304,"width":372,"height":9}},{"id":"a1789c62-073a-4b08-a92e-52837eb173d8","block_type":"box","text":"Selective Disclosure of Portfolio Holdings. . . . . . . . . . . . . . . . . . .","page_number":9,"box":{"x":69,"y":320,"width":446,"height":11}},{"id":"510a68af-b908-4152-b529-275a01c60e58","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-84","page_number":9,"box":{"x":521,"y":320,"width":388,"height":9}},{"id":"9f004750-db9c-4abc-b7ee-cb791d16e9e7","block_type":"box","text":"Purchase of Shares","page_number":9,"box":{"x":69,"y":336,"width":139,"height":9}},{"id":"19980bda-d3ec-4be3-b940-2e01176b4346","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-97","page_number":9,"box":{"x":211,"y":336,"width":697,"height":9}},{"id":"5abf6aae-921d-4eb1-8131-dfd312b38cb8","block_type":"box","text":"Redemption of Shares . .","page_number":9,"box":{"x":70,"y":353,"width":176,"height":11}},{"id":"074f1a49-c408-4680-aaca-11a179d1c7d1","block_type":"box","text":"........................................................................... I","page_number":9,"box":{"x":252,"y":353,"width":619,"height":9}},{"id":"69397992-6f71-4957-a2b9-d71dc235c618","block_type":"box","text":"I-114","page_number":9,"box":{"x":874,"y":353,"width":35,"height":9}},{"id":"ee518fcb-1471-4bc4-9e17-99b6cd5ca0d1","block_type":"box","text":"Shareholder Services . .","page_number":9,"box":{"x":69,"y":369,"width":168,"height":9}},{"id":"995212e9-3e1a-4b7e-8524-38688743ce27","block_type":"box","text":"............................................................................ I","page_number":9,"box":{"x":244,"y":369,"width":627,"height":9}},{"id":"2cac0a85-dc02-4260-8c53-375fb9d71531","block_type":"box","text":"I-118","page_number":9,"box":{"x":874,"y":369,"width":35,"height":9}},{"id":"ce23a9ae-c79a-4966-b96f-530337833677","block_type":"box","text":"Pricing of Shares","page_number":9,"box":{"x":69,"y":385,"width":119,"height":12}},{"id":"e0e6fe59-c08c-41b3-9a3b-0e00a87c1611","block_type":"box","text":".................................................................................. I","page_number":9,"box":{"x":195,"y":386,"width":676,"height":8}},{"id":"304bd7e8-80ee-47b5-9f14-df2e87b74960","block_type":"box","text":"I-122","page_number":9,"box":{"x":874,"y":386,"width":35,"height":8}},{"id":"69588db9-dedf-4cbe-a6ac-0d3bb1ea5eb6","block_type":"box","text":"Portfolio Transactions and Brokerage . .","page_number":9,"box":{"x":69,"y":402,"width":283,"height":11}},{"id":"6e7d26d9-4b8e-416c-9233-7a5abf9e523e","block_type":"box","text":".............................................................. I","page_number":9,"box":{"x":358,"y":402,"width":513,"height":9}},{"id":"5abd9741-b3bb-438c-9ce7-16fe31cd6694","block_type":"box","text":"I-124","page_number":9,"box":{"x":874,"y":402,"width":35,"height":9}},{"id":"50a5cdbb-4573-4958-b550-716e19dc328c","block_type":"box","text":"Dividends and Taxes . .","page_number":9,"box":{"x":70,"y":418,"width":159,"height":9}},{"id":"45f4dd5f-fb52-41e1-b0c7-dde79ce33d23","block_type":"box","text":"............................................................................. I","page_number":9,"box":{"x":236,"y":418,"width":635,"height":9}},{"id":"f9b0a1e1-ccdf-41c6-9996-ab60ed6cafbe","block_type":"box","text":"I-129","page_number":9,"box":{"x":874,"y":418,"width":35,"height":9}},{"id":"045d1d13-b3a7-4a2d-9167-beae9e7aaab6","block_type":"box","text":"Performance Data","page_number":9,"box":{"x":69,"y":435,"width":129,"height":9}},{"id":"c321e975-9607-4ba4-8539-371a6d47209d","block_type":"box","text":"................................................................................. I","page_number":9,"box":{"x":203,"y":435,"width":668,"height":8}},{"id":"34a41e02-6f49-4ac4-a0f5-3a3edd921bf9","block_type":"box","text":"I-137","page_number":9,"box":{"x":874,"y":435,"width":34,"height":9}},{"id":"2e4f5c33-58dc-4b62-9fb4-b64501449ab3","block_type":"box","text":"Proxy Voting Policies and Procedures. . . . . . . . . . . . . . . . . . . . . .","page_number":9,"box":{"x":69,"y":451,"width":437,"height":11}},{"id":"906d6ebb-e1d4-4435-b2e9-73008d7c9432","block_type":"box","text":"........................................... I","page_number":9,"box":{"x":513,"y":451,"width":358,"height":9}},{"id":"cda17c52-f9ee-4aa8-9d6f-36c47555c82b","block_type":"box","text":"I-139","page_number":9,"box":{"x":874,"y":451,"width":35,"height":9}},{"id":"969942e2-5d41-495b-a81b-126517efa73e","block_type":"box","text":"General Information","page_number":9,"box":{"x":69,"y":467,"width":140,"height":9}},{"id":"48a2678b-ee54-41fd-b130-acc2fb2846c0","block_type":"box","text":"............................................................................... I","page_number":9,"box":{"x":219,"y":468,"width":652,"height":8}},{"id":"8e43e11a-6b50-4694-8e16-3fd9655d950e","block_type":"box","text":"I-139","page_number":9,"box":{"x":874,"y":467,"width":35,"height":9}},{"id":"1690edcb-2911-4209-8e19-2e5d7c8b4fff","block_type":"box","text":"Appendix A — Description of Bond Ratings. . . .","page_number":9,"box":{"x":68,"y":484,"width":332,"height":11}},{"id":"3b8b3b05-8eb1-41ff-8b9f-d72201212a26","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1","page_number":9,"box":{"x":407,"y":484,"width":502,"height":9}},{"id":"76a9322e-a787-4491-8f9d-9a9e2767bcf3","block_type":"box","text":"Appendix B — Proxy Voting Policies . . . . . .","page_number":9,"box":{"x":68,"y":500,"width":300,"height":11}},{"id":"d737939b-fa7b-4cb4-aba5-d224faf831e4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1","page_number":9,"box":{"x":374,"y":500,"width":535,"height":9}},{"id":"7abd575c-181e-4a97-8568-a97101696db7","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":9,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c081d1ce-17cb-4677-a5f4-55534d0693e2","block_type":"box","text":"PART I: INFORMATION ABOUT BLACKROCK CAPITAL APPRECIATION FUND, INC.","page_number":10,"box":{"x":196,"y":45,"width":586,"height":11}},{"id":"4806d06d-da27-40ef-820b-10b94ce005ac","block_type":"box","text":"Part I of this Statement of Additional Information (“SAI”) sets forth information about BlackRock Capital","page_number":10,"box":{"x":102,"y":67,"width":738,"height":11}},{"id":"79c09f69-041e-4181-b296-1da6f3812396","block_type":"box","text":"Appreciation Fund, Inc. (the “Fund”). It includes information about the Fund’s Board of Directors (the “Board” or the","page_number":10,"box":{"x":68,"y":82,"width":825,"height":11}},{"id":"92c97e3e-bb62-4798-aa75-e4c1c69f0e71","block_type":"box","text":"“Board of Directors”), the management services provided to and the management fees paid by the Fund and","page_number":10,"box":{"x":70,"y":98,"width":773,"height":11}},{"id":"10a610cb-a5a4-4b59-bf09-7809ef916d4c","block_type":"box","text":"information about other fees applicable to and services provided to the Fund. This Part I of this SAI should be read in","page_number":10,"box":{"x":70,"y":113,"width":835,"height":11}},{"id":"f9c18bc4-661f-44a7-aa17-b130a5be4ce3","block_type":"box","text":"conjunction with the Fund’s Prospectuses and those portions of Part II of this SAI that pertain to the Fund.","page_number":10,"box":{"x":69,"y":128,"width":760,"height":11}},{"id":"aebe7532-1b6b-4fd0-a558-9ee40c2292da","block_type":"box","text":"I. Investment Objective and Policies","page_number":10,"box":{"x":69,"y":158,"width":262,"height":11}},{"id":"973ea863-4bb2-4bd3-a729-7ab7b6d4758d","block_type":"box","text":"Please see the section “Details About the Fund—How the Fund Invests” in the Fund’s Prospectuses for","page_number":10,"box":{"x":102,"y":181,"width":738,"height":11}},{"id":"35ae0a19-4533-4192-839f-6ae377646053","block_type":"box","text":"information about the Fund’s investment objective and policies.","page_number":10,"box":{"x":70,"y":196,"width":450,"height":11}},{"id":"b5167dd3-a248-47db-8bbf-eaedb558664b","block_type":"box","text":"In implementing the Fund’s investment strategy, from time to time, BlackRock Advisors, LLC (“BlackRock” or the","page_number":10,"box":{"x":102,"y":218,"width":799,"height":12}},{"id":"0d56020c-245a-4986-8a1c-958ea3ea71c5","block_type":"box","text":"“Manager”), the Fund’s investment manager, may consider and employ techniques and strategies designed to","page_number":10,"box":{"x":70,"y":234,"width":784,"height":11}},{"id":"8f6da143-3536-471c-864c-d9b967e41323","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":10,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"b3372aca-04a2-4888-9294-3a64c11bf17a","block_type":"box","text":"investment in the Fund.","page_number":10,"box":{"x":70,"y":264,"width":165,"height":9}},{"id":"801c085e-1a4b-466a-a495-b0fe25afeb47","block_type":"box","text":"Set forth below is a listing of some of the types of investments and investment strategies that the Fund may","page_number":10,"box":{"x":102,"y":286,"width":774,"height":12}},{"id":"82e710a3-6752-403f-a8ca-cba8322e40ab","block_type":"box","text":"use, and the risks and considerations associated with those investments and investment strategies. Please see Part","page_number":10,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"c1d14be9-676d-48b2-8abf-953aa89f638d","block_type":"box","text":"II of this SAI for further information on these investments and investment strategies. Information contained in Part II","page_number":10,"box":{"x":70,"y":317,"width":828,"height":11}},{"id":"d986429f-a276-4776-a23b-6aa27bb6ac7c","block_type":"box","text":"about the risks and considerations associated with investments and/or investment strategies applies only to the","page_number":10,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"3f7226ce-79e1-4961-a203-bafe1b5aaa43","block_type":"box","text":"extent the Fund makes each type of investment or uses each investment strategy. Also set forth below is a listing of","page_number":10,"box":{"x":69,"y":347,"width":830,"height":11}},{"id":"2ae8257b-e033-4afa-8d0d-e1504ed5ce18","block_type":"box","text":"the proxy voting policy and related guidelines applicable to the Fund. Please see “Proxy Voting Policies and","page_number":10,"box":{"x":68,"y":362,"width":760,"height":11}},{"id":"f2cc7982-3b40-4979-b4bf-eacb55a51a26","block_type":"box","text":"Procedures” in Part II of this SAI for further information about these policies. A copy of each policy is included in","page_number":10,"box":{"x":69,"y":377,"width":801,"height":11}},{"id":"a5a95fa7-2de7-4855-a4dc-575cb6186797","block_type":"box","text":"Appendix B.","page_number":10,"box":{"x":68,"y":393,"width":83,"height":10}},{"id":"f8f83899-11f5-447a-97b0-f2978b325142","block_type":"box","text":"Information that does not apply to the Fund does not form a part of the Fund’s SAI and should not be relied on","page_number":10,"box":{"x":102,"y":415,"width":789,"height":11}},{"id":"71cbe22a-ec6f-4216-b3e0-b8dee4209667","block_type":"box","text":"by investors in the Fund. Only information that is clearly identified as applicable to the Fund is considered to form a","page_number":10,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"833b5046-b3c5-4a84-aa0d-828f0112b97a","block_type":"box","text":"part of the Fund’s SAI.","page_number":10,"box":{"x":70,"y":445,"width":158,"height":11}},{"id":"39ef1eef-ccd9-4b4c-954f-f17f923612f9","block_type":"box","text":"BlackRock Capital","page_number":10,"box":{"x":768,"y":474,"width":107,"height":9}},{"id":"a2755787-0ddc-4088-b416-7a236e0db9e5","block_type":"box","text":"Appreciation Fund, Inc.","page_number":10,"box":{"x":753,"y":484,"width":135,"height":9}},{"id":"1c50d7f7-1ad8-4094-9ca9-80851a8fcfe6","block_type":"box","text":"Asset-Backed Securities","page_number":10,"box":{"x":72,"y":504,"width":161,"height":8}},{"id":"6bcea4a3-d008-4853-8f5c-67bf03fc8e86","block_type":"box","text":"Asset-Based Securities","page_number":10,"box":{"x":72,"y":524,"width":152,"height":8}},{"id":"85641fd8-8261-45a7-812d-2867537db83b","block_type":"box","text":"X","page_number":10,"box":{"x":817,"y":524,"width":8,"height":8}},{"id":"99e92ec5-6c13-44fe-b61a-60379f40f976","block_type":"box","text":"Precious Metal-Related Securities","page_number":10,"box":{"x":83,"y":544,"width":215,"height":8}},{"id":"e2cfb4e6-0744-4d80-81e0-6176eb66eb7a","block_type":"box","text":"X","page_number":10,"box":{"x":817,"y":544,"width":8,"height":8}},{"id":"7dfef687-622e-4b0a-a9fb-fc0a08165541","block_type":"box","text":"Borrowing and Leverage","page_number":10,"box":{"x":73,"y":564,"width":157,"height":10}},{"id":"bbb661f8-a566-4a13-878e-40515767b571","block_type":"box","text":"X","page_number":10,"box":{"x":817,"y":564,"width":8,"height":8}},{"id":"a5914bec-fce9-4417-9a68-ce6f8c55291a","block_type":"box","text":"Cash Management","page_number":10,"box":{"x":73,"y":584,"width":122,"height":10}},{"id":"8074b7ba-d861-4984-82e3-563b7207872c","block_type":"box","text":"X","page_number":10,"box":{"x":817,"y":584,"width":8,"height":8}},{"id":"01e82091-2900-4b8c-8d4b-aadfad8e52ef","block_type":"box","text":"Collateralized Debt Obligations","page_number":10,"box":{"x":73,"y":604,"width":202,"height":10}},{"id":"86c542cc-4d1e-4eae-8be4-50a925bbf27d","block_type":"box","text":"Collateralized Bond Obligations","page_number":10,"box":{"x":83,"y":625,"width":198,"height":10}},{"id":"3f237330-ca47-4ed6-922c-0a077d509509","block_type":"box","text":"Collateralized Loan Obligations","page_number":10,"box":{"x":83,"y":645,"width":196,"height":10}},{"id":"17749432-8b1a-499d-87a0-4adcdbe8d557","block_type":"box","text":"Commercial Paper","page_number":10,"box":{"x":73,"y":665,"width":120,"height":10}},{"id":"96513a48-ef3d-4179-b408-4cb999d3a5ce","block_type":"box","text":"X","page_number":10,"box":{"x":817,"y":665,"width":8,"height":8}},{"id":"535af8a9-af42-4fe5-bbcf-9b1a1aac72a2","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments","page_number":10,"box":{"x":73,"y":685,"width":431,"height":10}},{"id":"e8bac117-55b5-4d15-901f-f93770f2027d","block_type":"box","text":"Qualifying Hybrid Instruments","page_number":10,"box":{"x":83,"y":705,"width":187,"height":10}},{"id":"0b3a2115-b57c-4ebd-87ca-67d2ce7749aa","block_type":"box","text":"Hybrid Instruments Without Principal Protection","page_number":10,"box":{"x":83,"y":725,"width":301,"height":10}},{"id":"020c7e8a-f6ab-4432-a751-73423a214ba6","block_type":"box","text":"Limitations on Leverage","page_number":10,"box":{"x":83,"y":746,"width":151,"height":10}},{"id":"2e8284b8-6833-4e39-88ff-c52d27d2b62b","block_type":"box","text":"Counterparty Risk","page_number":10,"box":{"x":83,"y":766,"width":114,"height":10}},{"id":"181c0597-123c-4d14-9e08-c51c46c60ffa","block_type":"box","text":"Convertible Securities","page_number":10,"box":{"x":73,"y":786,"width":145,"height":8}},{"id":"fe9d989e-2de2-42d7-bc41-a730e57bec04","block_type":"box","text":"X","page_number":10,"box":{"x":817,"y":786,"width":8,"height":8}},{"id":"d3d51ccf-6036-40ab-9fcc-4231b317d5ae","block_type":"box","text":"Corporate Loans","page_number":10,"box":{"x":73,"y":806,"width":107,"height":10}},{"id":"92b03f48-b2b5-4df6-9596-7a0941200a2b","block_type":"box","text":"Direct Lending","page_number":10,"box":{"x":83,"y":826,"width":91,"height":10}},{"id":"e46eac53-83b5-435a-b8d0-cb2c594e0aef","block_type":"box","text":"Credit Linked Securities","page_number":10,"box":{"x":73,"y":846,"width":157,"height":8}},{"id":"1f56ca8f-2c25-4ab3-9979-d3697a169586","block_type":"box","text":"Debt Securities","page_number":10,"box":{"x":73,"y":866,"width":100,"height":8}},{"id":"a5475654-b19d-4bba-8e3b-9cbbcb6adbeb","block_type":"box","text":"X","page_number":10,"box":{"x":817,"y":867,"width":8,"height":7}},{"id":"a624ae8e-1583-4d5a-98d3-3aabd9c50e07","block_type":"box","text":"Floating and Variable Rate Securities","page_number":10,"box":{"x":83,"y":887,"width":234,"height":10}},{"id":"e5bf756b-3943-4936-9479-d5f535577d30","block_type":"box","text":"Inflation-Indexed Bonds","page_number":10,"box":{"x":83,"y":907,"width":148,"height":8}},{"id":"2a424342-8e20-48e5-9961-786a8befc2f5","block_type":"box","text":"I-1","page_number":10,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"26a3d94e-f77a-439d-9b3d-e08afa571daf","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":10,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6ff6fd06-d0cb-4dd9-9ff8-c1d34119091d","block_type":"box","text":"BlackRock Capital","page_number":11,"box":{"x":768,"y":50,"width":107,"height":8}},{"id":"7f228101-dfc5-4091-93cb-366824807a95","block_type":"box","text":"Appreciation Fund, Inc.","page_number":11,"box":{"x":753,"y":60,"width":135,"height":8}},{"id":"4b0e19e3-1b47-41c5-b8ec-02ec4fbf7265","block_type":"box","text":"Investment Grade Debt Obligations","page_number":11,"box":{"x":83,"y":79,"width":223,"height":10}},{"id":"fd948301-163b-441a-8afd-10f05654e45a","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":79,"width":8,"height":8}},{"id":"1d5a9471-3913-4b15-bb7a-a6da3b7a3873","block_type":"box","text":"High Yield Investments (“Junk Bonds”)","page_number":11,"box":{"x":83,"y":99,"width":246,"height":10}},{"id":"5f9ec13c-97a1-4915-b251-9801604f49a1","block_type":"box","text":"Mezzanine Investments","page_number":11,"box":{"x":93,"y":119,"width":149,"height":8}},{"id":"8d5a8e64-316c-4544-81d6-6d3a0bfbdf25","block_type":"box","text":"Pay-in-kind Bonds","page_number":11,"box":{"x":83,"y":140,"width":110,"height":9}},{"id":"c3bb8fb3-410f-462a-ab4b-fbff5e983722","block_type":"box","text":"Supranational Entities","page_number":11,"box":{"x":83,"y":160,"width":140,"height":9}},{"id":"39b26dac-a03e-4ebf-86d9-e019bcb4411f","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs)","page_number":11,"box":{"x":73,"y":180,"width":296,"height":10}},{"id":"671449f0-001e-4df6-b569-ab1bee7f9118","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":180,"width":8,"height":8}},{"id":"9525ccf6-f9e2-41d4-b722-d68af18d48e6","block_type":"box","text":"Derivatives","page_number":11,"box":{"x":73,"y":200,"width":72,"height":8}},{"id":"38ed6253-d2c3-4ab5-8842-0cf4499c79e9","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":200,"width":8,"height":8}},{"id":"07905098-02e3-4aea-919f-e0907761ca05","block_type":"box","text":"Hedging","page_number":11,"box":{"x":83,"y":220,"width":51,"height":10}},{"id":"0cae5329-8a87-484b-b4c7-1c022310e12d","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":220,"width":8,"height":8}},{"id":"910a61a2-b1d9-4f18-9a42-6d37bc2ed0aa","block_type":"box","text":"Speculation","page_number":11,"box":{"x":83,"y":240,"width":74,"height":10}},{"id":"9f9c8268-0176-4c11-9141-27827f02b23d","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":240,"width":8,"height":8}},{"id":"0369b74a-33ac-4cae-81ff-63e3b982b826","block_type":"box","text":"Risk Factors in Derivatives","page_number":11,"box":{"x":83,"y":261,"width":168,"height":7}},{"id":"d69caae0-9d6e-4e15-a99d-394b3fa436b3","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":261,"width":8,"height":7}},{"id":"9bafdc80-a9c0-4cc4-bc84-4775a45a45ec","block_type":"box","text":"Correlation Risk","page_number":11,"box":{"x":93,"y":281,"width":101,"height":8}},{"id":"f6e1fd7d-3095-43e5-a0a0-5b2568295f24","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":281,"width":8,"height":7}},{"id":"d41482c3-d6af-4d8f-9e38-2f0bb7a2b09b","block_type":"box","text":"Counterparty Risk","page_number":11,"box":{"x":93,"y":301,"width":114,"height":10}},{"id":"f0d994db-accc-449e-ba30-9c44b6702169","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":301,"width":8,"height":8}},{"id":"34b17480-55b9-47eb-b9fc-7735d969bb82","block_type":"box","text":"Credit Risk","page_number":11,"box":{"x":93,"y":321,"width":69,"height":8}},{"id":"a2a7e269-2938-4d66-a30d-43500c4bd208","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":321,"width":8,"height":8}},{"id":"ed647da0-391a-44c1-925b-7dd690376f14","block_type":"box","text":"Currency Risk","page_number":11,"box":{"x":93,"y":341,"width":87,"height":10}},{"id":"e4dbc695-8298-4fa5-9ec2-adc2b5342f21","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":341,"width":8,"height":8}},{"id":"f8d0e758-b9b7-4618-b8dd-cda9291746a2","block_type":"box","text":"Illiquidity Risk","page_number":11,"box":{"x":93,"y":361,"width":87,"height":10}},{"id":"98b22b2f-ae03-4649-bd68-d1814fa7545e","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":361,"width":8,"height":8}},{"id":"7bc84a93-037b-4f7d-872b-e7af5b2f00ed","block_type":"box","text":"Index Risk","page_number":11,"box":{"x":93,"y":381,"width":65,"height":8}},{"id":"c375986a-c990-41e1-b64e-be06d52c2789","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":381,"width":8,"height":8}},{"id":"5b01141f-6de2-4562-abc3-3edcaf29b24f","block_type":"box","text":"Legal Risk","page_number":11,"box":{"x":93,"y":402,"width":65,"height":10}},{"id":"c1625d21-3579-4a1d-85f6-3d5027106d0a","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":402,"width":8,"height":7}},{"id":"ab7316d9-8c9a-4331-9e48-e6178f7227bc","block_type":"box","text":"Leverage Risk","page_number":11,"box":{"x":93,"y":422,"width":88,"height":10}},{"id":"92d2dcb8-5e08-480f-bc56-3899beb2ddba","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":422,"width":8,"height":8}},{"id":"51255ece-515c-4f6d-ab79-864bc6cc3211","block_type":"box","text":"Market Risk","page_number":11,"box":{"x":93,"y":442,"width":75,"height":8}},{"id":"8819cd19-b7d3-4ecb-a9a9-6805fa439617","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":442,"width":8,"height":8}},{"id":"a32fcf3b-0c7c-458b-9c2b-a1ab8ffc0c50","block_type":"box","text":"Operational Risk","page_number":11,"box":{"x":93,"y":462,"width":104,"height":10}},{"id":"5b9404bf-bc04-493b-ae13-19800a48a8e3","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":462,"width":8,"height":8}},{"id":"59ae5580-e8dc-4bf3-977a-8663f55549d5","block_type":"box","text":"Valuation Risk","page_number":11,"box":{"x":92,"y":482,"width":90,"height":8}},{"id":"0258c1ed-c232-4630-86ce-3d904b2e4e0e","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":482,"width":8,"height":8}},{"id":"7edcca0a-70ef-43d8-91ed-c41f30871420","block_type":"box","text":"Volatility Risk","page_number":11,"box":{"x":92,"y":502,"width":85,"height":10}},{"id":"de0ef035-bdf3-4b55-859b-8ed48d2fe0d5","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":502,"width":8,"height":8}},{"id":"aff96e2e-2b8e-4985-8c5e-209acd2224a4","block_type":"box","text":"Futures","page_number":11,"box":{"x":83,"y":523,"width":46,"height":7}},{"id":"da444f9a-ffd9-4299-ba96-c1ca6cc43f09","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":523,"width":8,"height":7}},{"id":"19b29816-05f9-4518-8eeb-23e1d119bd51","block_type":"box","text":"Swap Agreements","page_number":11,"box":{"x":83,"y":543,"width":114,"height":10}},{"id":"cc180eac-7602-41ce-a4bd-5d7a988c9810","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":543,"width":8,"height":8}},{"id":"929d88af-7264-4a1e-a7de-2650f8833709","block_type":"box","text":"Credit Default Swaps and Similar Instruments X","page_number":11,"box":{"x":93,"y":563,"width":732,"height":10}},{"id":"43802db2-2465-4854-a8a8-69dad4700377","block_type":"box","text":"Interest Rate Swaps, Floors and Caps","page_number":11,"box":{"x":93,"y":583,"width":241,"height":10}},{"id":"e4348a00-e5f4-4755-ba96-3f25695ad2a4","block_type":"box","text":"Total Return Swaps","page_number":11,"box":{"x":92,"y":603,"width":123,"height":10}},{"id":"c492eeb5-9535-4aa2-95b3-15809d612eed","block_type":"box","text":"Options","page_number":11,"box":{"x":83,"y":623,"width":48,"height":10}},{"id":"42f2b340-66da-4fe5-9b6d-646ab3b71488","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":623,"width":8,"height":8}},{"id":"c86b1dec-ed89-414a-9baa-16513a9daf8c","block_type":"box","text":"Options on Securities and Securities Indices X","page_number":11,"box":{"x":93,"y":643,"width":732,"height":10}},{"id":"8771c9e7-bd15-46c3-b81b-78c4d9be945c","block_type":"box","text":"Call Options","page_number":11,"box":{"x":93,"y":664,"width":76,"height":9}},{"id":"50642b30-50e5-465b-8920-ba9c9553833b","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":664,"width":8,"height":7}},{"id":"f5c2d2cc-86b9-418d-b556-880caf9f1e62","block_type":"box","text":"Put Options","page_number":11,"box":{"x":93,"y":684,"width":73,"height":9}},{"id":"64256e77-7246-4709-9907-fa7db68e2deb","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":684,"width":8,"height":8}},{"id":"30d24071-be46-4dbf-9fa9-224963820c7b","block_type":"box","text":"Options on Government National Mortgage Association (“GNMA”) Certificates","page_number":11,"box":{"x":93,"y":704,"width":496,"height":10}},{"id":"3f2e855b-6bbe-450b-853b-c0f3bfb43b28","block_type":"box","text":"Options on Swaps (“Swaptions”)","page_number":11,"box":{"x":93,"y":724,"width":207,"height":10}},{"id":"73ca8ef1-787a-45f9-ace5-42b039c5df62","block_type":"box","text":"FLEX Options","page_number":11,"box":{"x":93,"y":744,"width":82,"height":10}},{"id":"6fc32419-c1aa-47be-81d0-c411707301e4","block_type":"box","text":"Foreign Exchange Transactions","page_number":11,"box":{"x":83,"y":764,"width":196,"height":10}},{"id":"016cae71-d64e-4a24-91fa-6ebef13cdf3f","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":764,"width":8,"height":8}},{"id":"c00e0c5c-fc35-4390-bafc-d02ce21d62dd","block_type":"box","text":"Spot Transactions and FX Forwards","page_number":11,"box":{"x":93,"y":785,"width":225,"height":9}},{"id":"2965b4c6-0344-40cf-b161-c2f0a3af08ac","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":785,"width":8,"height":7}},{"id":"3b29550b-b054-4a19-8ff2-587c9e65a346","block_type":"box","text":"Currency Futures","page_number":11,"box":{"x":93,"y":805,"width":107,"height":10}},{"id":"e792d45b-10fe-478e-95ea-9a685d051a32","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":805,"width":8,"height":8}},{"id":"48d6b59f-b59a-4c7a-bbfc-e0e2a72d8616","block_type":"box","text":"Currency Options","page_number":11,"box":{"x":93,"y":825,"width":108,"height":10}},{"id":"bbf94bf1-e995-41f6-87ed-efd3a926c8fd","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":825,"width":8,"height":8}},{"id":"52029c85-58cb-405a-98f6-4b7cf12e5ced","block_type":"box","text":"Currency Swaps","page_number":11,"box":{"x":93,"y":845,"width":101,"height":10}},{"id":"3638bc54-af84-40da-8cfa-d0204a8f82a1","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":845,"width":8,"height":8}},{"id":"4ed1ba71-2cec-4ea4-b072-a4a40323d885","block_type":"box","text":"Distressed Securities","page_number":11,"box":{"x":73,"y":865,"width":139,"height":8}},{"id":"3d192826-4a6e-41da-a149-4383fd272548","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":11,"box":{"x":73,"y":885,"width":384,"height":10}},{"id":"f97d3b73-17e3-45f1-baaf-7619cf937664","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":885,"width":8,"height":8}},{"id":"836c5181-2673-4668-a50b-fd87e7c516ea","block_type":"box","text":"Equity Securities","page_number":11,"box":{"x":73,"y":905,"width":110,"height":10}},{"id":"9b8e13b6-c80b-4071-a649-d382a479585e","block_type":"box","text":"X","page_number":11,"box":{"x":817,"y":906,"width":8,"height":7}},{"id":"b7f62395-0f9b-4cc0-8402-08ec19f1d2ea","block_type":"box","text":"I-2","page_number":11,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"4673e7b6-09d0-45ca-b8df-69902748dd7e","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":11,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"89aec338-cfcd-43c2-bc1a-0adb52584ba6","block_type":"box","text":"BlackRock Capital","page_number":12,"box":{"x":768,"y":50,"width":107,"height":8}},{"id":"c1b63eed-2382-44eb-914b-76ee4d38be34","block_type":"box","text":"Appreciation Fund, Inc.","page_number":12,"box":{"x":753,"y":60,"width":135,"height":8}},{"id":"ba277260-8818-4f45-bfe8-f8232e0f0bc5","block_type":"box","text":"Real Estate-Related Securities","page_number":12,"box":{"x":83,"y":79,"width":193,"height":8}},{"id":"5144f92d-1ba3-434a-9e95-3a40fdb1f47e","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":79,"width":8,"height":8}},{"id":"cb3c778a-24cf-4b40-b3ef-d015b8959ff0","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies X","page_number":12,"box":{"x":83,"y":99,"width":742,"height":10}},{"id":"a5066cf4-3b50-4178-943b-5b0f0d574810","block_type":"box","text":"Tracking Stocks","page_number":12,"box":{"x":82,"y":119,"width":100,"height":10}},{"id":"0eb65d87-6450-4aaa-b146-88b45b6041d9","block_type":"box","text":"Exchange-Traded Notes (“ETNs”)","page_number":12,"box":{"x":73,"y":140,"width":216,"height":9}},{"id":"3a86b240-047e-4eae-86ce-1bf0364ca115","block_type":"box","text":"Foreign Investments","page_number":12,"box":{"x":73,"y":160,"width":133,"height":10}},{"id":"46ab3128-6d2f-42f9-abf8-73358a4c9a4a","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":160,"width":8,"height":8}},{"id":"1e5aa90e-dc3f-4b59-858a-ba1ac5573585","block_type":"box","text":"Foreign Investment Risks","page_number":12,"box":{"x":83,"y":180,"width":160,"height":10}},{"id":"134e5739-6236-4b33-9377-90817ab5b7b6","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":180,"width":8,"height":8}},{"id":"20a37c42-03ca-433c-9e11-4f91d8eb4506","block_type":"box","text":"Foreign Market Risk","page_number":12,"box":{"x":83,"y":200,"width":127,"height":10}},{"id":"5eafe5f6-cc06-40a2-8b63-eba0c3282e09","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":200,"width":8,"height":8}},{"id":"ceb245ca-c243-4b43-88a3-2e17a51c70bf","block_type":"box","text":"Foreign Economy Risk","page_number":12,"box":{"x":83,"y":220,"width":139,"height":10}},{"id":"fee11a57-f1fd-4e6c-b9d5-33715adb8ce3","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":220,"width":8,"height":8}},{"id":"18df61a6-e933-4400-9e1f-7083bea7e350","block_type":"box","text":"Currency Risk and Exchange Risk","page_number":12,"box":{"x":83,"y":240,"width":212,"height":10}},{"id":"babfa2d7-4789-472a-83a6-80c3bf96befc","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":240,"width":8,"height":8}},{"id":"b3ba006d-e46c-4fe4-b29b-4d7c47282799","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards X","page_number":12,"box":{"x":83,"y":260,"width":742,"height":10}},{"id":"a1bcddd2-1d1a-425f-9074-a9da950eb386","block_type":"box","text":"Certain Risks of Holding Fund Assets Outside the United States X","page_number":12,"box":{"x":83,"y":280,"width":742,"height":11}},{"id":"341b8cfe-dc6f-4970-9eb1-702403ce24f3","block_type":"box","text":"Publicly Available Information","page_number":12,"box":{"x":83,"y":301,"width":185,"height":10}},{"id":"854f9343-89c8-4f5c-ad03-e6d9f65de9dc","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":301,"width":8,"height":8}},{"id":"bc3d8787-0a33-48cf-ac58-8e9d4ac58096","block_type":"box","text":"Settlement Risk","page_number":12,"box":{"x":83,"y":321,"width":101,"height":8}},{"id":"54cde63d-44b8-4295-a69b-1d15cbd91187","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":321,"width":8,"height":8}},{"id":"356dc007-4c47-4ca9-981b-f7c23d816b47","block_type":"box","text":"Sovereign Debt","page_number":12,"box":{"x":83,"y":341,"width":97,"height":10}},{"id":"9c27c3d3-ec86-4ba8-97cf-a1c60f2e0103","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":341,"width":8,"height":8}},{"id":"9c715b5e-ef01-45f1-ab3c-a9146926e9fd","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":12,"box":{"x":82,"y":361,"width":194,"height":10}},{"id":"58faefc5-b9da-433f-98c0-e3711afd23e9","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":361,"width":8,"height":8}},{"id":"43d1f322-96f4-41aa-ba00-87bec326f557","block_type":"box","text":"U.S. Economic Trading Partners Risk","page_number":12,"box":{"x":83,"y":381,"width":234,"height":10}},{"id":"dcdb2e29-efb3-48fe-b09a-537e16d5e340","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":381,"width":8,"height":8}},{"id":"f9779e2e-bd48-433e-9360-7a8d780d6fe8","block_type":"box","text":"Funding Agreements","page_number":12,"box":{"x":73,"y":402,"width":134,"height":9}},{"id":"c81524c1-e188-4979-8a2f-4c58931425d3","block_type":"box","text":"Guarantees","page_number":12,"box":{"x":73,"y":422,"width":74,"height":8}},{"id":"323e2747-f7a3-4f14-9df7-063b5fb69476","block_type":"box","text":"Illiquid Investments","page_number":12,"box":{"x":73,"y":442,"width":128,"height":10}},{"id":"a3948988-e19a-4e20-9017-0ee57dff4270","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":442,"width":8,"height":8}},{"id":"8c09851e-942c-433d-96c1-3740f9cbf9d6","block_type":"box","text":"Index Funds","page_number":12,"box":{"x":73,"y":462,"width":78,"height":8}},{"id":"3115e066-14ae-4e0d-8d5d-e2da5b444c33","block_type":"box","text":"Cash Flows; Expenses","page_number":12,"box":{"x":83,"y":482,"width":142,"height":10}},{"id":"4527544e-065f-4add-b3e8-5560b77d4468","block_type":"box","text":"Tracking Error Risk","page_number":12,"box":{"x":82,"y":502,"width":120,"height":10}},{"id":"10a447c6-1c52-4e18-b135-40c4dc7ba9c5","block_type":"box","text":"S&P 500 Index","page_number":12,"box":{"x":83,"y":522,"width":96,"height":8}},{"id":"d23fb73d-12dc-4c7b-8bbb-f07bb4c6e954","block_type":"box","text":"Russell Indexes","page_number":12,"box":{"x":83,"y":543,"width":100,"height":8}},{"id":"382b7186-db44-4a6b-bc6c-f6f530fd7271","block_type":"box","text":"MSCI Indexes","page_number":12,"box":{"x":83,"y":563,"width":86,"height":8}},{"id":"b7f1597b-98dd-4a56-9220-5193ae1fee5f","block_type":"box","text":"FTSE Indexes","page_number":12,"box":{"x":83,"y":583,"width":84,"height":8}},{"id":"38532d78-5957-430d-9c4b-dcc6ab0ed11e","block_type":"box","text":"Bloomberg Indexes","page_number":12,"box":{"x":83,"y":603,"width":121,"height":10}},{"id":"81a7f0ef-6898-4052-8347-23c6c8ff7e03","block_type":"box","text":"ICE BofA Indexes","page_number":12,"box":{"x":83,"y":623,"width":108,"height":8}},{"id":"3631def7-a9f3-44bf-8209-b3bce7b7a165","block_type":"box","text":"Indexed and Inverse Securities","page_number":12,"box":{"x":73,"y":643,"width":201,"height":8}},{"id":"42df541b-f693-406e-b5fb-aead71c1e96e","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":644,"width":8,"height":7}},{"id":"8386497c-29d6-4f71-9726-27e513bf09c4","block_type":"box","text":"Inflation Risk","page_number":12,"box":{"x":73,"y":664,"width":86,"height":8}},{"id":"7d31c7db-b8b9-4b45-b6af-bfda371c5d01","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":664,"width":8,"height":7}},{"id":"6cc0ecaa-c475-486b-ad6f-477915c5c918","block_type":"box","text":"Initial Public Offering (“IPO”) Risk","page_number":12,"box":{"x":73,"y":684,"width":224,"height":10}},{"id":"1ffc24ef-006f-4a4c-9694-06523c46a38e","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":684,"width":8,"height":8}},{"id":"6ba97f90-3780-4762-93a9-d3319066df83","block_type":"box","text":"Investment in Emerging Markets","page_number":12,"box":{"x":73,"y":704,"width":214,"height":10}},{"id":"bf5f73cb-c29d-4772-b86a-970a09cd56c9","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":704,"width":8,"height":8}},{"id":"807d6849-dab9-45a5-8f33-24793605dd3d","block_type":"box","text":"Brady Bonds","page_number":12,"box":{"x":83,"y":724,"width":79,"height":10}},{"id":"cf9018db-d138-4efe-8ebf-48136f2208b3","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":724,"width":8,"height":8}},{"id":"eb451cd4-c0b9-4398-947a-b8dc87381d7a","block_type":"box","text":"China Investments Risk","page_number":12,"box":{"x":83,"y":744,"width":150,"height":8}},{"id":"66dab0ea-f394-413a-b800-455007df61b9","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":744,"width":8,"height":8}},{"id":"04d7fb82-dd59-47e1-a48f-3e2753b7cea6","block_type":"box","text":"Investment in Other Investment Companies","page_number":12,"box":{"x":73,"y":764,"width":284,"height":10}},{"id":"2c4fc4aa-66ec-42e4-8871-7ec3e611e1f1","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":764,"width":8,"height":8}},{"id":"11e6b6ef-6690-416b-9294-39973e8fb82f","block_type":"box","text":"Exchange-Traded Funds","page_number":12,"box":{"x":83,"y":785,"width":148,"height":10}},{"id":"3e88b546-4211-47c7-bdad-dab14b1bc66c","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":785,"width":8,"height":7}},{"id":"1692d1b7-7276-4aff-9f0f-aa38720b9828","block_type":"box","text":"Issuer Insolvency Risk","page_number":12,"box":{"x":73,"y":805,"width":146,"height":10}},{"id":"2b100668-48c4-43af-808c-1624a62d4b48","block_type":"box","text":"Lease Obligations","page_number":12,"box":{"x":73,"y":825,"width":116,"height":10}},{"id":"3c7c18a3-a582-4327-a6b3-8abea3d8c4a8","block_type":"box","text":"Life Settlement Investments","page_number":12,"box":{"x":73,"y":845,"width":185,"height":8}},{"id":"3c933cad-727c-448e-8972-97582082826b","block_type":"box","text":"Liquidity Risk Management","page_number":12,"box":{"x":73,"y":865,"width":178,"height":10}},{"id":"f8461b69-4c95-40b7-95f8-06443e025201","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":865,"width":8,"height":8}},{"id":"1d49928f-83a7-4afd-a82a-66de8f353662","block_type":"box","text":"Market Risks/Recent Market Events","page_number":12,"box":{"x":73,"y":885,"width":244,"height":10}},{"id":"766c5668-65dc-4f4c-a9f2-df13f7058af7","block_type":"box","text":"X","page_number":12,"box":{"x":817,"y":885,"width":8,"height":8}},{"id":"7f707df6-09ff-4f59-b048-761fc1528318","block_type":"box","text":"Master Limited Partnerships","page_number":12,"box":{"x":73,"y":905,"width":186,"height":10}},{"id":"ce739303-582a-4465-8f71-094c1542e7c2","block_type":"box","text":"I-3","page_number":12,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"6a17c206-fa21-4a41-93ef-6e9f0b923a6a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":12,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bb1712b2-662e-41e8-89ab-b0a284aaa6d8","block_type":"box","text":"BlackRock Capital","page_number":13,"box":{"x":768,"y":50,"width":107,"height":8}},{"id":"63bb3b08-b28b-4757-8566-2a900f209a34","block_type":"box","text":"Appreciation Fund, Inc.","page_number":13,"box":{"x":753,"y":60,"width":135,"height":8}},{"id":"623e0ee5-9a8d-4337-854f-f310a3f8cce1","block_type":"box","text":"Merger Transaction Risk","page_number":13,"box":{"x":73,"y":79,"width":161,"height":10}},{"id":"2eb03836-58c4-488e-b30c-84d4f9c272f1","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S.","page_number":13,"box":{"x":73,"y":99,"width":600,"height":10}},{"id":"86d2fc4a-e4fd-4d48-b440-f0fa7067ae2a","block_type":"box","text":"Banks","page_number":13,"box":{"x":88,"y":113,"width":40,"height":8}},{"id":"c0d7b39a-e8c9-4307-b66e-7c772c6e344b","block_type":"box","text":"X","page_number":13,"box":{"x":817,"y":113,"width":8,"height":8}},{"id":"3464ef72-42e8-483d-9f13-3f48bd35d9e9","block_type":"box","text":"Money Market Securities","page_number":13,"box":{"x":73,"y":133,"width":165,"height":10}},{"id":"a571c5f8-4cb3-4aae-a640-bf9e12b7d976","block_type":"box","text":"X","page_number":13,"box":{"x":817,"y":133,"width":8,"height":8}},{"id":"3aa8c8fe-0594-4778-a580-4c1d8770005e","block_type":"box","text":"Mortgage-Related Securities","page_number":13,"box":{"x":73,"y":153,"width":188,"height":10}},{"id":"76f50f5a-6ea4-4178-a5ea-d129cbe6061c","block_type":"box","text":"X","page_number":13,"box":{"x":817,"y":153,"width":8,"height":8}},{"id":"3156f630-de8e-48b2-a9a5-628aee8992a8","block_type":"box","text":"Mortgage-Backed Securities","page_number":13,"box":{"x":83,"y":173,"width":178,"height":11}},{"id":"384c24db-1056-49e1-84af-6e06bab35bac","block_type":"box","text":"Collateralized Mortgage Obligations (“CMOs”)","page_number":13,"box":{"x":83,"y":194,"width":291,"height":10}},{"id":"7afab381-be2a-4815-ba4d-c2e78405929d","block_type":"box","text":"Adjustable Rate Mortgage Securities","page_number":13,"box":{"x":82,"y":214,"width":234,"height":10}},{"id":"07442fb3-bcad-41d4-bb61-df278f30dcff","block_type":"box","text":"CMO Residuals","page_number":13,"box":{"x":83,"y":234,"width":97,"height":8}},{"id":"967a92c3-3eeb-4474-80db-3e8f8ac557b2","block_type":"box","text":"Stripped Mortgage-Backed Securities","page_number":13,"box":{"x":83,"y":254,"width":237,"height":10}},{"id":"7a2ed997-359d-4591-94cd-3d0b2259953c","block_type":"box","text":"Tiered Index Bonds","page_number":13,"box":{"x":82,"y":274,"width":122,"height":8}},{"id":"93720089-945e-466f-a57e-91f0f9aa99ad","block_type":"box","text":"TBA Commitments","page_number":13,"box":{"x":82,"y":294,"width":118,"height":8}},{"id":"fe3cb51d-cdb0-4832-850e-402c643031e2","block_type":"box","text":"X","page_number":13,"box":{"x":817,"y":295,"width":8,"height":7}},{"id":"652952ba-5c74-4305-9637-7f63548111f2","block_type":"box","text":"Mortgage Dollar Rolls","page_number":13,"box":{"x":83,"y":315,"width":137,"height":10}},{"id":"9f7fc297-683b-4cbc-8ee9-2ec25838f6ac","block_type":"box","text":"Net Interest Margin (NIM) Securities","page_number":13,"box":{"x":83,"y":335,"width":230,"height":10}},{"id":"b3d0c6c2-2e43-4843-bb5b-3e189ba4209f","block_type":"box","text":"Municipal Investments","page_number":13,"box":{"x":73,"y":355,"width":148,"height":10}},{"id":"19076ba4-a666-418b-9534-098a1e9f7418","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds","page_number":13,"box":{"x":83,"y":375,"width":442,"height":10}},{"id":"b87df5b2-8862-45ec-a410-ac3f3f52f885","block_type":"box","text":"Description of Municipal Bonds","page_number":13,"box":{"x":83,"y":395,"width":198,"height":10}},{"id":"3721d60a-ea21-440d-9d86-e44fe55a4738","block_type":"box","text":"General Obligation Bonds","page_number":13,"box":{"x":93,"y":415,"width":161,"height":10}},{"id":"b6519631-9207-4662-b3c1-03fae9abb475","block_type":"box","text":"Revenue Bonds","page_number":13,"box":{"x":93,"y":436,"width":98,"height":8}},{"id":"1238731c-fc49-4ad3-8894-121fa476a190","block_type":"box","text":"Private Activity Bonds (“PABs”)","page_number":13,"box":{"x":93,"y":456,"width":194,"height":10}},{"id":"a35374a0-c8ed-4a03-8e13-b623d5191d3f","block_type":"box","text":"Moral Obligation Bonds","page_number":13,"box":{"x":93,"y":476,"width":148,"height":10}},{"id":"cfe7e392-a871-43e7-a557-d4b6fe4b00b6","block_type":"box","text":"Municipal Notes","page_number":13,"box":{"x":93,"y":496,"width":102,"height":10}},{"id":"37d759da-9047-455c-b628-99816d3afedd","block_type":"box","text":"Municipal Commercial Paper","page_number":13,"box":{"x":93,"y":516,"width":182,"height":10}},{"id":"6ec04b54-54ec-4888-a384-1c2ce760b440","block_type":"box","text":"Municipal Lease Obligations","page_number":13,"box":{"x":93,"y":536,"width":179,"height":10}},{"id":"7c58335e-d2d0-446c-934b-951e7230f7dd","block_type":"box","text":"Tender Option Bonds","page_number":13,"box":{"x":92,"y":556,"width":133,"height":10}},{"id":"137d53b2-85ff-4400-9e01-ccfeeb642f6e","block_type":"box","text":"Yields","page_number":13,"box":{"x":92,"y":577,"width":38,"height":8}},{"id":"92633ff8-d385-4383-97a6-e83c9b11d2b5","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”)","page_number":13,"box":{"x":92,"y":597,"width":288,"height":10}},{"id":"a056bf27-a22d-461e-b2dc-ee78e9bb3b29","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes","page_number":13,"box":{"x":92,"y":617,"width":416,"height":10}},{"id":"975bdaab-705b-4fa2-b880-ed0a37ced8d8","block_type":"box","text":"Call Rights","page_number":13,"box":{"x":93,"y":637,"width":67,"height":10}},{"id":"5a34e69e-a613-4c85-ba9f-89a37bf725ed","block_type":"box","text":"Municipal Interest Rate Swap Transactions","page_number":13,"box":{"x":93,"y":657,"width":272,"height":10}},{"id":"670e26b9-ead1-4e2f-aa0c-36471744aa29","block_type":"box","text":"Insured Municipal Bonds","page_number":13,"box":{"x":93,"y":678,"width":157,"height":9}},{"id":"05957b4f-1443-4333-8576-35b3195a9237","block_type":"box","text":"Build America Bonds","page_number":13,"box":{"x":93,"y":698,"width":131,"height":8}},{"id":"dea0c477-0c09-4f3f-a440-b84dfb2f3e3d","block_type":"box","text":"Tax-Exempt Municipal Investments","page_number":13,"box":{"x":82,"y":718,"width":219,"height":10}},{"id":"e36e89b6-0e9b-44eb-954d-8ba59dd52eba","block_type":"box","text":"Operational and Technology Risks","page_number":13,"box":{"x":73,"y":738,"width":221,"height":10}},{"id":"71f4a356-54d0-4767-97bf-5ef2f392859b","block_type":"box","text":"X","page_number":13,"box":{"x":817,"y":738,"width":8,"height":8}},{"id":"ac87f01f-454a-4aa2-a0d9-8c4d8f915d6d","block_type":"box","text":"Participation Notes","page_number":13,"box":{"x":73,"y":758,"width":127,"height":10}},{"id":"4eb53ecf-45a4-446c-88bb-b1c8f0876518","block_type":"box","text":"Portfolio Turnover Rates","page_number":13,"box":{"x":73,"y":778,"width":159,"height":8}},{"id":"82919410-d9ac-428f-8ef6-a62d79bb64af","block_type":"box","text":"X","page_number":13,"box":{"x":817,"y":778,"width":8,"height":8}},{"id":"6cbb6996-b4b9-4cc5-82da-b722439c3676","block_type":"box","text":"Preferred Stock","page_number":13,"box":{"x":73,"y":798,"width":103,"height":8}},{"id":"ebe0f80f-d830-48e2-9f68-8e83f068416a","block_type":"box","text":"X","page_number":13,"box":{"x":817,"y":798,"width":8,"height":8}},{"id":"6708fd16-5a0f-426c-872a-6a1e4d94a4b1","block_type":"box","text":"Tax-Exempt Preferred Shares","page_number":13,"box":{"x":82,"y":818,"width":184,"height":10}},{"id":"867fe64e-a3cf-45c1-8b48-6c81b8043951","block_type":"box","text":"X","page_number":13,"box":{"x":817,"y":819,"width":8,"height":7}},{"id":"5e2d49c8-2c1c-419e-a641-b79cc50c75c2","block_type":"box","text":"Trust Preferred Securities","page_number":13,"box":{"x":82,"y":839,"width":164,"height":8}},{"id":"c1bf390f-1040-49ba-884e-8047f4326c2f","block_type":"box","text":"X","page_number":13,"box":{"x":817,"y":839,"width":8,"height":8}},{"id":"0744acc9-fa3a-4df0-adf0-deb3bc3b5c6f","block_type":"box","text":"Proxy Voting Policies","page_number":13,"box":{"x":73,"y":859,"width":138,"height":10}},{"id":"40d5c1e5-7e98-4dbe-a323-4ddd93e3463d","block_type":"box","text":"X","page_number":13,"box":{"x":817,"y":859,"width":8,"height":8}},{"id":"c4e35073-ac6f-4867-85c2-f20eb90e8c64","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":13,"box":{"x":83,"y":879,"width":414,"height":10}},{"id":"478ad5fd-bd8a-429e-9914-38d08aed5d91","block_type":"box","text":"X","page_number":13,"box":{"x":817,"y":879,"width":8,"height":8}},{"id":"c5dc7749-1bcb-4bfa-9475-4aec04eea1e2","block_type":"box","text":"BlackRock Active Investment Stewardship Climate and Decarbonization Stewardship Guidelines","page_number":13,"box":{"x":93,"y":899,"width":610,"height":10}},{"id":"fa2a042f-bb30-4161-876a-b61d40fd122b","block_type":"box","text":"I-4","page_number":13,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"fc6086f6-9780-4d7f-951f-05ba852e8c99","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":13,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"62e5f4dc-7571-4fc1-a78c-5e8d99d530a8","block_type":"box","text":"BlackRock Capital","page_number":14,"box":{"x":768,"y":50,"width":107,"height":8}},{"id":"6646d801-6e73-429c-afaf-03b9fcad73f0","block_type":"box","text":"Appreciation Fund, Inc.","page_number":14,"box":{"x":753,"y":60,"width":135,"height":8}},{"id":"b19f09c5-7e0f-4d98-a79c-88376942cd54","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":14,"box":{"x":83,"y":79,"width":233,"height":10}},{"id":"bf79274d-e68c-44cf-a210-11d26d633024","block_type":"box","text":"BlackRock Investment Stewardship Climate and Decarbonization Stewardship Guidelines","page_number":14,"box":{"x":93,"y":99,"width":567,"height":10}},{"id":"fa3738a7-0ea4-40c5-a11c-48ee3a2b1b65","block_type":"box","text":"Real Estate Investment Trusts (“REITs”)","page_number":14,"box":{"x":73,"y":119,"width":265,"height":10}},{"id":"ac3b01ab-f057-46c0-bdc8-82b0a44b4e35","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":119,"width":8,"height":8}},{"id":"7cbfc672-1389-416e-bf6c-41a2137444d1","block_type":"box","text":"Reference Rate Replacement Risk","page_number":14,"box":{"x":73,"y":139,"width":226,"height":10}},{"id":"ae34830e-1df7-415e-9c78-c8f3c75167c1","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":140,"width":8,"height":7}},{"id":"398af2ab-f879-4098-96c8-7a0597f4c9cb","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts","page_number":14,"box":{"x":73,"y":160,"width":385,"height":10}},{"id":"e414b9f6-cd52-4895-aea5-4978e15bfe98","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":160,"width":8,"height":8}},{"id":"8457ac3e-748e-4c5e-9e46-9036d309c417","block_type":"box","text":"Restricted Securities","page_number":14,"box":{"x":73,"y":180,"width":138,"height":8}},{"id":"1aa924e1-bac6-4456-8007-060397158574","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":180,"width":8,"height":8}},{"id":"49725799-c647-4d7b-a729-80b73e819089","block_type":"box","text":"Reverse Repurchase Agreements","page_number":14,"box":{"x":73,"y":200,"width":218,"height":10}},{"id":"4eeffec5-8f23-40e7-b588-85841938c8b0","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":200,"width":8,"height":8}},{"id":"5a97794d-02ed-413b-b563-e43fdb292569","block_type":"box","text":"Rights Offerings and Warrants to Purchase","page_number":14,"box":{"x":73,"y":220,"width":281,"height":10}},{"id":"be37c7a6-95ed-4ea1-846f-fe6bf6d3906a","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":220,"width":8,"height":8}},{"id":"1b191543-6bd5-4809-89ed-f29c4b7241ba","block_type":"box","text":"Rule 144A Securities","page_number":14,"box":{"x":73,"y":240,"width":139,"height":8}},{"id":"b15f2838-5e29-422b-9fdb-cbe10d2abbbd","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":240,"width":8,"height":8}},{"id":"5cfa3ae4-5aa3-4e4a-a8b3-16f5a29105fe","block_type":"box","text":"Securities Lending","page_number":14,"box":{"x":72,"y":260,"width":122,"height":10}},{"id":"0478d4fe-d351-447e-a848-9f5d5d7f72ee","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":261,"width":8,"height":7}},{"id":"4ea91f9b-20af-4961-af98-cfd7b3a15a80","block_type":"box","text":"Short Sales","page_number":14,"box":{"x":72,"y":281,"width":76,"height":8}},{"id":"abc0b4eb-6973-475a-a6ce-63c3d3566f7e","block_type":"box","text":"See note 1 below","page_number":14,"box":{"x":766,"y":281,"width":111,"height":8}},{"id":"25939d4d-7a9f-4a17-a00a-f59928ecab44","block_type":"box","text":"Special Purpose Acquisition Companies","page_number":14,"box":{"x":72,"y":301,"width":260,"height":10}},{"id":"237e5b2b-fa0a-452d-806c-b65f77f27e08","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":301,"width":8,"height":8}},{"id":"266de0db-8075-4326-ae59-6790e5fd8c57","block_type":"box","text":"Standby Commitment Agreements","page_number":14,"box":{"x":72,"y":321,"width":226,"height":10}},{"id":"e26a8c65-7005-49f7-b3e4-9d1c8854397f","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":321,"width":8,"height":8}},{"id":"ed4cfd9d-ae57-4ef4-bd58-a0865e53efd4","block_type":"box","text":"Stripped Securities","page_number":14,"box":{"x":72,"y":341,"width":125,"height":10}},{"id":"d9908f1f-2fda-457f-93ac-2d955187d7dc","block_type":"box","text":"Structured Notes","page_number":14,"box":{"x":72,"y":361,"width":113,"height":8}},{"id":"1ab97f5a-6062-40ea-af3e-4a23623e7f27","block_type":"box","text":"Taxability Risk","page_number":14,"box":{"x":73,"y":381,"width":95,"height":10}},{"id":"b902da37-e63b-4868-a8b2-a5c6295e874e","block_type":"box","text":"Temporary Defensive Measures","page_number":14,"box":{"x":73,"y":401,"width":204,"height":10}},{"id":"47ca132e-5cbc-4088-b4b9-8a6f2fb7cade","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":402,"width":8,"height":7}},{"id":"b227ba4a-6d49-4f2f-9f14-9a77af097546","block_type":"box","text":"U.S. Government Obligations","page_number":14,"box":{"x":73,"y":422,"width":188,"height":10}},{"id":"2028b767-53f8-40d2-a4bc-5adbef6fe718","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":422,"width":8,"height":8}},{"id":"98a23ffb-258d-465a-99dc-7c4a8931f359","block_type":"box","text":"U.S. Treasury Obligations","page_number":14,"box":{"x":83,"y":442,"width":161,"height":10}},{"id":"5c11afd0-bcea-4747-bda9-57093cadb6bd","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":442,"width":8,"height":8}},{"id":"339d7877-d3ea-4cd3-aca9-6ff2f031640a","block_type":"box","text":"U.S. Treasury Rolls","page_number":14,"box":{"x":73,"y":462,"width":124,"height":10}},{"id":"22070687-7ced-47a3-8e19-a0ab84c6016d","block_type":"box","text":"Utility Industries","page_number":14,"box":{"x":73,"y":482,"width":108,"height":10}},{"id":"d947701c-fe74-4365-a167-7a0fb609b548","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":482,"width":8,"height":8}},{"id":"267ac6c8-597f-4a69-8c6e-63054114a933","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments","page_number":14,"box":{"x":72,"y":502,"width":524,"height":10}},{"id":"a2fb4c6d-6ca7-41b5-82ef-791abbdb6d28","block_type":"box","text":"X","page_number":14,"box":{"x":817,"y":502,"width":8,"height":8}},{"id":"1a295740-6d8f-4c63-9e9b-c0172d0e233a","block_type":"box","text":"Yields and Ratings","page_number":14,"box":{"x":72,"y":522,"width":123,"height":10}},{"id":"d4fe34aa-a5ee-4ee6-bd4d-683acb35e912","block_type":"box","text":"Zero Coupon Securities","page_number":14,"box":{"x":73,"y":543,"width":154,"height":9}},{"id":"e4836a55-22db-4faa-8c83-8b51e877d288","block_type":"box","text":"1","page_number":14,"box":{"x":69,"y":567,"width":3,"height":3}},{"id":"621b1ef0-2076-404c-ab53-5827c8bddfe7","block_type":"box","text":"The Fund may only make short sales “against-the-box”.","page_number":14,"box":{"x":76,"y":567,"width":312,"height":9}},{"id":"53e65998-23f8-44cb-9b30-7e21b7a6a87e","block_type":"box","text":"Regulation Regarding Derivatives.","page_number":14,"box":{"x":102,"y":588,"width":246,"height":11}},{"id":"2b919ee6-0b08-4a43-8fbd-68e2b5822a64","block_type":"box","text":"The Commodity Futures Trading Commission (“CFTC”) subjects advisers to","page_number":14,"box":{"x":355,"y":588,"width":530,"height":11}},{"id":"77d72d97-8aa9-472c-82cf-8f449a3464a5","block_type":"box","text":"registered investment companies to regulation by the CFTC if a fund that is advised by the investment adviser either","page_number":14,"box":{"x":69,"y":603,"width":828,"height":11}},{"id":"fcff676d-9c45-454d-8e9b-f0c6e00fd47b","block_type":"box","text":"(i) invests, directly or indirectly, more than a prescribed level of its liquidation value in CFTC-regulated futures, options","page_number":14,"box":{"x":69,"y":618,"width":837,"height":11}},{"id":"09a51c48-5077-4abb-ad81-2fac83565e8b","block_type":"box","text":"and swaps (“CFTC Derivatives”), or (ii) markets itself as providing investment exposure to such instruments.","page_number":14,"box":{"x":69,"y":633,"width":770,"height":11}},{"id":"645701d5-b893-4200-b871-07cfe9a1400f","block_type":"box","text":"To the extent the Fund uses CFTC Derivatives, it intends to do so below such prescribed levels and will not market","page_number":14,"box":{"x":68,"y":648,"width":815,"height":11}},{"id":"f11e06cf-4f36-4e1d-b8c1-8b1face6901e","block_type":"box","text":"itself as a “commodity pool” or a vehicle for trading such instruments. Accordingly, BlackRock has claimed an","page_number":14,"box":{"x":70,"y":663,"width":780,"height":12}},{"id":"8f1624ac-ee98-4901-a870-416eb7222824","block_type":"box","text":"exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”)","page_number":14,"box":{"x":69,"y":678,"width":796,"height":12}},{"id":"c530ede7-025a-4491-9744-ebb50edf3c96","block_type":"box","text":"pursuant to Rule 4.5 under the CEA. BlackRock is not, therefore, subject to registration or regulation as a","page_number":14,"box":{"x":70,"y":693,"width":751,"height":12}},{"id":"54c07e8b-7511-4e62-bb78-77eeb9cf45f2","block_type":"box","text":"“commodity pool operator” under the CEA in respect of the Fund.","page_number":14,"box":{"x":70,"y":709,"width":461,"height":11}},{"id":"0a4c312d-c874-4a46-9d5e-e59e4aed87bc","block_type":"box","text":"II. Investment Restrictions","page_number":14,"box":{"x":69,"y":739,"width":194,"height":9}},{"id":"d4c17965-3f7d-4897-bc89-635b480f0954","block_type":"box","text":"The Fund has adopted restrictions and policies relating to the investment of the Fund’s assets and its activities.","page_number":14,"box":{"x":101,"y":761,"width":800,"height":12}},{"id":"074ed25e-a869-44b1-8233-89c0e4d92426","block_type":"box","text":"Certain of the restrictions are fundamental policies of the Fund and may not be changed without the approval of the","page_number":14,"box":{"x":69,"y":777,"width":825,"height":11}},{"id":"0d5f237b-fcc3-4610-bbe7-48d29eae1e28","block_type":"box","text":"holders of a majority of the Fund’s outstanding voting securities (which for this purpose and under the Investment","page_number":14,"box":{"x":69,"y":792,"width":809,"height":11}},{"id":"070995fa-d88e-4605-813b-ef2fad5b5534","block_type":"box","text":"Company Act, means the lesser of (i) 67% of the shares represented at a meeting at which more than 50% of the","page_number":14,"box":{"x":69,"y":807,"width":808,"height":11}},{"id":"dab17712-a745-4d8a-ae49-f8c12dc9d676","block_type":"box","text":"outstanding shares are represented or (ii) more than 50% of the outstanding shares). The Fund has also adopted","page_number":14,"box":{"x":69,"y":822,"width":807,"height":11}},{"id":"12a56f19-d7f5-46a0-abd4-8c0f904de5b9","block_type":"box","text":"certain non-fundamental investment restrictions, which may be changed by the Board of Directors without","page_number":14,"box":{"x":69,"y":837,"width":752,"height":11}},{"id":"c508fc41-71bf-4a3d-991d-5b813386b76b","block_type":"box","text":"shareholder approval.","page_number":14,"box":{"x":69,"y":852,"width":153,"height":11}},{"id":"854f20d3-480d-4b58-9efe-85ac28810702","block_type":"box","text":"Set forth below are the Fund’s fundamental and non-fundamental investment restrictions. Unless otherwise","page_number":14,"box":{"x":102,"y":875,"width":767,"height":9}},{"id":"dc219c47-ae67-49a0-864c-4cea71499f84","block_type":"box","text":"provided, all references below to the assets of the Fund are in terms of current market value.","page_number":14,"box":{"x":70,"y":890,"width":664,"height":11}},{"id":"fcc5e69a-1d63-4891-9697-d3c4fb819fa1","block_type":"box","text":"Under its fundamental investment restrictions, the Fund may not:","page_number":14,"box":{"x":102,"y":913,"width":463,"height":11}},{"id":"ca8330a4-b6f0-4646-8657-8d56ab8a53e4","block_type":"box","text":"I-5","page_number":14,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"c06bfb3a-770a-4646-812c-dc768dd8c7a3","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":14,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6cc7573c-8244-4dc3-a70a-0ec998c049e1","block_type":"box","text":"(1) Make any investment inconsistent with the Fund’s classification as a diversified company under the","page_number":15,"box":{"x":134,"y":45,"width":734,"height":11}},{"id":"8c8af3a1-00c7-4788-aedd-7c219dc3860a","block_type":"box","text":"Investment Company Act.","page_number":15,"box":{"x":102,"y":60,"width":179,"height":11}},{"id":"81802f6d-72f7-453b-92ad-be440ff9106e","block_type":"box","text":"(2) Invest more than 25% of its assets, taken at market value, in the securities of issuers in any particular","page_number":15,"box":{"x":134,"y":82,"width":760,"height":12}},{"id":"0978bd6e-c82a-485d-b1dd-290a19152af1","block_type":"box","text":"industry (excluding the U.S. Government and its agencies and instrumentalities).","page_number":15,"box":{"x":102,"y":98,"width":573,"height":11}},{"id":"a7408560-3178-4c84-b796-134f6a0de146","block_type":"box","text":"(3) Make investments for the purpose of exercising control or management.","page_number":15,"box":{"x":134,"y":120,"width":538,"height":12}},{"id":"95ad0e71-81a4-4808-98cb-ec96b915fa57","block_type":"box","text":"(4) Purchase or sell real estate, except that, to the extent permitted by applicable law, the Fund may invest","page_number":15,"box":{"x":134,"y":143,"width":762,"height":11}},{"id":"51126b37-9f6b-4060-8379-3e399a995d97","block_type":"box","text":"in securities directly or indirectly secured by real estate or interests therein or issued by companies which invest","page_number":15,"box":{"x":102,"y":158,"width":801,"height":11}},{"id":"8ca56b8f-d5f0-4141-be12-82a6f138bcd1","block_type":"box","text":"in real estate or interests therein.","page_number":15,"box":{"x":102,"y":173,"width":239,"height":9}},{"id":"6d59f994-37b0-4f3d-bd15-3a5ab93dfc28","block_type":"box","text":"(5) Make loans to other persons, except that the acquisition of bonds, debentures or other corporate debt","page_number":15,"box":{"x":134,"y":196,"width":756,"height":11}},{"id":"14d65731-4e97-46c3-ae3b-9f14b3620cd3","block_type":"box","text":"securities and investment in government obligations, commercial paper, pass-through instruments, certificates","page_number":15,"box":{"x":102,"y":211,"width":790,"height":11}},{"id":"da45540a-4d68-4b39-a46d-990ba660f485","block_type":"box","text":"of deposit, bankers acceptances, repurchase agreements or any similar instruments shall not be deemed to be","page_number":15,"box":{"x":102,"y":226,"width":795,"height":11}},{"id":"d5ddb52b-6603-45fe-8c7f-9c24fdaf6cec","block_type":"box","text":"the making of a loan, and except further that the Fund may lend its portfolio securities, provided that the lending","page_number":15,"box":{"x":101,"y":241,"width":805,"height":11}},{"id":"090325f5-8132-4471-b32f-ac6f3ec28407","block_type":"box","text":"of portfolio securities may be made only in accordance with applicable law and the guidelines set forth in the","page_number":15,"box":{"x":102,"y":256,"width":777,"height":12}},{"id":"d15db7e6-db7f-4969-a86f-53b06f22257c","block_type":"box","text":"Fund’s Prospectus and Statement of Additional Information, as they may be amended from time to time.","page_number":15,"box":{"x":102,"y":271,"width":743,"height":12}},{"id":"ef1ad3f3-2517-4c10-b6fa-08ff780acb58","block_type":"box","text":"(6) Issue senior securities to the extent such issuance would violate applicable law.","page_number":15,"box":{"x":134,"y":294,"width":595,"height":11}},{"id":"e6505f39-9fe1-470a-8e9a-23bed5ef5366","block_type":"box","text":"(7) Borrow money, except that (i) the Fund may borrow from banks (as defined in the Investment Company","page_number":15,"box":{"x":134,"y":317,"width":756,"height":11}},{"id":"04dbe281-a36e-4f90-9002-937e2bdfc56f","block_type":"box","text":"Act) in amounts up to 33","page_number":15,"box":{"x":101,"y":332,"width":177,"height":11}},{"id":"3359cc4a-1083-4e83-a1bf-79e508285770","block_type":"box","text":"1⁄","page_number":15,"box":{"x":280,"y":332,"width":5,"height":5}},{"id":"680341f8-3899-4fdc-baae-9710a333607d","block_type":"box","text":"1⁄3","page_number":15,"box":{"x":283,"y":332,"width":8,"height":9}},{"id":"ae1f3984-f273-4452-bfce-b278bf3510a1","block_type":"box","text":"⁄3","page_number":15,"box":{"x":289,"y":335,"width":6,"height":6}},{"id":"1b3549f7-3b6c-4eb7-bdd7-46d1ab56bb38","block_type":"box","text":"% of its total assets (including the amount borrowed), (ii) the Fund may borrow up to","page_number":15,"box":{"x":295,"y":332,"width":600,"height":11}},{"id":"f89489dc-e2a9-44c3-8c04-60e5e631f314","block_type":"box","text":"an additional 5% of its total assets for temporary purposes, (iii) the Fund may obtain such short-term credit as","page_number":15,"box":{"x":102,"y":347,"width":787,"height":11}},{"id":"1f133307-53e6-46e1-bb3e-0da26590d94f","block_type":"box","text":"may be necessary for the clearance of purchases and sales of portfolio securities and (iv) the Fund may","page_number":15,"box":{"x":102,"y":362,"width":742,"height":11}},{"id":"8f637085-b299-4bbf-b3af-e30ef66d6fdc","block_type":"box","text":"purchase securities on margin to the extent permitted by applicable law. The Fund may not pledge its assets","page_number":15,"box":{"x":102,"y":377,"width":773,"height":12}},{"id":"2bf69b35-1c51-446b-b368-e148e19fec8e","block_type":"box","text":"other than to secure such borrowings or, to the extent permitted by the Fund’s investment policies as set forth in","page_number":15,"box":{"x":102,"y":392,"width":807,"height":12}},{"id":"6e2f9de9-689c-4607-9c65-65d08e4d36c4","block_type":"box","text":"its Prospectus and Statement of Additional Information, as they may be amended from time to time, in","page_number":15,"box":{"x":102,"y":407,"width":731,"height":12}},{"id":"c53d6dc0-d743-4b08-bcbe-1a7ed2e81929","block_type":"box","text":"connection with hedging transactions, short sales, when-issued and forward commitment transactions and","page_number":15,"box":{"x":101,"y":423,"width":761,"height":11}},{"id":"92394630-ed6a-41f5-ac4c-f6dfd3a926ab","block_type":"box","text":"similar investment strategies.","page_number":15,"box":{"x":102,"y":438,"width":209,"height":11}},{"id":"9323e8fb-83a5-4a3e-aa6d-086a1fb9a3e1","block_type":"box","text":"(8) Underwrite securities of other issuers, except insofar as the Fund technically may be deemed an","page_number":15,"box":{"x":134,"y":460,"width":712,"height":12}},{"id":"8d5d3b1e-8bca-4cc7-a143-61f6e2ae4e7e","block_type":"box","text":"underwriter under the Securities Act in selling portfolio securities.","page_number":15,"box":{"x":102,"y":475,"width":467,"height":12}},{"id":"1d7cc377-3ff3-4748-a55b-f684a6a24c04","block_type":"box","text":"(9) Purchase or sell commodities or contracts on commodities, except to the extent that the Fund may do so","page_number":15,"box":{"x":134,"y":498,"width":773,"height":11}},{"id":"f5d36840-f416-47fe-82a6-d4251168fe0a","block_type":"box","text":"in accordance with applicable law and the Fund’s Prospectus and Statement of Additional Information, as they","page_number":15,"box":{"x":102,"y":513,"width":786,"height":11}},{"id":"cde2a025-2a02-4ff1-b549-9c7992a09bb8","block_type":"box","text":"may be amended from time to time, and without registering as a commodity pool operator under the Commodity","page_number":15,"box":{"x":102,"y":528,"width":797,"height":12}},{"id":"48963bc8-0eb1-4295-85cd-caae243f83d2","block_type":"box","text":"Exchange Act.","page_number":15,"box":{"x":102,"y":544,"width":97,"height":11}},{"id":"ca2bbfc3-1ce3-4548-9791-ed3f148ff3a6","block_type":"box","text":"Under its non-fundamental investment restrictions, the Fund may not:","page_number":15,"box":{"x":102,"y":566,"width":493,"height":11}},{"id":"f4d579b4-de92-47a0-b9cf-4ea60a7e3206","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":15,"box":{"x":134,"y":589,"width":747,"height":11}},{"id":"bce8ee91-6580-4497-9f03-716c5c39fb49","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":15,"box":{"x":102,"y":604,"width":759,"height":11}},{"id":"7dbd94b2-cbf0-4460-aee9-a07ea1d962e6","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of","page_number":15,"box":{"x":102,"y":619,"width":779,"height":11}},{"id":"46268fbb-e700-41d1-b57c-e5d68fc69568","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are","page_number":15,"box":{"x":101,"y":634,"width":761,"height":12}},{"id":"800ab0a8-51c1-4e45-96cd-245baf2a4c1d","block_type":"box","text":"purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":15,"box":{"x":102,"y":649,"width":795,"height":12}},{"id":"5a4d1597-47fe-4fe0-836f-5ed9ddb951e2","block_type":"box","text":"12(d)(1).","page_number":15,"box":{"x":102,"y":665,"width":60,"height":11}},{"id":"06dcaf0f-98d3-4dc2-8e8a-84453d5be52c","block_type":"box","text":"(b) Make short sales of securities or maintain a short position, except to the extent permitted by the Fund’s","page_number":15,"box":{"x":134,"y":687,"width":770,"height":11}},{"id":"a76486a4-8bb0-4920-b2ba-248d79d638f9","block_type":"box","text":"Prospectus and Statement of Additional Information, as amended from time to time, and applicable law.","page_number":15,"box":{"x":102,"y":702,"width":740,"height":11}},{"id":"d28f77b8-4133-48a2-b9af-ef5627154c7d","block_type":"box","text":"Except with respect to restriction (7) above or with respect to policies adopted pursuant to Rule 35d-1 under the","page_number":15,"box":{"x":102,"y":725,"width":799,"height":11}},{"id":"a2e670bd-d52e-4837-aca7-1f7a9d39e896","block_type":"box","text":"Investment Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions","page_number":15,"box":{"x":70,"y":740,"width":810,"height":11}},{"id":"ab5f719f-36ec-462c-84d1-dbc06ef44fee","block_type":"box","text":"apply only at the time that a transaction is undertaken. Any change in the percentage of the Fund’s assets invested","page_number":15,"box":{"x":69,"y":755,"width":824,"height":11}},{"id":"da8689d2-42f1-4ca3-8728-de46d074a824","block_type":"box","text":"in certain securities or other instruments resulting from market fluctuations or other changes in the Fund’s total","page_number":15,"box":{"x":70,"y":770,"width":797,"height":12}},{"id":"8f707499-cd21-4d75-9083-d68f284849fc","block_type":"box","text":"assets will not require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell","page_number":15,"box":{"x":69,"y":785,"width":823,"height":11}},{"id":"1482239d-86f3-43af-a137-09ab48189479","block_type":"box","text":"or close out the investment without undue market or tax consequences.","page_number":15,"box":{"x":69,"y":801,"width":511,"height":11}},{"id":"e264c81e-74a0-4343-a024-4bcd24aab6b4","block_type":"box","text":"For purposes of investment restriction (2) above, with respect to the Fund’s industry classifications, the Fund","page_number":15,"box":{"x":102,"y":823,"width":778,"height":11}},{"id":"5f1d1a0c-b70e-4495-a01f-2c7d4725bd58","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":15,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"cb0e2576-e4e7-4f07-bca3-00cceb258588","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":15,"box":{"x":70,"y":853,"width":817,"height":12}},{"id":"de2c5769-3e75-4c85-af74-82dedf610475","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":15,"box":{"x":69,"y":869,"width":597,"height":11}},{"id":"c8c504f9-a0ba-436f-8c4e-8fc85d02aa6e","block_type":"box","text":"I-6","page_number":15,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"a0b7ae22-1e2b-4c25-9d54-34f7831aeef1","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":15,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"88505af1-c584-435d-9ec1-291062f75ab1","block_type":"box","text":"III. Information on Directors and Officers","page_number":16,"box":{"x":69,"y":45,"width":294,"height":9}},{"id":"1d17e532-a675-44ac-b29f-43b55e11fa15","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Director”), thirteen of whom are not “interested persons” of","page_number":16,"box":{"x":101,"y":67,"width":790,"height":11}},{"id":"a92c5e63-ed99-459c-9508-532642bf89d1","block_type":"box","text":"the Fund as defined in the Investment Company Act (the “Independent Directors”). The registered investment","page_number":16,"box":{"x":68,"y":82,"width":780,"height":12}},{"id":"0c9f1227-e814-4318-94b8-a47db46c06fb","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":16,"box":{"x":69,"y":98,"width":837,"height":11}},{"id":"0fd95bab-e72f-4c93-a6ae-f06f5febeb06","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":16,"box":{"x":70,"y":113,"width":793,"height":11}},{"id":"60b3f943-2eae-45d0-9352-08480331e8bf","block_type":"box","text":"Complex”). The Fund is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":16,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"0244e37c-585c-409f-87ab-7f91c4ae3039","block_type":"box","text":"The Directors also oversee as board members the operations of the other open-end registered investment companies","page_number":16,"box":{"x":68,"y":143,"width":839,"height":11}},{"id":"371f1a5d-40d6-4906-9d55-ea9e894892a0","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":16,"box":{"x":70,"y":158,"width":335,"height":11}},{"id":"84c405c9-bb00-4482-8af6-b5e0e6195fcf","block_type":"box","text":"The Board has overall responsibility for the oversight of the Fund. The Chair of the Board is an Independent","page_number":16,"box":{"x":101,"y":181,"width":764,"height":11}},{"id":"c41bb5a4-839f-438b-ab77-f4507046be3c","block_type":"box","text":"Director, and the Chair of each Board committee (each, a “Committee”) is an Independent Director. The Board has","page_number":16,"box":{"x":70,"y":196,"width":815,"height":11}},{"id":"fb94f9cc-8e59-4a30-ba44-8bf04bb468f9","block_type":"box","text":"five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee,","page_number":16,"box":{"x":68,"y":211,"width":832,"height":11}},{"id":"3b7f3c41-5f0d-4715-aea3-7d23a9b616bc","block_type":"box","text":"a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board is to","page_number":16,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"13f7b20d-5652-4ee2-8a98-723ec788ab25","block_type":"box","text":"preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":16,"box":{"x":70,"y":241,"width":793,"height":11}},{"id":"ffd5e836-38dc-4e5b-880e-3c45c99aa928","block_type":"box","text":"Directors generally between meetings. The Chair of each Committee performs a similar role with respect to the","page_number":16,"box":{"x":70,"y":256,"width":790,"height":12}},{"id":"aadbdf33-4215-410b-bddc-c415d301f15c","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions as may be","page_number":16,"box":{"x":69,"y":271,"width":810,"height":12}},{"id":"f5a3c46b-c68b-44b2-8fa9-114a3b582ebc","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Directors meet regularly outside the","page_number":16,"box":{"x":69,"y":286,"width":811,"height":12}},{"id":"70b8451d-b817-47e4-9ba3-7aac2eb2edeb","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":16,"box":{"x":70,"y":302,"width":794,"height":11}},{"id":"d08c64ea-1c95-420e-9dbe-78dd7918e67a","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":16,"box":{"x":69,"y":317,"width":816,"height":11}},{"id":"b674c70e-655e-4567-a59c-c1de3205d6c8","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and reports","page_number":16,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"4da502db-a151-423a-9179-01b84b97cccb","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":16,"box":{"x":70,"y":347,"width":811,"height":11}},{"id":"c5f1bf2d-b8db-4736-b40a-098f53161ec6","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":16,"box":{"x":68,"y":362,"width":809,"height":11}},{"id":"ff5cae82-14d5-4273-84af-5d9c9b940285","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":16,"box":{"x":69,"y":377,"width":825,"height":12}},{"id":"6ed40421-8253-43ab-9b1d-77a95d1c59da","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":16,"box":{"x":69,"y":392,"width":441,"height":12}},{"id":"6d5095ac-2ca1-40f9-9a05-38df14bc88e9","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":16,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"069a2184-61dc-4658-92e9-964b24c502b8","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":16,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"34b1bba8-b4d7-4ad9-8a8a-a8a6525dc803","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Fund’s charter, and the Fund’s","page_number":16,"box":{"x":68,"y":445,"width":819,"height":11}},{"id":"31146014-e080-4da2-870d-a7d04b57c029","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance, operations","page_number":16,"box":{"x":70,"y":460,"width":812,"height":12}},{"id":"92481888-6071-4381-bef8-c7e93bdf9117","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":16,"box":{"x":69,"y":475,"width":819,"height":12}},{"id":"2f97b336-8c0d-4119-b649-59f1d790c2e5","block_type":"box","text":"the operations of the Fund.","page_number":16,"box":{"x":68,"y":491,"width":192,"height":11}},{"id":"bd444f0f-c8be-4c3d-9472-df6f67137060","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":16,"box":{"x":102,"y":513,"width":785,"height":12}},{"id":"4814e8ac-3188-4443-873f-0a2759545c2f","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":16,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"8fef94cf-9f0c-4f7b-93bb-470cfe77d700","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":16,"box":{"x":69,"y":543,"width":832,"height":12}},{"id":"e2ca005e-38c3-4166-accb-a02841128060","block_type":"box","text":"there are a number of risk management functions performed by the Manager and the sub-advisers or other service","page_number":16,"box":{"x":68,"y":559,"width":820,"height":11}},{"id":"ae9baf38-95e7-4c47-ae70-0d1ebfb6d1b0","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":16,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"be3f3652-30aa-425a-8fc5-6feb2ff03202","block_type":"box","text":"part of the Board’s general oversight of the Fund and is addressed as part of various Board and Committee","page_number":16,"box":{"x":70,"y":589,"width":767,"height":11}},{"id":"1491854b-56fd-4645-8a92-f05bc86196d8","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":16,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"daab6777-12c0-4cbe-a6c9-59a2d4a388d5","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":16,"box":{"x":70,"y":619,"width":803,"height":11}},{"id":"aff94d97-5b83-48bb-9438-0730a6028c59","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":16,"box":{"x":69,"y":634,"width":840,"height":12}},{"id":"7558a781-80c3-440f-94df-a14500f02570","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors,","page_number":16,"box":{"x":69,"y":649,"width":814,"height":12}},{"id":"04d12482-e42f-48c6-bafd-d97faed4f0d7","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":16,"box":{"x":69,"y":664,"width":817,"height":12}},{"id":"a6a8a305-e92f-4058-a697-f75938dc80c1","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":16,"box":{"x":69,"y":680,"width":812,"height":11}},{"id":"233c3e3b-9532-4bcd-97e0-1689971f875c","block_type":"box","text":"testing of the Fund’s compliance program and reports to the Board regarding compliance matters for the Fund and its","page_number":16,"box":{"x":68,"y":695,"width":840,"height":11}},{"id":"01a59a66-701d-4c10-b601-385f6ee6cf7e","block_type":"box","text":"service providers. The Independent Directors have engaged independent legal counsel to assist them in performing","page_number":16,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"b56b3149-a2db-4b4e-992c-6de8cc73499d","block_type":"box","text":"their oversight responsibilities.","page_number":16,"box":{"x":68,"y":725,"width":218,"height":11}},{"id":"32a535a7-c97b-4356-ae18-38071e46129b","block_type":"box","text":"Audit Committee.","page_number":16,"box":{"x":101,"y":748,"width":122,"height":9}},{"id":"377f8430-1015-4334-aa67-7df9a88f5c07","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":16,"box":{"x":229,"y":748,"width":673,"height":11}},{"id":"f45ad22f-5bf6-4cf9-9dbb-6bd4d1e364d2","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Directors.","page_number":16,"box":{"x":68,"y":763,"width":834,"height":11}},{"id":"6d62fb45-c6f6-4779-b798-4acdbc8a4d5b","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":16,"box":{"x":68,"y":778,"width":820,"height":11}},{"id":"8f6bcaa2-24c4-403d-9b97-fb1531c1497f","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":16,"box":{"x":68,"y":793,"width":823,"height":11}},{"id":"0f2a34c2-b32e-4872-a87a-e80492fc6c0c","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":16,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"d568dcc9-6548-4d94-920d-b13c36291236","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":16,"box":{"x":70,"y":823,"width":825,"height":11}},{"id":"2dec8b9d-dff0-46bd-bd91-d1cee8898649","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":16,"box":{"x":70,"y":838,"width":807,"height":12}},{"id":"c0924607-c0a2-4997-924a-96d7fad3dc37","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":16,"box":{"x":68,"y":853,"width":781,"height":11}},{"id":"38236bde-9ca1-4a70-8d34-87cac7070e7b","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":16,"box":{"x":69,"y":869,"width":834,"height":11}},{"id":"62bca403-1b57-42f9-9082-925deda18090","block_type":"box","text":"regarding the accounting or financial reporting policies and practices of the Fund and the internal controls of the Fund","page_number":16,"box":{"x":69,"y":884,"width":838,"height":11}},{"id":"2398df5c-324c-46e1-8c31-b802c958f807","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":16,"box":{"x":69,"y":899,"width":825,"height":11}},{"id":"51cc2655-f1b8-4b84-be80-3d7a9d41bed8","block_type":"box","text":"I-7","page_number":16,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"420c64cb-bc31-4751-97df-61df5b960f71","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4b6da299-e1ab-436d-81b6-265ff0fc61c0","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":17,"box":{"x":70,"y":45,"width":809,"height":11}},{"id":"19a2872d-0d26-4f83-8237-c25175cb6f96","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":17,"box":{"x":70,"y":60,"width":815,"height":11}},{"id":"321672ac-029a-43d3-8eed-8a8153635b4f","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":17,"box":{"x":69,"y":75,"width":774,"height":11}},{"id":"5adc9590-98b1-4fec-9fc2-dcbd22becb9e","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":17,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"f092dc0c-4a3c-4e7f-b12b-0c52303f389c","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":17,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"dd0863bc-3f5c-42fa-9ac4-be28aeda3b07","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written charter for the Audit Committee.","page_number":17,"box":{"x":69,"y":120,"width":812,"height":12}},{"id":"af5cee41-5b0d-4553-81ed-96f4176fad41","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":17,"box":{"x":70,"y":135,"width":574,"height":12}},{"id":"d3cd2d1f-290b-4cd0-94d6-e4611daab11c","block_type":"box","text":"Governance and Nominating Committee.","page_number":17,"box":{"x":102,"y":158,"width":286,"height":11}},{"id":"d8cf143c-7d95-489d-8e75-1ef1f18f8637","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":17,"box":{"x":394,"y":158,"width":464,"height":11}},{"id":"0af3c6bc-f82e-4b9a-b5b8-b5772296f740","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":17,"box":{"x":70,"y":173,"width":838,"height":11}},{"id":"f25f49d3-8433-4d12-8ebe-e99e709e23b5","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Directors. The principal responsibilities of the","page_number":17,"box":{"x":70,"y":188,"width":786,"height":11}},{"id":"5fa437aa-b180-4cee-b124-fe6cb4a5abd3","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Directors of the Fund and","page_number":17,"box":{"x":69,"y":203,"width":804,"height":12}},{"id":"1a35f06c-fbd3-4e4b-85b3-c793057e5718","block_type":"box","text":"recommend Independent Director nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":17,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"4596df1f-2209-4614-b3d8-5d00ec645b58","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":17,"box":{"x":70,"y":234,"width":828,"height":11}},{"id":"2d3f14fa-4915-4564-8055-ebb0b85ba013","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":17,"box":{"x":70,"y":249,"width":809,"height":11}},{"id":"52bc753e-f1ee-4ef4-8444-1a2fe24627a7","block_type":"box","text":"and make recommendations regarding Independent Director compensation; (5) monitor corporate governance","page_number":17,"box":{"x":69,"y":264,"width":780,"height":11}},{"id":"037a8f6c-8b3b-4fd8-941c-ae17552ba592","block_type":"box","text":"matters and develop appropriate recommendations to the Board; (6) act as the administrative committee with","page_number":17,"box":{"x":69,"y":279,"width":782,"height":11}},{"id":"537836bb-f85c-49d6-8932-c661ed9cc1d2","block_type":"box","text":"respect to Board policies and procedures, committee policies and procedures (other than the Audit Committee) and","page_number":17,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"8f6a726b-44f3-4560-972c-c8e77742b919","block_type":"box","text":"codes of ethics as they relate to Independent Directors; and (7) undertake such other duties and responsibilities as","page_number":17,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"5341177d-823e-446c-81c8-a8abd8ee1b01","block_type":"box","text":"may from time to time be delegated by the Board to the Governance Committee. The Governance Committee may","page_number":17,"box":{"x":69,"y":324,"width":809,"height":12}},{"id":"1e38823a-6d2b-4be3-b468-c1e2c11c9a85","block_type":"box","text":"consider nominations for Directors made by the Fund’s shareholders as it deems appropriate. Under the Fund’s","page_number":17,"box":{"x":69,"y":339,"width":796,"height":12}},{"id":"c3e9c3cd-2efa-4bd9-9791-88302d586636","block_type":"box","text":"Amended and Restated Bylaws, shareholders must follow certain procedures to nominate a person for election as a","page_number":17,"box":{"x":68,"y":355,"width":828,"height":11}},{"id":"ceb64298-10c6-47ee-a7d6-8311331db6bf","block_type":"box","text":"Director at a shareholder meeting at which Directors are to be elected. Under these advance notice procedures,","page_number":17,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"476b3923-d6db-4756-a78f-9d4f74331972","block_type":"box","text":"notice of the proposed nominee to the Secretary of the Fund must be delivered to or mailed and received at the","page_number":17,"box":{"x":69,"y":385,"width":797,"height":11}},{"id":"64c6a3fa-ca85-4276-a27a-3949f0162076","block_type":"box","text":"principal executive offices of the Fund not later than the close of business on the fifth day following the day on which","page_number":17,"box":{"x":70,"y":400,"width":831,"height":11}},{"id":"19f3d2b1-c678-4d14-b291-362e4d7a5674","block_type":"box","text":"notice of the date of the meeting was mailed or public disclosure of the date of the meeting was made, whichever","page_number":17,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"43d4ba66-fbf1-417a-a477-093fcb7ff158","block_type":"box","text":"first occurs. The Fund’s Bylaws provide that notice of a proposed nomination must include certain information about","page_number":17,"box":{"x":68,"y":430,"width":830,"height":11}},{"id":"0efe59fb-286d-4305-ac3f-725b68919cde","block_type":"box","text":"the shareholder and the nominee, as well as certain other information, including a written consent of the proposed","page_number":17,"box":{"x":68,"y":445,"width":820,"height":12}},{"id":"fb966d89-b6b7-4b16-a2a4-ba0dc116af9a","block_type":"box","text":"nominee to serve if elected. Reference is made to the Fund’s Bylaws for more details. The Board has adopted a","page_number":17,"box":{"x":69,"y":460,"width":799,"height":12}},{"id":"422ad4f9-1574-4a2b-853c-53646c5d9b46","block_type":"box","text":"written charter for the Governance Committee. During the fiscal year ended May 31, 2026, the Governance","page_number":17,"box":{"x":68,"y":475,"width":765,"height":12}},{"id":"7a4a7fd1-6a32-436d-a40c-f9d623cea220","block_type":"box","text":"Committee met ten times.","page_number":17,"box":{"x":69,"y":491,"width":185,"height":9}},{"id":"f52ee7e4-a2b9-4308-9bed-41a88ebcdd24","block_type":"box","text":"Compliance Committee.","page_number":17,"box":{"x":102,"y":513,"width":168,"height":11}},{"id":"02d0bf14-72f3-42a1-8595-b1a2c991b362","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":17,"box":{"x":276,"y":513,"width":629,"height":11}},{"id":"2d489db9-37ea-4e10-b4d3-f759703c3c0f","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":17,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"9b6782c0-3385-4de9-a689-bb8d6174497c","block_type":"box","text":"whom are Independent Directors. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":17,"box":{"x":68,"y":543,"width":773,"height":12}},{"id":"1bb25334-6fc1-40df-bd4d-63aa2c86c528","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Fund, the fund-related activities of","page_number":17,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"d398f9cf-5fb8-4f13-8104-439bf98d2570","block_type":"box","text":"BlackRock and any sub-adviser and the Fund’s third-party service providers. The Compliance Committee’s","page_number":17,"box":{"x":70,"y":574,"width":753,"height":11}},{"id":"29532a8c-ef30-4943-ba2c-6155156a0258","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Fund and its","page_number":17,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"ebe8d515-c68f-4490-8bb9-6c80d77fe532","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":17,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"efe6817d-5828-44f4-9a38-bb1933d8048b","block_type":"box","text":"and, where appropriate, recommend policies concerning the Fund’s compliance with applicable law; (3) review","page_number":17,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"4b24b3db-ed31-48a1-92d3-654677bb3646","block_type":"box","text":"reports from, oversee the annual performance review of, and make certain recommendations and determinations","page_number":17,"box":{"x":69,"y":634,"width":811,"height":11}},{"id":"d55accc9-ff03-4d84-8f5c-aee0f04307f9","block_type":"box","text":"regarding the Fund’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":17,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"d38bac46-18df-49c4-8756-57bb7c689da0","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":17,"box":{"x":69,"y":664,"width":812,"height":12}},{"id":"7cdb9e7c-9b70-4d40-8d02-622b49459559","block_type":"box","text":"and (4) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":17,"box":{"x":69,"y":680,"width":825,"height":11}},{"id":"eee5c243-e69f-43ec-b8a0-a916ca8c536d","block_type":"box","text":"Compliance Committee. The Board has adopted a written charter for the Compliance Committee. During the fiscal","page_number":17,"box":{"x":69,"y":695,"width":811,"height":11}},{"id":"c2ec1eec-10c6-478e-9405-18c6a32a98a6","block_type":"box","text":"year ended May 31, 2026, the Compliance Committee met four times.","page_number":17,"box":{"x":68,"y":710,"width":502,"height":11}},{"id":"35169927-f6b6-4812-81d9-42d5005f6f06","block_type":"box","text":"Per formance Oversight Committee.","page_number":17,"box":{"x":102,"y":732,"width":248,"height":12}},{"id":"acf8f40d-9d9d-42a3-9f10-d0c37bb89a10","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":17,"box":{"x":356,"y":732,"width":531,"height":12}},{"id":"96ff0d13-2962-462b-a5b6-d2b9ace501eb","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":17,"box":{"x":69,"y":748,"width":829,"height":11}},{"id":"4dd83616-6284-40e2-b391-fe45347d52af","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Directors. The Performance Oversight Committee’s purpose is","page_number":17,"box":{"x":69,"y":763,"width":832,"height":11}},{"id":"9250b77b-8c10-453e-b430-43004512fc60","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment performance relative to its agreed","page_number":17,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"19a81ae5-7cf4-422b-83e1-bb9abbbc5e0b","block_type":"box","text":"upon performance objectives and to assist the Independent Directors in their consideration of investment advisory","page_number":17,"box":{"x":69,"y":793,"width":818,"height":11}},{"id":"f87f3228-a0ac-4493-ba7e-4101eabc4318","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":17,"box":{"x":69,"y":808,"width":782,"height":11}},{"id":"4270c61c-d143-4594-8bb1-a401b7061c5f","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":17,"box":{"x":70,"y":823,"width":829,"height":11}},{"id":"fa290fd2-5a70-49b9-8b54-61451768493b","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":17,"box":{"x":69,"y":838,"width":816,"height":11}},{"id":"1becdb79-4886-4bbc-8c24-17ee59ebaf19","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":17,"box":{"x":69,"y":854,"width":803,"height":10}},{"id":"e3fd04e3-bf11-4f39-a1aa-d4060594b121","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":17,"box":{"x":69,"y":869,"width":827,"height":11}},{"id":"c4471a7a-5286-4940-8505-868023c04296","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":17,"box":{"x":68,"y":884,"width":811,"height":11}},{"id":"08372116-85bd-4922-aece-c6cd139c8bb1","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":17,"box":{"x":69,"y":899,"width":757,"height":11}},{"id":"ae66f7b3-337d-48ac-840c-2c07867a2cd2","block_type":"box","text":"I-8","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"ff3691ea-1a9c-4fde-aaf1-2e8d91d2a375","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":17,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"143dfe10-decd-4fd4-bf8a-29f3187ef63b","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":18,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"ac37e81b-101d-463a-9872-a2560a2f9770","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":18,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"26e2a013-93be-4844-8626-3f72186a9cd3","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":18,"box":{"x":69,"y":75,"width":780,"height":11}},{"id":"d36e2c6f-4747-49f7-9035-980a1d4085aa","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the fiscal year","page_number":18,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"e9538284-07c9-45ab-a9d1-155af41e177b","block_type":"box","text":"ended May 31, 2026, the Performance Oversight Committee met five times.","page_number":18,"box":{"x":69,"y":105,"width":544,"height":11}},{"id":"b0a738dc-4b9e-4298-b2c2-0b3a97c52bab","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":18,"box":{"x":101,"y":128,"width":186,"height":11}},{"id":"a025c19a-d055-4db8-a3e7-ec3f1798d53f","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":18,"box":{"x":293,"y":128,"width":598,"height":11}},{"id":"6835a568-87c4-4609-aa04-9a59a87d8ee3","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors, and John M. Perlowski, who","page_number":18,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"2bc61389-ee33-436d-bc27-8c24bec1036d","block_type":"box","text":"serves as an interested Director. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":18,"box":{"x":69,"y":158,"width":796,"height":11}},{"id":"0455ba1b-b86f-4e86-a836-aec28e3c311a","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":18,"box":{"x":69,"y":173,"width":788,"height":11}},{"id":"c5a0d312-0a20-46ba-ac50-bdfdee82cf54","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":18,"box":{"x":69,"y":188,"width":813,"height":12}},{"id":"2cf38d04-0724-4d2c-9586-bbe32930c7a6","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During","page_number":18,"box":{"x":68,"y":203,"width":816,"height":12}},{"id":"373f347d-8328-491d-80e5-4cbbc66bf041","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":18,"box":{"x":68,"y":218,"width":575,"height":12}},{"id":"edd50818-84c3-4acd-ac48-0d2d1d10bb7d","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":18,"box":{"x":101,"y":241,"width":771,"height":11}},{"id":"daa719ce-c71e-4fc3-82a8-2a92fd222472","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement","page_number":18,"box":{"x":69,"y":256,"width":830,"height":11}},{"id":"8889f18a-7d47-4c99-b6e0-9823528f407c","block_type":"box","text":"of Policy”). The Board believes that each Independent Director satisfied, at the time he or she was initially elected or","page_number":18,"box":{"x":69,"y":271,"width":833,"height":12}},{"id":"07e3adea-b919-492f-9ae8-70558bcf828b","block_type":"box","text":"appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":18,"box":{"x":69,"y":286,"width":827,"height":12}},{"id":"8a9f71fd-b6f2-4de9-b220-d652cea35bc6","block_type":"box","text":"in determining that a particular Independent Director was and continues to be qualified to serve as a Director, the","page_number":18,"box":{"x":70,"y":302,"width":811,"height":11}},{"id":"70a7633d-0379-48b8-a780-acdddade4ba6","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":18,"box":{"x":70,"y":317,"width":787,"height":11}},{"id":"b50d9849-cbdf-46d9-9dde-cf35ffd8b92d","block_type":"box","text":"collectively, the Independent Directors have balanced and diverse experience, skills, attributes and qualifications,","page_number":18,"box":{"x":69,"y":332,"width":807,"height":11}},{"id":"5eb33a77-cdb7-4053-8b4d-58308e54c0f4","block_type":"box","text":"which allow the Board to operate effectively in governing the Fund and protecting the interests of shareholders.","page_number":18,"box":{"x":68,"y":347,"width":792,"height":11}},{"id":"fe3f7b1a-66a3-421e-bb5e-c4e089dc64c7","block_type":"box","text":"Among the attributes common to all Independent Directors are their ability to review critically, evaluate, question and","page_number":18,"box":{"x":68,"y":362,"width":832,"height":11}},{"id":"cd76fedf-8f9d-4640-aaea-0de31ae45e2a","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":18,"box":{"x":69,"y":377,"width":823,"height":11}},{"id":"0bef441f-c037-4cb1-9e27-5ba6dd811892","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":18,"box":{"x":69,"y":392,"width":771,"height":12}},{"id":"efbadbdb-536c-4b3a-a699-d0080d020690","block_type":"box","text":"business judgment in the performance of their duties as Directors.","page_number":18,"box":{"x":69,"y":407,"width":475,"height":12}},{"id":"d6303960-d4b3-418b-8b8e-cc34570f8785","block_type":"box","text":"Each Director’s ability to perform his or her duties effectively is evidenced by his or her educational background","page_number":18,"box":{"x":102,"y":430,"width":794,"height":11}},{"id":"67ec47a2-b139-4f46-9896-22d025c8af35","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":18,"box":{"x":69,"y":445,"width":807,"height":12}},{"id":"6b4f9679-319d-4496-a8a2-5117875751a0","block_type":"box","text":"board member of the Fund and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":18,"box":{"x":69,"y":460,"width":835,"height":12}},{"id":"e4d28494-8700-486a-8288-b5d23a69f510","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":18,"box":{"x":70,"y":475,"width":759,"height":12}},{"id":"affa21e8-3e06-49d2-8f2d-034cd1eb1f6b","block_type":"box","text":"participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":18,"box":{"x":70,"y":491,"width":685,"height":11}},{"id":"24aa6771-3066-4b7f-9c30-46671bee71dd","block_type":"box","text":"ad hoc","page_number":18,"box":{"x":762,"y":491,"width":47,"height":9}},{"id":"cb036ae8-a7fc-4f26-831b-06bcbadbb134","block_type":"box","text":"committees","page_number":18,"box":{"x":814,"y":491,"width":82,"height":9}},{"id":"3e0e11fc-b141-4866-a5f0-11ee8eb45ec0","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":18,"box":{"x":68,"y":506,"width":395,"height":11}},{"id":"54cab580-22e1-4deb-8b3b-162aa36a9055","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Directors that","page_number":18,"box":{"x":101,"y":528,"width":754,"height":11}},{"id":"feb5946d-726c-4d2f-9c6e-08567609747e","block_type":"box","text":"support the conclusion that each Director should serve on the Board.","page_number":18,"box":{"x":69,"y":544,"width":494,"height":10}},{"id":"00592405-c23a-432b-9e48-2790eaf1b8c9","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":18,"box":{"x":69,"y":572,"width":408,"height":9}},{"id":"929cdfc6-790a-42f7-a354-accf0111fad3","block_type":"box","text":"Independent Directors","page_number":18,"box":{"x":70,"y":588,"width":156,"height":11}},{"id":"b0cffda7-4deb-4d58-9fc8-b1b1d492a6f7","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":18,"box":{"x":69,"y":603,"width":781,"height":12}},{"id":"b259cdbb-fe0d-445a-a79d-2b23d43ef7f6","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":18,"box":{"x":265,"y":618,"width":604,"height":12}},{"id":"03338736-d0f1-44a3-98a9-00895a8c9349","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":18,"box":{"x":265,"y":634,"width":623,"height":11}},{"id":"f7cec4bc-0195-4558-91e6-65aace559b0c","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":18,"box":{"x":265,"y":649,"width":637,"height":11}},{"id":"8a0f50a4-8fe6-4a97-9388-1f734e023d69","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":18,"box":{"x":265,"y":664,"width":631,"height":11}},{"id":"054af9cd-c6e7-47a9-9de6-55d90c19c989","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":18,"box":{"x":264,"y":679,"width":626,"height":10}},{"id":"f584d980-941d-4a85-b668-7bde8b0c8c80","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":18,"box":{"x":265,"y":694,"width":639,"height":11}},{"id":"2300ef2e-990d-4861-a983-879e37f18df2","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":18,"box":{"x":264,"y":709,"width":637,"height":11}},{"id":"c22ce382-3f62-4275-a93c-7158ff932e03","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":18,"box":{"x":265,"y":725,"width":586,"height":11}},{"id":"08ed0d71-83da-4672-8007-7cdb952d79fb","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":18,"box":{"x":265,"y":739,"width":640,"height":12}},{"id":"5fad0893-a0e3-44ea-8a66-5d0dbd51e8a0","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":18,"box":{"x":265,"y":755,"width":389,"height":11}},{"id":"689ae882-8ccb-4f51-afe0-8bc0bd07d928","block_type":"box","text":"I-9","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"5035965b-e677-4712-a1a4-7a6ef34bb377","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":18,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cfda33a9-4111-4301-8bdf-d1162a022497","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":19,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"d3ebeebb-e676-44ed-a7c6-969dbd88d67b","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":19,"box":{"x":69,"y":65,"width":806,"height":12}},{"id":"b0b81085-7c1c-4caa-8322-49a09971278e","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":19,"box":{"x":265,"y":81,"width":604,"height":11}},{"id":"d4a34293-28ae-4faa-8f83-d932e916ef41","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":19,"box":{"x":265,"y":96,"width":632,"height":11}},{"id":"a298ea3b-6018-4306-847f-022dd1f7358a","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":19,"box":{"x":265,"y":111,"width":562,"height":9}},{"id":"d80aeb25-2020-4fc3-8c11-e2f4f93f0188","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":19,"box":{"x":265,"y":126,"width":616,"height":10}},{"id":"405ec70e-704d-4238-b720-4bfa1131e986","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":19,"box":{"x":264,"y":141,"width":591,"height":11}},{"id":"c3d8da60-6788-4eb3-878b-c37aaec81a39","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":19,"box":{"x":265,"y":156,"width":641,"height":11}},{"id":"d0add535-3b5a-45bb-8939-dfa3f9cbf14a","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":19,"box":{"x":264,"y":171,"width":638,"height":12}},{"id":"0b01f717-3bc4-4728-bc61-9247617b3013","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":19,"box":{"x":265,"y":186,"width":584,"height":12}},{"id":"8996a00a-5d5a-4d6e-8066-0fb5f7aa8c93","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":19,"box":{"x":265,"y":201,"width":630,"height":12}},{"id":"ae3e7d5e-b270-4140-a550-aa031089d5f6","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":19,"box":{"x":265,"y":217,"width":634,"height":11}},{"id":"a53690c3-38ea-4f41-9d69-5b13f6e0583c","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":19,"box":{"x":265,"y":232,"width":599,"height":11}},{"id":"690262a9-f74a-4154-9c76-1b5b7b375e18","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":247,"width":407,"height":11}},{"id":"e634aced-97d9-4bbb-b082-64f84e642df0","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":19,"box":{"x":69,"y":269,"width":837,"height":12}},{"id":"6f506b27-ac49-4d0f-bb28-62e7ca706f19","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":19,"box":{"x":265,"y":285,"width":638,"height":11}},{"id":"e51d9dff-335e-4e2f-81c8-b29eb3fb0061","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":19,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"cce866c7-85a4-4ac8-ad6e-4eec2d2ad58c","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":19,"box":{"x":265,"y":314,"width":601,"height":12}},{"id":"716e46c5-6201-42ec-bf69-707730b6fede","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":19,"box":{"x":265,"y":330,"width":595,"height":11}},{"id":"1536a9e0-e234-4cc6-ab72-527a89c203af","block_type":"box","text":"perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":345,"width":323,"height":11}},{"id":"fef681cd-0ab2-49a8-a316-dbd1dd4e9ab4","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":19,"box":{"x":70,"y":368,"width":798,"height":11}},{"id":"a1329404-3823-4781-b846-9b8450aaf407","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":19,"box":{"x":265,"y":383,"width":631,"height":11}},{"id":"7c766aac-eeb1-428f-959c-5419a04977ba","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":19,"box":{"x":265,"y":398,"width":633,"height":11}},{"id":"e7b74c27-c5fc-413c-8a31-2055707b0619","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":19,"box":{"x":265,"y":413,"width":628,"height":11}},{"id":"76bd28c0-1b80-432b-b985-a9db6ebf4b81","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":19,"box":{"x":265,"y":428,"width":596,"height":12}},{"id":"246461af-0a7b-492d-a1c0-4e7fc1f74112","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":19,"box":{"x":265,"y":443,"width":616,"height":12}},{"id":"4bd03085-8c6d-49b0-b98c-16f753196d73","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":19,"box":{"x":264,"y":458,"width":368,"height":11}},{"id":"a5d2090b-b339-442b-a929-b61c29128ed8","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":19,"box":{"x":69,"y":481,"width":777,"height":11}},{"id":"b53e2a6f-615e-4598-bb23-201d55c4fb9a","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":19,"box":{"x":265,"y":496,"width":613,"height":12}},{"id":"9f452348-00de-4c41-b1f1-7c5fdae31ead","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":19,"box":{"x":265,"y":511,"width":563,"height":12}},{"id":"d6dcc494-f2ac-49c1-897c-b27c4c1bbe04","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":19,"box":{"x":265,"y":527,"width":607,"height":11}},{"id":"ddf43ff7-a56d-4a55-8a3a-a934075bf282","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":19,"box":{"x":265,"y":542,"width":638,"height":11}},{"id":"87d65aab-70e0-4833-8437-d3e72921bade","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":19,"box":{"x":265,"y":557,"width":626,"height":11}},{"id":"cf673a3f-c845-4290-a908-8ca8721c59aa","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":19,"box":{"x":265,"y":572,"width":563,"height":11}},{"id":"34796f23-a0e8-4a24-9d2a-70aa78e59157","block_type":"box","text":"Mr. Jarczyk also served as a consultant to the Independent Directors prior to becoming an","page_number":19,"box":{"x":265,"y":587,"width":641,"height":11}},{"id":"406e5013-c4b1-4910-9c53-3334084b9421","block_type":"box","text":"Independent Director. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":19,"box":{"x":265,"y":602,"width":627,"height":11}},{"id":"65d85c8a-9096-4b53-9edf-06eacfa772ff","block_type":"box","text":"audit committee financial expert, as such term is defined in the applicable Commission","page_number":19,"box":{"x":265,"y":617,"width":623,"height":11}},{"id":"996e6fd5-c3d1-4b42-a34a-5cb23c650342","block_type":"box","text":"rules.","page_number":19,"box":{"x":265,"y":633,"width":38,"height":8}},{"id":"0e4dff03-e592-4101-8b60-1b5ff6954320","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":19,"box":{"x":70,"y":655,"width":806,"height":11}},{"id":"f8093971-1f8e-415e-a385-fc0c98c0f834","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":19,"box":{"x":264,"y":670,"width":584,"height":11}},{"id":"3bf850d5-a33e-468f-bf1c-4a017c1bcf2d","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":19,"box":{"x":265,"y":686,"width":622,"height":11}},{"id":"f015b215-a4dd-47c1-930d-b1af7967119c","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":19,"box":{"x":265,"y":700,"width":638,"height":12}},{"id":"d58ef128-61f2-4d80-8414-63592cd65d08","block_type":"box","text":"and expertise in financial reporting, accounting, auditing, risk management, and","page_number":19,"box":{"x":265,"y":715,"width":570,"height":12}},{"id":"3b97cb9f-c2b7-4f91-8cb8-702eb95604a1","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":19,"box":{"x":265,"y":731,"width":642,"height":11}},{"id":"370bbe34-f446-436e-a236-a6f11e107e05","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":19,"box":{"x":265,"y":746,"width":626,"height":11}},{"id":"9fbe0e54-a993-49ac-a1c6-ce1cf633117b","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":19,"box":{"x":265,"y":761,"width":630,"height":11}},{"id":"84fb257a-ae76-4523-a820-fe59f0642c4d","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":19,"box":{"x":265,"y":776,"width":602,"height":11}},{"id":"b7859366-00e8-4c4a-afa8-ad065215e443","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":19,"box":{"x":264,"y":791,"width":643,"height":11}},{"id":"1336aec2-dc94-4f73-afd3-c449b598da6b","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":19,"box":{"x":264,"y":806,"width":639,"height":11}},{"id":"f40fe50a-e5f0-4f6f-8dd4-99b7f3d558ce","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":19,"box":{"x":264,"y":821,"width":641,"height":11}},{"id":"176307ae-bb5f-4aa7-9d2a-9f702945ed0f","block_type":"box","text":"applicable Commission rules.","page_number":19,"box":{"x":265,"y":837,"width":208,"height":10}},{"id":"6bde6697-9f63-450d-b920-8f4a8464afbb","block_type":"box","text":"I-10","page_number":19,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c8dbf8a1-12ce-4f89-98e9-a0e182f3b514","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":19,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3709aa99-0a74-4680-b072-16c68cbd06eb","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":20,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"28ea0fe8-8912-4643-9ff7-3d80afe9497d","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":20,"box":{"x":69,"y":65,"width":769,"height":12}},{"id":"a114f3f7-695d-4b95-aa12-fdf7892c1fdd","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":20,"box":{"x":265,"y":81,"width":621,"height":11}},{"id":"5994979f-01cd-4834-be1a-11b90a793f0f","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":20,"box":{"x":265,"y":96,"width":599,"height":11}},{"id":"f9c70580-b9d3-4c7f-bbdb-22ef46054777","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":20,"box":{"x":265,"y":111,"width":641,"height":11}},{"id":"7380ea0b-f5b3-401c-8436-25961afe9591","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":20,"box":{"x":264,"y":126,"width":602,"height":11}},{"id":"548976c5-21e7-4e24-b32a-d766c484415b","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":20,"box":{"x":264,"y":141,"width":617,"height":11}},{"id":"abf8da95-fe7c-4d05-a7a4-0ecf0e42081b","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":20,"box":{"x":265,"y":156,"width":629,"height":11}},{"id":"b27f27a1-2361-438e-ad8d-69a5f3e3e3dc","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":20,"box":{"x":264,"y":171,"width":628,"height":11}},{"id":"3513ec59-100d-4b67-910c-9eed8a1d8a23","block_type":"box","text":"articles and books on these topics.","page_number":20,"box":{"x":265,"y":187,"width":251,"height":10}},{"id":"47f9c22e-22a6-4625-b39d-6c00372b73f3","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":20,"box":{"x":70,"y":209,"width":764,"height":11}},{"id":"45f0d5b1-ec00-4fcf-8a26-118b403d96e1","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":20,"box":{"x":265,"y":224,"width":642,"height":11}},{"id":"4c1761b3-406c-4e25-81cc-5293e23b4a0e","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":20,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"1b3d1d7e-3b26-4622-863c-9711595e7d12","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":20,"box":{"x":265,"y":254,"width":603,"height":12}},{"id":"6ced5ab0-7683-4c30-9f43-33290d245fb7","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":20,"box":{"x":265,"y":269,"width":629,"height":12}},{"id":"a4759d4e-e4c0-4e1b-8adb-d074e9030de1","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":20,"box":{"x":70,"y":292,"width":804,"height":11}},{"id":"85bf460e-0501-4d05-a50e-9193efdadfd6","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":20,"box":{"x":265,"y":307,"width":552,"height":11}},{"id":"07a506fc-63b6-46fa-8859-4a43a20d0719","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":20,"box":{"x":265,"y":322,"width":636,"height":12}},{"id":"3f28ac80-1417-4f2f-b7d9-8ffceaefc607","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":20,"box":{"x":265,"y":338,"width":639,"height":11}},{"id":"a82af765-4e63-4d48-b42c-8a3fcef840ba","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":20,"box":{"x":265,"y":353,"width":576,"height":11}},{"id":"45f510ae-a156-4c2b-8dcb-2b7aaf62b3e1","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":20,"box":{"x":265,"y":368,"width":626,"height":11}},{"id":"5791ed57-f7b6-4880-9d87-65570b3f89af","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":20,"box":{"x":265,"y":383,"width":592,"height":11}},{"id":"ece7cbe1-3229-48c2-b8f9-8fe316a6ba14","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Arthur","page_number":20,"box":{"x":265,"y":398,"width":629,"height":11}},{"id":"faa7e91c-036c-4340-bf78-3f83a3e642f7","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":20,"box":{"x":265,"y":413,"width":626,"height":11}},{"id":"2d9810bb-02d4-4f56-8f62-28b910033416","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":20,"box":{"x":264,"y":428,"width":608,"height":12}},{"id":"ed9b402e-43f7-4433-a61d-d3c044e12b51","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":20,"box":{"x":265,"y":443,"width":575,"height":12}},{"id":"648143bd-2438-4ecd-a959-2e08626b33c6","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":20,"box":{"x":264,"y":459,"width":591,"height":11}},{"id":"c62ccfd4-cd40-4160-9ca0-17486ff2a1d2","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":20,"box":{"x":265,"y":474,"width":627,"height":11}},{"id":"cdb0367f-5e79-4e2b-b4fa-9cdc052e022a","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":20,"box":{"x":265,"y":489,"width":578,"height":11}},{"id":"a47284fb-9702-4d2a-a063-c8166b02cb1f","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":20,"box":{"x":265,"y":504,"width":607,"height":11}},{"id":"80a5aada-3313-41fa-b379-72e1872087d3","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":20,"box":{"x":265,"y":519,"width":615,"height":11}},{"id":"107340c7-0d3d-4dac-b4de-ab25b1c07434","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":20,"box":{"x":265,"y":534,"width":638,"height":11}},{"id":"11cb7643-a3d6-445e-a1ba-09caaad491e8","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":20,"box":{"x":265,"y":549,"width":635,"height":11}},{"id":"af44cbe5-042b-461e-95ec-566577de8f3b","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":20,"box":{"x":265,"y":564,"width":642,"height":12}},{"id":"e1664702-fd51-4fb1-bd39-188db6ac30bd","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":20,"box":{"x":265,"y":580,"width":627,"height":11}},{"id":"24730b29-85a0-4ad2-9082-93eb2fe458a7","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":20,"box":{"x":265,"y":595,"width":628,"height":11}},{"id":"b55c7560-a4e1-475e-a428-e0515988c1de","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":20,"box":{"x":265,"y":610,"width":460,"height":11}},{"id":"ee9c4b53-f311-4c89-b35e-6886c705a50d","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":20,"box":{"x":70,"y":632,"width":818,"height":12}},{"id":"c485bd79-bf4f-480f-b2db-d74c03471669","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":20,"box":{"x":264,"y":647,"width":603,"height":12}},{"id":"f94d8109-4e6b-4182-92d2-e73d3a70a557","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":20,"box":{"x":265,"y":663,"width":606,"height":11}},{"id":"24f6b2b8-72f9-404b-b1b2-ad43c9ea72ac","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":20,"box":{"x":265,"y":678,"width":608,"height":9}},{"id":"e494d7e0-0c78-48ff-90ce-b5ad762335d7","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":20,"box":{"x":265,"y":693,"width":626,"height":11}},{"id":"8d57f7cc-1c56-48d8-b38e-de38a3c0f128","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":20,"box":{"x":265,"y":708,"width":591,"height":11}},{"id":"aa1ca569-e756-49b3-9546-d549edaadf1d","block_type":"box","text":"various private and non-profit boards.","page_number":20,"box":{"x":264,"y":723,"width":265,"height":11}},{"id":"cf19ee28-770f-496f-97c5-bea16bf42531","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":20,"box":{"x":70,"y":746,"width":833,"height":11}},{"id":"82d06316-919d-4282-a8cb-c6a172ae3749","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":20,"box":{"x":265,"y":761,"width":638,"height":11}},{"id":"1d94b765-65dc-433d-ae4c-ac7574c89b0d","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":20,"box":{"x":265,"y":776,"width":608,"height":11}},{"id":"31f9a72c-89e4-453f-a72c-8765888dda01","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":20,"box":{"x":264,"y":791,"width":645,"height":11}},{"id":"5d0f9690-7a5c-400a-a59e-e6b9c21da4a0","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":20,"box":{"x":264,"y":806,"width":639,"height":9}},{"id":"6de7e5bb-2747-4b98-a5c8-960dcde0a597","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":20,"box":{"x":264,"y":821,"width":573,"height":12}},{"id":"5b3e58cd-3227-4d62-b58c-37dda5e28b4d","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":20,"box":{"x":265,"y":836,"width":625,"height":12}},{"id":"702afdae-779c-4957-a3dc-89f9d9b66e87","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":20,"box":{"x":265,"y":852,"width":610,"height":11}},{"id":"d7fe42a8-51eb-4b7a-b89f-92fb81246fe3","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":20,"box":{"x":265,"y":867,"width":642,"height":11}},{"id":"acee1a68-28bb-45eb-ab0b-5f17bf5ccb2d","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as a consultant to the Independent","page_number":20,"box":{"x":265,"y":882,"width":597,"height":11}},{"id":"3555cb90-7146-4a7a-969a-872f07914ef2","block_type":"box","text":"Directors prior to becoming an Independent Director.","page_number":20,"box":{"x":265,"y":897,"width":372,"height":11}},{"id":"877b92a7-3820-4d2c-8356-681ac46d1ec0","block_type":"box","text":"I-11","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"3c10d5bc-ad61-40c3-9c55-6deee1ded9f4","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":20,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e5dd710b-b168-4e5c-806c-79ccedf84d00","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":21,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"865dde52-98eb-4b49-a056-4620c7fef960","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":21,"box":{"x":70,"y":65,"width":807,"height":12}},{"id":"c9e07be7-bf39-49d3-99b1-a460649a8b8b","block_type":"box","text":"companies, most recently as a member of the boards of certain BlackRock-advised Funds","page_number":21,"box":{"x":264,"y":81,"width":641,"height":11}},{"id":"244707a7-fdcd-44cd-9832-f8bc4e0cb309","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":21,"box":{"x":265,"y":96,"width":618,"height":11}},{"id":"31b3a75e-9673-44f3-a840-f5063cc01a98","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":21,"box":{"x":265,"y":111,"width":594,"height":11}},{"id":"7e99f16d-7d4b-480d-b726-4628c9a78430","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":21,"box":{"x":265,"y":126,"width":639,"height":11}},{"id":"b21d930d-1a23-4541-9945-9616cc088d31","block_type":"box","text":"be an audit committee financial expert, as such term is defined in the applicable","page_number":21,"box":{"x":265,"y":141,"width":575,"height":11}},{"id":"27a2bb3e-1d09-450c-b74d-b3223c88ae74","block_type":"box","text":"Commission rules.","page_number":21,"box":{"x":265,"y":156,"width":131,"height":9}},{"id":"77c682ad-8f67-4528-8c69-945b81bab472","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":21,"box":{"x":69,"y":179,"width":808,"height":11}},{"id":"5d6d5f4d-ebfd-4e4e-a8b2-17f57c6c29cf","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liberty Square Asset","page_number":21,"box":{"x":265,"y":194,"width":630,"height":11}},{"id":"ed4c0dc8-419c-40a0-9f6b-f7c67f1ad08e","block_type":"box","text":"Management, LP / Steel Partners Japan Asset Management, LP from 1998 to 2015, an","page_number":21,"box":{"x":265,"y":209,"width":627,"height":11}},{"id":"04351bca-4e22-416e-84b0-0393aaba8dc5","block_type":"box","text":"investment manager that specialized in long/short non-U.S. equity investments, and was","page_number":21,"box":{"x":265,"y":224,"width":632,"height":11}},{"id":"e04cc576-e74c-4b9e-955f-2508d161dd66","block_type":"box","text":"an owner and General Partner of Neon Liberty Capital Management, LLC from 2003 to","page_number":21,"box":{"x":265,"y":239,"width":615,"height":12}},{"id":"1062256b-9f3f-4a9c-9d52-59d76af84a94","block_type":"box","text":"2023, a firm focusing on long/short equities in global emerging and frontier markets.","page_number":21,"box":{"x":265,"y":254,"width":608,"height":12}},{"id":"9aa2050d-7404-427a-8a79-996f7a0d95ab","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":21,"box":{"x":264,"y":270,"width":620,"height":11}},{"id":"5aff4eb7-b213-4eb3-9d62-8ee8ea878322","block_type":"box","text":"economy. Ms. Walton has been determined by the Audit Committee to be an audit","page_number":21,"box":{"x":265,"y":285,"width":584,"height":11}},{"id":"985e2236-44e2-47ca-814c-320d345d1476","block_type":"box","text":"committee financial expert, as such term is defined in the applicable Commission rules.","page_number":21,"box":{"x":264,"y":300,"width":629,"height":11}},{"id":"55ffe672-3040-4669-9923-6fe94ffc0541","block_type":"box","text":"Interested Directors","page_number":21,"box":{"x":70,"y":323,"width":140,"height":8}},{"id":"25b2311e-624c-482f-834b-1a95116b1843","block_type":"box","text":"Robert Fairbairn Robert Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":21,"box":{"x":70,"y":338,"width":823,"height":11}},{"id":"36a1059c-6d12-424d-8141-7554473da9b7","block_type":"box","text":"years of experience in finance and asset management. In particular, Mr. Fairbairn’s","page_number":21,"box":{"x":264,"y":353,"width":593,"height":11}},{"id":"3b388679-6402-4512-be08-a28ff0fb0ff7","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":21,"box":{"x":265,"y":368,"width":629,"height":11}},{"id":"44b13974-947d-49fb-927e-5a93aa9ee098","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":21,"box":{"x":265,"y":383,"width":639,"height":11}},{"id":"a3412a7f-ee03-4ee2-87f0-1a772a0b2fcb","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":21,"box":{"x":265,"y":398,"width":617,"height":11}},{"id":"5d429c18-fba8-4820-9298-7d41ef42aee1","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":21,"box":{"x":264,"y":413,"width":634,"height":11}},{"id":"1f5dd450-4396-46bd-a376-11f33bb68516","block_type":"box","text":"Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":21,"box":{"x":265,"y":428,"width":624,"height":11}},{"id":"e6f8c103-a159-4b53-a4b4-2ad4bd9fd4eb","block_type":"box","text":"and iShares","page_number":21,"box":{"x":265,"y":443,"width":84,"height":9}},{"id":"f775abd7-eecc-4285-9185-760287c5f871","block_type":"box","text":"®","page_number":21,"box":{"x":350,"y":444,"width":6,"height":4}},{"id":"c316af51-376c-45e4-aac0-6a564ce09086","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":21,"box":{"x":362,"y":443,"width":478,"height":11}},{"id":"ac816589-7a7f-43a2-b30a-cb5d7843235f","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":21,"box":{"x":265,"y":459,"width":585,"height":11}},{"id":"e9093fac-6501-4229-92ca-946db0212d7b","block_type":"box","text":"Strategic Partner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":21,"box":{"x":265,"y":474,"width":620,"height":11}},{"id":"3ddf752f-b71d-4efc-957f-23a00ba1c419","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":21,"box":{"x":265,"y":489,"width":578,"height":11}},{"id":"3d68920d-2c84-4dff-a768-b4b0236ca008","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Senior Managing Director of BlackRock, Inc. since","page_number":21,"box":{"x":69,"y":511,"width":800,"height":12}},{"id":"9a3e6736-276c-440e-be15-411224c3b716","block_type":"box","text":"2026, as Managing Director of BlackRock, Inc. from 2009 to 2025, as the Head of","page_number":21,"box":{"x":265,"y":526,"width":593,"height":12}},{"id":"ddb5d64f-69ea-4760-9c7a-4b37fae0dc1e","block_type":"box","text":"BlackRock Global Business Operations Services since 2009, and as President and Chief","page_number":21,"box":{"x":265,"y":542,"width":633,"height":11}},{"id":"86a9209a-02aa-431e-8e2d-7053dbdc48e3","block_type":"box","text":"Executive Officer of the BlackRock-advised Funds provides him with a strong","page_number":21,"box":{"x":265,"y":557,"width":542,"height":11}},{"id":"9a4803fd-0f97-4900-b5fa-59e728710692","block_type":"box","text":"understanding of the BlackRock-advised Funds, their operations, and the business and","page_number":21,"box":{"x":265,"y":572,"width":617,"height":11}},{"id":"2995575b-a45a-4127-8192-0212ff1ae16b","block_type":"box","text":"regulatory issues facing the BlackRock-advised Funds. Mr. Perlowski’s prior position as","page_number":21,"box":{"x":265,"y":587,"width":620,"height":11}},{"id":"b3b01a8d-eeff-4d80-baf6-5d9ec9e76a98","block_type":"box","text":"Managing Director and Chief Operating Officer of the Global Product Group at Goldman","page_number":21,"box":{"x":265,"y":602,"width":616,"height":11}},{"id":"60230f14-129b-4500-b339-774ad69ee8b0","block_type":"box","text":"Sachs Asset Management, and his former service as Treasurer and Senior Vice President","page_number":21,"box":{"x":265,"y":617,"width":639,"height":12}},{"id":"85603459-df28-47d2-8caf-9751558bd7cb","block_type":"box","text":"of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore","page_number":21,"box":{"x":265,"y":632,"width":603,"height":9}},{"id":"5d9f13b5-063c-4dcd-a174-5e291c8a5faf","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management","page_number":21,"box":{"x":265,"y":647,"width":582,"height":12}},{"id":"3ad423a7-60d6-42da-a2dd-b4b5da7fbb16","block_type":"box","text":"practices of other financial companies. Mr. Perlowski also serves as a board member for","page_number":21,"box":{"x":265,"y":663,"width":632,"height":11}},{"id":"9a6e27a9-2072-4916-bbd2-53a8e96cf0f2","block_type":"box","text":"the funds in the BlackRock Fixed-Income Complex. Mr. Perlowski is a member of","page_number":21,"box":{"x":264,"y":678,"width":572,"height":11}},{"id":"860a9f4c-8a41-4b81-88b2-64153268cd12","block_type":"box","text":"BlackRock’s Global Executive Committee.","page_number":21,"box":{"x":265,"y":693,"width":294,"height":9}},{"id":"62a66563-187d-4d01-a333-7e0aa062281b","block_type":"box","text":"Biographical Information","page_number":21,"box":{"x":69,"y":724,"width":178,"height":11}},{"id":"dda8a3de-9183-40da-8d74-5e1d0073118a","block_type":"box","text":"Certain biographical and other information relating to the Directors of the Fund is set forth below, including their","page_number":21,"box":{"x":102,"y":747,"width":799,"height":11}},{"id":"3efd4fc8-0386-4f3f-8670-aef0c348e4a8","block_type":"box","text":"address and year of birth, principal occupations for at least the last five years, length of time served, total number of","page_number":21,"box":{"x":69,"y":762,"width":836,"height":11}},{"id":"5cde0e20-1a78-440d-8c5c-37aaa87732e0","block_type":"box","text":"registered investment companies and investment portfolios overseen in the BlackRock-advised Funds and any","page_number":21,"box":{"x":69,"y":777,"width":785,"height":12}},{"id":"51f32ae7-171e-4e8d-ba4e-ca723dd40893","block_type":"box","text":"currently held public company and other investment company directorships.","page_number":21,"box":{"x":69,"y":793,"width":536,"height":11}},{"id":"57323519-6a62-48c2-b63b-2c678a8bacc8","block_type":"box","text":"I-12","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"9049768c-b70b-4f8f-bc43-ee5e23f162e0","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":21,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"41c7478e-4b41-42e2-a4d5-c0e771e3482c","block_type":"box","text":"Name","page_number":22,"box":{"x":131,"y":150,"width":32,"height":7}},{"id":"7d638c62-aab6-4346-a428-3bdbe3e3c072","block_type":"box","text":"and Year of Birth","page_number":22,"box":{"x":93,"y":160,"width":97,"height":7}},{"id":"0b8bfe9d-1ded-40cd-8e75-32a5bc3833ea","block_type":"box","text":"1,2","page_number":22,"box":{"x":191,"y":160,"width":9,"height":4}},{"id":"5ed60b6a-b829-494e-92cb-7d6b664f665f","block_type":"box","text":"Position(s)","page_number":22,"box":{"x":252,"y":130,"width":62,"height":8}},{"id":"0ea60a82-db25-4c4c-bdbf-d161490190b8","block_type":"box","text":"Held","page_number":22,"box":{"x":271,"y":140,"width":25,"height":7}},{"id":"77e9a089-4e0f-4079-a49e-a2b8e6ab7090","block_type":"box","text":"(Length of","page_number":22,"box":{"x":254,"y":150,"width":60,"height":9}},{"id":"99c77579-bdf3-40ee-8ce1-d78df86c56b5","block_type":"box","text":"Service)","page_number":22,"box":{"x":257,"y":160,"width":48,"height":9}},{"id":"423fb3c5-848a-4ec0-8dd6-e6f25d319d36","block_type":"box","text":"3","page_number":22,"box":{"x":306,"y":160,"width":3,"height":3}},{"id":"e2b8588a-27d6-46ff-b857-fae21804dee1","block_type":"box","text":"Principal Occupation(s)","page_number":22,"box":{"x":411,"y":150,"width":136,"height":9}},{"id":"cdf9493e-08d0-4256-94a4-32e8a1298e01","block_type":"box","text":"During Past Five Years","page_number":22,"box":{"x":414,"y":160,"width":130,"height":9}},{"id":"f98ad04a-ccdd-49bd-8f27-961e66f6610f","block_type":"box","text":"Number of","page_number":22,"box":{"x":665,"y":49,"width":59,"height":7}},{"id":"e6404984-ea5a-465c-921f-4bffe9d4c265","block_type":"box","text":"BlackRock","page_number":22,"box":{"x":662,"y":59,"width":66,"height":7}},{"id":"2e4741c2-6d6b-4f0e-ad7e-9e1e74a50275","block_type":"box","text":"Advised","page_number":22,"box":{"x":672,"y":69,"width":45,"height":7}},{"id":"6be5df72-0a80-435d-a941-0faaaaa2e8ad","block_type":"box","text":"Registered","page_number":22,"box":{"x":663,"y":79,"width":62,"height":9}},{"id":"573e61a1-8d93-4a45-babe-90211f0e5565","block_type":"box","text":"Investment","page_number":22,"box":{"x":662,"y":89,"width":65,"height":7}},{"id":"a5b8bcc3-5a7c-4ce8-8c42-00b559729a52","block_type":"box","text":"Companies","page_number":22,"box":{"x":663,"y":99,"width":63,"height":9}},{"id":"2d3daeb1-ddf9-4476-8301-9c037182ac17","block_type":"box","text":"(“RICs”)","page_number":22,"box":{"x":670,"y":109,"width":48,"height":9}},{"id":"964e7e65-24db-4c04-b868-63fab2c3e081","block_type":"box","text":"Consisting of","page_number":22,"box":{"x":656,"y":120,"width":77,"height":8}},{"id":"c51eda69-78e8-444f-b0ec-158c78794138","block_type":"box","text":"Investment","page_number":22,"box":{"x":662,"y":130,"width":65,"height":7}},{"id":"6fe39d28-cdd4-4db7-9db1-c7057ae92a46","block_type":"box","text":"Portfolios","page_number":22,"box":{"x":667,"y":140,"width":55,"height":7}},{"id":"1753106b-01c6-4303-8d73-f6eb25fb492d","block_type":"box","text":"(“Portfolios”)","page_number":22,"box":{"x":655,"y":150,"width":78,"height":9}},{"id":"1759bf98-b063-45ae-bfc7-1d2e15a10798","block_type":"box","text":"Overseen","page_number":22,"box":{"x":668,"y":160,"width":53,"height":7}},{"id":"a45d0d2e-4b4e-4357-aa22-c8b0259d22d9","block_type":"box","text":"Public","page_number":22,"box":{"x":824,"y":89,"width":35,"height":7}},{"id":"467b5df5-a615-40bd-8ed7-80cd2be60d15","block_type":"box","text":"Company","page_number":22,"box":{"x":815,"y":99,"width":53,"height":9}},{"id":"78cb9121-3b7a-4083-addb-b05034b1be77","block_type":"box","text":"and Other","page_number":22,"box":{"x":813,"y":109,"width":57,"height":8}},{"id":"8dbc4cbf-f118-4b0f-8fef-22030e092d01","block_type":"box","text":"Investment","page_number":22,"box":{"x":809,"y":120,"width":64,"height":7}},{"id":"f598b5d7-b731-4e93-aa9e-d3ba810f554b","block_type":"box","text":"Company","page_number":22,"box":{"x":815,"y":130,"width":53,"height":8}},{"id":"6ea7d095-bee9-4a54-81cb-c46b509393ee","block_type":"box","text":"Directorships","page_number":22,"box":{"x":803,"y":140,"width":77,"height":8}},{"id":"8fdbc4b3-5648-4885-a48e-d0c8e21f3a21","block_type":"box","text":"Held During","page_number":22,"box":{"x":808,"y":150,"width":67,"height":9}},{"id":"b56b50a8-846d-48bf-b425-f4991e0ba2c3","block_type":"box","text":"Past Five Years","page_number":22,"box":{"x":797,"y":160,"width":88,"height":7}},{"id":"cb871ee0-0bd7-4172-b664-31c9fb8314e9","block_type":"box","text":"Independent Directors","page_number":22,"box":{"x":70,"y":174,"width":140,"height":10}},{"id":"ac7636f5-c500-4e1a-be91-3643429a58ad","block_type":"box","text":"Mark Stalnecker","page_number":22,"box":{"x":69,"y":192,"width":98,"height":8}},{"id":"6c741b2f-41df-4b71-bcbd-f808c64a1044","block_type":"box","text":"1951","page_number":22,"box":{"x":69,"y":208,"width":33,"height":8}},{"id":"5ff5a083-3ead-48bc-87c8-b21db72525eb","block_type":"box","text":"Chair of the","page_number":22,"box":{"x":235,"y":192,"width":69,"height":8}},{"id":"9435564a-84f5-4027-8e92-a024bf30e05d","block_type":"box","text":"Board and","page_number":22,"box":{"x":236,"y":204,"width":60,"height":8}},{"id":"137122d2-85f0-4747-8abc-20d2ae73c14b","block_type":"box","text":"Director","page_number":22,"box":{"x":236,"y":216,"width":46,"height":8}},{"id":"bb95ebeb-08db-4162-9c4c-36e540a4d872","block_type":"box","text":"(Since 2019)","page_number":22,"box":{"x":235,"y":228,"width":78,"height":9}},{"id":"dd155075-777c-4d56-a217-32b21dc51aff","block_type":"box","text":"Chief Investment Officer, University of","page_number":22,"box":{"x":343,"y":192,"width":226,"height":10}},{"id":"1f1d65de-10cc-4291-9aa6-9e666c409a58","block_type":"box","text":"Delaware from 1999 to 2013; Trustee and","page_number":22,"box":{"x":343,"y":204,"width":257,"height":9}},{"id":"7a21325f-666e-425f-8a81-a91570bf6246","block_type":"box","text":"Chair of the Finance and Investment","page_number":22,"box":{"x":343,"y":216,"width":217,"height":8}},{"id":"4798eba2-725a-4598-a32c-ef630e8952f1","block_type":"box","text":"Committees, Winterthur Museum and","page_number":22,"box":{"x":343,"y":228,"width":227,"height":9}},{"id":"5b05e495-965a-484c-b72a-3059bd5e300d","block_type":"box","text":"Country Estate from 2005 to 2016; Member","page_number":22,"box":{"x":343,"y":240,"width":270,"height":10}},{"id":"de45ccf7-8947-40a5-b13e-56f3cf038902","block_type":"box","text":"of the Investment Committee, Delaware","page_number":22,"box":{"x":343,"y":251,"width":239,"height":10}},{"id":"fc2f6f71-8250-4858-a29e-1380ca466b4b","block_type":"box","text":"Public Employees’ Retirement System from","page_number":22,"box":{"x":343,"y":263,"width":259,"height":11}},{"id":"31618255-53a1-493e-ad41-552dd4db90a2","block_type":"box","text":"2002 to 2024; Member of the Investment","page_number":22,"box":{"x":343,"y":275,"width":254,"height":10}},{"id":"a8edb763-f33e-41c7-a94f-30335ed6cea3","block_type":"box","text":"Committee, Christiana Care Health System","page_number":22,"box":{"x":343,"y":288,"width":258,"height":9}},{"id":"b53102f8-3cc7-494c-b446-b542330593a7","block_type":"box","text":"from 2009 to 2017; Member of the","page_number":22,"box":{"x":342,"y":299,"width":215,"height":10}},{"id":"53aa18bb-87b3-44d8-9526-04b3d22a7698","block_type":"box","text":"Investment Committee, Delaware Community","page_number":22,"box":{"x":343,"y":311,"width":273,"height":10}},{"id":"f59305bc-8589-4fdc-878e-890a9887e16f","block_type":"box","text":"Foundation from 2013 to 2014; Director and","page_number":22,"box":{"x":343,"y":323,"width":269,"height":10}},{"id":"ac8cb3d2-e8d7-498d-9671-b9e8c8c565ae","block_type":"box","text":"Chair of the Audit Committee, SEI Private","page_number":22,"box":{"x":343,"y":335,"width":246,"height":10}},{"id":"20dcb73d-26ea-48cb-985e-009154c26529","block_type":"box","text":"Trust Co. from 2001 to 2014.","page_number":22,"box":{"x":342,"y":347,"width":180,"height":8}},{"id":"fd3e897f-86f0-44e0-8cf7-37311ca57a02","block_type":"box","text":"26 RICs consisting of","page_number":22,"box":{"x":627,"y":192,"width":129,"height":10}},{"id":"87b27213-a3b8-4dec-a843-ad9c5699b43c","block_type":"box","text":"170 Portfolios","page_number":22,"box":{"x":627,"y":204,"width":85,"height":8}},{"id":"089ccfeb-d170-40a0-8952-210d385def8e","block_type":"box","text":"None","page_number":22,"box":{"x":774,"y":192,"width":30,"height":8}},{"id":"0d843cd8-37d3-4638-93ed-3e775a812f37","block_type":"box","text":"Christopher J. Ailman","page_number":22,"box":{"x":69,"y":365,"width":126,"height":10}},{"id":"2e999530-feb9-45b5-8283-795de991bfae","block_type":"box","text":"1958","page_number":22,"box":{"x":69,"y":381,"width":33,"height":8}},{"id":"611022f8-ccc0-490d-8615-2bb0a79e6e6c","block_type":"box","text":"Director","page_number":22,"box":{"x":236,"y":365,"width":46,"height":8}},{"id":"32e91467-74a5-45e8-9738-bbc983363c10","block_type":"box","text":"(Since 2024)","page_number":22,"box":{"x":235,"y":377,"width":78,"height":10}},{"id":"deac13e4-4ca7-4bf8-8b2d-3364e06f9420","block_type":"box","text":"Principal, Ailman Advisers, since 2024; Chief","page_number":22,"box":{"x":343,"y":365,"width":270,"height":10}},{"id":"72d47b6b-54be-42ce-b77c-6a7d6f331dd7","block_type":"box","text":"Investment Officer, California State Teachers","page_number":22,"box":{"x":343,"y":377,"width":268,"height":9}},{"id":"0290c2d9-6054-4db0-ba0d-4b048e10d7f3","block_type":"box","text":"Retirement System (CalSTRS) from 2000 to","page_number":22,"box":{"x":343,"y":389,"width":264,"height":10}},{"id":"f9f79a41-1adb-4c1e-9213-fe547d50be0a","block_type":"box","text":"2024.","page_number":22,"box":{"x":343,"y":401,"width":36,"height":8}},{"id":"9c21ace7-ed9b-4630-8bef-f37b61068a44","block_type":"box","text":"26 RICs consisting of","page_number":22,"box":{"x":627,"y":365,"width":129,"height":10}},{"id":"d08bc198-3794-411d-9c1d-84c24ba45925","block_type":"box","text":"170 Portfolios","page_number":22,"box":{"x":627,"y":377,"width":85,"height":8}},{"id":"7afe9ecc-d985-471e-af1f-5920bff9f860","block_type":"box","text":"None","page_number":22,"box":{"x":774,"y":365,"width":30,"height":8}},{"id":"906a7c00-41d0-4cc6-91a7-4fa44ec9c804","block_type":"box","text":"Susan J. Carter","page_number":22,"box":{"x":69,"y":419,"width":93,"height":8}},{"id":"069bcd00-6a7c-464f-bebb-cc16d1943222","block_type":"box","text":"1956","page_number":22,"box":{"x":69,"y":434,"width":33,"height":8}},{"id":"99c4717a-14f7-4201-957c-39d79f7e972c","block_type":"box","text":"Director","page_number":22,"box":{"x":236,"y":419,"width":46,"height":8}},{"id":"b70f762b-7dd9-4b7a-8324-5100988cf1ff","block_type":"box","text":"(Since 2019)","page_number":22,"box":{"x":235,"y":431,"width":78,"height":9}},{"id":"0368e4d5-1aef-47cf-a061-f548c26f0f11","block_type":"box","text":"Trustee, Financial Accounting Foundation","page_number":22,"box":{"x":342,"y":419,"width":246,"height":10}},{"id":"42147f87-1ba9-4402-8943-eda70a1ced18","block_type":"box","text":"from 2017 to 2021; Advisory Board","page_number":22,"box":{"x":342,"y":430,"width":217,"height":10}},{"id":"f37fe9c6-f225-44f0-9474-86091593d6de","block_type":"box","text":"Member, Center for Private Equity and","page_number":22,"box":{"x":343,"y":442,"width":227,"height":10}},{"id":"2d1ae6a7-bad6-48c5-916e-92c1b10a54fd","block_type":"box","text":"Entrepreneurship at Tuck School of Business","page_number":22,"box":{"x":343,"y":454,"width":270,"height":10}},{"id":"95538d04-6edd-4eae-8b13-c987e1b1dfca","block_type":"box","text":"from 1997 to 2021; Director, Pacific Pension","page_number":22,"box":{"x":342,"y":466,"width":272,"height":10}},{"id":"468d00e4-f30e-4177-a4c6-ec79b401875e","block_type":"box","text":"Institute from 2014 to 2018; Senior Advisor,","page_number":22,"box":{"x":343,"y":478,"width":267,"height":10}},{"id":"9b2a5e48-f254-4d6d-a77c-80759abf8c75","block_type":"box","text":"Commonfund Capital, Inc. (“CCI”)","page_number":22,"box":{"x":343,"y":490,"width":201,"height":10}},{"id":"8eb43d01-0311-46cd-b4e0-243efc80e31d","block_type":"box","text":"(investment adviser) in 2015; Chief Executive","page_number":22,"box":{"x":343,"y":502,"width":272,"height":10}},{"id":"f088afbe-eeb4-4bfd-8f11-b76395c66013","block_type":"box","text":"Officer, CCI from 2013 to 2014; President &","page_number":22,"box":{"x":343,"y":514,"width":268,"height":10}},{"id":"3e141257-e8b7-4f6f-bd4e-2e65d3f952e7","block_type":"box","text":"Chief Executive Officer, CCI from 1997 to","page_number":22,"box":{"x":343,"y":526,"width":247,"height":10}},{"id":"5f134604-82c1-473e-af35-4edd6c4d3a0e","block_type":"box","text":"2013; Advisory Board Member, Girls Who","page_number":22,"box":{"x":343,"y":538,"width":250,"height":10}},{"id":"55e0a27d-3942-4583-8d60-a72957b41a91","block_type":"box","text":"Invest from 2015 to 2018 and Board","page_number":22,"box":{"x":343,"y":550,"width":223,"height":8}},{"id":"2def9c18-9938-44eb-a2e7-56f9938ceb7b","block_type":"box","text":"Member thereof from 2018 to 2022;","page_number":22,"box":{"x":343,"y":562,"width":222,"height":10}},{"id":"4d4f0725-fe45-46f5-a33b-6ab9d71b7c54","block_type":"box","text":"Advisory Board Member, Bridges Fund","page_number":22,"box":{"x":342,"y":574,"width":230,"height":10}},{"id":"7d9cfbce-dd05-4a71-8495-86a021af5f3d","block_type":"box","text":"Management from 2016 to 2018;","page_number":22,"box":{"x":343,"y":586,"width":204,"height":10}},{"id":"49838afc-e24f-44d0-822e-8c5bdd98a530","block_type":"box","text":"Practitioner Advisory Board Member, Private","page_number":22,"box":{"x":343,"y":598,"width":263,"height":10}},{"id":"556f73cf-b35e-4afd-b9a2-4c5cfb50ada0","block_type":"box","text":"Capital Research Institute (“PCRI”) from","page_number":22,"box":{"x":343,"y":610,"width":240,"height":10}},{"id":"7db8e23d-78fb-4554-8abd-2bdac2a74504","block_type":"box","text":"2017 to 2024; Lecturer in the Practice of","page_number":22,"box":{"x":343,"y":622,"width":249,"height":9}},{"id":"1cf5e4f2-b8f4-4f76-a86d-7c31b460c841","block_type":"box","text":"Management, Yale School of Management","page_number":22,"box":{"x":343,"y":634,"width":255,"height":10}},{"id":"408ffe94-31c7-4925-80f2-1abed2bd0a92","block_type":"box","text":"from 2019 to 2025; Advisor to Finance","page_number":22,"box":{"x":342,"y":646,"width":236,"height":9}},{"id":"6c50366c-e8bc-4792-9216-e6aeb1823d76","block_type":"box","text":"Committee, Altman Foundation from 2020 to","page_number":22,"box":{"x":343,"y":658,"width":271,"height":9}},{"id":"e1ca8724-b5ca-468c-87aa-d4c29748666d","block_type":"box","text":"2024; Investment Committee Member,","page_number":22,"box":{"x":343,"y":670,"width":234,"height":9}},{"id":"77d742fb-e671-489c-8fdc-1c5f6e3cc19c","block_type":"box","text":"Tostan since 2021; Member of the","page_number":22,"box":{"x":342,"y":682,"width":210,"height":9}},{"id":"9e2d3ef8-af16-4aed-ad48-91f0d202084b","block_type":"box","text":"President’s Counsel, Commonfund since","page_number":22,"box":{"x":343,"y":694,"width":245,"height":9}},{"id":"3c738e67-5699-4d51-8cc6-5d7f90f04a7c","block_type":"box","text":"2023.","page_number":22,"box":{"x":343,"y":706,"width":36,"height":8}},{"id":"92a24557-150d-4333-9fe3-64de797497b7","block_type":"box","text":"26 RICs consisting of","page_number":22,"box":{"x":627,"y":418,"width":129,"height":11}},{"id":"94496522-8256-43ef-b9b3-636f26433a1f","block_type":"box","text":"170 Portfolios","page_number":22,"box":{"x":627,"y":430,"width":85,"height":9}},{"id":"73b4ed10-3bd9-44a9-93dc-6bb40e75bec2","block_type":"box","text":"None","page_number":22,"box":{"x":774,"y":419,"width":30,"height":8}},{"id":"e26b0d00-3794-4a5b-862c-974186f48548","block_type":"box","text":"Collette Chilton","page_number":22,"box":{"x":69,"y":723,"width":90,"height":8}},{"id":"f4cc9164-62ff-4941-aaad-b8d4a81da8ca","block_type":"box","text":"1958","page_number":22,"box":{"x":69,"y":739,"width":33,"height":8}},{"id":"42c6b838-4f02-4193-82d2-24a70542f997","block_type":"box","text":"Director","page_number":22,"box":{"x":236,"y":724,"width":46,"height":7}},{"id":"bcde6642-befd-45b8-a973-41e13675c204","block_type":"box","text":"(Since 2019)","page_number":22,"box":{"x":235,"y":735,"width":78,"height":10}},{"id":"ee323215-88a4-4758-9e52-34318efc1324","block_type":"box","text":"Trustee, UC Berkeley Foundation Board since","page_number":22,"box":{"x":342,"y":723,"width":273,"height":10}},{"id":"642644ec-7dfe-430e-8b67-3f921227b888","block_type":"box","text":"2024; Committee member, Oxford University","page_number":22,"box":{"x":343,"y":735,"width":269,"height":10}},{"id":"b22ed7c0-d0cf-43f2-ae12-ea9e44a10360","block_type":"box","text":"Endowment Management since 2024;","page_number":22,"box":{"x":343,"y":747,"width":230,"height":10}},{"id":"ccf5d066-4f27-4e6f-976e-1bc581ff7255","block_type":"box","text":"Senior advisor, Insignia since 2024; Chief","page_number":22,"box":{"x":343,"y":759,"width":252,"height":10}},{"id":"7ad16c9e-7560-4929-ab55-4e56fbcf6b5a","block_type":"box","text":"Investment Officer, Williams College from","page_number":22,"box":{"x":343,"y":771,"width":247,"height":10}},{"id":"c1511507-1059-41ac-90c7-74cd1dee4db5","block_type":"box","text":"2006 to 2023; Chief Investment Officer,","page_number":22,"box":{"x":343,"y":783,"width":242,"height":10}},{"id":"da2d9d33-5e5e-47e8-be0f-a14ff742a1f5","block_type":"box","text":"Lucent Asset Management Corporation from","page_number":22,"box":{"x":343,"y":795,"width":266,"height":10}},{"id":"c5575d17-1094-4ab3-8520-e463910f1f12","block_type":"box","text":"1998 to 2006; Director, Boys and Girls Club","page_number":22,"box":{"x":343,"y":807,"width":266,"height":10}},{"id":"e5b5df39-2b31-4a5d-8015-dff6821b54bf","block_type":"box","text":"of Boston since 2017; Director, B1 Capital","page_number":22,"box":{"x":343,"y":819,"width":255,"height":10}},{"id":"0045beaa-6223-4704-a0be-b487e74c18ce","block_type":"box","text":"since 2018.","page_number":22,"box":{"x":343,"y":831,"width":72,"height":8}},{"id":"98bff2d4-7c3c-4e90-af49-365f91dc08f9","block_type":"box","text":"26 RICs consisting of","page_number":22,"box":{"x":627,"y":723,"width":129,"height":11}},{"id":"4c776dec-0077-4452-8e29-6cd7fae495bd","block_type":"box","text":"170 Portfolios","page_number":22,"box":{"x":627,"y":735,"width":85,"height":8}},{"id":"548e03e3-e55e-4fd6-a9fb-4cb50bc89e31","block_type":"box","text":"None","page_number":22,"box":{"x":774,"y":724,"width":30,"height":7}},{"id":"db7dbf78-6a03-4857-9f44-b1f2a5ac7270","block_type":"box","text":"I-13","page_number":22,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"2a318fda-5ca2-4f30-8435-8679e2b28d7a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":22,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a664882-d884-46ff-872c-4bb331aa5b71","block_type":"box","text":"Name","page_number":23,"box":{"x":131,"y":150,"width":32,"height":7}},{"id":"e405a76f-bf66-48c1-b846-eba652c6eb33","block_type":"box","text":"and Year of Birth","page_number":23,"box":{"x":93,"y":160,"width":97,"height":7}},{"id":"7c724523-53ee-4cef-a66a-0c6620b5bc0f","block_type":"box","text":"1,2","page_number":23,"box":{"x":191,"y":160,"width":9,"height":4}},{"id":"b9300277-e392-45f4-914b-6c256745b1dd","block_type":"box","text":"Position(s)","page_number":23,"box":{"x":252,"y":130,"width":62,"height":8}},{"id":"a892bc2e-76a1-465c-b57e-b452395aa059","block_type":"box","text":"Held","page_number":23,"box":{"x":271,"y":140,"width":25,"height":7}},{"id":"c2411081-7c26-49ea-acbb-66c2fa835dda","block_type":"box","text":"(Length of","page_number":23,"box":{"x":254,"y":150,"width":60,"height":9}},{"id":"7a779350-546d-4678-859e-152e46d7f818","block_type":"box","text":"Service)","page_number":23,"box":{"x":257,"y":160,"width":48,"height":9}},{"id":"1fca5a8e-8868-44ef-94df-e1d368808f44","block_type":"box","text":"3","page_number":23,"box":{"x":306,"y":160,"width":3,"height":3}},{"id":"91a78435-d16e-4f71-96ce-915db2f82336","block_type":"box","text":"Principal Occupation(s)","page_number":23,"box":{"x":411,"y":150,"width":136,"height":9}},{"id":"c6aaca12-4d70-4a3a-8c80-4bd426e32c03","block_type":"box","text":"During Past Five Years","page_number":23,"box":{"x":414,"y":160,"width":130,"height":9}},{"id":"c865f5c7-0b3e-4bbd-b520-96c908c508fa","block_type":"box","text":"Number of","page_number":23,"box":{"x":665,"y":49,"width":59,"height":7}},{"id":"cd506f98-a096-4424-a35a-3fcf6c1d969b","block_type":"box","text":"BlackRock","page_number":23,"box":{"x":662,"y":59,"width":66,"height":7}},{"id":"515585b4-b657-4030-8d70-ffd8ff208f5f","block_type":"box","text":"Advised","page_number":23,"box":{"x":672,"y":69,"width":45,"height":7}},{"id":"00047c06-ea28-4e98-a27f-73cbcc7dabd4","block_type":"box","text":"Registered","page_number":23,"box":{"x":663,"y":79,"width":62,"height":9}},{"id":"17192098-eed8-4294-a395-9fd630560863","block_type":"box","text":"Investment","page_number":23,"box":{"x":662,"y":89,"width":65,"height":7}},{"id":"69b77210-8683-4886-84f6-20c8aaec62b0","block_type":"box","text":"Companies","page_number":23,"box":{"x":663,"y":99,"width":63,"height":9}},{"id":"62c7a969-e144-45fc-a110-6d855b3dac82","block_type":"box","text":"(“RICs”)","page_number":23,"box":{"x":670,"y":109,"width":48,"height":9}},{"id":"24fe1025-3e08-45ff-a043-b6ce50572c84","block_type":"box","text":"Consisting of","page_number":23,"box":{"x":656,"y":120,"width":77,"height":8}},{"id":"8ce271e6-aaa7-44c1-960c-f6a668d77b17","block_type":"box","text":"Investment","page_number":23,"box":{"x":662,"y":130,"width":65,"height":7}},{"id":"fd7bbe13-4228-466a-bf73-24aed475e1e0","block_type":"box","text":"Portfolios","page_number":23,"box":{"x":667,"y":140,"width":55,"height":7}},{"id":"73b514e3-4e7f-451d-a00f-9551423604d5","block_type":"box","text":"(“Portfolios”)","page_number":23,"box":{"x":655,"y":150,"width":78,"height":9}},{"id":"7484d9e5-b1b1-43d9-ac10-3ffed4c866a9","block_type":"box","text":"Overseen","page_number":23,"box":{"x":668,"y":160,"width":53,"height":7}},{"id":"a071101a-63dd-4dd0-aab1-d9bbee713719","block_type":"box","text":"Public","page_number":23,"box":{"x":824,"y":89,"width":35,"height":7}},{"id":"f394c4ce-0606-4617-8161-9b802ca1de0d","block_type":"box","text":"Company","page_number":23,"box":{"x":815,"y":99,"width":53,"height":9}},{"id":"9bdef82d-36ee-49b1-a6ab-c82eb9432369","block_type":"box","text":"and Other","page_number":23,"box":{"x":813,"y":109,"width":57,"height":8}},{"id":"f373ba14-cff9-467a-a5f9-d24d58050791","block_type":"box","text":"Investment","page_number":23,"box":{"x":809,"y":120,"width":64,"height":7}},{"id":"68ed5163-864f-4227-a658-a41d18d673bf","block_type":"box","text":"Company","page_number":23,"box":{"x":815,"y":130,"width":53,"height":8}},{"id":"ee43e0d4-d18f-4385-a4df-5adac753b23e","block_type":"box","text":"Directorships","page_number":23,"box":{"x":803,"y":140,"width":77,"height":8}},{"id":"54d599ea-4b23-4bc4-8ab3-f8481b10a17f","block_type":"box","text":"Held During","page_number":23,"box":{"x":808,"y":150,"width":67,"height":9}},{"id":"95bf1551-ba50-4067-8f58-a09c581d3e73","block_type":"box","text":"Past Five Years","page_number":23,"box":{"x":797,"y":160,"width":88,"height":7}},{"id":"906868cd-a045-4014-8725-3be371da0ab5","block_type":"box","text":"Neil A. Cotty","page_number":23,"box":{"x":69,"y":174,"width":73,"height":10}},{"id":"0fac0483-52f5-4e78-a509-a4255e0a11ad","block_type":"box","text":"1954","page_number":23,"box":{"x":69,"y":190,"width":33,"height":8}},{"id":"842d24e0-e05f-4eba-a21f-ad638df58bda","block_type":"box","text":"Director","page_number":23,"box":{"x":236,"y":174,"width":46,"height":8}},{"id":"0826a25b-5b98-4c2a-8456-4532d6356743","block_type":"box","text":"(Since 2019)","page_number":23,"box":{"x":235,"y":186,"width":78,"height":10}},{"id":"ee27a2ad-fad3-4743-9ca6-f5931a3eb6f5","block_type":"box","text":"Bank of America Corporation from 1996 to","page_number":23,"box":{"x":343,"y":174,"width":256,"height":10}},{"id":"3ee879e4-3bcc-4466-b8fc-91e86a327099","block_type":"box","text":"2015, serving in various senior finance","page_number":23,"box":{"x":343,"y":186,"width":235,"height":10}},{"id":"4870b353-92fe-459d-bb5f-42069f8b9d55","block_type":"box","text":"leadership roles, including Chief Accounting","page_number":23,"box":{"x":343,"y":198,"width":261,"height":10}},{"id":"188ecb24-151f-4932-8a5b-779cfe767ad2","block_type":"box","text":"Officer from 2009 to 2015, Chief Financial","page_number":23,"box":{"x":343,"y":210,"width":256,"height":9}},{"id":"cd77b67e-f589-4b97-b3bf-77bb5b200c78","block_type":"box","text":"Officer of Global Banking, Markets and","page_number":23,"box":{"x":343,"y":222,"width":232,"height":10}},{"id":"272456c4-2721-4515-8447-8d547536ced4","block_type":"box","text":"Wealth Management from 2008 to 2009,","page_number":23,"box":{"x":342,"y":234,"width":251,"height":10}},{"id":"65cc83a1-7846-4b68-ab33-0ef7ff3515ec","block_type":"box","text":"Chief Accounting Officer from 2004 to 2008,","page_number":23,"box":{"x":343,"y":246,"width":269,"height":10}},{"id":"8ae8b281-2c95-433f-8057-363d2439a157","block_type":"box","text":"Chief Financial Officer of Consumer Bank","page_number":23,"box":{"x":343,"y":258,"width":247,"height":8}},{"id":"bdde75f2-394e-4b5c-8c81-ca34e94b1117","block_type":"box","text":"from 2003 to 2004, Chief Financial Officer of","page_number":23,"box":{"x":342,"y":270,"width":274,"height":9}},{"id":"a534b63b-5db9-486c-b7c7-a1f2c993b171","block_type":"box","text":"Global Corporate Investment Bank from","page_number":23,"box":{"x":343,"y":282,"width":237,"height":10}},{"id":"e618dd3f-2ad9-46d9-a0cb-745db0340e11","block_type":"box","text":"1999 to 2002.","page_number":23,"box":{"x":343,"y":294,"width":89,"height":8}},{"id":"a8014186-92cb-4fd8-b5ff-0502a53780df","block_type":"box","text":"26 RICs consisting of","page_number":23,"box":{"x":627,"y":174,"width":129,"height":10}},{"id":"0be3b043-16ed-4120-b225-48b216d6749a","block_type":"box","text":"170 Portfolios","page_number":23,"box":{"x":627,"y":186,"width":85,"height":8}},{"id":"44cdaf3b-cfe8-40c7-904b-27f762e45002","block_type":"box","text":"None","page_number":23,"box":{"x":774,"y":174,"width":30,"height":8}},{"id":"68bb851a-225f-4d3f-82fa-7138dc8201aa","block_type":"box","text":"Jeffrey Jarczyk4","page_number":23,"box":{"x":69,"y":311,"width":86,"height":10}},{"id":"13fd7269-c900-4772-a99d-efb9c36f4b37","block_type":"box","text":"k4","page_number":23,"box":{"x":155,"y":311,"width":4,"height":4}},{"id":"956cda09-ee41-4d63-adcf-713109ca2982","block_type":"box","text":"1964","page_number":23,"box":{"x":69,"y":327,"width":33,"height":8}},{"id":"4eb786cd-3575-4a2d-b786-bbf50417178a","block_type":"box","text":"Director (Since","page_number":23,"box":{"x":236,"y":311,"width":87,"height":10}},{"id":"66f8a8fa-4b30-4df2-a43e-b4e7562f70b2","block_type":"box","text":"2026)","page_number":23,"box":{"x":235,"y":323,"width":37,"height":10}},{"id":"3031e5a9-7729-4824-b05b-f8d84b6ea163","block_type":"box","text":"Director, The Friends of the Public Garden","page_number":23,"box":{"x":343,"y":311,"width":249,"height":10}},{"id":"83a5c3fa-847b-4471-9974-9f70bf7b4a4d","block_type":"box","text":"since 2021; Executive Vice President, Chief","page_number":23,"box":{"x":343,"y":323,"width":263,"height":10}},{"id":"c8ccde53-2425-4f53-aeed-c6cc1a236923","block_type":"box","text":"Auditor, Fidelity Investments from 2016 to","page_number":23,"box":{"x":342,"y":335,"width":253,"height":10}},{"id":"df424a35-b3da-4f21-b35a-ea06ed9a2378","block_type":"box","text":"2021; Executive Vice President, Chief","page_number":23,"box":{"x":343,"y":347,"width":227,"height":10}},{"id":"c67520b2-3a18-4858-9d81-60a92af424a2","block_type":"box","text":"Accounting Officer, Fidelity Investments from","page_number":23,"box":{"x":342,"y":359,"width":267,"height":10}},{"id":"6d4f74f5-6456-44fe-8cb8-1b37c3a446c1","block_type":"box","text":"2007 to 2016.","page_number":23,"box":{"x":343,"y":371,"width":89,"height":8}},{"id":"bc1dd4bd-98ae-4a1f-8019-a0ab6e1b30d5","block_type":"box","text":"26 RICs consisting of","page_number":23,"box":{"x":627,"y":311,"width":129,"height":11}},{"id":"0ef6d405-861a-4b7a-8bc0-9aaeb6304863","block_type":"box","text":"170 Portfolios","page_number":23,"box":{"x":627,"y":323,"width":85,"height":8}},{"id":"6b4271e3-967c-486f-9998-a97b10098608","block_type":"box","text":"None","page_number":23,"box":{"x":774,"y":312,"width":30,"height":7}},{"id":"a8ca953e-f09a-44d6-86cb-83b9fdf34969","block_type":"box","text":"Henry R. Keizer","page_number":23,"box":{"x":69,"y":389,"width":93,"height":10}},{"id":"d96feb39-a0b7-4488-af95-d53fa7b7715a","block_type":"box","text":"1956","page_number":23,"box":{"x":69,"y":405,"width":33,"height":8}},{"id":"7d295c82-f399-44cb-8337-908eaf2b84e9","block_type":"box","text":"Director","page_number":23,"box":{"x":236,"y":389,"width":46,"height":8}},{"id":"4343b4f7-2025-408b-b0de-8d3c93c8ede9","block_type":"box","text":"(Since 2016)","page_number":23,"box":{"x":235,"y":401,"width":78,"height":10}},{"id":"4ce095eb-b6c8-4529-b2cf-230eecb34d90","block_type":"box","text":"Director, Park Indemnity Ltd. (captive insurer)","page_number":23,"box":{"x":343,"y":389,"width":269,"height":10}},{"id":"fd6ee966-b9f9-4dbf-af14-bcd24ae50713","block_type":"box","text":"from 2010 to 2022.","page_number":23,"box":{"x":342,"y":401,"width":122,"height":8}},{"id":"76400ffe-0df8-406b-a5fe-b891e1638114","block_type":"box","text":"26 RICs consisting of","page_number":23,"box":{"x":627,"y":389,"width":129,"height":10}},{"id":"06509e86-5fa9-4cb9-8338-db6866992d63","block_type":"box","text":"170 Portfolios","page_number":23,"box":{"x":627,"y":401,"width":85,"height":8}},{"id":"2f1c36c0-c385-41d3-ab04-178eb5c118e1","block_type":"box","text":"GrafTech International","page_number":23,"box":{"x":773,"y":389,"width":131,"height":8}},{"id":"9efea599-b3fb-4a34-bae7-910e5491a489","block_type":"box","text":"Ltd. (materials","page_number":23,"box":{"x":774,"y":401,"width":85,"height":10}},{"id":"5d7cb017-801d-4b0b-838e-bd972f610b01","block_type":"box","text":"manufacturing);","page_number":23,"box":{"x":774,"y":413,"width":92,"height":10}},{"id":"76d3ac9c-5103-483f-9412-f5b84278a3bb","block_type":"box","text":"Sealed Air Corp.","page_number":23,"box":{"x":773,"y":425,"width":96,"height":10}},{"id":"2d4b0cc5-5776-4006-b22a-ca77489af0cb","block_type":"box","text":"(packaging); Hertz","page_number":23,"box":{"x":773,"y":437,"width":109,"height":10}},{"id":"5aef47c7-8928-4af4-a943-cb22632d94f6","block_type":"box","text":"Global Holdings (car","page_number":23,"box":{"x":773,"y":449,"width":121,"height":10}},{"id":"a6a388cd-3896-44d6-afe0-c0c653db1895","block_type":"box","text":"rental) from 2015 to","page_number":23,"box":{"x":774,"y":461,"width":122,"height":10}},{"id":"1acf5e91-98b3-44e6-80d7-56698bf63d7b","block_type":"box","text":"2021.","page_number":23,"box":{"x":773,"y":473,"width":36,"height":8}},{"id":"dad69c22-dff8-4126-861a-8ea8f3c3f93c","block_type":"box","text":"Cynthia A. Montgomery","page_number":23,"box":{"x":69,"y":490,"width":140,"height":10}},{"id":"f7c2a3ed-7666-4d1d-beb8-9ea121e128f3","block_type":"box","text":"1952","page_number":23,"box":{"x":69,"y":506,"width":32,"height":8}},{"id":"2c16c0e3-8653-44b8-86ba-bde284c07218","block_type":"box","text":"Director","page_number":23,"box":{"x":236,"y":490,"width":46,"height":8}},{"id":"41986122-760f-4e6a-b21f-8dad60f7ea3f","block_type":"box","text":"(Since 2019)","page_number":23,"box":{"x":235,"y":502,"width":78,"height":10}},{"id":"5acae084-8073-446c-8cf7-cf04ea11ace2","block_type":"box","text":"Professor, Harvard Business School since","page_number":23,"box":{"x":343,"y":490,"width":253,"height":10}},{"id":"994d2a2b-6cd5-47d8-9ebe-963c9c78ae74","block_type":"box","text":"1989.","page_number":23,"box":{"x":343,"y":502,"width":36,"height":8}},{"id":"f417e571-a30a-4f1a-830a-5aac22dce413","block_type":"box","text":"26 RICs consisting of","page_number":23,"box":{"x":627,"y":490,"width":129,"height":10}},{"id":"7adf569b-5854-4b47-89b4-cb76753144c2","block_type":"box","text":"170 Portfolios","page_number":23,"box":{"x":627,"y":502,"width":85,"height":8}},{"id":"b4908fcb-5565-4002-af21-6fc793cc78fa","block_type":"box","text":"None","page_number":23,"box":{"x":774,"y":490,"width":30,"height":8}},{"id":"c76b74d7-a812-4561-8be2-b9ccdb773519","block_type":"box","text":"Donald C. Opatrny","page_number":23,"box":{"x":70,"y":524,"width":108,"height":10}},{"id":"4c644f51-6149-4ef7-9791-3be111d0efdc","block_type":"box","text":"1952","page_number":23,"box":{"x":69,"y":539,"width":32,"height":8}},{"id":"252b394b-d605-486a-aedf-62de29f22a44","block_type":"box","text":"Director","page_number":23,"box":{"x":236,"y":524,"width":46,"height":8}},{"id":"3207113a-e7cb-44f4-9dd3-ba69f22a15f8","block_type":"box","text":"(Since 2015)","page_number":23,"box":{"x":235,"y":536,"width":78,"height":10}},{"id":"7d7cd819-4653-406d-98b5-1a5d0b372306","block_type":"box","text":"Chair of the Board of Phoenix Art Museum","page_number":23,"box":{"x":343,"y":524,"width":253,"height":8}},{"id":"ad645d85-40b1-4468-9ac1-a7b4bdc8daee","block_type":"box","text":"since 2022 and Trustee thereof since 2018;","page_number":23,"box":{"x":343,"y":536,"width":268,"height":9}},{"id":"daa4198f-afcb-4385-8cee-0a707a4fad17","block_type":"box","text":"Chair of the Investment Committee of The","page_number":23,"box":{"x":343,"y":548,"width":251,"height":8}},{"id":"51cbdd10-3949-438d-8cd9-8a24b1c800dc","block_type":"box","text":"Arizona Community Foundation since 2022","page_number":23,"box":{"x":342,"y":560,"width":259,"height":10}},{"id":"c613de65-80e0-4e4e-8415-17d8ffa26b9b","block_type":"box","text":"and Trustee thereof since 2020; Director,","page_number":23,"box":{"x":343,"y":571,"width":249,"height":10}},{"id":"a3158776-e5bc-44b5-9948-75fa8bb9615d","block_type":"box","text":"Athena Capital Advisors LLC (investment","page_number":23,"box":{"x":342,"y":584,"width":244,"height":9}},{"id":"7d015d99-5371-4774-b11b-e0c7c4993b9a","block_type":"box","text":"management firm) from 2013 to 2020;","page_number":23,"box":{"x":343,"y":595,"width":236,"height":11}},{"id":"8e84f130-02ec-41ee-98e8-009c40bb6da1","block_type":"box","text":"Trustee, Vice Chair, Member of the Executive","page_number":23,"box":{"x":342,"y":607,"width":270,"height":10}},{"id":"4955067b-fc00-4f9d-8f71-23847fdf3810","block_type":"box","text":"Committee and Chair of the Investment","page_number":23,"box":{"x":343,"y":619,"width":237,"height":8}},{"id":"023641db-e413-4f67-a578-929a073efcb5","block_type":"box","text":"Committee, Cornell University from 2004 to","page_number":23,"box":{"x":343,"y":631,"width":262,"height":10}},{"id":"526c351f-1ce8-4077-83cd-fd3aa9c8e345","block_type":"box","text":"2019; Member of Affordable Housing Supply","page_number":23,"box":{"x":343,"y":643,"width":270,"height":10}},{"id":"2cbd7321-ed1b-4417-88d1-983d826b83f1","block_type":"box","text":"Board of Jackson, Wyoming from 2017 to","page_number":23,"box":{"x":343,"y":655,"width":251,"height":10}},{"id":"251c44c3-4075-4e85-a0da-06babc94d572","block_type":"box","text":"2022; Member, Investment Funds","page_number":23,"box":{"x":343,"y":667,"width":205,"height":10}},{"id":"39b9b295-a87b-4992-9428-a3d8142933eb","block_type":"box","text":"Committee, State of Wyoming from 2017 to","page_number":23,"box":{"x":343,"y":679,"width":264,"height":10}},{"id":"965e2146-de22-44ae-888e-324c9f75dd56","block_type":"box","text":"2023; Member of the Investment","page_number":23,"box":{"x":343,"y":691,"width":201,"height":10}},{"id":"21fe38e8-a080-4258-babc-584b5b719b9e","block_type":"box","text":"Committee, Mellon Foundation from 2009 to","page_number":23,"box":{"x":343,"y":703,"width":269,"height":10}},{"id":"f43af505-c483-4c07-afa5-2a36995678eb","block_type":"box","text":"2015; President, Trustee and Member of the","page_number":23,"box":{"x":343,"y":715,"width":270,"height":10}},{"id":"e3568fda-b134-4ef8-b577-ab59a766f8b8","block_type":"box","text":"Investment Committee, The Aldrich","page_number":23,"box":{"x":343,"y":727,"width":210,"height":10}},{"id":"28357eea-27ee-437d-af5d-d649bdb140b1","block_type":"box","text":"Contemporary Art Museum from 2007 to","page_number":23,"box":{"x":343,"y":739,"width":248,"height":10}},{"id":"f6ee0927-186a-4949-83bc-7440bdc10762","block_type":"box","text":"2014; Trustee and Chair of the Investment","page_number":23,"box":{"x":343,"y":751,"width":258,"height":9}},{"id":"4e8be11e-1f56-4b7f-8d4c-81150cb7ae90","block_type":"box","text":"Committee, Community Foundation of","page_number":23,"box":{"x":343,"y":763,"width":228,"height":10}},{"id":"0282cc15-853b-46c3-95a7-79edab21e9c8","block_type":"box","text":"Jackson Hole since 2014.","page_number":23,"box":{"x":342,"y":775,"width":157,"height":8}},{"id":"0d26d5d6-5aea-4ad4-93b5-2583e3ac3184","block_type":"box","text":"26 RICs consisting of","page_number":23,"box":{"x":627,"y":524,"width":129,"height":10}},{"id":"52d70293-82a2-4811-8ed2-f1f5a08ae37d","block_type":"box","text":"170 Portfolios","page_number":23,"box":{"x":627,"y":536,"width":85,"height":8}},{"id":"bcf28690-a077-42a2-a619-e1154a1ac42c","block_type":"box","text":"None","page_number":23,"box":{"x":774,"y":524,"width":30,"height":8}},{"id":"df21fe9a-1057-4aea-8e87-45aa9e8658bb","block_type":"box","text":"Lori Richards","page_number":23,"box":{"x":69,"y":793,"width":78,"height":8}},{"id":"e0a1820d-684d-42a3-9795-e323d6f7dbd1","block_type":"box","text":"1960","page_number":23,"box":{"x":69,"y":808,"width":33,"height":8}},{"id":"d594eceb-cd33-445a-88f8-a3d2e1683dda","block_type":"box","text":"Director","page_number":23,"box":{"x":236,"y":793,"width":46,"height":8}},{"id":"e0253c49-5919-4077-94b2-1fac3c8f96c5","block_type":"box","text":"(Since 2024)","page_number":23,"box":{"x":235,"y":805,"width":78,"height":10}},{"id":"2e83a9b4-83cf-47e1-9ab9-2557d1a2273f","block_type":"box","text":"President and Trustee, SEC Historical Society","page_number":23,"box":{"x":343,"y":793,"width":273,"height":10}},{"id":"04e49212-b3d0-46d0-b0e6-65aae5b097ff","block_type":"box","text":"since 2018; Trustee, Garrett College","page_number":23,"box":{"x":343,"y":805,"width":220,"height":10}},{"id":"ae44e16d-3c50-48c3-9c8e-d220896bbcd4","block_type":"box","text":"Foundation since 2019; Member, Vice-Chair","page_number":23,"box":{"x":343,"y":817,"width":264,"height":9}},{"id":"a48e2e9d-415f-4085-a3d3-df46b7fb07cd","block_type":"box","text":"or Chair of FINRA National Adjudicatory","page_number":23,"box":{"x":343,"y":828,"width":233,"height":11}},{"id":"ca7aa270-c748-4f1e-a89a-6099c3a9c4ca","block_type":"box","text":"Council from 2019 to 2022; Director,","page_number":23,"box":{"x":343,"y":840,"width":223,"height":10}},{"id":"baea9d04-811c-49ad-923c-7290d1eb452c","block_type":"box","text":"PharmaCann, Inc. from 2021 to 2024;","page_number":23,"box":{"x":343,"y":852,"width":232,"height":10}},{"id":"0411e248-82a6-4da6-b0cf-eed53419a00d","block_type":"box","text":"Director, Wahed Invest from 2022 to 2024.","page_number":23,"box":{"x":343,"y":864,"width":260,"height":10}},{"id":"82d6ba65-cd97-4062-93e8-94baaa4c852f","block_type":"box","text":"26 RICs consisting of","page_number":23,"box":{"x":627,"y":793,"width":129,"height":10}},{"id":"49376436-516c-47d7-9e1a-f7d4846d3e2c","block_type":"box","text":"170 Portfolios","page_number":23,"box":{"x":627,"y":805,"width":85,"height":8}},{"id":"47638bde-b395-42fe-95e8-3e46c57d577c","block_type":"box","text":"None","page_number":23,"box":{"x":774,"y":793,"width":30,"height":8}},{"id":"4955997f-0a80-492b-86f4-c866bb8271d1","block_type":"box","text":"Marc D. Stern","page_number":23,"box":{"x":69,"y":882,"width":83,"height":8}},{"id":"cb1146ed-d0be-4336-8423-ac3433e16ac4","block_type":"box","text":"4","page_number":23,"box":{"x":153,"y":882,"width":4,"height":4}},{"id":"5fc8ecfa-951c-4693-9591-2e3cded9542c","block_type":"box","text":"1962","page_number":23,"box":{"x":69,"y":898,"width":32,"height":8}},{"id":"daeb392f-bdfb-44cf-90dc-eba26d366f59","block_type":"box","text":"Director (Since","page_number":23,"box":{"x":236,"y":882,"width":87,"height":10}},{"id":"1e387b88-546e-4f79-8653-490e5edda5b0","block_type":"box","text":"2026)","page_number":23,"box":{"x":235,"y":894,"width":37,"height":10}},{"id":"48e3a8a0-d832-4fec-a2a6-b46de05b54e4","block_type":"box","text":"Chief Executive Officer and Director,","page_number":23,"box":{"x":343,"y":882,"width":214,"height":10}},{"id":"88747b51-6957-40cf-bf3a-15bc3524a35e","block_type":"box","text":"Bessemer Trust from 2013 to 2026.","page_number":23,"box":{"x":343,"y":894,"width":221,"height":8}},{"id":"997ba4a7-cb4d-4fd7-9c20-56654fce3958","block_type":"box","text":"26 RICs consisting of","page_number":23,"box":{"x":627,"y":882,"width":129,"height":10}},{"id":"50cf99a3-21f1-4bdf-ab12-2cf42b7a2d28","block_type":"box","text":"170 Portfolios","page_number":23,"box":{"x":627,"y":894,"width":85,"height":8}},{"id":"852589c6-c19f-4f6a-b338-15f80f58e8d1","block_type":"box","text":"None","page_number":23,"box":{"x":774,"y":882,"width":30,"height":8}},{"id":"fefc171c-fb12-4ce8-a25c-39e1fe5949e2","block_type":"box","text":"I-14","page_number":23,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"d7ee9d02-04cc-442d-a349-ff4d0f271f7f","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":23,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e8345198-b38f-4e93-bee7-e35f4304fda3","block_type":"box","text":"Name","page_number":24,"box":{"x":131,"y":150,"width":32,"height":7}},{"id":"99184216-3377-4c8a-9874-ea7224689dd4","block_type":"box","text":"and Year of Birth","page_number":24,"box":{"x":93,"y":160,"width":97,"height":7}},{"id":"841ab71a-ffb8-4888-839c-a7de4e622e55","block_type":"box","text":"1,2","page_number":24,"box":{"x":191,"y":160,"width":9,"height":4}},{"id":"fbc0b4e5-4ab4-445e-b2fb-5757cb5a388e","block_type":"box","text":"Position(s)","page_number":24,"box":{"x":252,"y":130,"width":62,"height":8}},{"id":"bbef84b4-a202-4cb8-b8f2-96a55be3964e","block_type":"box","text":"Held","page_number":24,"box":{"x":271,"y":140,"width":25,"height":7}},{"id":"f9e16f53-b860-4f8e-8418-caba82407f07","block_type":"box","text":"(Length of","page_number":24,"box":{"x":254,"y":150,"width":60,"height":9}},{"id":"763dfb93-b670-46f9-bea2-503aa9387c0e","block_type":"box","text":"Service)","page_number":24,"box":{"x":257,"y":160,"width":48,"height":9}},{"id":"c1fc4c2f-2747-410d-85c9-21fb38ffe52a","block_type":"box","text":"3","page_number":24,"box":{"x":306,"y":160,"width":3,"height":3}},{"id":"bf313fa1-a7ae-46c5-9ba8-9bd8eeac199f","block_type":"box","text":"Principal Occupation(s)","page_number":24,"box":{"x":411,"y":150,"width":136,"height":9}},{"id":"1ff5d53f-c1cd-45c3-986d-003c383fdc5c","block_type":"box","text":"During Past Five Years","page_number":24,"box":{"x":414,"y":160,"width":130,"height":9}},{"id":"a2664ce5-5026-4e65-95e8-d34d2c8d8996","block_type":"box","text":"Number of","page_number":24,"box":{"x":665,"y":49,"width":59,"height":7}},{"id":"c0f1d8d6-bd46-46ad-be1f-090ae296f480","block_type":"box","text":"BlackRock","page_number":24,"box":{"x":662,"y":59,"width":66,"height":7}},{"id":"2a69bca9-ae8e-45f3-bd64-604e3e9e3a18","block_type":"box","text":"Advised","page_number":24,"box":{"x":672,"y":69,"width":45,"height":7}},{"id":"c6e2efce-682b-454e-b50a-ca9604194202","block_type":"box","text":"Registered","page_number":24,"box":{"x":663,"y":79,"width":62,"height":9}},{"id":"168953f6-c030-4d5f-8dba-eff7d7f50be7","block_type":"box","text":"Investment","page_number":24,"box":{"x":662,"y":89,"width":65,"height":7}},{"id":"0c2949c3-bed1-4f1f-9b5a-20f9cc51e1f2","block_type":"box","text":"Companies","page_number":24,"box":{"x":663,"y":99,"width":63,"height":9}},{"id":"007ee3d6-1f7e-4238-8c87-8cc3512caa69","block_type":"box","text":"(“RICs”)","page_number":24,"box":{"x":670,"y":109,"width":48,"height":9}},{"id":"3d0e7e8f-931b-41ce-bc48-75ad4aa8f63c","block_type":"box","text":"Consisting of","page_number":24,"box":{"x":656,"y":120,"width":77,"height":8}},{"id":"d3922d51-b7fa-4155-bd17-9072b4d9847a","block_type":"box","text":"Investment","page_number":24,"box":{"x":662,"y":130,"width":65,"height":7}},{"id":"e8a24685-13e1-4503-a389-be5a7a0aaeab","block_type":"box","text":"Portfolios","page_number":24,"box":{"x":667,"y":140,"width":55,"height":7}},{"id":"9c93d4a4-f7da-40f5-8383-8e8f8bf878d1","block_type":"box","text":"(“Portfolios”)","page_number":24,"box":{"x":655,"y":150,"width":78,"height":9}},{"id":"1d3f798a-3474-4702-9f7a-0e638741755e","block_type":"box","text":"Overseen","page_number":24,"box":{"x":668,"y":160,"width":53,"height":7}},{"id":"b7cbdc7d-99f0-4d27-9e28-57166fa50448","block_type":"box","text":"Public","page_number":24,"box":{"x":824,"y":89,"width":35,"height":7}},{"id":"61a00a14-079f-4e84-aebe-e0d1d3c34fac","block_type":"box","text":"Company","page_number":24,"box":{"x":815,"y":99,"width":53,"height":9}},{"id":"a01a83ae-aee4-4353-a4e2-6ef857e87fb2","block_type":"box","text":"and Other","page_number":24,"box":{"x":813,"y":109,"width":57,"height":8}},{"id":"f8f96815-083c-4bfb-a3d8-a61d799415c6","block_type":"box","text":"Investment","page_number":24,"box":{"x":809,"y":120,"width":64,"height":7}},{"id":"c5fe13e6-ef27-4f2e-acaf-4dc64e5c89fc","block_type":"box","text":"Company","page_number":24,"box":{"x":815,"y":130,"width":53,"height":8}},{"id":"972e238c-fd08-4333-b221-161ed4f39da0","block_type":"box","text":"Directorships","page_number":24,"box":{"x":803,"y":140,"width":77,"height":8}},{"id":"40b5ce30-722a-4368-927a-c988a6c0363e","block_type":"box","text":"Held During","page_number":24,"box":{"x":808,"y":150,"width":67,"height":9}},{"id":"ada28d02-d5ec-4a49-b035-0e4e70dfe729","block_type":"box","text":"Past Five Years","page_number":24,"box":{"x":797,"y":160,"width":88,"height":7}},{"id":"a4522b3f-4dfc-45d8-8dd9-4bdbb36d418d","block_type":"box","text":"Kenneth L. Urish","page_number":24,"box":{"x":70,"y":174,"width":98,"height":8}},{"id":"6580f9d4-fbd5-4ac3-9bbc-30a28d2733e9","block_type":"box","text":"1951","page_number":24,"box":{"x":69,"y":190,"width":33,"height":8}},{"id":"ee9bfdc5-2d09-4c03-aba6-05659a9a2d64","block_type":"box","text":"Director","page_number":24,"box":{"x":236,"y":174,"width":46,"height":8}},{"id":"136d1333-d37d-4712-a5a8-9b36917f5eca","block_type":"box","text":"(Since 2019)","page_number":24,"box":{"x":235,"y":186,"width":78,"height":10}},{"id":"67a96ffb-18ba-4dc3-90d9-6904085b563c","block_type":"box","text":"Managing Partner, Urish Popeck & Co., LLC","page_number":24,"box":{"x":343,"y":174,"width":261,"height":10}},{"id":"ee37db4a-7480-4108-b98c-2581bea5dca6","block_type":"box","text":"(certified public accountants and","page_number":24,"box":{"x":343,"y":186,"width":196,"height":10}},{"id":"73c4521b-7fbc-4f7d-a9a4-563195043c14","block_type":"box","text":"consultants) since 1976; Past-Chairman of","page_number":24,"box":{"x":343,"y":198,"width":259,"height":10}},{"id":"4654d9df-a46f-410c-b8b8-c000aa4ca160","block_type":"box","text":"the Professional Ethics Committee of the","page_number":24,"box":{"x":342,"y":210,"width":247,"height":8}},{"id":"36cb88c2-0b96-451e-854a-d1cdf9e9540d","block_type":"box","text":"Pennsylvania Institute of Certified Public","page_number":24,"box":{"x":343,"y":222,"width":241,"height":10}},{"id":"80ecb55d-b208-4ab5-a92a-8a76cf164876","block_type":"box","text":"Accountants and Committee Member thereof","page_number":24,"box":{"x":342,"y":234,"width":273,"height":8}},{"id":"e0e98649-251e-40a8-953f-ce58579e660b","block_type":"box","text":"since 2007; Member of External Advisory","page_number":24,"box":{"x":343,"y":246,"width":250,"height":10}},{"id":"9f4ea29c-2648-4cbd-be1c-79c8205c6f6f","block_type":"box","text":"Board, The Pennsylvania State University","page_number":24,"box":{"x":343,"y":258,"width":246,"height":10}},{"id":"4aa26bc1-0bc7-466d-81fd-b54a2ae55d19","block_type":"box","text":"Accounting Department since 2001,","page_number":24,"box":{"x":342,"y":270,"width":219,"height":10}},{"id":"bb648877-ef48-40eb-813f-307e2d2f78c7","block_type":"box","text":"Emeritus since 2022; Principal, UP Strategic","page_number":24,"box":{"x":343,"y":282,"width":267,"height":10}},{"id":"3a7323f0-4633-4857-810a-59fd42357a8f","block_type":"box","text":"Wealth Investment Advisors, LLC since","page_number":24,"box":{"x":342,"y":294,"width":233,"height":9}},{"id":"d275c27f-b5bd-4c84-85e4-1278dd326c98","block_type":"box","text":"2013; Trustee, The Holy Family Institute from","page_number":24,"box":{"x":343,"y":306,"width":272,"height":10}},{"id":"60e1a947-8691-44b8-b478-cd58fef63e22","block_type":"box","text":"2001 to 2010; President and Trustee,","page_number":24,"box":{"x":343,"y":318,"width":230,"height":9}},{"id":"9f6294aa-71af-495f-abb2-bbeda0b827d9","block_type":"box","text":"Pittsburgh Catholic Publishing Associates","page_number":24,"box":{"x":343,"y":330,"width":248,"height":10}},{"id":"57973975-954a-4573-a1d2-ddcda2b02300","block_type":"box","text":"from 2003 to 2008; Director, Inter-Tel from","page_number":24,"box":{"x":342,"y":342,"width":259,"height":9}},{"id":"3f84bdee-d122-4f05-a8ee-6daa20609fdf","block_type":"box","text":"2006 to 2007; Member, Advisory Board,","page_number":24,"box":{"x":343,"y":354,"width":245,"height":10}},{"id":"a4923168-84ee-4b8f-80c9-726a080a3f3a","block_type":"box","text":"ESG Competent Boards since 2020.","page_number":24,"box":{"x":343,"y":366,"width":219,"height":9}},{"id":"f18bbe70-2cc0-4640-864b-981b04212a30","block_type":"box","text":"26 RICs consisting of","page_number":24,"box":{"x":627,"y":174,"width":129,"height":10}},{"id":"f4bd4e8a-595b-437b-8dab-87a5f25482b0","block_type":"box","text":"170 Portfolios","page_number":24,"box":{"x":627,"y":186,"width":85,"height":8}},{"id":"15ea0bdf-7015-4908-a681-66a505f8ea98","block_type":"box","text":"None","page_number":24,"box":{"x":774,"y":174,"width":30,"height":8}},{"id":"5a103a67-6362-4fab-8f0a-4330252cbb4f","block_type":"box","text":"Claire A. Walton","page_number":24,"box":{"x":69,"y":383,"width":94,"height":8}},{"id":"9be942c4-ef71-4295-9c2d-ec6937c5a9ae","block_type":"box","text":"1957","page_number":24,"box":{"x":69,"y":399,"width":32,"height":8}},{"id":"4ff11dac-e198-40e2-a00c-6376f3b30b1b","block_type":"box","text":"Director","page_number":24,"box":{"x":236,"y":383,"width":46,"height":8}},{"id":"58503a36-a3b1-454a-8d8b-ee2e8786f475","block_type":"box","text":"(Since 2019)","page_number":24,"box":{"x":235,"y":395,"width":78,"height":10}},{"id":"844af9b4-3b6e-41a5-bdb2-f3e8c2ab3e20","block_type":"box","text":"Director/Treasurer, Reading Community Trust","page_number":24,"box":{"x":343,"y":383,"width":273,"height":10}},{"id":"e109e3cf-eb62-4ec5-9097-b5c49021fc21","block_type":"box","text":"since 2024; Advisory Board Member,","page_number":24,"box":{"x":343,"y":395,"width":224,"height":10}},{"id":"1e9cfb9a-dd60-481e-93db-407cb67b2995","block_type":"box","text":"Grossman School of Business at the","page_number":24,"box":{"x":343,"y":407,"width":221,"height":8}},{"id":"be007b56-85fa-472f-a5d4-a8ad5de51aa7","block_type":"box","text":"University of Vermont since 2023; Advisory","page_number":24,"box":{"x":343,"y":419,"width":259,"height":10}},{"id":"6edbef07-e6e4-4b65-b95d-f9e21d6fe43b","block_type":"box","text":"Board Member, Scientific Financial Systems","page_number":24,"box":{"x":343,"y":431,"width":264,"height":10}},{"id":"7868ed4d-e4e9-4f76-91de-028094017804","block_type":"box","text":"from 2022 to 2025; General Partner of Neon","page_number":24,"box":{"x":342,"y":443,"width":273,"height":9}},{"id":"983985bb-1305-47c6-95e5-7cbd57a68062","block_type":"box","text":"Liberty Capital Management, LLC from 2003","page_number":24,"box":{"x":343,"y":455,"width":269,"height":10}},{"id":"268caf7d-851e-4e4a-8aec-af76540650f7","block_type":"box","text":"to 2023; Chief Operating Officer and Chief","page_number":24,"box":{"x":342,"y":467,"width":256,"height":10}},{"id":"4bf85636-b54c-498d-9e58-785b00fc0d69","block_type":"box","text":"Financial Officer of Liberty Square Asset","page_number":24,"box":{"x":343,"y":479,"width":241,"height":10}},{"id":"677b9585-aad1-4448-ac4a-283a6c862c52","block_type":"box","text":"Management, LP / Steel Partners Japan","page_number":24,"box":{"x":343,"y":491,"width":242,"height":10}},{"id":"bca108e0-6232-4a9f-87c6-a079d49eb7cd","block_type":"box","text":"Asset Management, LP from 1998 to 2015;","page_number":24,"box":{"x":342,"y":503,"width":266,"height":10}},{"id":"96b23614-6722-4ce7-a385-711235104388","block_type":"box","text":"Director, Boston Hedge Fund Group from","page_number":24,"box":{"x":343,"y":515,"width":244,"height":10}},{"id":"33bfe1a8-56d6-4481-806f-7ce8c0eee7ce","block_type":"box","text":"2009 to 2018; Director, Massachusetts","page_number":24,"box":{"x":343,"y":527,"width":242,"height":9}},{"id":"76e705fa-3bdf-4c6d-9683-06741e6b8249","block_type":"box","text":"Council on Economic Education from 2013","page_number":24,"box":{"x":343,"y":539,"width":257,"height":8}},{"id":"715a6e34-efcb-418d-8a52-73dac1109ea3","block_type":"box","text":"to 2015.","page_number":24,"box":{"x":342,"y":551,"width":53,"height":8}},{"id":"2b5e848c-a903-43c0-8912-ffbfbc8f8d3f","block_type":"box","text":"26 RICs consisting of","page_number":24,"box":{"x":627,"y":383,"width":129,"height":10}},{"id":"9d9a9f46-db8c-4880-86cc-5e69612e5fe3","block_type":"box","text":"170 Portfolios","page_number":24,"box":{"x":627,"y":395,"width":85,"height":8}},{"id":"06a3dea3-0e0d-458a-8884-0d39a9a55280","block_type":"box","text":"None","page_number":24,"box":{"x":774,"y":383,"width":30,"height":8}},{"id":"aeb6b4b3-a7e2-4c9e-b66b-c58b708f8f45","block_type":"box","text":"Interested Directors","page_number":24,"box":{"x":70,"y":569,"width":126,"height":7}},{"id":"d62ddd6a-f987-4699-97e6-4f4808531f6e","block_type":"box","text":"5","page_number":24,"box":{"x":197,"y":565,"width":4,"height":4}},{"id":"5e6380bd-ce69-4ad2-b96b-863220e1aaaa","block_type":"box","text":"Robert Fairbairn","page_number":24,"box":{"x":69,"y":586,"width":96,"height":8}},{"id":"e1fd6575-9b29-40b3-9bf1-d7959f3cf65a","block_type":"box","text":"1965","page_number":24,"box":{"x":69,"y":602,"width":33,"height":8}},{"id":"c0d98b46-162a-470f-b75c-9233a04638e7","block_type":"box","text":"Director","page_number":24,"box":{"x":236,"y":586,"width":46,"height":8}},{"id":"3a3213e7-19fd-4e78-b94c-39d156befd17","block_type":"box","text":"(Since 2015)","page_number":24,"box":{"x":235,"y":598,"width":78,"height":10}},{"id":"592287a8-41d7-4ad6-a9d9-62ffdb7b02c6","block_type":"box","text":"Vice Chairman of BlackRock, Inc. since","page_number":24,"box":{"x":342,"y":586,"width":235,"height":9}},{"id":"99f16159-8f31-4963-bbad-7129b9753013","block_type":"box","text":"2019; Member of BlackRock’s Global","page_number":24,"box":{"x":343,"y":598,"width":225,"height":9}},{"id":"018a6547-a418-404b-804a-864dcdf66398","block_type":"box","text":"Operating Committee; Co-Chair of","page_number":24,"box":{"x":343,"y":610,"width":202,"height":10}},{"id":"98d42f64-bfb5-487b-9019-43977c01e221","block_type":"box","text":"BlackRock’s Human Capital Committee;","page_number":24,"box":{"x":343,"y":622,"width":240,"height":10}},{"id":"163e4580-d2e9-4962-a6ff-98da61d592e5","block_type":"box","text":"Senior Managing Director of BlackRock, Inc.","page_number":24,"box":{"x":343,"y":634,"width":262,"height":10}},{"id":"c874d053-c45c-4940-8b8f-d9930d7587c4","block_type":"box","text":"from 2010 to 2019; oversaw BlackRock’s","page_number":24,"box":{"x":342,"y":646,"width":254,"height":9}},{"id":"5a153c73-d630-47d7-97ee-0ca8d48436d6","block_type":"box","text":"Strategic Partner Program and Strategic","page_number":24,"box":{"x":343,"y":658,"width":239,"height":10}},{"id":"0f00bd7e-7977-4a1d-9fab-7dd49204efc4","block_type":"box","text":"Product Management Group from 2012 to","page_number":24,"box":{"x":343,"y":670,"width":254,"height":10}},{"id":"07ae7b14-0010-4d93-89fd-70c9fd0cf4e1","block_type":"box","text":"2019; Member of the Board of Managers of","page_number":24,"box":{"x":343,"y":682,"width":265,"height":10}},{"id":"0af46242-a4bb-4158-974b-3af55f576512","block_type":"box","text":"BlackRock Investments, LLC from 2011 to","page_number":24,"box":{"x":343,"y":694,"width":255,"height":9}},{"id":"55b69245-fde3-400e-98cd-39ff88a3d930","block_type":"box","text":"2018; Global Head of BlackRock’s Retail","page_number":24,"box":{"x":343,"y":706,"width":245,"height":9}},{"id":"44326a3f-6b50-4795-86f5-9df88f0b9a94","block_type":"box","text":"and iShares","page_number":24,"box":{"x":343,"y":718,"width":72,"height":8}},{"id":"99aeffd6-3d10-4ebc-9745-ce2230a5741a","block_type":"box","text":"®","page_number":24,"box":{"x":415,"y":718,"width":5,"height":4}},{"id":"597809e5-5133-45f1-9f9d-133b50acedbd","block_type":"box","text":"businesses from 2012 to","page_number":24,"box":{"x":425,"y":718,"width":153,"height":8}},{"id":"49fd244e-8169-47eb-ae46-55ea9ad8ef16","block_type":"box","text":"2016.","page_number":24,"box":{"x":343,"y":730,"width":36,"height":8}},{"id":"f784ce53-a778-4b95-87e4-4e1d05b261f0","block_type":"box","text":"78 RICs consisting of","page_number":24,"box":{"x":627,"y":586,"width":129,"height":10}},{"id":"a095cd71-3aa6-4170-98f5-f24257c7d1bf","block_type":"box","text":"255 Portfolios","page_number":24,"box":{"x":627,"y":598,"width":85,"height":8}},{"id":"72107411-25d6-4ffd-befa-128839603df0","block_type":"box","text":"None","page_number":24,"box":{"x":774,"y":586,"width":30,"height":8}},{"id":"b54d331e-a043-4367-8eab-675bcb2d67bb","block_type":"box","text":"John M. Perlowski","page_number":24,"box":{"x":69,"y":747,"width":107,"height":8}},{"id":"da95bdd9-eb2b-4fc3-ba79-58292d1cd069","block_type":"box","text":"6","page_number":24,"box":{"x":177,"y":747,"width":4,"height":4}},{"id":"a4c72e51-efc3-448e-8ef6-2235094be624","block_type":"box","text":"1964","page_number":24,"box":{"x":69,"y":763,"width":33,"height":8}},{"id":"64a6769d-438e-4ee0-9f66-4af5f5be0dfe","block_type":"box","text":"Director","page_number":24,"box":{"x":236,"y":747,"width":46,"height":8}},{"id":"c917edf1-b18a-458a-96bf-f223b04c1c08","block_type":"box","text":"(Since 2015)","page_number":24,"box":{"x":235,"y":759,"width":78,"height":10}},{"id":"f5fb3364-37a6-4c73-a591-826079924f54","block_type":"box","text":"President and","page_number":24,"box":{"x":236,"y":771,"width":82,"height":8}},{"id":"c585d02b-0ad1-4f65-a33b-1018b8683cbf","block_type":"box","text":"Chief Executive","page_number":24,"box":{"x":235,"y":783,"width":91,"height":8}},{"id":"758be5eb-59a7-468b-b24b-f42f1de0478e","block_type":"box","text":"Officer","page_number":24,"box":{"x":235,"y":795,"width":40,"height":8}},{"id":"4896b04e-2173-4fa1-9613-0f8de8234d26","block_type":"box","text":"(Since 2010)","page_number":24,"box":{"x":235,"y":807,"width":78,"height":10}},{"id":"738735ed-afee-4889-a1ca-86d2133634e9","block_type":"box","text":"Senior Managing Director of BlackRock, Inc.","page_number":24,"box":{"x":343,"y":747,"width":262,"height":10}},{"id":"99dd4791-810a-4ed0-8c38-4ab65d4b1aae","block_type":"box","text":"since 2026; Managing Director of BlackRock,","page_number":24,"box":{"x":343,"y":759,"width":272,"height":10}},{"id":"9939c838-9634-42e0-b273-c5c84988fef6","block_type":"box","text":"Inc. from 2009 to 2025; Member of","page_number":24,"box":{"x":343,"y":771,"width":218,"height":10}},{"id":"f405398d-cbf5-44f2-a946-09191c5084a6","block_type":"box","text":"BlackRock’s Global Executive Committee","page_number":24,"box":{"x":343,"y":783,"width":246,"height":8}},{"id":"bb643e25-114d-4bb5-8e8f-94cdda7e3617","block_type":"box","text":"since 2025; Head of BlackRock Global","page_number":24,"box":{"x":343,"y":795,"width":232,"height":10}},{"id":"bae232a3-e3f9-466e-a9de-6404fd326ad4","block_type":"box","text":"Business Operations Services since 2009;","page_number":24,"box":{"x":343,"y":807,"width":258,"height":10}},{"id":"f38486ef-9368-4fe1-8b4e-377c189cc0a5","block_type":"box","text":"Advisory Director of Family Resource Network","page_number":24,"box":{"x":342,"y":819,"width":274,"height":10}},{"id":"ec153944-a4c7-4174-8e1a-4af398012f2f","block_type":"box","text":"(charitable foundation) since 2009.","page_number":24,"box":{"x":343,"y":831,"width":211,"height":10}},{"id":"23bd6919-3f20-4b7a-965e-e8374dfc61d4","block_type":"box","text":"78 RICs consisting of","page_number":24,"box":{"x":627,"y":747,"width":129,"height":10}},{"id":"4a5f6ff8-1970-4441-8960-a06749d74a94","block_type":"box","text":"255 Portfolios","page_number":24,"box":{"x":627,"y":759,"width":85,"height":8}},{"id":"4d002f60-f717-4f3a-b71d-ee6cf00107b1","block_type":"box","text":"None","page_number":24,"box":{"x":774,"y":747,"width":30,"height":8}},{"id":"3c9cc4ed-9558-4f2b-89dd-aefbe341ec53","block_type":"box","text":"1","page_number":24,"box":{"x":69,"y":855,"width":3,"height":3}},{"id":"dbe66bf4-5a97-4091-b418-4cedf433738c","block_type":"box","text":"The address of each Director is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001.","page_number":24,"box":{"x":93,"y":855,"width":565,"height":8}},{"id":"5dedd8cb-69c3-484d-bb0c-0ff8962fc72d","block_type":"box","text":"2","page_number":24,"box":{"x":69,"y":867,"width":3,"height":4}},{"id":"48a8852d-73fe-4f5e-9e07-3883e4cf4ae8","block_type":"box","text":"Each Independent Director holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation,","page_number":24,"box":{"x":94,"y":867,"width":784,"height":9}},{"id":"19048efa-c48e-4b89-b00f-e689514c7457","block_type":"box","text":"retirement or removal as provided by the Fund’s by-laws or charter or statute, or until December 31 of the year in which he or she turns 75.","page_number":24,"box":{"x":94,"y":877,"width":794,"height":9}},{"id":"70b5f4cb-8977-4c89-a059-91c9feb4572e","block_type":"box","text":"Directors who are “interested persons,” as defined in the Investment Company Act, serve until their successor is duly elected and qualifies or","page_number":24,"box":{"x":94,"y":887,"width":810,"height":9}},{"id":"bca774fb-7db3-4a18-8f43-f31495139834","block_type":"box","text":"until their earlier death, resignation, retirement or removal as provided by the Fund’s by-laws or statute, or until December 31 of the year in","page_number":24,"box":{"x":94,"y":897,"width":792,"height":9}},{"id":"2d136228-d3d4-4321-b2a2-a7e390a65971","block_type":"box","text":"which they turn 72. The Board may determine to extend the terms of Independent Directors on a case-by-case basis, as appropriate.","page_number":24,"box":{"x":93,"y":907,"width":756,"height":9}},{"id":"f778a391-5057-4040-b340-82a07fb8ec6b","block_type":"box","text":"I-15","page_number":24,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b9275470-72dc-48d3-8f90-6a9069007d65","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":24,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"178e09f8-5033-48bd-a7a0-ab927851fc49","block_type":"box","text":"3","page_number":25,"box":{"x":69,"y":45,"width":3,"height":4}},{"id":"8982d6a0-ee93-4f44-90c5-f2602ba14a08","block_type":"box","text":"Following the combination of MLIM and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were","page_number":25,"box":{"x":94,"y":45,"width":804,"height":9}},{"id":"19c302d2-dd97-4a8c-8b28-5945952abbe4","block_type":"box","text":"realigned and consolidated into three new fund boards in 2007. In addition, effective January 1, 2019, three BlackRock Fund Complexes were","page_number":25,"box":{"x":94,"y":55,"width":812,"height":9}},{"id":"b85771a0-3dd1-4ab6-9e60-c826c982511d","block_type":"box","text":"realigned and consolidated into two BlackRock Fund Complexes. As a result, although the chart shows the year that each Independent Director","page_number":25,"box":{"x":94,"y":65,"width":816,"height":9}},{"id":"6636ccd4-5e23-42be-ad2c-1b634f0dba4c","block_type":"box","text":"joined the Board, certain Independent Directors first became members of the boards of other BlackRock-advised Funds, legacy MLIM funds or","page_number":25,"box":{"x":92,"y":75,"width":811,"height":9}},{"id":"6e0ad847-50cd-4daa-b9f2-2d4f71d839dd","block_type":"box","text":"legacy BlackRock funds as follows: Susan J. Carter, 2016; Collette Chilton, 2015; Neil A. Cotty, 2016; Cynthia A. Montgomery, 1994; Mark","page_number":25,"box":{"x":94,"y":85,"width":794,"height":9}},{"id":"f28f826e-8c79-4d6b-b5af-6ab0567276ac","block_type":"box","text":"Stalnecker, 2015; Kenneth L. Urish, 1999; Claire A. Walton, 2016.","page_number":25,"box":{"x":93,"y":96,"width":381,"height":8}},{"id":"daa5fe02-e6cb-43e8-825c-4205961fb5ca","block_type":"box","text":"4","page_number":25,"box":{"x":68,"y":108,"width":4,"height":4}},{"id":"d02e0d0d-7ec5-4dc8-9076-ad48d981130b","block_type":"box","text":"Mr. Jarczyk and Mr. Stern were each appointed as Directors of the Corporation effective July 1, 2026. Previously, each served as a consultant","page_number":25,"box":{"x":94,"y":108,"width":809,"height":9}},{"id":"d7131cfc-c4fe-4424-93a1-d2e63ce29a5d","block_type":"box","text":"to the Independent Directors from April 1, 2026 to July 1, 2026.","page_number":25,"box":{"x":93,"y":118,"width":366,"height":9}},{"id":"65562410-31f6-4737-94d5-9d6b5c3c66fd","block_type":"box","text":"5","page_number":25,"box":{"x":69,"y":131,"width":3,"height":4}},{"id":"d8a96d04-ae46-4c51-b72f-cf59e1f71c6c","block_type":"box","text":"Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the Investment Company Act, of the Fund based on their positions","page_number":25,"box":{"x":94,"y":131,"width":813,"height":9}},{"id":"b95903cf-6756-4702-8f05-7ebcdc568f00","block_type":"box","text":"with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Fixed-Income Complex.","page_number":25,"box":{"x":93,"y":141,"width":772,"height":9}},{"id":"f6831447-00d1-418a-a51c-f59cab567f65","block_type":"box","text":"6","page_number":25,"box":{"x":69,"y":154,"width":3,"height":3}},{"id":"e4fdbf77-7fc5-4289-bf16-4d7db969704f","block_type":"box","text":"Mr. Perlowski is also a trustee of the BlackRock HPS Credit Strategies Fund and BlackRock Private Investments Fund.","page_number":25,"box":{"x":94,"y":153,"width":669,"height":10}},{"id":"1d43f26d-da8c-4f7a-ad7f-357452a07a46","block_type":"box","text":"Certain biographical and other information relating to the officers of the Fund who are not Directors is set forth","page_number":25,"box":{"x":102,"y":174,"width":788,"height":12}},{"id":"c0f3679f-04e8-4fe4-a361-11c3703f1378","block_type":"box","text":"below, including their address and year of birth, principal occupations for at least the last five years and length of","page_number":25,"box":{"x":69,"y":189,"width":808,"height":12}},{"id":"268df05e-d52e-4c52-b961-0dd6b89c4403","block_type":"box","text":"time served.","page_number":25,"box":{"x":68,"y":205,"width":89,"height":9}},{"id":"2bd8f1c6-0652-4339-8d5f-f15a0c6c7da5","block_type":"box","text":"Name","page_number":25,"box":{"x":160,"y":233,"width":32,"height":7}},{"id":"dfe2b12d-697e-4c08-b748-63657111f645","block_type":"box","text":"and Year of Birth","page_number":25,"box":{"x":122,"y":243,"width":97,"height":7}},{"id":"6e26f1ec-3b23-484b-a214-1faeda5d8b5c","block_type":"box","text":"1,2","page_number":25,"box":{"x":220,"y":243,"width":10,"height":4}},{"id":"96a8aaff-ae03-4007-b910-29989dd5c65b","block_type":"box","text":"Position(s) Held","page_number":25,"box":{"x":335,"y":233,"width":93,"height":9}},{"id":"e60705ef-cbda-40df-af2a-4782b05e31fb","block_type":"box","text":"(Length of Service)","page_number":25,"box":{"x":326,"y":243,"width":110,"height":9}},{"id":"a08668d8-79e8-4a0d-a3c8-894272a9190b","block_type":"box","text":"Principal Occupation(s)","page_number":25,"box":{"x":626,"y":233,"width":136,"height":9}},{"id":"3a542951-633d-4f6e-9c5e-954559f1d7cc","block_type":"box","text":"During Past Five Years","page_number":25,"box":{"x":629,"y":243,"width":131,"height":9}},{"id":"5a41d65e-a6fe-4d38-8b25-68031706fb6a","block_type":"box","text":"Officers Who Are Not Directors","page_number":25,"box":{"x":69,"y":257,"width":197,"height":8}},{"id":"fcb128a9-a371-4291-82e4-157f26830c89","block_type":"box","text":"Jennifer McGovern","page_number":25,"box":{"x":69,"y":275,"width":110,"height":8}},{"id":"1db7031d-7511-4dab-8e3f-74f90ff3dc63","block_type":"box","text":"1977","page_number":25,"box":{"x":69,"y":291,"width":32,"height":8}},{"id":"a910b591-8bbf-4e8f-85df-13c966d81ffa","block_type":"box","text":"Vice President","page_number":25,"box":{"x":293,"y":275,"width":87,"height":8}},{"id":"3dc3bbc7-5bb1-4c4d-9ae5-e9709b00d56c","block_type":"box","text":"(Since 2014)","page_number":25,"box":{"x":294,"y":287,"width":78,"height":10}},{"id":"260a0394-ff7e-4397-80fe-b99f58b00703","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2016.","page_number":25,"box":{"x":480,"y":275,"width":297,"height":10}},{"id":"21f663c9-4856-44fb-bc2f-56e59ff3520e","block_type":"box","text":"Trent Walker","page_number":25,"box":{"x":68,"y":308,"width":75,"height":8}},{"id":"52c8703b-42cc-4d42-8238-c9cefe58bc2c","block_type":"box","text":"1974","page_number":25,"box":{"x":69,"y":324,"width":33,"height":8}},{"id":"c6a7c540-335a-47d1-a815-fac4607fc98f","block_type":"box","text":"Chief","page_number":25,"box":{"x":294,"y":308,"width":31,"height":8}},{"id":"aa53d72e-882e-4915-9d96-beaa1395abc1","block_type":"box","text":"Financial","page_number":25,"box":{"x":294,"y":320,"width":51,"height":8}},{"id":"c5bd78c5-6ec8-4829-8110-3f2181eda205","block_type":"box","text":"Officer","page_number":25,"box":{"x":294,"y":332,"width":40,"height":8}},{"id":"5714b507-0864-4e91-9a2c-db74b28d3514","block_type":"box","text":"(Since 2021)","page_number":25,"box":{"x":294,"y":344,"width":78,"height":10}},{"id":"28bbe3f3-1bf3-45b2-ac48-436c1b58882a","block_type":"box","text":"and Treasurer","page_number":25,"box":{"x":294,"y":356,"width":83,"height":8}},{"id":"88591431-df83-4a2f-8846-ba118e8493cc","block_type":"box","text":"(Since 2026)","page_number":25,"box":{"x":294,"y":368,"width":78,"height":10}},{"id":"1efa3d1d-ebfc-4a67-968b-c39d05784209","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2019.","page_number":25,"box":{"x":480,"y":308,"width":297,"height":10}},{"id":"9f41d140-302e-4e0d-853f-5bcf13171ecb","block_type":"box","text":"Charles Park","page_number":25,"box":{"x":69,"y":386,"width":76,"height":8}},{"id":"c4ed6334-d842-46da-ba8f-2745db472e2a","block_type":"box","text":"3","page_number":25,"box":{"x":145,"y":386,"width":4,"height":4}},{"id":"b9cbb613-f6de-45d4-9255-fd5773fdaec2","block_type":"box","text":"1967","page_number":25,"box":{"x":69,"y":402,"width":32,"height":8}},{"id":"f922cc05-7fcd-44d0-af02-af8e0210485b","block_type":"box","text":"Chief Compliance Officer","page_number":25,"box":{"x":294,"y":386,"width":149,"height":10}},{"id":"ce0238a8-15e2-4d7b-bfae-5422f397f53d","block_type":"box","text":"(Since 2026; and from","page_number":25,"box":{"x":294,"y":398,"width":136,"height":10}},{"id":"3dccba19-9b0d-406b-a4cd-25a797f7b030","block_type":"box","text":"2014-2023)","page_number":25,"box":{"x":294,"y":410,"width":73,"height":10}},{"id":"5104919b-0629-4015-af53-7ecad8e71b41","block_type":"box","text":"Managing Director of BlackRock, Inc. (since 2006); Chief Compliance","page_number":25,"box":{"x":480,"y":386,"width":415,"height":10}},{"id":"50419554-21fa-4f0a-9189-f12de19a03c1","block_type":"box","text":"Officer of BlackRock Advisors, LLC (since 2014) and BlackRock Fund","page_number":25,"box":{"x":480,"y":398,"width":414,"height":10}},{"id":"7d4f946d-e18e-418c-aabb-e68e643765fe","block_type":"box","text":"Advisors (since 2006); Chief Compliance Officer of the iShares","page_number":25,"box":{"x":479,"y":410,"width":378,"height":10}},{"id":"76095ff8-aeb6-4e9f-82da-8f860b00de66","block_type":"box","text":"Complex (since 2026 and 2006-2023); Chief Compliance Officer of","page_number":25,"box":{"x":480,"y":422,"width":407,"height":10}},{"id":"2d3412a4-739e-4bf2-b616-148ccef97823","block_type":"box","text":"the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income","page_number":25,"box":{"x":479,"y":434,"width":411,"height":9}},{"id":"d6002012-72aa-4944-ac93-861d372dff76","block_type":"box","text":"Complex (since 2026 and 2014-2023).","page_number":25,"box":{"x":480,"y":446,"width":236,"height":9}},{"id":"936b9e87-82ae-4c8d-8736-aea78621613b","block_type":"box","text":"Lisa Belle","page_number":25,"box":{"x":69,"y":463,"width":58,"height":8}},{"id":"ab60c2d3-9e0c-43c3-911a-81644b51a52d","block_type":"box","text":"1968","page_number":25,"box":{"x":69,"y":479,"width":33,"height":8}},{"id":"29b4de88-41df-4bf0-995c-9474186fad6e","block_type":"box","text":"Anti-Money Laundering","page_number":25,"box":{"x":293,"y":463,"width":136,"height":10}},{"id":"d8eaaa96-ff95-4a02-8c8f-f362ed06affd","block_type":"box","text":"Compliance Officer","page_number":25,"box":{"x":294,"y":475,"width":114,"height":10}},{"id":"bf5ddd5e-0b08-439b-8a78-ec9a7cac640b","block_type":"box","text":"(Since 2019)","page_number":25,"box":{"x":294,"y":487,"width":78,"height":10}},{"id":"6086342e-7388-4a8e-88a2-96a202678f65","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2019.","page_number":25,"box":{"x":480,"y":463,"width":297,"height":10}},{"id":"d56564ce-989f-498b-9b21-2e7780a1f968","block_type":"box","text":"Janey Ahn","page_number":25,"box":{"x":69,"y":505,"width":59,"height":10}},{"id":"9ee32e62-466f-4a98-ade7-e1ee956c49d6","block_type":"box","text":"1975","page_number":25,"box":{"x":69,"y":521,"width":33,"height":8}},{"id":"bc63693f-2bb0-4b72-aee2-aebdee7dedbc","block_type":"box","text":"Secretary","page_number":25,"box":{"x":294,"y":505,"width":58,"height":10}},{"id":"cd0aceea-cb0e-4dfd-9fb0-7018b01f80c3","block_type":"box","text":"(Since 2019)","page_number":25,"box":{"x":294,"y":517,"width":78,"height":10}},{"id":"f3baedda-2eb4-47b1-83dc-0791db7424c8","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2018.","page_number":25,"box":{"x":480,"y":505,"width":297,"height":10}},{"id":"6fda311a-f372-4ab4-a7aa-4540698dddd7","block_type":"box","text":"1","page_number":25,"box":{"x":69,"y":544,"width":3,"height":4}},{"id":"9c4ef9d7-4dab-4acb-a43a-20988242241b","block_type":"box","text":"The address of each Officer is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001.","page_number":25,"box":{"x":93,"y":544,"width":559,"height":9}},{"id":"43b10ae4-7fcc-4e96-8264-2b219241fb18","block_type":"box","text":"2","page_number":25,"box":{"x":69,"y":557,"width":3,"height":3}},{"id":"5cc8ce19-1734-4f5e-83b3-f786532661a1","block_type":"box","text":"Officers of the Fund serve at the pleasure of the Board.","page_number":25,"box":{"x":93,"y":557,"width":317,"height":8}},{"id":"74c991d6-f987-483d-b687-3bae052ba7b3","block_type":"box","text":"3","page_number":25,"box":{"x":69,"y":569,"width":3,"height":4}},{"id":"d735e8c9-2ae9-49f3-8af0-ee7da3fd08e5","block_type":"box","text":"Effective August 1, 2026, Charles Park succeeded Aaron Wasserman as Chief Compliance Officer.","page_number":25,"box":{"x":94,"y":569,"width":560,"height":9}},{"id":"73134ae4-290f-46c5-a9c0-f8345924e4b2","block_type":"box","text":"Share Ownership","page_number":25,"box":{"x":68,"y":598,"width":123,"height":11}},{"id":"fe479f34-6fb7-4256-8f02-3ddc965ad48c","block_type":"box","text":"Information relating to each Director’s share ownership in the Fund and in all BlackRock-advised Funds that are","page_number":25,"box":{"x":102,"y":620,"width":793,"height":12}},{"id":"3f483208-6e54-4ec2-81e8-57c90d9bbe65","block_type":"box","text":"currently overseen by the respective Director (“Supervised Funds”) as of December 31, 2025, except as otherwise","page_number":25,"box":{"x":69,"y":635,"width":820,"height":12}},{"id":"1a5efedd-313a-4bba-9983-1b850a7c1961","block_type":"box","text":"noted, is set forth in the chart below. Amounts shown may include shares as to which a Director has indirect","page_number":25,"box":{"x":69,"y":651,"width":776,"height":11}},{"id":"a30b4f51-e53d-4528-8bcb-d993a7899f03","block_type":"box","text":"beneficial ownership, such as through participation in certain family accounts, 529 college savings plan interests, or","page_number":25,"box":{"x":69,"y":666,"width":833,"height":11}},{"id":"54ad7382-4324-492c-8574-096218574924","block_type":"box","text":"similar arrangements where the Director has beneficial economic interest but not a direct ownership interest.","page_number":25,"box":{"x":69,"y":681,"width":778,"height":11}},{"id":"809f406f-e0a1-4804-8eca-ff93535660b1","block_type":"box","text":"Name","page_number":25,"box":{"x":69,"y":729,"width":32,"height":7}},{"id":"d2d07e63-3f54-4556-b114-a52b853f0be4","block_type":"box","text":"Dollar Range","page_number":25,"box":{"x":647,"y":709,"width":74,"height":9}},{"id":"ed90bd26-f6f5-426b-ade5-1fc06b9b544d","block_type":"box","text":"of Equity Securities","page_number":25,"box":{"x":627,"y":719,"width":113,"height":9}},{"id":"5f25f9e8-e89b-4813-a5da-ff2a80a2c5ec","block_type":"box","text":"in the Fund","page_number":25,"box":{"x":652,"y":729,"width":64,"height":7}},{"id":"d9973029-aaa6-4cff-b974-c69aa5556376","block_type":"box","text":"Aggregate Dollar Range","page_number":25,"box":{"x":770,"y":709,"width":139,"height":9}},{"id":"95fe069d-f80f-4636-97d6-9c2dc8c7c291","block_type":"box","text":"of Equity Securities in","page_number":25,"box":{"x":776,"y":719,"width":127,"height":9}},{"id":"2cbbadeb-31a8-4a8a-b362-7fe9dec4d201","block_type":"box","text":"Supervised Funds","page_number":25,"box":{"x":788,"y":729,"width":103,"height":9}},{"id":"dbce04ed-a20e-4b21-a09b-0861dd3b338a","block_type":"box","text":"Independent Directors","page_number":25,"box":{"x":70,"y":747,"width":156,"height":11}},{"id":"d66d9616-ca46-45c3-9f16-580c5da73584","block_type":"box","text":"Christopher J. Ailman","page_number":25,"box":{"x":79,"y":762,"width":149,"height":11}},{"id":"eab7354b-238e-4249-ab85-f55bd5048cf3","block_type":"box","text":".............................................","page_number":25,"box":{"x":236,"y":770,"width":360,"height":1}},{"id":"507436c2-c89c-4646-9564-491f77e481ec","block_type":"box","text":"None Over $100,000","page_number":25,"box":{"x":666,"y":761,"width":228,"height":12}},{"id":"4ef9cdd6-add0-4a96-bce7-73ef22d397cf","block_type":"box","text":"Susan J. Carter","page_number":25,"box":{"x":79,"y":777,"width":110,"height":9}},{"id":"b824b9ce-8e73-49f1-bda8-283563f76737","block_type":"box","text":"..................................................","page_number":25,"box":{"x":195,"y":785,"width":401,"height":1}},{"id":"cef461bf-0a25-48b9-9b55-7480f6ce5752","block_type":"box","text":"None Over $100,000","page_number":25,"box":{"x":666,"y":777,"width":228,"height":11}},{"id":"7af91d13-8530-4746-92cf-0f08959b8c51","block_type":"box","text":"Collette Chilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":25,"box":{"x":79,"y":792,"width":517,"height":9}},{"id":"38af8784-b8eb-4ad9-8778-f2f331046cef","block_type":"box","text":"None Over $100,000","page_number":25,"box":{"x":666,"y":792,"width":228,"height":11}},{"id":"e9c11936-33b4-4ea1-908b-2633b92ac25e","block_type":"box","text":"Neil A. Cotty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":25,"box":{"x":79,"y":808,"width":517,"height":11}},{"id":"78f667e5-1124-4f02-8e18-7e3442de5000","block_type":"box","text":"None Over $100,000","page_number":25,"box":{"x":666,"y":807,"width":228,"height":11}},{"id":"93e23348-56a3-4da3-9935-01315868647a","block_type":"box","text":"Jeffrey Jarczyk","page_number":25,"box":{"x":78,"y":823,"width":103,"height":11}},{"id":"6f719f44-b343-4dcc-9e57-880d791dfff0","block_type":"box","text":"*","page_number":25,"box":{"x":182,"y":823,"width":3,"height":3}},{"id":"fef3644f-b1e9-4eac-bfaf-1eb897a6f7b9","block_type":"box","text":"..................................................","page_number":25,"box":{"x":195,"y":830,"width":401,"height":1}},{"id":"14db0e21-f10f-4840-a802-313c9bcf67d0","block_type":"box","text":"None None","page_number":25,"box":{"x":666,"y":823,"width":192,"height":9}},{"id":"f6be25c1-86e2-4651-ba5f-f02504ed33af","block_type":"box","text":"Henry R. Keizer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":25,"box":{"x":79,"y":838,"width":517,"height":11}},{"id":"1cc17c1e-590a-4c04-9100-a87ddaea50e2","block_type":"box","text":"None Over $100,000","page_number":25,"box":{"x":666,"y":837,"width":228,"height":11}},{"id":"f9fc6945-cc30-47ba-a9f5-200cabadfeea","block_type":"box","text":"Cynthia A. Montgomery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":25,"box":{"x":79,"y":853,"width":517,"height":11}},{"id":"7bcf55f5-e725-4ff4-94e9-f401fd7f1673","block_type":"box","text":"None Over $100,000","page_number":25,"box":{"x":666,"y":852,"width":228,"height":11}},{"id":"cd97fc50-46e8-4d50-bb88-11a90146576f","block_type":"box","text":"Donald C. Opatrny","page_number":25,"box":{"x":79,"y":868,"width":129,"height":11}},{"id":"d68a051e-4fef-4a60-aa9d-a122272dda31","block_type":"box","text":"................................................","page_number":25,"box":{"x":211,"y":875,"width":385,"height":2}},{"id":"0fa3e185-e577-4270-8d9a-a9c793e80cf0","block_type":"box","text":"None Over $100,000","page_number":25,"box":{"x":666,"y":867,"width":228,"height":11}},{"id":"238fd0cd-79f4-427f-b1c3-b75093755e85","block_type":"box","text":"Lori Richards . . .","page_number":25,"box":{"x":79,"y":883,"width":118,"height":9}},{"id":"045137f9-8483-41cf-8eae-0d6adef32f57","block_type":"box","text":".................................................","page_number":25,"box":{"x":203,"y":891,"width":393,"height":1}},{"id":"e4512251-f399-47e5-a6ac-d96b67ccd2e1","block_type":"box","text":"None None","page_number":25,"box":{"x":666,"y":883,"width":192,"height":9}},{"id":"e190e908-5ea8-4c74-98e9-692528fac124","block_type":"box","text":"Mark Stalnecker","page_number":25,"box":{"x":79,"y":898,"width":115,"height":9}},{"id":"d76956d2-42c9-4ef4-b2dc-6b550684814c","block_type":"box","text":".................................................","page_number":25,"box":{"x":203,"y":906,"width":393,"height":1}},{"id":"13769bd2-3869-4602-8c77-37fa0891c448","block_type":"box","text":"None Over $100,000","page_number":25,"box":{"x":666,"y":898,"width":228,"height":11}},{"id":"f4ee8273-7397-4070-9896-e19aa8894480","block_type":"box","text":"I-16","page_number":25,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"9257b043-45b3-44df-a59f-5238cd786fc3","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":25,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2ef42c49-b00d-4bde-9ede-ac3f6ad9b6be","block_type":"box","text":"Name","page_number":26,"box":{"x":69,"y":69,"width":32,"height":7}},{"id":"346e4446-fc86-494f-bc66-d38ee4a93d7c","block_type":"box","text":"Dollar Range","page_number":26,"box":{"x":647,"y":49,"width":74,"height":9}},{"id":"f6dd425b-b3a7-4ad9-b14c-21bfdffe0c21","block_type":"box","text":"of Equity Securities","page_number":26,"box":{"x":627,"y":59,"width":113,"height":9}},{"id":"c2f876ef-fff7-438f-9df2-5ae8f8d4261f","block_type":"box","text":"in the Fund","page_number":26,"box":{"x":652,"y":69,"width":64,"height":7}},{"id":"d3d883c7-c16f-4e08-92af-e6f96b71f1da","block_type":"box","text":"Aggregate Dollar Range","page_number":26,"box":{"x":770,"y":49,"width":139,"height":9}},{"id":"7ff92635-bc7a-41ec-b191-6526328a96a7","block_type":"box","text":"of Equity Securities in","page_number":26,"box":{"x":776,"y":59,"width":127,"height":9}},{"id":"310ad019-bb0e-4722-b7c8-5d912679859e","block_type":"box","text":"Supervised Funds","page_number":26,"box":{"x":788,"y":69,"width":103,"height":9}},{"id":"ac691845-5452-45a1-b153-bb4ed0b46115","block_type":"box","text":"Marc D. Stern","page_number":26,"box":{"x":79,"y":87,"width":97,"height":9}},{"id":"4b3691fc-e918-47ab-82aa-ff0cfae8561b","block_type":"box","text":"*","page_number":26,"box":{"x":178,"y":87,"width":4,"height":3}},{"id":"92714eff-390a-4f3a-b837-d8bef35a6435","block_type":"box","text":"...................................................","page_number":26,"box":{"x":187,"y":94,"width":409,"height":2}},{"id":"fc41923d-efbe-4c12-a06c-011bea16f28f","block_type":"box","text":"None None","page_number":26,"box":{"x":666,"y":87,"width":192,"height":9}},{"id":"66027f6a-40d0-4693-b91d-6aadbe7392a0","block_type":"box","text":"Kenneth L. Urish .","page_number":26,"box":{"x":79,"y":102,"width":126,"height":9}},{"id":"038adfef-cb75-495a-84c3-a0724202bdcc","block_type":"box","text":"................................................","page_number":26,"box":{"x":211,"y":109,"width":385,"height":2}},{"id":"549e43b8-6bd2-4757-b9df-a2c8be2cad2f","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":666,"y":101,"width":228,"height":11}},{"id":"19e5e00a-1228-463f-be72-666989012b34","block_type":"box","text":"Claire A. Walton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over","page_number":26,"box":{"x":79,"y":117,"width":582,"height":9}},{"id":"b6539157-1102-421a-b425-28b04c142046","block_type":"box","text":"$100,000 Over $100,000","page_number":26,"box":{"x":666,"y":116,"width":228,"height":12}},{"id":"f84c8d4b-f094-460a-aa5e-e4a914dedaf9","block_type":"box","text":"Interested Directors","page_number":26,"box":{"x":70,"y":132,"width":140,"height":9}},{"id":"418059a4-b522-41e9-b7d5-611487d393c1","block_type":"box","text":"Robert Fairbairn","page_number":26,"box":{"x":79,"y":148,"width":113,"height":8}},{"id":"f6db81e3-8f04-4a8d-9bf1-c57325b6d073","block_type":"box","text":"..................................................","page_number":26,"box":{"x":195,"y":155,"width":401,"height":1}},{"id":"961fc4f1-ed72-48ec-bfaa-695c01ef2197","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":666,"y":147,"width":228,"height":11}},{"id":"54a718e7-70e5-46d9-ac81-eec0095d3809","block_type":"box","text":"John M. Perlowski","page_number":26,"box":{"x":78,"y":163,"width":127,"height":8}},{"id":"9a5b2925-f40e-47b1-8f95-edaa4f80a991","block_type":"box","text":"................................................","page_number":26,"box":{"x":211,"y":170,"width":385,"height":1}},{"id":"20b08931-1f84-4db3-90d6-c68c7887994a","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":666,"y":162,"width":228,"height":11}},{"id":"c5304a9c-d319-4140-b8b2-d4834e3a4b82","block_type":"box","text":"*","page_number":26,"box":{"x":69,"y":187,"width":3,"height":2}},{"id":"2864d044-23c0-468f-96d1-259e2c2c6098","block_type":"box","text":"Information is provided as of April 1, 2026, the date Mr. Jarczyk and Mr. Stern first served as consultants to the Independent Directors.","page_number":26,"box":{"x":94,"y":187,"width":773,"height":9}},{"id":"f2e1ceb5-ad86-45fd-a0f7-c718f14f8b49","block_type":"box","text":"As of September 3, 2026, the Directors and officers of the Fund as a group directly or indirectly beneficially","page_number":26,"box":{"x":101,"y":208,"width":768,"height":11}},{"id":"85f6f487-2c57-44cc-b396-1d75aa5b7cf8","block_type":"box","text":"owned an aggregate of less than 1% of any class of the outstanding shares of the Fund. As of December 31, 2025","page_number":26,"box":{"x":69,"y":223,"width":819,"height":11}},{"id":"7f35fecf-1986-44b9-a887-9a78bcb91e6a","block_type":"box","text":"(and, with respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026), none of the Independent Directors of the Fund or","page_number":26,"box":{"x":69,"y":238,"width":840,"height":11}},{"id":"46819244-c661-4d55-9d27-17cd894ec187","block_type":"box","text":"their immediate family members owned beneficially or of record any securities of the Fund’s investment adviser,","page_number":26,"box":{"x":68,"y":253,"width":798,"height":11}},{"id":"00f873ea-f2eb-4ed7-a97c-e1a4ce626800","block_type":"box","text":"principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such","page_number":26,"box":{"x":70,"y":268,"width":831,"height":12}},{"id":"06e0a1a8-1ad2-4fd1-acb5-22e9677c2dd9","block_type":"box","text":"entities.","page_number":26,"box":{"x":69,"y":284,"width":56,"height":8}},{"id":"08bf71d6-c1f4-4489-bfc0-eb94b2c9c2f2","block_type":"box","text":"Compensation of Directors","page_number":26,"box":{"x":69,"y":314,"width":194,"height":11}},{"id":"4cef8568-b918-4077-b8fb-21c99aeeee25","block_type":"box","text":"Each Director who is an Independent Director is paid as compensation an annual retainer of $375,000 per year","page_number":26,"box":{"x":102,"y":336,"width":796,"height":11}},{"id":"7849dd17-2eae-445c-93ef-9db2e0ba7764","block_type":"box","text":"for his or her services as a board member of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex,","page_number":26,"box":{"x":68,"y":351,"width":810,"height":11}},{"id":"40d04468-91a9-48c2-b6e2-4784211a501b","block_type":"box","text":"including the Fund, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may","page_number":26,"box":{"x":70,"y":366,"width":837,"height":12}},{"id":"c41dd7da-dc69-424e-bf1c-b3a72d814024","block_type":"box","text":"receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings held in a","page_number":26,"box":{"x":69,"y":382,"width":807,"height":11}},{"id":"c46c8985-be70-41df-959b-b5e3ba2a1b98","block_type":"box","text":"calendar year (compensation for meetings in excess of this number to be determined on a case-by-case basis),","page_number":26,"box":{"x":69,"y":397,"width":791,"height":11}},{"id":"d4755166-1103-4e28-97fa-419417c5038c","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":26,"box":{"x":68,"y":412,"width":786,"height":11}},{"id":"a25349e2-2de5-4c79-ab22-505bd8aec428","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":26,"box":{"x":69,"y":427,"width":769,"height":11}},{"id":"1e390f07-f629-4b12-8f47-3bb5b90d7c8b","block_type":"box","text":"Committee and Performance Oversight Committee are paid as compensation an additional annual retainer of","page_number":26,"box":{"x":69,"y":442,"width":778,"height":11}},{"id":"9ab115c7-309f-4f5f-9f5b-0719dcb632a4","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":26,"box":{"x":69,"y":457,"width":689,"height":11}},{"id":"237db2de-b6b2-4daa-a3f4-b61a8ec45691","block_type":"box","text":"The following table sets forth the compensation the Fund paid to the Directors for the fiscal year ended","page_number":26,"box":{"x":101,"y":480,"width":736,"height":11}},{"id":"b4a491c6-3ee2-4ae1-b6c7-3b9c967172c1","block_type":"box","text":"May 31, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for the calendar year","page_number":26,"box":{"x":70,"y":495,"width":814,"height":11}},{"id":"41910292-dcc4-443a-a195-877eea4d7845","block_type":"box","text":"ended December 31, 2025.","page_number":26,"box":{"x":69,"y":510,"width":197,"height":11}},{"id":"d4d04bda-7029-4206-a590-a4e7c8ad9b69","block_type":"box","text":"Name","page_number":26,"box":{"x":69,"y":589,"width":32,"height":7}},{"id":"f6b8a274-eecb-449e-a9b9-17ab28e53d95","block_type":"box","text":"Compensation","page_number":26,"box":{"x":577,"y":579,"width":82,"height":9}},{"id":"d44a024c-c9db-4063-b89a-93e32287aa1b","block_type":"box","text":"from the Fund","page_number":26,"box":{"x":577,"y":589,"width":81,"height":7}},{"id":"4598b112-a9bb-471d-ae71-4139fb97baa4","block_type":"box","text":"Estimated Annual","page_number":26,"box":{"x":690,"y":569,"width":101,"height":7}},{"id":"00ac7484-08d6-41ee-b9c9-7dc2eef0b1dc","block_type":"box","text":"Benefits upon","page_number":26,"box":{"x":701,"y":579,"width":79,"height":9}},{"id":"d06ef5c7-9295-4f31-bda0-c2a7c41235da","block_type":"box","text":"Retirement","page_number":26,"box":{"x":709,"y":589,"width":64,"height":7}},{"id":"7a5d5c75-1bef-48db-9b4d-9e010fe453a5","block_type":"box","text":"Aggregate","page_number":26,"box":{"x":835,"y":539,"width":61,"height":8}},{"id":"9573987b-ffe9-42b4-bd3d-69ee792d9f43","block_type":"box","text":"Compensation","page_number":26,"box":{"x":824,"y":549,"width":83,"height":8}},{"id":"889e6dc2-afff-41d3-beb1-31156dfad6c2","block_type":"box","text":"from the Fund","page_number":26,"box":{"x":825,"y":559,"width":80,"height":7}},{"id":"64968ad8-d64d-4819-baa7-d1ecae87078b","block_type":"box","text":"and Other","page_number":26,"box":{"x":837,"y":569,"width":57,"height":7}},{"id":"db507ac6-6bf8-4858-8710-62d7837aeea0","block_type":"box","text":"BlackRock","page_number":26,"box":{"x":833,"y":579,"width":66,"height":7}},{"id":"16039624-23b9-4de7-ab31-fd682f572dc2","block_type":"box","text":"Advised Funds","page_number":26,"box":{"x":821,"y":589,"width":84,"height":7}},{"id":"41b2c6d8-b937-416e-b523-5e70b7ce7f5f","block_type":"box","text":"1","page_number":26,"box":{"x":906,"y":589,"width":4,"height":3}},{"id":"a11fc6f3-c05e-4d96-b842-aeb28709cd0f","block_type":"box","text":"Independent Directors","page_number":26,"box":{"x":70,"y":607,"width":156,"height":10}},{"id":"76798f85-5d8b-4c71-8e13-cd772d123c77","block_type":"box","text":"Christopher J. Ailman","page_number":26,"box":{"x":79,"y":622,"width":149,"height":11}},{"id":"86cea3d3-23ed-4221-b91c-34223fe57512","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,634 None","page_number":26,"box":{"x":242,"y":621,"width":516,"height":11}},{"id":"a345c4cc-f853-411e-8b4f-ef02b3b76a57","block_type":"box","text":"$445,000","page_number":26,"box":{"x":830,"y":621,"width":72,"height":11}},{"id":"f262d53b-41c0-4caa-ba37-9dd72baa8130","block_type":"box","text":"Susan J. Carter","page_number":26,"box":{"x":79,"y":637,"width":110,"height":9}},{"id":"cfa9261c-4aa2-42ea-9b29-7b9f5d01f045","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,634 None","page_number":26,"box":{"x":193,"y":636,"width":565,"height":11}},{"id":"27398778-35c3-4b18-a48e-4b07d838e450","block_type":"box","text":"$445,000","page_number":26,"box":{"x":830,"y":636,"width":72,"height":11}},{"id":"f67884c3-72b1-4d10-8ded-f71807f88eac","block_type":"box","text":"Collette Chilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,634 None","page_number":26,"box":{"x":79,"y":651,"width":679,"height":11}},{"id":"49057652-f6ae-406d-8f90-9bed83651eb8","block_type":"box","text":"$445,000","page_number":26,"box":{"x":830,"y":651,"width":72,"height":11}},{"id":"d451afef-af4d-4e44-8a9c-2f1a6421d425","block_type":"box","text":"Neil A. Cotty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,761 None","page_number":26,"box":{"x":79,"y":666,"width":679,"height":12}},{"id":"37785f9b-3a0b-483a-bbcc-46e82a4f1d72","block_type":"box","text":"$467,500","page_number":26,"box":{"x":830,"y":666,"width":72,"height":11}},{"id":"823980da-fbe8-4f8b-a5b7-538d66116dbe","block_type":"box","text":"Jeffrey Jarczyk","page_number":26,"box":{"x":78,"y":682,"width":103,"height":11}},{"id":"d1f95b01-9a1d-42c9-852f-bc588ab795f0","block_type":"box","text":"2","page_number":26,"box":{"x":181,"y":683,"width":4,"height":4}},{"id":"01bd8a6f-6041-4bb9-acfe-d658c86742ab","block_type":"box","text":"............................................","page_number":26,"box":{"x":193,"y":690,"width":352,"height":1}},{"id":"77853b70-d373-4f00-b018-9a96f0c8f8cf","block_type":"box","text":"$540 None None","page_number":26,"box":{"x":599,"y":681,"width":284,"height":11}},{"id":"e15ced92-30b1-4ca4-8110-e16806194f68","block_type":"box","text":"Henry R. Keizer","page_number":26,"box":{"x":79,"y":697,"width":109,"height":11}},{"id":"1eed42d9-e64c-4bf1-8270-524a502e58bc","block_type":"box","text":"3","page_number":26,"box":{"x":189,"y":698,"width":4,"height":4}},{"id":"ecb76d26-31db-41ea-b1a9-b7541c466c19","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,988 None","page_number":26,"box":{"x":201,"y":697,"width":557,"height":11}},{"id":"96e06acb-3f6c-41a6-8fe9-ef4bfbea38c3","block_type":"box","text":"$490,000","page_number":26,"box":{"x":830,"y":697,"width":72,"height":11}},{"id":"2211abaa-4734-4ce3-a27c-f79a908d15c8","block_type":"box","text":"Cynthia A. Montgomery","page_number":26,"box":{"x":79,"y":712,"width":164,"height":12}},{"id":"a5323b73-a0aa-496a-9958-be15c388d704","block_type":"box","text":"4","page_number":26,"box":{"x":244,"y":713,"width":4,"height":4}},{"id":"31c51c85-0c0c-44c2-9d0a-133971d0503f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,887 None","page_number":26,"box":{"x":250,"y":712,"width":508,"height":11}},{"id":"c28d8e69-f600-4ee0-a3ee-ddcb5e6ab309","block_type":"box","text":"$490,000","page_number":26,"box":{"x":830,"y":712,"width":72,"height":11}},{"id":"90ff25a1-7c1f-48a2-87fe-15fa77041ec8","block_type":"box","text":"Donald C. Opatrny","page_number":26,"box":{"x":79,"y":728,"width":129,"height":11}},{"id":"35e0762d-cc8d-41be-89ca-0caa0670ec05","block_type":"box","text":"5","page_number":26,"box":{"x":208,"y":728,"width":4,"height":4}},{"id":"d727420f-d27b-470a-b162-4911b9f347d7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,887 None","page_number":26,"box":{"x":218,"y":727,"width":540,"height":11}},{"id":"65cdc9b7-efed-44b2-870b-cc96bc6a91b0","block_type":"box","text":"$490,000","page_number":26,"box":{"x":830,"y":727,"width":72,"height":11}},{"id":"ebddbfd4-35a7-458f-bd7c-62bd4e0dd0cc","block_type":"box","text":"Lori Richards . . .","page_number":26,"box":{"x":79,"y":743,"width":116,"height":9}},{"id":"edc8bd4e-2280-40cb-a8fa-2a339cb1a642","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,634 None","page_number":26,"box":{"x":201,"y":742,"width":557,"height":11}},{"id":"81d3cd16-6e92-4926-b68a-0c816b3a6bba","block_type":"box","text":"$445,000","page_number":26,"box":{"x":830,"y":742,"width":72,"height":11}},{"id":"5a5b2431-a3c5-4722-ba68-2507f2d14497","block_type":"box","text":"Mark Stalnecker","page_number":26,"box":{"x":79,"y":758,"width":115,"height":9}},{"id":"dfe26378-abfe-4094-9131-8d5a226f4323","block_type":"box","text":"6","page_number":26,"box":{"x":194,"y":758,"width":5,"height":5}},{"id":"60585a0f-eb15-487f-b53c-48cd28afa214","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,477 None","page_number":26,"box":{"x":201,"y":757,"width":557,"height":11}},{"id":"aee189d7-60bf-4afe-96ae-c878d33c909b","block_type":"box","text":"$595,000","page_number":26,"box":{"x":830,"y":757,"width":72,"height":11}},{"id":"46acdf25-3681-4e98-9662-d2ed27eadb50","block_type":"box","text":"Marc D. Stern","page_number":26,"box":{"x":79,"y":773,"width":97,"height":9}},{"id":"6b5a3f02-02dc-4b26-adb1-b5db3fc48d4d","block_type":"box","text":"2","page_number":26,"box":{"x":178,"y":773,"width":4,"height":5}},{"id":"78ba523d-5eef-4216-b530-270797488faf","block_type":"box","text":".............................................","page_number":26,"box":{"x":185,"y":780,"width":360,"height":2}},{"id":"9866bfc1-b785-4ad9-8eff-ab362abc8d44","block_type":"box","text":"$540 None None","page_number":26,"box":{"x":599,"y":772,"width":284,"height":11}},{"id":"6c5aa56f-f66f-443b-8f7e-14166c8a00fa","block_type":"box","text":"Kenneth L. Urish","page_number":26,"box":{"x":79,"y":788,"width":117,"height":9}},{"id":"4fb8264a-c0e5-4b8a-9707-fad59628e487","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,634 None","page_number":26,"box":{"x":201,"y":787,"width":557,"height":11}},{"id":"5333632d-1467-4080-904a-c143ae29e170","block_type":"box","text":"$445,000","page_number":26,"box":{"x":830,"y":787,"width":72,"height":11}},{"id":"c91ea54f-e0e3-4805-92a6-773dc874e676","block_type":"box","text":"Claire A. Walton","page_number":26,"box":{"x":79,"y":803,"width":111,"height":9}},{"id":"aa79c814-52ac-412a-92df-64d896ff60c3","block_type":"box","text":"7","page_number":26,"box":{"x":192,"y":804,"width":3,"height":4}},{"id":"f9a13ef6-a6f8-4c7f-84bb-ad64e3ca1efa","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,887 None","page_number":26,"box":{"x":201,"y":802,"width":557,"height":12}},{"id":"5eff5e1d-5a42-4f1a-ba23-efcdd8aa42f9","block_type":"box","text":"$490,000","page_number":26,"box":{"x":830,"y":802,"width":72,"height":12}},{"id":"f892c08d-c2f0-4b16-b4e3-e01d9c6e89b5","block_type":"box","text":"Interested Directors","page_number":26,"box":{"x":70,"y":818,"width":140,"height":9}},{"id":"f72a4765-3996-4509-8be8-e42f01f84abd","block_type":"box","text":"Robert Fairbairn .","page_number":26,"box":{"x":79,"y":834,"width":124,"height":8}},{"id":"4b882776-7016-4724-b5d5-2eeda6856ee7","block_type":"box","text":"..........................................","page_number":26,"box":{"x":209,"y":841,"width":336,"height":1}},{"id":"1e8845ed-517e-4177-bf46-efb7b750fe56","block_type":"box","text":"None None None","page_number":26,"box":{"x":601,"y":834,"width":282,"height":8}},{"id":"7d6d9bbf-cd45-4d7c-b8aa-f9bc0c8ec1dc","block_type":"box","text":"John M. Perlowski","page_number":26,"box":{"x":78,"y":849,"width":127,"height":8}},{"id":"85d582c3-e017-4e8b-980e-8905d47db2e9","block_type":"box","text":"..........................................","page_number":26,"box":{"x":209,"y":856,"width":336,"height":1}},{"id":"f19df7b7-3f1f-472e-bca8-c6137b13b711","block_type":"box","text":"None None None","page_number":26,"box":{"x":601,"y":849,"width":282,"height":8}},{"id":"a23727cd-509d-4260-b65b-31435e59e490","block_type":"box","text":"1","page_number":26,"box":{"x":69,"y":873,"width":3,"height":4}},{"id":"64a06ad1-4077-44db-befc-496bee492526","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Director receives compensation, see “Biographical Information” beginning on","page_number":26,"box":{"x":94,"y":873,"width":788,"height":9}},{"id":"e5859b49-202d-49c1-9ecd-172f562202b9","block_type":"box","text":"page I-12.","page_number":26,"box":{"x":94,"y":883,"width":55,"height":9}},{"id":"3f1397a4-18ae-457b-b09b-14a5ddffc49f","block_type":"box","text":"2","page_number":26,"box":{"x":69,"y":896,"width":3,"height":3}},{"id":"a6bb8fc9-fcc2-41ba-82d6-aa58c950e7a0","block_type":"box","text":"Compensation includes $540 earned as a consultant to the Independent Directors for the period April 1, 2026 to July 1, 2026.","page_number":26,"box":{"x":93,"y":895,"width":726,"height":9}},{"id":"b6ef293a-5e26-40a4-a5b4-3e25bb57b7d0","block_type":"box","text":"3","page_number":26,"box":{"x":69,"y":908,"width":3,"height":4}},{"id":"e63e274a-457e-42ad-97d0-6d0df5b6dbcf","block_type":"box","text":"Chair of the Audit Committee.","page_number":26,"box":{"x":93,"y":908,"width":168,"height":7}},{"id":"e313b50b-33fa-441d-912c-33d0a4da720b","block_type":"box","text":"I-17","page_number":26,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"d087f5a6-67af-4831-9a9f-5b2ff32e098a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e034bf7e-0c83-4531-bbe0-4f6e295a621a","block_type":"box","text":"4","page_number":27,"box":{"x":68,"y":45,"width":4,"height":4}},{"id":"9d29e678-e84a-4c11-bc57-307ec2214580","block_type":"box","text":"Chair of the Governance Committee.","page_number":27,"box":{"x":93,"y":45,"width":206,"height":7}},{"id":"3b2602ee-c829-48e2-afda-2b07645468ee","block_type":"box","text":"5","page_number":27,"box":{"x":69,"y":58,"width":3,"height":3}},{"id":"2d1843ff-07f3-42fe-a375-3b3cf8daf0a4","block_type":"box","text":"Chair of the Performance Oversight Committee.","page_number":27,"box":{"x":93,"y":58,"width":269,"height":9}},{"id":"d1be21bc-1f46-4e83-9ed8-7dc01f09a773","block_type":"box","text":"6","page_number":27,"box":{"x":69,"y":70,"width":3,"height":4}},{"id":"3625ecaa-f6c4-4103-9a40-3241d9fe1768","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":27,"box":{"x":93,"y":70,"width":352,"height":9}},{"id":"a06f831b-f4f6-4f59-891a-87d61144c983","block_type":"box","text":"7","page_number":27,"box":{"x":69,"y":83,"width":3,"height":4}},{"id":"8c5effb7-7a5f-4850-b4cc-925f57e42146","block_type":"box","text":"Chair of the Compliance Committee.","page_number":27,"box":{"x":93,"y":83,"width":205,"height":9}},{"id":"49290397-e48e-4b0d-bd74-24a3d9ce708d","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":27,"box":{"x":69,"y":112,"width":432,"height":11}},{"id":"750eec3d-c8ea-4a1a-8d2d-db3645e2b648","block_type":"box","text":"Management Agreement","page_number":27,"box":{"x":69,"y":142,"width":180,"height":11}},{"id":"236cf5b3-7cf6-487d-a4a2-f2f7fa5f832e","block_type":"box","text":"The Fund has entered into a management agreement with the Manager (the “Management Agreement”),","page_number":27,"box":{"x":101,"y":165,"width":743,"height":11}},{"id":"8e3dbb72-a23a-4102-83a2-95cb555ed2a2","block_type":"box","text":"pursuant to which the Manager receives as compensation for its services to the Fund a fee at the end of each","page_number":27,"box":{"x":70,"y":179,"width":784,"height":12}},{"id":"01b6dc95-dd51-4e3b-8e02-270b1351ef74","block_type":"box","text":"month. Pursuant to the Management Agreement, the Manager provides investment management and certain","page_number":27,"box":{"x":69,"y":195,"width":774,"height":11}},{"id":"85a615ba-31ae-4e51-8ce1-3eb8334b49be","block_type":"box","text":"administrative services to the Fund. Under the Management Agreement, the administrative services provided by the","page_number":27,"box":{"x":69,"y":210,"width":825,"height":11}},{"id":"cd996a56-08f2-4484-937c-2ef18b8148a4","block_type":"box","text":"Manager to the Fund include, but are not limited to, the following: maintaining office facilities for the Fund; furnishing","page_number":27,"box":{"x":70,"y":225,"width":834,"height":11}},{"id":"8721a15d-531f-4363-8cd6-62428eab0af5","block_type":"box","text":"the Fund with clerical, bookkeeping and administrative services; overseeing the determination and publication of the","page_number":27,"box":{"x":68,"y":240,"width":830,"height":11}},{"id":"4755ef2b-f8b5-4956-a8ba-c0feb06f7a9a","block_type":"box","text":"Fund’s net asset value; overseeing the preparation and filing of Federal, state and local income tax returns; preparing","page_number":27,"box":{"x":70,"y":255,"width":838,"height":11}},{"id":"ae2d34a3-19f2-46e7-9177-17bba84a826e","block_type":"box","text":"certain reports required by regulatory authorities; calculating various contractual expenses; determining the amount","page_number":27,"box":{"x":69,"y":270,"width":827,"height":11}},{"id":"667975bd-3aa3-4022-ae46-85065243b1a7","block_type":"box","text":"of dividends and distributions available for payment by the Fund to its shareholders; preparing and arranging for the","page_number":27,"box":{"x":69,"y":285,"width":824,"height":12}},{"id":"7e625b30-4ff4-4206-b501-27f6653f35da","block_type":"box","text":"printing of dividend notices to shareholders; providing the Fund’s service providers with such information as is","page_number":27,"box":{"x":70,"y":300,"width":785,"height":12}},{"id":"dee15dbc-a3cb-4b4f-ace5-7d6a0ec6e312","block_type":"box","text":"required to effect the payment of dividends and distributions; and serving as liaison with the Fund’s officers,","page_number":27,"box":{"x":69,"y":315,"width":775,"height":12}},{"id":"074b52f7-c7d6-4c8c-8ca7-52b2841ea17d","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":27,"box":{"x":70,"y":331,"width":819,"height":11}},{"id":"2e1c7365-505c-4131-89c1-6e5aee345dc2","block_type":"box","text":"establishing the accounting policies of each entity and monitoring financial and shareholder accounting services.","page_number":27,"box":{"x":69,"y":346,"width":803,"height":11}},{"id":"36a8d979-89b7-44b2-9c22-7ddbd8c6a0e1","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s","page_number":27,"box":{"x":102,"y":368,"width":762,"height":12}},{"id":"7395e820-38ba-4686-a570-0a69434ede5f","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":27,"box":{"x":69,"y":383,"width":799,"height":12}},{"id":"3a65d052-b79b-42f9-aeb2-bf5d86b03d07","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":27,"box":{"x":68,"y":399,"width":726,"height":11}},{"id":"95913a96-d14d-4e86-bb05-52759fef1626","block_type":"box","text":"June 30, 2028. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":27,"box":{"x":69,"y":414,"width":797,"height":11}},{"id":"9883c1fe-953c-42a4-8417-da20bacc5d5a","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":27,"box":{"x":69,"y":429,"width":789,"height":11}},{"id":"7e2ad91a-6c9b-4d70-9cfc-3f7ed9f1f694","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’","page_number":27,"box":{"x":70,"y":444,"width":810,"height":11}},{"id":"3b94a946-6ec3-4576-8eb7-3e8877021793","block_type":"box","text":"notice by a majority of the Independent Directors or by a vote of a majority of the outstanding voting securities of the","page_number":27,"box":{"x":69,"y":459,"width":830,"height":11}},{"id":"d0821442-290a-459a-aeb6-b4ce62f78571","block_type":"box","text":"Fund.","page_number":27,"box":{"x":70,"y":474,"width":36,"height":9}},{"id":"859417e6-350f-4e68-9baf-bdb71eaca2f5","block_type":"box","text":"The Manager has agreed to cap net expenses (excluding: (i) interest, taxes, dividends tied to short sales,","page_number":27,"box":{"x":101,"y":497,"width":752,"height":11}},{"id":"5789a765-8ab3-442a-b83d-03c0255dd14b","block_type":"box","text":"brokerage commissions, and other expenditures which are capitalized in accordance with generally accepted","page_number":27,"box":{"x":69,"y":512,"width":772,"height":11}},{"id":"c4195ba9-7888-4178-b24e-82f0128569c1","block_type":"box","text":"accounting principles; (ii) expenses incurred directly or indirectly by the Fund as a result of investments in other","page_number":27,"box":{"x":69,"y":527,"width":795,"height":11}},{"id":"32ff8b00-2b83-4bd9-bd5e-e10b8fdcd7ed","block_type":"box","text":"investment companies and pooled investment vehicles; (iii) other expenses attributable to, and incurred as a result","page_number":27,"box":{"x":70,"y":543,"width":821,"height":10}},{"id":"343d2e07-09d3-4e53-ac8b-d03e0ff5dfd4","block_type":"box","text":"of, the Fund’s investments; and (iv) extraordinary expenses (including litigation expenses) not incurred in the ordinary","page_number":27,"box":{"x":69,"y":557,"width":839,"height":12}},{"id":"b3e9fbac-c556-4c49-984a-8df2bc01f6d0","block_type":"box","text":"course of the Fund’s business, if any) of each share class of the Fund at the levels shown below and in the Fund’s","page_number":27,"box":{"x":69,"y":572,"width":816,"height":12}},{"id":"a70ebef7-3caa-45b8-9fcc-d6bcbd830b90","block_type":"box","text":"fees and expenses table in the Fund Overview section of the Prospectuses. Items (i), (ii), (iii) and (iv) in the preceding","page_number":27,"box":{"x":68,"y":588,"width":838,"height":11}},{"id":"065834fc-3147-4390-bcfb-9b4780007e5a","block_type":"box","text":"sentence are referred to in the Prospectuses as “Dividend Expense, Interest Expense, Acquired Fund Fees and","page_number":27,"box":{"x":69,"y":603,"width":790,"height":11}},{"id":"f2bbbe0e-f966-4b5d-afb9-ace9053a91d4","block_type":"box","text":"Expenses and certain other Fund expenses.” To achieve these expense caps, the Manager has agreed to waive and/","page_number":27,"box":{"x":70,"y":618,"width":834,"height":11}},{"id":"4f6ec120-3c33-4941-ab13-2cf389421a02","block_type":"box","text":"or reimburse fees or expenses if these operating expenses exceed a certain limit.","page_number":27,"box":{"x":69,"y":633,"width":583,"height":11}},{"id":"183a1669-33c6-401c-9cdd-3ff5a586a334","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual","page_number":27,"box":{"x":102,"y":656,"width":778,"height":11}},{"id":"0afbfb83-4798-43a3-b745-56ef40a78889","block_type":"box","text":"Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest","page_number":27,"box":{"x":70,"y":671,"width":824,"height":11}},{"id":"fc9331fc-72fe-4f43-9dd3-cc362a511df4","block_type":"box","text":"Expense, Acquired Fund Fees and Expenses and certain other Fund expenses (as defined in the Prospectuses)) as a","page_number":27,"box":{"x":70,"y":686,"width":829,"height":11}},{"id":"60c11a91-d3af-4ebc-baef-0add0e92cb58","block_type":"box","text":"percentage of average daily net assets to 0.92% for Investor A Shares, 1.67% for Investor C Shares, 0.67% for","page_number":27,"box":{"x":70,"y":701,"width":790,"height":11}},{"id":"b9f85d5b-3573-46ae-a0b7-53a446822207","block_type":"box","text":"Institutional Shares, 1.17% for Class R Shares and 0.62% for Class K Shares through June 30, 2037. The","page_number":27,"box":{"x":70,"y":716,"width":758,"height":11}},{"id":"95300c95-20bf-4448-8e3d-3d3a1a019cde","block_type":"box","text":"contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Directors or by a","page_number":27,"box":{"x":69,"y":731,"width":810,"height":12}},{"id":"72d60a77-88f8-40e9-b553-9ea9a00efc6a","block_type":"box","text":"vote of a majority of the outstanding voting securities of the Fund. On October 1 of each year, the waiver agreement","page_number":27,"box":{"x":68,"y":746,"width":824,"height":12}},{"id":"cfa5cf4f-a81b-4cbb-b93a-192fa47bd14c","block_type":"box","text":"will renew automatically for an additional one year so that the agreement will have a perpetual ten-year term.","page_number":27,"box":{"x":68,"y":761,"width":774,"height":12}},{"id":"6f5c01b9-27bb-4b3e-8f79-c424e71b32a9","block_type":"box","text":"Pursuant to the Management Agreement, the Manager may from time to time, in its sole discretion to the extent","page_number":27,"box":{"x":102,"y":784,"width":800,"height":11}},{"id":"cafc5dfa-f1db-4c11-8edb-562572754ff2","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":27,"box":{"x":70,"y":799,"width":834,"height":12}},{"id":"bc35cdaa-2db9-45a8-b91c-cfc6301eb42a","block_type":"box","text":"to perform investment advisory services with respect to the Fund. In addition, the Manager may delegate certain of","page_number":27,"box":{"x":68,"y":814,"width":825,"height":12}},{"id":"1fdb30d1-ddc4-461f-9a53-f4af7d5473ef","block_type":"box","text":"its investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":27,"box":{"x":70,"y":829,"width":801,"height":12}},{"id":"c76b8ef9-e9d7-40f1-8064-d6961802ff2b","block_type":"box","text":"permitted by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in","page_number":27,"box":{"x":70,"y":845,"width":823,"height":11}},{"id":"440a3f88-c9e5-4440-8732-69662c9da250","block_type":"box","text":"its sole discretion at any time to the extent permitted by applicable law.","page_number":27,"box":{"x":70,"y":860,"width":508,"height":11}},{"id":"57e2caf2-cf56-4fb0-90f2-9c9f46fc2fe0","block_type":"box","text":"I-18","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c2ae762e-5159-4767-806d-d7a7bd1ba0ba","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ea582695-439f-48e3-8b5f-dbfdddbb2d02","block_type":"box","text":"For the periods shown below, the Fund paid the Manager management fees (after waivers), and the Manager","page_number":28,"box":{"x":102,"y":45,"width":773,"height":11}},{"id":"281057dc-3ba5-4fc8-b7d0-ea1cf955ef0b","block_type":"box","text":"waived management fees and reimbursed expenses, as follows:","page_number":28,"box":{"x":68,"y":60,"width":457,"height":11}},{"id":"9c61376d-f608-4aa9-8c0e-f279e1350b40","block_type":"box","text":"Fees Paid to BlackRock Fees Waived by BlackRock Fees Reimbursed by BlackRock","page_number":28,"box":{"x":368,"y":88,"width":542,"height":9}},{"id":"00d3eb5a-f394-48a9-a29d-7e0659595323","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . $23,023,906 $640,464 $1,024,805","page_number":28,"box":{"x":70,"y":105,"width":790,"height":12}},{"id":"bb96205c-4acd-4c3e-b303-1ee0df085f1c","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . $22,112,522 $426,549 $ 342,556","page_number":28,"box":{"x":70,"y":120,"width":790,"height":12}},{"id":"33e5250d-b72f-4b80-bfbb-5fda330f0f59","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . $20,769,444 $204,670 $ 0","page_number":28,"box":{"x":70,"y":135,"width":790,"height":12}},{"id":"24de6835-6b47-4ecc-bfdb-ce28c7fbbde0","block_type":"box","text":"Accounting Services","page_number":28,"box":{"x":68,"y":168,"width":150,"height":11}},{"id":"54dc0fee-508e-4025-a388-ceebaa420c10","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”) serves as accounting services provider to the Fund.","page_number":28,"box":{"x":102,"y":190,"width":787,"height":11}},{"id":"0400d6f7-0741-4035-a764-7e5e76f22880","block_type":"box","text":"BNY Mellon records investment, capital share and income and expense activities; verifies and transmits trade","page_number":28,"box":{"x":70,"y":205,"width":782,"height":11}},{"id":"17fa943e-d6d1-46ef-ba42-f8a8f53564f3","block_type":"box","text":"tickets; maintains accounting ledgers for investment securities; maintains tax lots; reconciles cash with the Fund’s","page_number":28,"box":{"x":68,"y":220,"width":820,"height":12}},{"id":"c33b8de7-ed03-4d25-8d8c-062f8cc2d837","block_type":"box","text":"custodian; reports cash balances to the Manager; prepares certain financial statements; calculates expenses, gains,","page_number":28,"box":{"x":69,"y":235,"width":837,"height":12}},{"id":"dbc1015a-6d28-47c2-8fff-69d171bab18d","block_type":"box","text":"losses and income; controls disbursements; works with independent pricing sources; and computes and reports net","page_number":28,"box":{"x":70,"y":251,"width":829,"height":11}},{"id":"69afdcef-2003-4714-8a60-c50323eca988","block_type":"box","text":"asset value. In connection with its accounting services, BNY Mellon also provides certain administration services.","page_number":28,"box":{"x":69,"y":266,"width":812,"height":11}},{"id":"edc0cc74-5bd3-4123-a1c6-ab94051f4bc7","block_type":"box","text":"The table below shows the amount paid by the Fund to BNY Mellon for accounting services for the periods indicated.","page_number":28,"box":{"x":68,"y":281,"width":831,"height":11}},{"id":"ce72b8cc-b2a9-45c3-a6d7-672faa174b7d","block_type":"box","text":"Fees Paid to BNY Mellon","page_number":28,"box":{"x":765,"y":309,"width":144,"height":7}},{"id":"4c99bca3-582b-451b-b65a-bf247e976476","block_type":"box","text":"Fiscal Year Ended May 31, 2026 .","page_number":28,"box":{"x":70,"y":327,"width":240,"height":11}},{"id":"2ee5a0eb-5915-4fff-9b22-1cdb621c9887","block_type":"box","text":"....................................................","page_number":28,"box":{"x":316,"y":334,"width":418,"height":2}},{"id":"6d837025-65c6-41dc-addc-e24a87197ef8","block_type":"box","text":"$237,945","page_number":28,"box":{"x":801,"y":326,"width":72,"height":11}},{"id":"b4592c88-ca06-4fc5-bcff-b9aabdbbee04","block_type":"box","text":"Fiscal Year Ended May 31, 2025 .","page_number":28,"box":{"x":70,"y":342,"width":240,"height":11}},{"id":"57819f0d-e6c5-4acf-91d8-ad610a3140c9","block_type":"box","text":"....................................................","page_number":28,"box":{"x":316,"y":349,"width":418,"height":2}},{"id":"07b458d3-141e-4efb-a655-0780e7f0ad73","block_type":"box","text":"$232,499","page_number":28,"box":{"x":801,"y":341,"width":72,"height":11}},{"id":"23147df8-f2cc-412d-a882-8a0f257e5666","block_type":"box","text":"Fiscal Year Ended May 31, 2024 .","page_number":28,"box":{"x":70,"y":357,"width":240,"height":11}},{"id":"7273277f-cfa4-419c-b96a-ee19f3349921","block_type":"box","text":"....................................................","page_number":28,"box":{"x":316,"y":365,"width":418,"height":1}},{"id":"737e7aa2-6e56-448b-af7a-3f12075e01f0","block_type":"box","text":"$218,895","page_number":28,"box":{"x":801,"y":356,"width":72,"height":12}},{"id":"c4b26a1d-ae29-4b1b-a5b7-dba19a255b5c","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":28,"box":{"x":69,"y":389,"width":335,"height":11}},{"id":"ac5f9d12-5603-4892-8f84-beffab40b886","block_type":"box","text":"Sally Du, CFA, and Reid Menge are the portfolio managers and are jointly and primarily responsible for the day-to","page_number":28,"box":{"x":102,"y":411,"width":806,"height":12}},{"id":"120714b7-7ea2-4518-bb0f-81d63bb01bd4","block_type":"box","text":"day management of the Fund.","page_number":28,"box":{"x":69,"y":426,"width":210,"height":12}},{"id":"9f7a3422-63f7-4ad9-8685-480adad1a60f","block_type":"box","text":"Other Funds and Accounts Managed","page_number":28,"box":{"x":70,"y":457,"width":257,"height":11}},{"id":"e770fe1c-0a6b-48e5-a441-63d5338b4b94","block_type":"box","text":"The following table sets forth information about the funds and accounts other than the Fund for which the Fund’s","page_number":28,"box":{"x":101,"y":479,"width":806,"height":12}},{"id":"bdb1ea28-ddb9-4ce7-8901-8bbfb2315b35","block_type":"box","text":"portfolio managers are primarily responsible for the day-to-day portfolio management as of the Fund’s fiscal year","page_number":28,"box":{"x":70,"y":494,"width":801,"height":12}},{"id":"167d1dad-be7b-4398-b464-a55a93676d69","block_type":"box","text":"ended May 31, 2026.","page_number":28,"box":{"x":69,"y":510,"width":154,"height":11}},{"id":"142cb3ff-4604-4007-8567-e98fd40520f1","block_type":"box","text":"Number of Other Accounts Managed","page_number":28,"box":{"x":362,"y":538,"width":211,"height":9}},{"id":"9da3b155-46ab-4501-a18b-9b64fc26cc23","block_type":"box","text":"and Assets by Account Type","page_number":28,"box":{"x":385,"y":548,"width":165,"height":9}},{"id":"a0dbb998-7907-4b24-a858-4b98c2a4acdf","block_type":"box","text":"Number of Other Accounts and Assets","page_number":28,"box":{"x":656,"y":538,"width":222,"height":7}},{"id":"0c9d75fb-ecdb-44b2-9178-e7a2e931bccb","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":28,"box":{"x":634,"y":548,"width":265,"height":9}},{"id":"c6ef85c3-85ed-41a3-b3c5-49b5a392b71b","block_type":"box","text":"Name of Portfolio Manager","page_number":28,"box":{"x":74,"y":591,"width":157,"height":9}},{"id":"5e2df603-16b4-4e6e-b492-8532956bbfbd","block_type":"box","text":"Other","page_number":28,"box":{"x":345,"y":561,"width":32,"height":7}},{"id":"81c465f4-44e8-462d-941a-8bff0a172b65","block_type":"box","text":"Registered","page_number":28,"box":{"x":330,"y":571,"width":62,"height":8}},{"id":"99576fe7-7418-4f58-ac04-839d7f5f6820","block_type":"box","text":"Investment","page_number":28,"box":{"x":329,"y":581,"width":64,"height":7}},{"id":"6eb7e796-1ecc-4738-abd5-0da7397b1e12","block_type":"box","text":"Companies","page_number":28,"box":{"x":329,"y":591,"width":64,"height":8}},{"id":"6e553dcc-0557-4ff3-b80d-70edd5664b20","block_type":"box","text":"Other Pooled","page_number":28,"box":{"x":425,"y":571,"width":74,"height":7}},{"id":"90327807-c278-4dec-9e11-06ea6d6adbeb","block_type":"box","text":"Investment","page_number":28,"box":{"x":430,"y":581,"width":64,"height":7}},{"id":"f81f916a-36f6-4d50-b743-9f4860d0bd59","block_type":"box","text":"Vehicles","page_number":28,"box":{"x":438,"y":591,"width":48,"height":7}},{"id":"1025a39c-3bf6-4b3a-980c-804055ac5095","block_type":"box","text":"Other","page_number":28,"box":{"x":553,"y":581,"width":31,"height":7}},{"id":"999bf858-853d-4b38-a625-65face9bc55b","block_type":"box","text":"Accounts","page_number":28,"box":{"x":541,"y":591,"width":54,"height":7}},{"id":"0b574982-c4f3-4ad8-b694-6c2e9a5895d0","block_type":"box","text":"Other","page_number":28,"box":{"x":656,"y":561,"width":32,"height":7}},{"id":"6d5c73f0-37d9-44c5-a016-34615d954140","block_type":"box","text":"Registered","page_number":28,"box":{"x":641,"y":571,"width":62,"height":8}},{"id":"47c7008e-b25d-46b2-a64d-fc653c0e710e","block_type":"box","text":"Investment","page_number":28,"box":{"x":640,"y":581,"width":64,"height":7}},{"id":"47a547ad-c0fb-4ad0-8404-273516cfaf6c","block_type":"box","text":"Companies","page_number":28,"box":{"x":640,"y":591,"width":64,"height":8}},{"id":"07deb126-8b71-49db-9a58-fade1b9df7dc","block_type":"box","text":"Other Pooled","page_number":28,"box":{"x":735,"y":571,"width":74,"height":7}},{"id":"b98fdd9e-6ca3-44d6-985c-1626fcc31f6f","block_type":"box","text":"Investment","page_number":28,"box":{"x":740,"y":581,"width":64,"height":7}},{"id":"7c006eef-4f4a-48a1-9ac2-5df42db93642","block_type":"box","text":"Vehicles","page_number":28,"box":{"x":748,"y":591,"width":48,"height":7}},{"id":"6d05bb4f-6bea-459a-89cf-d8ae6dd5ce81","block_type":"box","text":"Other","page_number":28,"box":{"x":852,"y":581,"width":31,"height":7}},{"id":"496065e2-768e-4b22-bce8-958214ad5fa1","block_type":"box","text":"Accounts","page_number":28,"box":{"x":840,"y":591,"width":54,"height":7}},{"id":"7ff2e23e-8f94-4912-812c-de3db2bde8c3","block_type":"box","text":"Sally Du, CFA 12 7 0 0 0 0","page_number":28,"box":{"x":74,"y":605,"width":797,"height":8}},{"id":"c792ef28-7e64-479e-9ba8-9cd17a59bb7d","block_type":"box","text":"$23.49 Billion $8.95 Billion $0 $0 $0 $0","page_number":28,"box":{"x":321,"y":617,"width":553,"height":8}},{"id":"631b6e12-1bbe-46e7-9ab0-c0da8d60a42f","block_type":"box","text":"Reid Menge 16 7 2 0 0 0","page_number":28,"box":{"x":74,"y":630,"width":797,"height":9}},{"id":"26791128-79bc-456b-a01b-692174fa6f40","block_type":"box","text":"$48.12 Billion $28.24 Billion $231.78 Million $0 $0 $0","page_number":28,"box":{"x":321,"y":642,"width":553,"height":8}},{"id":"5dc5ddff-23c9-4a92-8581-d2f9f595b270","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":28,"box":{"x":69,"y":676,"width":304,"height":12}},{"id":"d7062a1a-e64d-4454-a8ad-6308aa3b9e37","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of May 31, 2026.","page_number":28,"box":{"x":101,"y":699,"width":656,"height":11}},{"id":"7d9f7235-dc5c-4036-9aaa-a0cee9e152a3","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":28,"box":{"x":102,"y":722,"width":774,"height":11}},{"id":"3a62a92d-9ea7-4a62-96ac-5c728ff2cb38","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":28,"box":{"x":70,"y":737,"width":837,"height":11}},{"id":"e0bede9e-10e8-4582-9387-a345f5fdd337","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":28,"box":{"x":69,"y":752,"width":823,"height":11}},{"id":"13c830aa-6012-4a7b-bf24-f6bdfdf711d6","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":28,"box":{"x":69,"y":767,"width":799,"height":11}},{"id":"69880ab8-1817-4573-b5ba-64f5612218e6","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":28,"box":{"x":70,"y":782,"width":670,"height":12}},{"id":"cc29620f-402f-4951-a1c9-771eb3a77aec","block_type":"box","text":"Base Compensation.","page_number":28,"box":{"x":102,"y":805,"width":148,"height":11}},{"id":"5bd18c4b-d441-4d04-ad8b-809ff51ef0be","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":28,"box":{"x":257,"y":805,"width":640,"height":11}},{"id":"03da15b9-0f00-4e0d-a4fd-b5ecded5291c","block_type":"box","text":"firm.","page_number":28,"box":{"x":68,"y":820,"width":32,"height":9}},{"id":"18a6a48f-e50a-48f0-9170-521c5ded3c4b","block_type":"box","text":"Discretionary Incentive Compensation","page_number":28,"box":{"x":69,"y":850,"width":277,"height":11}},{"id":"2ecf073f-d6da-49ad-b136-051101f78454","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities portfolio managers is based on a","page_number":28,"box":{"x":102,"y":873,"width":763,"height":11}},{"id":"3b112c7c-cc00-489b-bef6-6922e5bfafc2","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic portfolio manager compensation program is based on team","page_number":28,"box":{"x":68,"y":888,"width":832,"height":11}},{"id":"8c61334c-7081-40fa-84f8-f75c230ecff4","block_type":"box","text":"revenue and pre-tax investment performance relative to appropriate competitors or benchmarks over 3- and 5-year","page_number":28,"box":{"x":69,"y":903,"width":815,"height":11}},{"id":"b661e44b-5828-495f-a3a7-eabdc9734c8e","block_type":"box","text":"I-19","page_number":28,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"0b276b2e-8b3e-4003-ac71-008f46001439","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"148dc87a-652b-4d8d-a783-873796bd41f2","block_type":"box","text":"performance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":29,"box":{"x":70,"y":45,"width":757,"height":11}},{"id":"c9542e35-8a52-4b23-807d-9e3682bb9377","block_type":"box","text":"benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are","page_number":29,"box":{"x":69,"y":60,"width":814,"height":11}},{"id":"d109d7a2-fa25-4f0e-a29c-8246b2faad6e","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":29,"box":{"x":69,"y":75,"width":780,"height":11}},{"id":"99234c47-6254-4556-90d0-99b2a0c2fc62","block_type":"box","text":"performance of the Fund and other accounts managed by the portfolio management team is compared and the","page_number":29,"box":{"x":70,"y":90,"width":791,"height":11}},{"id":"a27a1f98-1f36-4423-ba55-2976501c778b","block_type":"box","text":"period of time over which performance is evaluated. With respect to these portfolio managers such benchmarks for","page_number":29,"box":{"x":70,"y":105,"width":823,"height":11}},{"id":"0043183e-af10-45d4-899b-1cb38f231d45","block_type":"box","text":"the Fund and other accounts are:","page_number":29,"box":{"x":68,"y":120,"width":236,"height":9}},{"id":"543e606a-8f63-4464-866d-09f6de1629e4","block_type":"box","text":"Portfolio Manager Benchmarks","page_number":29,"box":{"x":69,"y":148,"width":267,"height":9}},{"id":"71cb8082-0269-4419-9863-f0a53f2fa4a6","block_type":"box","text":"Sally Du, CFA S&P 500 Index; ICE BofA US 3-month Treasury Bill Index; Russell 1000 Index.","page_number":29,"box":{"x":69,"y":165,"width":750,"height":11}},{"id":"f7c35343-df53-4736-9af0-03291650e3f3","block_type":"box","text":"Reid Menge MSCI ACWI 25% Call Overwrite Index; MSCI All Country World Index (Net Total Return);","page_number":29,"box":{"x":70,"y":188,"width":807,"height":11}},{"id":"15a78c1c-f6cb-4dc4-baeb-3aa64e720cca","block_type":"box","text":"MSCI All Country World Information Technology Index - Net Return in USD.","page_number":29,"box":{"x":265,"y":203,"width":523,"height":11}},{"id":"7c706cb8-4357-4fac-9a4f-8ca0536499cd","block_type":"box","text":"A smaller element of portfolio manager discretionary compensation may include consideration of: financial","page_number":29,"box":{"x":101,"y":227,"width":759,"height":11}},{"id":"24c6384e-4ab0-47e2-b459-708e6da8ebf8","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":29,"box":{"x":69,"y":242,"width":798,"height":11}},{"id":"0662f5af-c7f1-4d9b-9e0d-f81e05ac060b","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":29,"box":{"x":69,"y":257,"width":814,"height":11}},{"id":"b66ac50e-e220-464c-a5c5-6293750bd5a9","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":29,"box":{"x":68,"y":272,"width":798,"height":11}},{"id":"546d456b-06f1-49c4-9f4b-5ca5a88603f4","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":29,"box":{"x":102,"y":295,"width":389,"height":11}},{"id":"0b39ba2b-24c2-424e-8345-6d00e73d3153","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":29,"box":{"x":499,"y":295,"width":383,"height":11}},{"id":"8e04ffc1-8b4a-41f0-90f0-fd22e9fbde77","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":29,"box":{"x":70,"y":310,"width":815,"height":11}},{"id":"a621507a-afa0-4870-8ec8-3f51605b6c57","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":29,"box":{"x":68,"y":325,"width":522,"height":11}},{"id":"19541799-7da5-44fc-bec8-f389dcacaa53","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":29,"box":{"x":102,"y":348,"width":760,"height":11}},{"id":"af9a7ab4-dfb5-420e-aa1b-f9b66e2839ac","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":29,"box":{"x":69,"y":363,"width":795,"height":11}},{"id":"2bf67545-4c1f-4f9a-93c6-2466d3f9d439","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":29,"box":{"x":69,"y":378,"width":805,"height":11}},{"id":"66740331-d291-4169-a71e-a296a0a01891","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":29,"box":{"x":69,"y":393,"width":822,"height":11}},{"id":"5ef007e4-d0e5-4152-a4f8-8dfb5f50e82f","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":29,"box":{"x":68,"y":408,"width":839,"height":11}},{"id":"8123d0ad-2069-4480-a64b-257fb9c49250","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":29,"box":{"x":69,"y":423,"width":802,"height":12}},{"id":"85753032-33f1-411e-bb25-9f56abdc5728","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":29,"box":{"x":70,"y":438,"width":820,"height":12}},{"id":"faa700d6-fd84-45b9-9700-6e91765b7919","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":29,"box":{"x":70,"y":453,"width":801,"height":12}},{"id":"13df728e-e7ac-4fbf-9ea6-ff3c00cfc75e","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":29,"box":{"x":70,"y":469,"width":831,"height":11}},{"id":"7143a729-e15d-4c9a-a245-6847d6e1e46e","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":29,"box":{"x":69,"y":484,"width":479,"height":11}},{"id":"40606bee-621a-4a16-b642-9e6240febee7","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":29,"box":{"x":102,"y":506,"width":785,"height":12}},{"id":"1944063c-d9a8-4966-b4a4-527dbb603e2f","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":29,"box":{"x":68,"y":521,"width":836,"height":12}},{"id":"99cc9d4f-9934-433a-b641-8e1c1330c5da","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":29,"box":{"x":68,"y":537,"width":821,"height":11}},{"id":"32a33d80-5166-4a8d-9f72-8bcc51ecd25c","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":29,"box":{"x":69,"y":552,"width":829,"height":11}},{"id":"fd553f7a-dfc1-4e1c-bc04-e3369245f70f","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":29,"box":{"x":70,"y":567,"width":835,"height":11}},{"id":"b1019726-1247-44eb-99c7-18ce07c9de16","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":29,"box":{"x":69,"y":582,"width":414,"height":11}},{"id":"fdaeeac7-c7a0-4b51-b8ff-e119bd9bdc94","block_type":"box","text":"Other Compensation Benefits.","page_number":29,"box":{"x":101,"y":605,"width":218,"height":11}},{"id":"3dd0121e-c901-4510-ae3e-0cc6e9854bef","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":29,"box":{"x":327,"y":605,"width":552,"height":11}},{"id":"a0316706-b423-459e-bd3f-b425a15cae32","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":29,"box":{"x":69,"y":620,"width":582,"height":11}},{"id":"e6edb0d3-2fdc-4d23-b0cb-609c679b68fd","block_type":"box","text":"Incentive Savings Plans","page_number":29,"box":{"x":102,"y":643,"width":167,"height":11}},{"id":"d05bd6ef-d040-4a15-8141-15c359b574ea","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":29,"box":{"x":274,"y":642,"width":614,"height":12}},{"id":"efef7017-616c-46e0-a824-3e2469d60f8e","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":29,"box":{"x":69,"y":658,"width":831,"height":11}},{"id":"98d6d857-bf4b-4715-8195-f8726f9dbb95","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":29,"box":{"x":70,"y":673,"width":785,"height":11}},{"id":"df8a7c1f-8292-46ba-a60b-ae6ac7cf3fa8","block_type":"box","text":"company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a","page_number":29,"box":{"x":69,"y":687,"width":830,"height":12}},{"id":"b0ab5dce-24b6-4597-ae57-a1da839bec65","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":29,"box":{"x":69,"y":703,"width":799,"height":11}},{"id":"d3fb0da0-52bf-4508-a780-0f1cfdf068e8","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":29,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"f16e3a5c-d533-47ca-ab15-2ddcccaea1ff","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":29,"box":{"x":69,"y":733,"width":798,"height":11}},{"id":"1b2f46d4-f8a9-4b23-92c3-44c246ba5368","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":29,"box":{"x":70,"y":748,"width":809,"height":12}},{"id":"03b2086c-bb92-41f6-9004-d3f252b0b4f8","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for","page_number":29,"box":{"x":68,"y":763,"width":793,"height":12}},{"id":"2c67e694-ee66-4159-adaa-c49eccedc44e","block_type":"box","text":"investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.","page_number":29,"box":{"x":70,"y":778,"width":832,"height":11}},{"id":"8d2b5556-f724-4d4a-936f-8a6281f87809","block_type":"box","text":"Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":29,"box":{"x":68,"y":794,"width":805,"height":11}},{"id":"df3d7083-9b36-4d78-a923-4c740033caf7","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to","page_number":29,"box":{"x":69,"y":808,"width":808,"height":12}},{"id":"6a295b9c-358a-4231-a10f-2a72ade831b5","block_type":"box","text":"participate in these plans.","page_number":29,"box":{"x":70,"y":824,"width":185,"height":11}},{"id":"e9df6f1e-da77-448e-a38e-aa02e03d5a40","block_type":"box","text":"I-20","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"a60ccc60-70d8-4c59-9fb5-5594bab2c248","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad2f1223-2eab-4230-88e9-797cec375229","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":30,"box":{"x":69,"y":45,"width":268,"height":11}},{"id":"f76b3bc8-54f7-4a97-b672-b81709be902a","block_type":"box","text":"As of May 31, 2026, the dollar range of securities beneficially owned by the portfolio managers in the Fund is","page_number":30,"box":{"x":101,"y":67,"width":782,"height":12}},{"id":"5edf51b1-789d-4a66-b031-ac934dcd36ec","block_type":"box","text":"shown below:","page_number":30,"box":{"x":69,"y":83,"width":94,"height":8}},{"id":"3229b749-16ec-45fd-858a-9fb32b79bf46","block_type":"box","text":"Portfolio Manager","page_number":30,"box":{"x":69,"y":121,"width":105,"height":9}},{"id":"1496754a-49a4-448f-b12e-370ba03ddbab","block_type":"box","text":"Dollar Range of Equity","page_number":30,"box":{"x":759,"y":111,"width":129,"height":9}},{"id":"44b0697a-b8b8-4682-96ee-02ff2168d82f","block_type":"box","text":"Securities Beneficially Owned","page_number":30,"box":{"x":736,"y":121,"width":173,"height":9}},{"id":"7c3edb09-aae0-42c2-b387-a12ba30aa235","block_type":"box","text":"Sally Du, CFA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":30,"box":{"x":69,"y":139,"width":772,"height":11}},{"id":"fc961b00-2932-4bba-bec5-5b3df8c16332","block_type":"box","text":"Reid Menge . . .","page_number":30,"box":{"x":70,"y":154,"width":105,"height":11}},{"id":"67e6642b-3f06-49c5-9a46-1d6fdc1988c3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":30,"box":{"x":182,"y":154,"width":659,"height":9}},{"id":"c0a9d3f0-bf5c-4652-be70-a6d8bfb051e6","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":30,"box":{"x":69,"y":185,"width":403,"height":11}},{"id":"464128c5-11c6-4a35-b179-2eba11572c53","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":30,"box":{"x":102,"y":208,"width":727,"height":11}},{"id":"50eb9068-2610-4b0d-88d8-6bb65d8e1256","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":30,"box":{"x":70,"y":223,"width":814,"height":11}},{"id":"ee8fdd72-2f79-40a0-974e-1f924993c63c","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":30,"box":{"x":70,"y":238,"width":837,"height":11}},{"id":"915b79f0-ff95-47ee-a43d-e9322a5acc88","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":30,"box":{"x":70,"y":253,"width":810,"height":11}},{"id":"67852256-290c-4d78-a2a6-2af1958a00bb","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":30,"box":{"x":69,"y":268,"width":782,"height":11}},{"id":"404dfb7c-fb9c-4838-a027-b8c74597ba87","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":30,"box":{"x":69,"y":284,"width":830,"height":11}},{"id":"8ea46f22-0614-4d68-93ad-98585a47223c","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":30,"box":{"x":69,"y":299,"width":828,"height":11}},{"id":"20784f31-e6d2-472d-b3fd-9ca6fdfc9013","block_type":"box","text":"funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest","page_number":30,"box":{"x":68,"y":314,"width":834,"height":11}},{"id":"b8598bce-2455-4bbb-9da1-95652f9243ca","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":30,"box":{"x":70,"y":329,"width":777,"height":11}},{"id":"ce3392ff-c375-47fa-8cf6-c650dbed9c21","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":30,"box":{"x":70,"y":344,"width":821,"height":11}},{"id":"aaad1359-3a29-4b9c-8fa3-f8238690ea60","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":30,"box":{"x":69,"y":359,"width":819,"height":11}},{"id":"e5f42c56-8ec3-4d06-afd2-bea153bf9e07","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":30,"box":{"x":69,"y":374,"width":832,"height":11}},{"id":"ef3462d6-224a-44f6-9095-5fd470c320d7","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":30,"box":{"x":68,"y":389,"width":804,"height":11}},{"id":"c884b7ed-68fe-4d8c-9849-114721afb882","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":30,"box":{"x":69,"y":404,"width":760,"height":12}},{"id":"ed0be340-a724-4984-92ed-d37ef4a4b37d","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":30,"box":{"x":69,"y":419,"width":834,"height":12}},{"id":"b7187f52-c7d0-4a06-b916-03e08f5fed95","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":30,"box":{"x":69,"y":435,"width":836,"height":11}},{"id":"bf390d1e-3c0d-456f-a12e-093eeda71aa2","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":30,"box":{"x":69,"y":450,"width":822,"height":11}},{"id":"531a84c6-e925-4cd6-9c7d-2679619c8a74","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":30,"box":{"x":70,"y":465,"width":835,"height":11}},{"id":"ca2999cc-9352-4fe9-8a66-f6e54af3d138","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Mr. Menge may be managing hedge fund","page_number":30,"box":{"x":69,"y":480,"width":838,"height":11}},{"id":"98e08ca5-b7b6-4179-9760-ba95e303b51c","block_type":"box","text":"and/or long only accounts, or may be part of a team managing hedge fund and/or long only accounts, subject to","page_number":30,"box":{"x":69,"y":495,"width":802,"height":11}},{"id":"d1542e5d-098c-45f3-a53c-c2d85e030ff3","block_type":"box","text":"incentive fees. Mr. Menge may therefore be entitled to receive a portion of any incentive fees earned on such","page_number":30,"box":{"x":70,"y":510,"width":778,"height":11}},{"id":"e31c81cd-2c00-4baa-a4bd-01b87a5f1225","block_type":"box","text":"accounts.","page_number":30,"box":{"x":69,"y":526,"width":67,"height":8}},{"id":"001b14ae-58d6-4489-a337-e93631d9a180","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":30,"box":{"x":101,"y":548,"width":788,"height":11}},{"id":"226c6298-eede-4ff8-9c63-24d210490946","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":30,"box":{"x":70,"y":563,"width":839,"height":11}},{"id":"380b3cb3-4f23-4e7b-8580-9f0c7b7a6196","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":30,"box":{"x":68,"y":578,"width":823,"height":11}},{"id":"0c95b3b4-d42c-44f0-9ce4-17c37865794d","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":30,"box":{"x":68,"y":593,"width":812,"height":12}},{"id":"fb53888b-7822-42ba-8daf-d387a41c5652","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":30,"box":{"x":69,"y":608,"width":777,"height":12}},{"id":"9783db77-a49f-40d6-a2ea-be290f5137bb","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":30,"box":{"x":70,"y":624,"width":826,"height":10}},{"id":"2ea4539a-bb25-4435-8e71-5d2c2d1afc5d","block_type":"box","text":"Custodian Services","page_number":30,"box":{"x":69,"y":654,"width":139,"height":9}},{"id":"2006b5a1-852b-4289-b514-9575a005b746","block_type":"box","text":"The Bank of New York Mellon, which has its principal place of business at 240 Greenwich Street, New York, New","page_number":30,"box":{"x":101,"y":676,"width":802,"height":11}},{"id":"5d601dde-837e-4ad2-8a65-213faa9b1b2b","block_type":"box","text":"York 10286, serves as the custodian for the Fund (the “Custodian”). The Custodian, among other responsibilities,","page_number":30,"box":{"x":68,"y":692,"width":814,"height":11}},{"id":"dedf4fe4-d4e6-4a70-866b-9135c595f032","block_type":"box","text":"maintains a custody account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon","page_number":30,"box":{"x":69,"y":707,"width":832,"height":11}},{"id":"5d27ba92-2fab-45b3-8f88-23b9011c6569","block_type":"box","text":"purchase and upon sale or maturity, and collects and receives all income and other payments and distributions on","page_number":30,"box":{"x":70,"y":722,"width":813,"height":11}},{"id":"6a249f10-4fdd-4146-ad95-9f5cdf08b061","block_type":"box","text":"account of the assets of the Fund. On a monthly basis, the Custodian nets the Fund’s daily positive and negative","page_number":30,"box":{"x":69,"y":737,"width":805,"height":11}},{"id":"b280b6be-38c1-45d2-abe8-4c2960c72274","block_type":"box","text":"cash balances and calculates a credit (“custody credit”) or a charge based on that net amount. The custodian fees,","page_number":30,"box":{"x":69,"y":752,"width":824,"height":11}},{"id":"a9fec78c-7e03-4648-b87b-af59989da066","block_type":"box","text":"including the amount of any overdraft charges, may be reduced by that amount of such custody credits, and any","page_number":30,"box":{"x":70,"y":767,"width":797,"height":11}},{"id":"d73252cf-9acb-45b5-924f-00ceac670baa","block_type":"box","text":"unused credits at the end of a given month may be carried forward to a subsequent month. Any such credits unused","page_number":30,"box":{"x":69,"y":782,"width":831,"height":12}},{"id":"e037e0fe-f889-44b2-b840-80a186cd7ee9","block_type":"box","text":"by the end of the Fund’s fiscal year will not expire. Net debits at the end of a given month are added to the Fund’s","page_number":30,"box":{"x":69,"y":797,"width":813,"height":12}},{"id":"5f12f55d-3930-43cd-96f1-349188586ee7","block_type":"box","text":"custody bill and paid by the Fund.","page_number":30,"box":{"x":69,"y":813,"width":237,"height":11}},{"id":"4ba21de6-a60f-4d45-8915-8f1ddecbeda0","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":30,"box":{"x":68,"y":843,"width":432,"height":11}},{"id":"28d6de51-fcbc-4976-879f-6b45ae7b37e4","block_type":"box","text":"BNY Mellon, which has its principal place of business at 118 Flanders Road, Westborough, Massachusetts","page_number":30,"box":{"x":102,"y":865,"width":762,"height":12}},{"id":"0f2c9ae7-2d7c-4316-912e-127d4215806f","block_type":"box","text":"01581, serves as the transfer and dividend disbursement agent for the Fund.","page_number":30,"box":{"x":69,"y":881,"width":553,"height":11}},{"id":"656470d5-3c35-45e2-8066-220eed972fdc","block_type":"box","text":"I-21","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"cfee8917-51fe-4829-b74f-339933ffb7b8","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2dab1f39-0270-4b7f-aa7d-1a37091b637a","block_type":"box","text":"Pursuant to a Shareholders’ Administrative Services Agreement, the Manager provides certain shareholder","page_number":31,"box":{"x":102,"y":45,"width":762,"height":11}},{"id":"4efda84b-06b0-40ce-9552-23a9b82edcb2","block_type":"box","text":"liaison services in connection with the Fund’s investor service center. The Fund reimburses the Manager for its costs","page_number":31,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"a3447b75-0dff-4e0b-b0d6-ecdab738324d","block_type":"box","text":"in maintaining the service center, which costs include, among other things, employee salaries, leasehold expenses,","page_number":31,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"8d743e61-6203-460e-a73f-0e6f81a291f9","block_type":"box","text":"and other out-of-pocket expenses which are a component of the transfer agency fees in the Fund’s annual report.","page_number":31,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"c1403393-09f8-4a93-bf20-c3cf5afe0a03","block_type":"box","text":"The following table sets forth the fees paid by the Fund to the Manager pursuant to the Shareholders’","page_number":31,"box":{"x":101,"y":113,"width":725,"height":11}},{"id":"76c3bb47-7e0c-4ce1-8a96-719f93b82840","block_type":"box","text":"Administrative Services Agreement for the periods indicated:","page_number":31,"box":{"x":68,"y":128,"width":432,"height":11}},{"id":"ae537ec5-31d9-4a31-9d72-df02c2481b18","block_type":"box","text":"Fees Paid to BlackRock Fees Waived by BlackRock","page_number":31,"box":{"x":583,"y":156,"width":327,"height":9}},{"id":"5764accd-422a-4f45-ac56-a2413b4359df","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . .","page_number":31,"box":{"x":70,"y":174,"width":253,"height":11}},{"id":"6aa252a8-19f6-40b9-81ff-924704cd060d","block_type":"box","text":"............................","page_number":31,"box":{"x":329,"y":181,"width":222,"height":2}},{"id":"0f005b94-9e33-493e-8d0a-74aa4911ec75","block_type":"box","text":"$148,310 $148,310","page_number":31,"box":{"x":616,"y":173,"width":251,"height":11}},{"id":"9b099e48-055f-4efc-81c6-b0ab6f216c09","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . .","page_number":31,"box":{"x":70,"y":189,"width":253,"height":11}},{"id":"a939e6e1-4274-4c7b-b94d-71f16d6d75d7","block_type":"box","text":"............................","page_number":31,"box":{"x":329,"y":196,"width":222,"height":2}},{"id":"241e5ccb-ad57-40ac-ad5e-c0e6dc396977","block_type":"box","text":"$117,651 $ 50,197","page_number":31,"box":{"x":616,"y":188,"width":250,"height":11}},{"id":"290e0dfe-a962-415d-8f2d-4b0eb3b1c485","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . .","page_number":31,"box":{"x":70,"y":204,"width":253,"height":11}},{"id":"95fc3487-4ec8-46c5-a5d4-ab6b2678e1d2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 62,627 $ 0","page_number":31,"box":{"x":329,"y":203,"width":538,"height":11}},{"id":"4a96ec9a-4de3-4f20-a721-9e5d0bba3328","block_type":"box","text":"Credit Agreement","page_number":31,"box":{"x":69,"y":236,"width":129,"height":11}},{"id":"40cdd9b9-57c1-431a-b8d0-c016311752c9","block_type":"box","text":"The Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”),","page_number":31,"box":{"x":101,"y":258,"width":765,"height":11}},{"id":"0d56bf54-fed9-4060-a58e-ff286f069edb","block_type":"box","text":"is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility terminates on","page_number":31,"box":{"x":70,"y":273,"width":748,"height":12}},{"id":"23d0c81a-9561-434f-9a9a-a15db3d494fc","block_type":"box","text":"April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding commitments designated","page_number":31,"box":{"x":68,"y":289,"width":823,"height":11}},{"id":"9260badb-3066-41be-acbe-873b068645c6","block_type":"box","text":"for certain Participating Funds, the Participating Funds, including the Fund, can borrow up to an aggregate","page_number":31,"box":{"x":68,"y":303,"width":757,"height":12}},{"id":"4dcffa9a-1f2c-4cd2-813a-47987658e50d","block_type":"box","text":"commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as","page_number":31,"box":{"x":69,"y":318,"width":801,"height":12}},{"id":"5f04cd07-95e5-4bb8-8e04-a402f7c17bd8","block_type":"box","text":"specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet shareholder","page_number":31,"box":{"x":69,"y":334,"width":751,"height":11}},{"id":"bfaf5125-2c30-4e7f-b047-fa8b711a4dce","block_type":"box","text":"redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit Agreement for","page_number":31,"box":{"x":69,"y":349,"width":784,"height":11}},{"id":"26c340c4-a795-44aa-aa55-ee6d3baf586c","block_type":"box","text":"leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses and SAI, subject","page_number":31,"box":{"x":70,"y":364,"width":839,"height":11}},{"id":"326fef80-5873-4400-afdd-1dc856205e59","block_type":"box","text":"to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other fees and","page_number":31,"box":{"x":68,"y":379,"width":794,"height":11}},{"id":"e13e931a-11e3-4f9e-aa4c-ea0585df3d14","block_type":"box","text":"expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce the Fund’s","page_number":31,"box":{"x":69,"y":394,"width":809,"height":12}},{"id":"fac3548a-13cd-4964-9d91-6afcb80eb26f","block_type":"box","text":"return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate commitment","page_number":31,"box":{"x":69,"y":409,"width":814,"height":12}},{"id":"ca3f0f31-339d-45f2-9fe8-b37c9557807b","block_type":"box","text":"amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be charged","page_number":31,"box":{"x":69,"y":424,"width":800,"height":12}},{"id":"485dff1b-3f03-4e07-aa5d-265e4beffb85","block_type":"box","text":"interest at a variable rate.","page_number":31,"box":{"x":70,"y":440,"width":182,"height":9}},{"id":"52b616cf-1d0c-4678-8c93-9be1f9b45fe2","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":31,"box":{"x":68,"y":470,"width":491,"height":11}},{"id":"b447779b-8994-4f0a-9501-19f53fcbffbb","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":31,"box":{"x":102,"y":492,"width":773,"height":12}},{"id":"9295f3e1-7bb5-43b5-aa4d-63fbd58f7ef0","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“Affiliates”) for the periods shown.","page_number":31,"box":{"x":69,"y":508,"width":805,"height":11}},{"id":"43298eb2-4a7e-42b0-b7cb-b26e84bc8be1","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”), an affiliate of the Manager, acts as the Fund’s sole","page_number":31,"box":{"x":70,"y":523,"width":779,"height":11}},{"id":"c2e4cc26-7082-4693-8a9a-5a93b7c54708","block_type":"box","text":"distributor.","page_number":31,"box":{"x":69,"y":538,"width":74,"height":9}},{"id":"bcccce4b-6f1b-4210-bb5e-b57d171aa10d","block_type":"box","text":"Investor A Shares","page_number":31,"box":{"x":645,"y":566,"width":102,"height":7}},{"id":"7f222b11-3ef9-46f8-82db-ff705fa0a363","block_type":"box","text":"Gross Sales","page_number":31,"box":{"x":485,"y":592,"width":68,"height":7}},{"id":"2dbe5b7e-4bbd-4e21-b839-27d5f0a8381c","block_type":"box","text":"Charges","page_number":31,"box":{"x":496,"y":602,"width":47,"height":9}},{"id":"644918c3-69e8-4432-8706-2af6cac61e88","block_type":"box","text":"Collected","page_number":31,"box":{"x":492,"y":612,"width":54,"height":7}},{"id":"7f5f7aed-b4dc-4a67-953f-101c5580e9f6","block_type":"box","text":"Sales Charges","page_number":31,"box":{"x":585,"y":592,"width":84,"height":9}},{"id":"20f8dca4-a96e-49ea-8896-3a17fb8ae208","block_type":"box","text":"Retained","page_number":31,"box":{"x":602,"y":602,"width":51,"height":7}},{"id":"c15c8b2c-7738-425a-84c8-ceba50dbb0b1","block_type":"box","text":"by BRIL","page_number":31,"box":{"x":606,"y":612,"width":44,"height":9}},{"id":"78dfe864-836a-48cd-938d-5f730d8d85af","block_type":"box","text":"Sales Charges","page_number":31,"box":{"x":699,"y":592,"width":83,"height":9}},{"id":"3ad7a98d-12a2-4b01-ab0b-fa63f6baee05","block_type":"box","text":"Paid To","page_number":31,"box":{"x":720,"y":602,"width":42,"height":7}},{"id":"df7742c9-9262-4b5f-aaee-9ea887547bb9","block_type":"box","text":"Affiliates","page_number":31,"box":{"x":715,"y":612,"width":51,"height":7}},{"id":"03278e1a-b5ac-49f9-a579-32bcb19c085f","block_type":"box","text":"CDSCs Received","page_number":31,"box":{"x":812,"y":582,"width":97,"height":7}},{"id":"cd6ade79-7c03-4360-b917-53a8032773bf","block_type":"box","text":"on Redemption","page_number":31,"box":{"x":817,"y":592,"width":87,"height":9}},{"id":"f5ab130a-2c1d-4f80-8709-904a745b0f7b","block_type":"box","text":"of Load-Waived","page_number":31,"box":{"x":817,"y":602,"width":87,"height":7}},{"id":"39aef6cf-2473-481f-97e1-419398c981fb","block_type":"box","text":"Shares","page_number":31,"box":{"x":841,"y":612,"width":39,"height":7}},{"id":"14083eba-4503-4745-8d6e-b7d3387efb3c","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . $497,172 $35,004 $35,004 $9,008","page_number":31,"box":{"x":70,"y":629,"width":817,"height":12}},{"id":"d29b48d9-75c9-4328-aba0-bbeeb25036a1","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . $672,681 $48,349 $48,349 $4,662","page_number":31,"box":{"x":70,"y":644,"width":817,"height":12}},{"id":"2b377e6e-5734-448a-9346-51e1d6a7ba47","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . $553,303 $38,155 $38,155 $4,574","page_number":31,"box":{"x":70,"y":659,"width":817,"height":12}},{"id":"a3bbbb0b-2e04-452b-b4d9-14f4fe793fa0","block_type":"box","text":"Investor C Shares","page_number":31,"box":{"x":790,"y":690,"width":103,"height":7}},{"id":"2897bcf2-b468-4dc2-be0a-5ab04b303f48","block_type":"box","text":"CDSCs","page_number":31,"box":{"x":780,"y":705,"width":39,"height":8}},{"id":"9fa3109f-045d-47ed-a1eb-3695a08180df","block_type":"box","text":"Received","page_number":31,"box":{"x":774,"y":715,"width":52,"height":8}},{"id":"6195f2a7-f011-4e7d-8cac-ce2f0c23fcc5","block_type":"box","text":"by BRIL","page_number":31,"box":{"x":778,"y":726,"width":44,"height":8}},{"id":"dcaf7169-97e6-4a39-960e-76eb02d14990","block_type":"box","text":"CDSCs","page_number":31,"box":{"x":863,"y":705,"width":39,"height":8}},{"id":"5d58a9fe-badc-40df-9853-b06adfe010ab","block_type":"box","text":"Paid to","page_number":31,"box":{"x":863,"y":715,"width":40,"height":8}},{"id":"07bf1225-8e42-43e5-bcde-f0bdf620cdf2","block_type":"box","text":"Affiliates","page_number":31,"box":{"x":856,"y":726,"width":52,"height":7}},{"id":"3a4e9599-202d-42e5-8c51-034ccc488c09","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . .","page_number":31,"box":{"x":70,"y":743,"width":264,"height":11}},{"id":"8c39b8da-98b1-4203-a332-410a5ca1acbd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,304 $5,304","page_number":31,"box":{"x":341,"y":743,"width":568,"height":11}},{"id":"c786db47-add4-4368-bcdb-6885c48dbc7a","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . .","page_number":31,"box":{"x":70,"y":758,"width":264,"height":11}},{"id":"7a5b09b9-6366-4fc0-aac1-0f5ba9cbbffa","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,337 $2,337","page_number":31,"box":{"x":341,"y":758,"width":567,"height":11}},{"id":"fb9634cd-b6a0-48f5-8e5f-6d51b0cb4128","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . .","page_number":31,"box":{"x":70,"y":774,"width":264,"height":11}},{"id":"9e0c605d-7358-4b8e-bd5e-dfdf4d581bf4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,513 $1,513","page_number":31,"box":{"x":341,"y":773,"width":568,"height":11}},{"id":"dd3e928b-1280-4963-a373-d75d868cdff2","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":31,"box":{"x":101,"y":797,"width":805,"height":12}},{"id":"7f382f29-a22b-47a9-8049-f52701014ba7","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plan. A portion of the fees collected by BRIL were paid to affiliates for providing","page_number":31,"box":{"x":68,"y":812,"width":796,"height":12}},{"id":"83ca95aa-8ace-4d4a-a88d-a5953b7ec127","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution-related","page_number":31,"box":{"x":69,"y":828,"width":826,"height":11}},{"id":"d39b7bbb-5ffd-47c6-b275-d5c0e31e8dd3","block_type":"box","text":"activities and services for Investor C and Class R Shares.","page_number":31,"box":{"x":69,"y":843,"width":409,"height":9}},{"id":"5f9a5594-de9c-4977-9898-6a918ae26644","block_type":"box","text":"Class Name","page_number":31,"box":{"x":69,"y":871,"width":68,"height":7}},{"id":"fc7831fb-a66b-43ab-bbb3-81764af5787c","block_type":"box","text":"Fees Paid to BRIL","page_number":31,"box":{"x":806,"y":871,"width":103,"height":7}},{"id":"b8f2ecc3-5a04-410a-ae54-822184d679f2","block_type":"box","text":"Investor A Shares .","page_number":31,"box":{"x":70,"y":889,"width":134,"height":9}},{"id":"4af80d8b-65ae-484e-a8ab-9bb5211959a0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,","page_number":31,"box":{"x":210,"y":888,"width":626,"height":11}},{"id":"01af5230-143c-4515-980c-6cfe2070f6e7","block_type":"box","text":"526,627","page_number":31,"box":{"x":838,"y":889,"width":62,"height":10}},{"id":"d7d2da39-1540-4ee0-80b8-81a078ada94f","block_type":"box","text":"Investor C Shares . . .","page_number":31,"box":{"x":70,"y":904,"width":150,"height":9}},{"id":"77233528-c389-4a7e-9d55-3eff05af8ecc","block_type":"box","text":".................................................................... $","page_number":31,"box":{"x":226,"y":903,"width":596,"height":11}},{"id":"f9315db3-85d0-493d-bf2d-62121692944b","block_type":"box","text":"386,214","page_number":31,"box":{"x":838,"y":904,"width":63,"height":10}},{"id":"85815c3c-8fbd-41b4-b85d-cf19ef6d27da","block_type":"box","text":"I-22","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"ade2db1c-8a84-4bf6-acf9-3203b5b75943","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"81ea81e3-75a0-4995-b397-4fa4cd40f723","block_type":"box","text":"Class Name","page_number":32,"box":{"x":69,"y":49,"width":68,"height":7}},{"id":"0f72cd60-3a07-44ab-b615-0eafc683be07","block_type":"box","text":"Fees Paid to BRIL","page_number":32,"box":{"x":806,"y":49,"width":103,"height":7}},{"id":"2e5fe2a6-eda8-4500-8448-f2dbd65aa882","block_type":"box","text":"Class R Shares","page_number":32,"box":{"x":69,"y":67,"width":109,"height":9}},{"id":"1935eafb-b0c0-4250-8ab5-cc392d7b7a99","block_type":"box","text":"......................................................................... $","page_number":32,"box":{"x":185,"y":66,"width":637,"height":10}},{"id":"ec1eac4c-df2f-408c-b466-ee04bcfdd06a","block_type":"box","text":"125,478","page_number":32,"box":{"x":839,"y":67,"width":62,"height":10}},{"id":"c4cc8420-d12b-4e0f-a8bc-d78e2b67f7d8","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":32,"box":{"x":68,"y":98,"width":318,"height":11}},{"id":"d84b24f1-813f-4098-9735-dc29da0b5611","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares of the Fund, based on the","page_number":32,"box":{"x":101,"y":121,"width":795,"height":11}},{"id":"2516918f-7a93-4006-801b-dbd064619e56","block_type":"box","text":"value of the Fund’s Investor A Shares’ net assets and number of Investor A Shares outstanding as of May 31, 2026","page_number":32,"box":{"x":68,"y":136,"width":829,"height":11}},{"id":"1099005d-b3eb-460b-97c5-0e612a79f702","block_type":"box","text":"follows:","page_number":32,"box":{"x":68,"y":151,"width":53,"height":9}},{"id":"5cc9d047-ff79-4022-bdd4-1ae705071cd8","block_type":"box","text":"Investor A Shares","page_number":32,"box":{"x":798,"y":179,"width":102,"height":8}},{"id":"1f29fdfa-fd7f-4792-baac-f26bd7af7bf4","block_type":"box","text":"Net Assets . . .","page_number":32,"box":{"x":70,"y":197,"width":100,"height":9}},{"id":"46fbf68b-6c1c-4981-ab8c-1850d7126fb0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,384,","page_number":32,"box":{"x":176,"y":196,"width":669,"height":12}},{"id":"01e3c66f-bd05-48fd-bbc2-47e3464eb4d2","block_type":"box","text":"361,218","page_number":32,"box":{"x":847,"y":197,"width":62,"height":11}},{"id":"4f856e73-c3ac-4ebe-a03c-18bbc86f31a2","block_type":"box","text":"Number of Shares Outstanding . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":212,"width":320,"height":11}},{"id":"ae3c3c2a-751d-4cf0-b9cb-78387b419aab","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,","page_number":32,"box":{"x":396,"y":212,"width":449,"height":11}},{"id":"b6157953-3270-4a4e-9139-404d2f13ee33","block_type":"box","text":"885,018","page_number":32,"box":{"x":847,"y":212,"width":62,"height":11}},{"id":"7ce21518-08d1-4691-b7be-4a82a6c1d5ee","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":32,"box":{"x":70,"y":227,"width":571,"height":12}},{"id":"d7187373-820b-4bcd-8a1d-2de88d1bf3ed","block_type":"box","text":"..............","page_number":32,"box":{"x":649,"y":235,"width":108,"height":1}},{"id":"eefe9fce-c7f5-4bb1-bb9d-402086ef2510","block_type":"box","text":"$39.82","page_number":32,"box":{"x":857,"y":227,"width":52,"height":10}},{"id":"f62890f0-db8a-4519-b7bb-626be0e51c45","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":32,"box":{"x":69,"y":242,"width":534,"height":12}},{"id":"df3e9374-bfd5-4c27-89e0-6151c59c3efd","block_type":"box","text":"1","page_number":32,"box":{"x":604,"y":243,"width":4,"height":4}},{"id":"5cd0dd1a-41e3-4c75-9e11-4388a5a98e7d","block_type":"box","text":". . . . . . . . . . . . . . . . . . 2.21","page_number":32,"box":{"x":616,"y":243,"width":293,"height":8}},{"id":"98095de1-9815-44ad-b311-457c576e6631","block_type":"box","text":"Offering Price. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":32,"box":{"x":69,"y":262,"width":687,"height":11}},{"id":"3de43cc8-0236-489f-853e-15040f58476a","block_type":"box","text":"$42.03","page_number":32,"box":{"x":857,"y":261,"width":52,"height":11}},{"id":"d18288e3-9df5-4801-b296-2ce4296661ad","block_type":"box","text":"1","page_number":32,"box":{"x":69,"y":294,"width":3,"height":4}},{"id":"544ff9e9-b8ef-48c9-9104-cc1ed6970817","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":32,"box":{"x":94,"y":294,"width":541,"height":9}},{"id":"7ff3573f-b76e-4914-965a-2d05c391ab1e","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’s net asset value computed as","page_number":32,"box":{"x":101,"y":315,"width":796,"height":11}},{"id":"247f5778-0997-4fba-9df0-4181f90622af","block_type":"box","text":"set forth above for Investor A Shares. Though not subject to a sales charge, certain share classes may be subject to","page_number":32,"box":{"x":69,"y":330,"width":833,"height":11}},{"id":"982ba317-45ed-4fcf-bf6d-9a7d01b3dd4a","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":32,"box":{"x":69,"y":345,"width":813,"height":11}},{"id":"ade3d4e5-3426-4efd-8fe1-cb22e6d58e3c","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":32,"box":{"x":69,"y":360,"width":377,"height":12}},{"id":"c2fefe02-6bc2-49d8-a063-206756e864b2","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":32,"box":{"x":68,"y":391,"width":302,"height":11}},{"id":"218ddb6a-945f-415e-8412-0d39a9c722eb","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":32,"box":{"x":102,"y":413,"width":609,"height":11}},{"id":"bd647d95-702d-4633-9c00-5dd79cef8a86","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to Affiliates, is set","page_number":32,"box":{"x":102,"y":436,"width":794,"height":11}},{"id":"12c90a95-078f-4d4c-b01a-b88a3214b598","block_type":"box","text":"forth in the following table:","page_number":32,"box":{"x":68,"y":451,"width":191,"height":11}},{"id":"f6bfb5e5-7b72-4999-8e13-b00fda31f247","block_type":"box","text":"Aggregate Brokerage","page_number":32,"box":{"x":584,"y":479,"width":125,"height":9}},{"id":"919bf00f-49c8-43ab-afcf-9c79a81fb4ad","block_type":"box","text":"Commissions Paid","page_number":32,"box":{"x":593,"y":489,"width":106,"height":7}},{"id":"406e26bb-372c-43dc-80b3-41d12d836265","block_type":"box","text":"Brokerage Commissions Paid","page_number":32,"box":{"x":739,"y":479,"width":170,"height":9}},{"id":"0c54c528-1025-4c6b-978f-c26e73096748","block_type":"box","text":"to Affiliates","page_number":32,"box":{"x":790,"y":489,"width":68,"height":7}},{"id":"49ab0443-10ac-454c-a2cd-b4d349986947","block_type":"box","text":"Fiscal Year Ended May 31, 2026","page_number":32,"box":{"x":70,"y":507,"width":230,"height":11}},{"id":"0ca9b47b-1a1e-4f73-ae4e-adfb65688d5c","block_type":"box","text":"1","page_number":32,"box":{"x":301,"y":507,"width":4,"height":5}},{"id":"ddf60288-ad56-4c22-a64c-b49ee2945f8f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $989,815 $0","page_number":32,"box":{"x":315,"y":506,"width":518,"height":11}},{"id":"68c0f2a3-e709-467b-831c-bd94251da498","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $270,616 $0","page_number":32,"box":{"x":70,"y":521,"width":763,"height":12}},{"id":"a3127f49-ac91-4f98-8fcd-fb662edacc47","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $332,039 $0","page_number":32,"box":{"x":70,"y":537,"width":763,"height":11}},{"id":"34ebcfcc-25f8-440d-adb7-8b8a5707a5ab","block_type":"box","text":"1","page_number":32,"box":{"x":69,"y":562,"width":3,"height":3}},{"id":"39879830-4712-46e2-a98d-8a1e3dcde946","block_type":"box","text":"The increase in brokerage commissions paid by the Fund as compared to the prior fiscal year was primarily due to increased trading activity","page_number":32,"box":{"x":76,"y":562,"width":796,"height":9}},{"id":"147aa153-5819-4817-8b7c-149df56387b2","block_type":"box","text":"associated with changes in the Fund’s investment process.","page_number":32,"box":{"x":69,"y":572,"width":337,"height":9}},{"id":"f629359e-5f97-4a31-9d52-a94ea751ba44","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":32,"box":{"x":101,"y":593,"width":770,"height":11}},{"id":"fd40b831-e2b7-4863-a100-825447b11fe3","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":32,"box":{"x":69,"y":608,"width":814,"height":11}},{"id":"99ce061a-5140-4b2e-b902-b62651f0b040","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":32,"box":{"x":68,"y":623,"width":829,"height":11}},{"id":"01c2e3eb-38bd-4def-b7ca-a8ad4c2ce070","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":32,"box":{"x":69,"y":638,"width":822,"height":11}},{"id":"5d7ffcfb-6bd2-494d-8f01-9ef1e1b989a9","block_type":"box","text":"with such brokers.","page_number":32,"box":{"x":68,"y":653,"width":130,"height":9}},{"id":"8398df93-d9fd-4423-a65d-3d1985664aa4","block_type":"box","text":"Amount of Commissions","page_number":32,"box":{"x":325,"y":681,"width":141,"height":8}},{"id":"356efc88-9384-4354-b8c2-e2352aa25f36","block_type":"box","text":"Paid to Brokers for","page_number":32,"box":{"x":341,"y":691,"width":109,"height":8}},{"id":"78521e15-3a30-4099-b457-0edda84f58f5","block_type":"box","text":"Providing 28(e) Eligible","page_number":32,"box":{"x":327,"y":702,"width":136,"height":8}},{"id":"10d5cf16-afe6-4041-badb-256c05f5cc0d","block_type":"box","text":"Research Services","page_number":32,"box":{"x":342,"y":712,"width":107,"height":7}},{"id":"64522afe-6df2-46b0-bf5a-da0f8a5731d4","block_type":"box","text":"Amount of Brokerage","page_number":32,"box":{"x":528,"y":702,"width":124,"height":8}},{"id":"e272b159-6f3e-4ac5-8999-306d9764f39c","block_type":"box","text":"Transactions Involved","page_number":32,"box":{"x":527,"y":712,"width":126,"height":7}},{"id":"43764d8f-10f2-40e5-a7c3-30b39ba785d6","block_type":"box","text":"$584,401 $3,938,022,548","page_number":32,"box":{"x":359,"y":729,"width":291,"height":11}},{"id":"08a1f2ba-9d98-436f-adb4-b2e1be458e56","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":32,"box":{"x":101,"y":753,"width":808,"height":12}},{"id":"31a52a37-25df-4bda-a89e-bf8848a4bbc8","block_type":"box","text":"the Investment Company Act) or their parents whose shares were purchased during the fiscal year ended","page_number":32,"box":{"x":68,"y":768,"width":748,"height":12}},{"id":"5ad45492-4a1b-4cfe-b096-c5d2b720d4a0","block_type":"box","text":"May 31, 2026.","page_number":32,"box":{"x":70,"y":784,"width":104,"height":11}},{"id":"a042f7e2-07c6-43f9-b788-1a309e8bf2e2","block_type":"box","text":"Securities Lending","page_number":32,"box":{"x":68,"y":814,"width":135,"height":11}},{"id":"264d222c-3815-4726-a173-89d03d7e9dc9","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":32,"box":{"x":101,"y":837,"width":807,"height":11}},{"id":"93139174-d1f9-4044-b460-22280a17e51c","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":32,"box":{"x":69,"y":852,"width":817,"height":11}},{"id":"7777d5ca-a26d-4a2c-b16f-df41599d14f0","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":32,"box":{"x":69,"y":867,"width":813,"height":11}},{"id":"363e8e11-b740-4e64-8214-cdffcd47bf23","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":32,"box":{"x":70,"y":882,"width":838,"height":11}},{"id":"f3696ea0-7733-4b21-88c8-3e6df59e18c3","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":32,"box":{"x":69,"y":897,"width":813,"height":11}},{"id":"127b5eba-0a2e-4918-a84f-37a8789ff0f9","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":32,"box":{"x":70,"y":912,"width":646,"height":11}},{"id":"1c6e2956-4db2-4dda-b0af-e0c36eb6657d","block_type":"box","text":"I-23","page_number":32,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"21f49458-d64a-4965-a6ae-82566a088522","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":32,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"13edfbc4-fd42-4db3-a370-3c84dc857249","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":33,"box":{"x":101,"y":45,"width":735,"height":11}},{"id":"510eafd2-f2ae-4674-947b-5e0bf9f29cd2","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":33,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"4d30449d-cbe1-485c-a7fe-bd6906e4c499","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":33,"box":{"x":70,"y":75,"width":822,"height":11}},{"id":"f5d89476-2c31-4ae9-b080-483b692c4a08","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":33,"box":{"x":69,"y":90,"width":787,"height":11}},{"id":"35fec455-6351-41de-89f6-0ddc5584bb52","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":33,"box":{"x":69,"y":105,"width":783,"height":11}},{"id":"6210f3d9-9d5c-4637-88b6-debfe574db7e","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":33,"box":{"x":70,"y":120,"width":800,"height":12}},{"id":"05830cca-50f3-4e27-86b0-2a879044c2d0","block_type":"box","text":"“collateral investment fees“); however, the securities lending agent has agreed to reduce the amount of securities","page_number":33,"box":{"x":70,"y":135,"width":813,"height":12}},{"id":"3c317be6-a30f-4776-8cf3-7c4166eeb612","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":33,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"0153b5c6-1f67-4dc1-83bc-6ef04f8a6688","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":33,"box":{"x":69,"y":166,"width":773,"height":11}},{"id":"338f7235-aafd-41a5-9699-30e9e5d91a28","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":33,"box":{"x":101,"y":188,"width":776,"height":12}},{"id":"7badd84b-6856-4adf-b1d8-6e0e4595e04e","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":33,"box":{"x":69,"y":203,"width":831,"height":12}},{"id":"310c9359-a89f-4846-add3-468471cfaded","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":33,"box":{"x":68,"y":218,"width":812,"height":12}},{"id":"0be0df0c-fbf1-4c93-a536-71f1be8fd58c","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":33,"box":{"x":69,"y":234,"width":799,"height":11}},{"id":"eb8ca465-856c-4890-91d8-2834a4fd7498","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":33,"box":{"x":68,"y":249,"width":835,"height":11}},{"id":"22e39c93-a661-4579-a58c-d404b885858d","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":33,"box":{"x":69,"y":264,"width":818,"height":11}},{"id":"1e22ec32-3db6-4970-8c9e-e6877aa21dbd","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":33,"box":{"x":68,"y":279,"width":789,"height":11}},{"id":"f5162e4b-cd0a-4bbf-8672-39c6af3705b8","block_type":"box","text":"making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount","page_number":33,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"57e3db22-e351-4f36-87c6-131c8aaaad89","block_type":"box","text":"of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":33,"box":{"x":69,"y":309,"width":839,"height":11}},{"id":"ad8b9e6e-6a92-4389-adae-74e95b638e14","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":33,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"8bac643d-9456-47ec-93a4-3c69c49af498","block_type":"box","text":"portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value","page_number":33,"box":{"x":70,"y":339,"width":830,"height":12}},{"id":"3394cac7-49df-4800-ac66-9b58ddc6b469","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":33,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"633c2390-d56c-4862-a2fd-b9459379986f","block_type":"box","text":"Fund’s returns on securities lending.","page_number":33,"box":{"x":70,"y":370,"width":258,"height":11}},{"id":"28403e83-bf62-4e04-be38-b2328ab6ef0c","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":33,"box":{"x":102,"y":392,"width":774,"height":12}},{"id":"e6e9078e-842e-42f1-8988-ee20574f4c03","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":33,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"f4d26c10-b543-4679-bd72-73830ee0ab76","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":33,"box":{"x":68,"y":423,"width":809,"height":11}},{"id":"53db4cb6-e47e-46fe-9514-77cab3e09aa6","block_type":"box","text":"Fund and BIM.","page_number":33,"box":{"x":70,"y":438,"width":100,"height":9}},{"id":"3ec86a92-a83f-4907-90ad-6f3c48b1a70a","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":33,"box":{"x":102,"y":460,"width":783,"height":12}},{"id":"aa45abcf-0814-4333-81ef-29ab9b81fb40","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":33,"box":{"x":70,"y":475,"width":815,"height":12}},{"id":"5ed9caf2-408f-467e-961f-0403b9d449bd","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":33,"box":{"x":69,"y":491,"width":463,"height":11}},{"id":"bb42c502-b4a2-4b06-b988-b3c79e58c405","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":33,"box":{"x":102,"y":513,"width":753,"height":12}},{"id":"b2fd4131-8519-4b18-b83a-286669fc84d2","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":33,"box":{"x":69,"y":528,"width":778,"height":12}},{"id":"c16c7291-b63b-4759-be28-0789f60a18c2","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":33,"box":{"x":70,"y":543,"width":817,"height":12}},{"id":"9c4fe56d-5464-41e5-be3a-124db2a96519","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":33,"box":{"x":70,"y":559,"width":794,"height":11}},{"id":"bb8ca328-4db9-4ba8-a11a-d15f32311ad9","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":33,"box":{"x":69,"y":574,"width":825,"height":11}},{"id":"4999b638-c0e6-49a6-bdac-d81df613daa6","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":33,"box":{"x":102,"y":596,"width":683,"height":12}},{"id":"06d52d74-692d-4754-b24d-3fd7697bc237","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":33,"box":{"x":101,"y":619,"width":803,"height":11}},{"id":"6d45c98c-9ee4-4565-adf8-057eac22d3ff","block_type":"box","text":"the following:","page_number":33,"box":{"x":68,"y":634,"width":93,"height":12}},{"id":"9532a6e8-0f30-41af-a949-33f67117e96d","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":33,"box":{"x":69,"y":654,"width":818,"height":12}},{"id":"5b6b9843-1cd8-4ce6-9c00-088a74d83720","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":33,"box":{"x":102,"y":669,"width":333,"height":11}},{"id":"e5512019-efcb-421a-8523-d4bf78f4686b","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":33,"box":{"x":69,"y":690,"width":538,"height":11}},{"id":"d5a68a92-5688-4e0d-a976-cea57af282b9","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":33,"box":{"x":69,"y":710,"width":330,"height":11}},{"id":"97d74e84-4d60-4f74-bfd7-60c2688ba65f","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":33,"box":{"x":69,"y":730,"width":834,"height":11}},{"id":"184892a0-2afe-4165-8ab3-aee09df9ab51","block_type":"box","text":"of excess collateral, as necessary;","page_number":33,"box":{"x":102,"y":745,"width":246,"height":11}},{"id":"af5bc811-28fa-4130-a4a8-e682bf963edc","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":33,"box":{"x":69,"y":766,"width":562,"height":11}},{"id":"907e88f9-fd9c-4214-96ef-b74353b3fcb2","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":33,"box":{"x":69,"y":785,"width":665,"height":12}},{"id":"4427b230-b29f-491f-bf80-a1c86192a7dc","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":33,"box":{"x":69,"y":806,"width":822,"height":11}},{"id":"b2b12555-1602-4146-95e9-b87c4f623764","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":33,"box":{"x":101,"y":821,"width":803,"height":11}},{"id":"ad8346f1-3228-4c75-a832-3c987235994f","block_type":"box","text":"of the loaned securities; and","page_number":33,"box":{"x":102,"y":836,"width":203,"height":10}},{"id":"b60720b5-bd61-4bcc-b10d-3b3af838ee3b","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":33,"box":{"x":69,"y":856,"width":808,"height":11}},{"id":"36498073-2ed9-4140-a92a-26ab3dd464fe","block_type":"box","text":"I-24","page_number":33,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"33325f30-eb5e-4386-ac6a-919e06a6c889","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":33,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"82db1107-2453-4432-95bb-3ba31a329473","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":34,"box":{"x":101,"y":45,"width":805,"height":11}},{"id":"26eb5cae-42b5-439c-8adf-bf29ffd2db16","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":34,"box":{"x":69,"y":60,"width":546,"height":11}},{"id":"b499af33-5d04-42a5-bac7-a2f9bbd43bd1","block_type":"box","text":"Gross income from securities lending activities","page_number":34,"box":{"x":69,"y":88,"width":343,"height":11}},{"id":"57cd00fd-7ebf-4501-9255-07a7f15500be","block_type":"box","text":"..................................................","page_number":34,"box":{"x":414,"y":95,"width":401,"height":1}},{"id":"e343e3c6-0967-4093-b4f3-beb9a29c89c2","block_type":"box","text":"$494,932","page_number":34,"box":{"x":837,"y":87,"width":72,"height":11}},{"id":"bebfa4d4-cbdb-442c-b087-24fb5547e42c","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":34,"box":{"x":70,"y":107,"width":565,"height":11}},{"id":"15b9c194-75b0-4844-b0c8-c03817842d17","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent .","page_number":34,"box":{"x":79,"y":122,"width":565,"height":11}},{"id":"c19e07c7-8c8b-4830-8711-14b279a6874f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . $ 3,362","page_number":34,"box":{"x":650,"y":121,"width":259,"height":12}},{"id":"687ab886-16a2-459b-95ca-c8a18d86dbb2","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":34,"box":{"x":79,"y":137,"width":679,"height":12}},{"id":"bf085468-f45d-4ad2-b99f-cff20cc525c3","block_type":"box","text":". . . . . . . $ 4,374","page_number":34,"box":{"x":765,"y":137,"width":144,"height":11}},{"id":"8276c629-c492-4967-9826-247edf29da25","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM","page_number":34,"box":{"x":78,"y":152,"width":519,"height":12}},{"id":"c2940b14-c425-4d94-8baf-439843534e8d","block_type":"box","text":"........................... $ 0","page_number":34,"box":{"x":602,"y":152,"width":307,"height":10}},{"id":"d68bcf14-a70a-4ce4-9a41-3033abeb07f7","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM","page_number":34,"box":{"x":79,"y":167,"width":526,"height":12}},{"id":"09e1b33c-5134-4877-8b14-f752c831280e","block_type":"box","text":".......................... $ 0","page_number":34,"box":{"x":610,"y":167,"width":299,"height":10}},{"id":"e10a1211-aa4f-499c-9d01-fe0b371614a7","block_type":"box","text":"Rebates (paid to borrowers)","page_number":34,"box":{"x":79,"y":183,"width":197,"height":11}},{"id":"903c2098-65ef-4359-ab36-8ca0d9728a6a","block_type":"box","text":"..................................................................","page_number":34,"box":{"x":284,"y":190,"width":531,"height":1}},{"id":"e8dcacfe-5608-4397-9614-12e0c8384258","block_type":"box","text":"$469,094","page_number":34,"box":{"x":837,"y":182,"width":72,"height":11}},{"id":"991c8d32-c13c-4dfc-9a48-14e246c1b15a","block_type":"box","text":"Other fees not included in securities lending income paid to BIM . . . . . . . . .","page_number":34,"box":{"x":79,"y":198,"width":532,"height":11}},{"id":"b4e93560-704b-49e8-86dc-39adedd7e529","block_type":"box","text":"......................... $ 0","page_number":34,"box":{"x":618,"y":197,"width":291,"height":11}},{"id":"196f29f0-dc73-488e-beb9-021a1a653244","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":34,"box":{"x":68,"y":213,"width":455,"height":11}},{"id":"79ffd7ef-7cc2-4fcf-9478-ddcbf7ea8dda","block_type":"box","text":"....................................","page_number":34,"box":{"x":528,"y":220,"width":287,"height":2}},{"id":"28c0b5a0-b3a4-43d7-b9d0-db8ae40d6d5e","block_type":"box","text":"$476,830","page_number":34,"box":{"x":837,"y":212,"width":72,"height":12}},{"id":"0613e34c-c412-441e-8637-f1b790254c77","block_type":"box","text":"Net income from securities lending activities","page_number":34,"box":{"x":69,"y":232,"width":327,"height":11}},{"id":"103d673b-331b-425a-a7ef-35f8a9a1aed2","block_type":"box","text":"...................................................","page_number":34,"box":{"x":406,"y":240,"width":409,"height":1}},{"id":"52a1f551-c3b9-447b-aef6-6011c624770a","block_type":"box","text":"$ 18,102","page_number":34,"box":{"x":837,"y":232,"width":72,"height":11}},{"id":"761026de-022f-4cdd-89a7-f708ac758a36","block_type":"box","text":"Portfolio Turnover.","page_number":34,"box":{"x":102,"y":261,"width":131,"height":9}},{"id":"4f842ee7-83cc-418d-856f-83a7709a2040","block_type":"box","text":"For the fiscal years ended May 31, 2025 and May 31, 2026, the Fund’s portfolio turnover","page_number":34,"box":{"x":241,"y":261,"width":642,"height":11}},{"id":"15b40309-b70b-4f09-adbd-14131b3e941a","block_type":"box","text":"rate was 29% and 99%, respectively. The increase in the Fund’s portfolio turnover rate from the prior fiscal year was","page_number":34,"box":{"x":69,"y":276,"width":828,"height":11}},{"id":"ecd125f9-1fed-4b8e-9168-4834668483ed","block_type":"box","text":"primarily due to increased trading activity associated with changes in the Fund’s investment process.","page_number":34,"box":{"x":70,"y":291,"width":718,"height":11}},{"id":"bb1f71f8-900d-418e-8403-fab72c292a0b","block_type":"box","text":"VIII. Additional Information","page_number":34,"box":{"x":68,"y":321,"width":195,"height":9}},{"id":"b06cbddf-1e30-4503-8748-a5253ae5904f","block_type":"box","text":"Description of Shares","page_number":34,"box":{"x":70,"y":351,"width":153,"height":11}},{"id":"a0090b7a-c988-458d-8f3a-0d640b1cf78b","block_type":"box","text":"The Fund was incorporated under Maryland law on April 30, 1992. Effective September 29, 2006, the Fund","page_number":34,"box":{"x":101,"y":374,"width":766,"height":11}},{"id":"edc816b7-c562-4f09-9a71-f47fc5894ae6","block_type":"box","text":"changed its name from Merrill Lynch Fundamental Growth Fund, Inc. to BlackRock Fundamental Growth Fund, Inc.","page_number":34,"box":{"x":69,"y":389,"width":808,"height":11}},{"id":"c35e39f7-aa87-42c2-8dde-ac9236596663","block_type":"box","text":"Effective June 28, 2010, the Fund changed its name to BlackRock Capital Appreciation Fund, Inc. The Fund is","page_number":34,"box":{"x":70,"y":404,"width":781,"height":12}},{"id":"3f639fde-3cab-4e3f-93ad-cf8aef6534a4","block_type":"box","text":"classified as a diversified open-end investment company under the Investment Company Act. As of the date of this","page_number":34,"box":{"x":69,"y":419,"width":816,"height":12}},{"id":"5f5c2afd-fc79-4c3c-a356-c63c79d5ccb2","block_type":"box","text":"SAI, the Fund authorized capital of 2,200,000,000 shares of Common Stock, par value $0.10 per share, divided into","page_number":34,"box":{"x":69,"y":434,"width":835,"height":12}},{"id":"9cd179cb-8df9-4d1c-af35-aee5d7b4242c","block_type":"box","text":"five classes, designated Investor A, Investor C, Institutional, Class R and Class K Common Stock. Institutional","page_number":34,"box":{"x":68,"y":450,"width":785,"height":11}},{"id":"38af7c56-4123-463f-a486-1540df49be66","block_type":"box","text":"Common Stock consists of 300,000,000 shares, Investor C Common Stock consists of 300,000,000 shares,","page_number":34,"box":{"x":69,"y":465,"width":785,"height":10}},{"id":"377923e3-75f5-4c0e-8343-c3ae28f46524","block_type":"box","text":"Investor A Common Stock consists of 300,000,000 shares, Class R Common Stock consists of 500,000,000 shares","page_number":34,"box":{"x":70,"y":480,"width":839,"height":10}},{"id":"0a0c7a92-9ba9-4099-81ac-e8c0b6abd319","block_type":"box","text":"and Class K Common Stock consists of 300,000,000 shares. The remainder of the authorized capital stock of the","page_number":34,"box":{"x":69,"y":495,"width":817,"height":11}},{"id":"4ba74a88-6e98-4277-a8d7-e9aac9702e0d","block_type":"box","text":"Fund is not designated or classified as to any class or series. Shares of Investor A, Investor C, Institutional, Class R","page_number":34,"box":{"x":70,"y":510,"width":827,"height":11}},{"id":"7b6ce78b-5cef-40da-b2c6-1c4b435c042a","block_type":"box","text":"and Class K Common Stock represent an interest in the same assets of the Fund and are identical in all respects","page_number":34,"box":{"x":69,"y":525,"width":812,"height":11}},{"id":"81c2c323-1824-4d99-b6bd-4fb41e79f977","block_type":"box","text":"except that the Investor A, Investor C, Class R and Class K Shares bear certain expenses related to the account","page_number":34,"box":{"x":69,"y":540,"width":801,"height":11}},{"id":"ad4b7dd8-768d-4bf5-81c7-f3fb93fea361","block_type":"box","text":"maintenance and/or distribution of such shares and have exclusive voting rights with respect to matters relating to","page_number":34,"box":{"x":69,"y":555,"width":819,"height":12}},{"id":"5b6c5793-f155-496e-a92a-8614b4bcecb5","block_type":"box","text":"such account maintenance and/or distribution expenditures. Under the Articles of Incorporation, the Directors have","page_number":34,"box":{"x":69,"y":571,"width":821,"height":11}},{"id":"81a6b8f3-de31-446b-8bd0-a284a1690214","block_type":"box","text":"the authority to issue separate classes of shares which would represent interests in the assets of the Fund. The","page_number":34,"box":{"x":68,"y":586,"width":803,"height":11}},{"id":"e88bf8bc-0b69-4629-9a1f-c26db00b8275","block_type":"box","text":"Board may classify and reclassify shares of the Fund into additional classes of Common Stock at a future date.","page_number":34,"box":{"x":70,"y":601,"width":792,"height":11}},{"id":"56e23f07-5910-43e8-b4b6-d03c10d0d509","block_type":"box","text":"Effective on the close of business on December 27, 2017, all the issued and outstanding Investor B Shares of the","page_number":34,"box":{"x":70,"y":616,"width":818,"height":11}},{"id":"acd335e4-ab01-4845-bf17-837d4d2a530c","block_type":"box","text":"Fund were converted into Investor A Shares of the Fund.","page_number":34,"box":{"x":70,"y":631,"width":398,"height":9}},{"id":"99f6e8ad-a0cb-4f94-b7a5-cd5461ef8e5b","block_type":"box","text":"Counsel.","page_number":34,"box":{"x":101,"y":654,"width":62,"height":9}},{"id":"fa9651b5-1b4a-4bf4-9689-49a1e20d5369","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":34,"box":{"x":170,"y":654,"width":736,"height":11}},{"id":"7fcabb02-93e9-4afc-a187-8b9041b3b0a5","block_type":"box","text":"the Fund’s counsel.","page_number":34,"box":{"x":68,"y":669,"width":139,"height":9}},{"id":"5e7ed8d3-cd0b-42a0-b7d7-184149552281","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":34,"box":{"x":102,"y":692,"width":352,"height":11}},{"id":"38c0a5d8-54af-4c7a-9a5a-b4b4cf6305c7","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":34,"box":{"x":461,"y":692,"width":412,"height":10}},{"id":"cb759250-bff5-40f8-b5e4-6984637ad501","block_type":"box","text":"Street, Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":34,"box":{"x":69,"y":707,"width":772,"height":11}},{"id":"547ba14d-583a-4a5e-ae8a-10aa7aed29ef","block_type":"box","text":"Principal Shareholders","page_number":34,"box":{"x":69,"y":737,"width":162,"height":11}},{"id":"bd20fe8a-5d2d-4cc0-a0d2-c88c39c529fc","block_type":"box","text":"To the knowledge of the Fund, the following entities owned of record or beneficially 5% or more of a class of the","page_number":34,"box":{"x":101,"y":760,"width":795,"height":11}},{"id":"b461a95f-69bc-4247-a467-22a153f9ec3c","block_type":"box","text":"Fund’s shares as of September 1, 2026:","page_number":34,"box":{"x":70,"y":775,"width":290,"height":11}},{"id":"a24a0d79-807b-41f3-b5b1-97120dd54e05","block_type":"box","text":"Name Address Percentage Class","page_number":34,"box":{"x":69,"y":803,"width":786,"height":9}},{"id":"a69ac1bc-fb6b-432f-ae47-e868ea3d023a","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith","page_number":34,"box":{"x":70,"y":821,"width":262,"height":11}},{"id":"192bbe88-7b83-456d-9748-9a4605955594","block_type":"box","text":"Incorporated","page_number":34,"box":{"x":70,"y":836,"width":87,"height":11}},{"id":"8a7bef02-5876-4ebc-96b6-bfa945f57db4","block_type":"box","text":"4800 East Deer Lake Drive","page_number":34,"box":{"x":444,"y":821,"width":193,"height":9}},{"id":"59f58c5d-de60-4990-b317-30217c6a4b28","block_type":"box","text":"3","page_number":34,"box":{"x":513,"y":836,"width":9,"height":9}},{"id":"195c98e1-f502-4639-b7cd-377228763be7","block_type":"box","text":"rd","page_number":34,"box":{"x":523,"y":836,"width":6,"height":5}},{"id":"9f272f21-a051-4483-a7d3-b43749558a0f","block_type":"box","text":"Floor","page_number":34,"box":{"x":536,"y":836,"width":33,"height":9}},{"id":"c082975d-ab91-4642-a24f-78204da6b758","block_type":"box","text":"Jacksonville, FL 32246-6484","page_number":34,"box":{"x":437,"y":851,"width":207,"height":10}},{"id":"8bc13bf0-50eb-4fca-bc53-12930afece96","block_type":"box","text":"45.81% Investor A Shares","page_number":34,"box":{"x":680,"y":821,"width":222,"height":9}},{"id":"34a3e66c-f2a1-4248-8748-ec388018912b","block_type":"box","text":"Edward D. Jones & Co. 12555 Manchester Road","page_number":34,"box":{"x":70,"y":874,"width":559,"height":9}},{"id":"63378115-d2f6-4e74-b1e5-494c4e1bb246","block_type":"box","text":"St. Louis, MO 63131-3710","page_number":34,"box":{"x":444,"y":889,"width":193,"height":10}},{"id":"ad98062a-ae9a-4013-9fd1-7e5fcde0e29a","block_type":"box","text":"14.46% Investor A Shares","page_number":34,"box":{"x":681,"y":874,"width":221,"height":9}},{"id":"eded232e-b62b-42e6-8b3b-95fe5c98362d","block_type":"box","text":"I-25","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b898ab79-abc8-4776-a0d6-c2180bf6ef90","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"66883149-1ea5-44b7-b742-298a435fb711","block_type":"box","text":"Name Address Percentage Class","page_number":35,"box":{"x":69,"y":49,"width":786,"height":9}},{"id":"f9e312e5-2410-435a-b01a-fba4556d573e","block_type":"box","text":"National Financial Services LLC 499 Washington Boulevard","page_number":35,"box":{"x":70,"y":67,"width":566,"height":11}},{"id":"42ec2a61-f46c-4366-8e45-76b5ffcc63f4","block_type":"box","text":"5","page_number":35,"box":{"x":513,"y":82,"width":8,"height":9}},{"id":"bc568fc7-1a16-4892-93b6-d1a2d402eeda","block_type":"box","text":"th","page_number":35,"box":{"x":522,"y":82,"width":7,"height":5}},{"id":"62e21c59-eef9-4331-98d2-4076a5561639","block_type":"box","text":"Floor","page_number":35,"box":{"x":535,"y":82,"width":34,"height":9}},{"id":"d7d41d9c-a119-49bc-b0f5-74840f5cbeaf","block_type":"box","text":"Jersey City, NJ 07310-2010","page_number":35,"box":{"x":442,"y":97,"width":197,"height":11}},{"id":"73e384bd-80ee-405f-bfd9-baab55730c05","block_type":"box","text":"5.58% Investor A Shares","page_number":35,"box":{"x":685,"y":67,"width":217,"height":9}},{"id":"320c1e4b-223f-4a98-8879-db90f25f8ba5","block_type":"box","text":"Pershing LLC 1 Pershing Plaza","page_number":35,"box":{"x":69,"y":120,"width":530,"height":11}},{"id":"49143a6f-4925-4def-b2b7-e3d77f29298b","block_type":"box","text":"Jersey City, NJ 07399-0001","page_number":35,"box":{"x":442,"y":135,"width":197,"height":11}},{"id":"fefeb7ce-77f3-48c6-9b3b-8e77f54dc584","block_type":"box","text":"18.92% Investor C Shares","page_number":35,"box":{"x":681,"y":120,"width":222,"height":9}},{"id":"b4f5570a-f5f3-4081-8a09-3ace98ae4333","block_type":"box","text":"LPL Financial 4707 Executive Drive","page_number":35,"box":{"x":70,"y":158,"width":546,"height":8}},{"id":"f562ddf2-9d92-46f6-98d4-3972025bc80c","block_type":"box","text":"San Diego, CA 92121-3091","page_number":35,"box":{"x":442,"y":173,"width":197,"height":11}},{"id":"c83ac26f-4ece-42ad-b7e3-becbe95896b5","block_type":"box","text":"7.97% Investor C Shares","page_number":35,"box":{"x":685,"y":158,"width":218,"height":8}},{"id":"68802cca-62bc-4a62-b135-fbd0e9f38bba","block_type":"box","text":"Wells Fargo Clearing Services 2801 Market Street","page_number":35,"box":{"x":68,"y":195,"width":543,"height":11}},{"id":"03427fac-cd89-4801-81a0-57737eaf1a6e","block_type":"box","text":"St. Louis, MO 63103","page_number":35,"box":{"x":466,"y":210,"width":149,"height":11}},{"id":"a2716eaf-ad6e-45bc-9683-b4253e152584","block_type":"box","text":"6.24% Investor C Shares","page_number":35,"box":{"x":685,"y":195,"width":218,"height":9}},{"id":"e22eace4-b3ed-43d8-a50b-0807d90eb506","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith","page_number":35,"box":{"x":70,"y":233,"width":262,"height":11}},{"id":"d5278284-ce12-44b8-bdf2-fa978bdccafb","block_type":"box","text":"Incorporated","page_number":35,"box":{"x":70,"y":248,"width":87,"height":11}},{"id":"ea2ed4c9-a10c-48f2-a029-8db9336d21e1","block_type":"box","text":"4800 East Deer Lake Drive","page_number":35,"box":{"x":444,"y":233,"width":193,"height":9}},{"id":"b79b427a-459c-4f1f-acf8-962f650ad58b","block_type":"box","text":"3","page_number":35,"box":{"x":513,"y":248,"width":9,"height":9}},{"id":"c69e42ac-14d0-47f9-bd75-3637ef154de1","block_type":"box","text":"rd","page_number":35,"box":{"x":523,"y":249,"width":6,"height":4}},{"id":"b8d4a95e-f30a-4303-ae96-796b1192c43a","block_type":"box","text":"Floor","page_number":35,"box":{"x":536,"y":248,"width":33,"height":9}},{"id":"e296ca6d-d73a-4727-96bb-0796ddbc5269","block_type":"box","text":"Jacksonville, FL 32246-6484","page_number":35,"box":{"x":437,"y":263,"width":207,"height":11}},{"id":"e64d0c50-6d32-400c-a8e1-3eb046be957b","block_type":"box","text":"6.13% Investor C Shares","page_number":35,"box":{"x":685,"y":233,"width":218,"height":9}},{"id":"21150a96-e599-47bd-ac4c-dca6167a631f","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith","page_number":35,"box":{"x":70,"y":286,"width":262,"height":11}},{"id":"ffab6405-7600-4dad-b4c2-bdeb1c11eb92","block_type":"box","text":"Incorporated","page_number":35,"box":{"x":70,"y":301,"width":87,"height":11}},{"id":"515d6527-b990-40e8-8b34-4452f2b4ac28","block_type":"box","text":"4800 East Deer Lake Drive","page_number":35,"box":{"x":444,"y":286,"width":193,"height":9}},{"id":"b7ebe86d-1f12-4449-91b0-0e49190855b9","block_type":"box","text":"3","page_number":35,"box":{"x":513,"y":301,"width":9,"height":9}},{"id":"d9d76c63-91b0-4cf4-aa03-c953424d3735","block_type":"box","text":"rd","page_number":35,"box":{"x":523,"y":301,"width":6,"height":5}},{"id":"3fa1b7fb-ef99-49be-b5d2-0cec41a0414e","block_type":"box","text":"Floor","page_number":35,"box":{"x":536,"y":301,"width":33,"height":9}},{"id":"28616cbe-3756-4938-8aae-08f5e416b577","block_type":"box","text":"Jacksonville, FL 32246-6484","page_number":35,"box":{"x":437,"y":316,"width":207,"height":11}},{"id":"bbb7a86d-56be-4e18-9b49-3d6d5f3e01b9","block_type":"box","text":"45.01% Institutional Shares","page_number":35,"box":{"x":680,"y":286,"width":229,"height":9}},{"id":"d5d118a3-113f-477f-9bf3-e6e37a9ac1e1","block_type":"box","text":"Finance Authority of Maine 5 Community Drive","page_number":35,"box":{"x":70,"y":339,"width":537,"height":11}},{"id":"1c6da832-3485-483c-8612-37fc2cd2ffc2","block_type":"box","text":"P.O. Box 949","page_number":35,"box":{"x":495,"y":354,"width":91,"height":9}},{"id":"a59f287d-2acc-4fcb-bbf3-9950917b7703","block_type":"box","text":"Augusta, ME 04332-0949","page_number":35,"box":{"x":448,"y":369,"width":185,"height":11}},{"id":"2af4d036-6140-44a6-b2c7-99269e870ec3","block_type":"box","text":"6.21% Institutional Shares","page_number":35,"box":{"x":685,"y":339,"width":224,"height":9}},{"id":"db375d61-9a26-4aa6-a8b4-6d1411a9c0c4","block_type":"box","text":"DCGT as TTEE and/or CUST 711 High Street","page_number":35,"box":{"x":70,"y":392,"width":528,"height":11}},{"id":"1e668995-a148-40c5-85fa-03c19abc2973","block_type":"box","text":"Des Moines, IA 50392","page_number":35,"box":{"x":461,"y":407,"width":160,"height":10}},{"id":"e891bbcd-4942-4f56-8e55-6867b03cdda0","block_type":"box","text":"5.42% Institutional Shares","page_number":35,"box":{"x":685,"y":392,"width":224,"height":9}},{"id":"201369be-15a2-48cc-b91b-376ee12def91","block_type":"box","text":"State Street Bank and Trust 1 Lincoln Street-2901","page_number":35,"box":{"x":69,"y":430,"width":549,"height":9}},{"id":"413bc50a-00eb-4586-bf98-e9cdc9073380","block_type":"box","text":"Boston, MA 02111","page_number":35,"box":{"x":474,"y":445,"width":134,"height":10}},{"id":"449d3d77-627a-4e43-bf58-3268ec0c5a57","block_type":"box","text":"36.97% Class R Shares","page_number":35,"box":{"x":680,"y":430,"width":214,"height":9}},{"id":"d7ca57af-89b0-4935-ba12-9403f6d0e092","block_type":"box","text":"Talcott Resolution Life Insurance Company P.O. Box 5051","page_number":35,"box":{"x":68,"y":467,"width":523,"height":11}},{"id":"9628b97d-0eec-420b-ad25-2c2aa04a5131","block_type":"box","text":"Hartford, CT 06102","page_number":35,"box":{"x":471,"y":482,"width":139,"height":11}},{"id":"f2d6a214-4138-4510-a343-17ce3626d1fc","block_type":"box","text":"20.34% Class R Shares","page_number":35,"box":{"x":680,"y":467,"width":214,"height":9}},{"id":"122aea4d-b738-4d72-8bd7-08e001d0b43d","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith","page_number":35,"box":{"x":70,"y":505,"width":262,"height":11}},{"id":"48a54fe2-fc54-4276-b835-42ab0d60ee8b","block_type":"box","text":"Incorporated","page_number":35,"box":{"x":70,"y":520,"width":87,"height":11}},{"id":"5de13b13-eaa2-4593-a269-47d30d7a6252","block_type":"box","text":"4800 East Deer Lake Drive","page_number":35,"box":{"x":444,"y":505,"width":193,"height":9}},{"id":"7dec4278-24fc-4e44-a1cc-293b679c95eb","block_type":"box","text":"3","page_number":35,"box":{"x":513,"y":520,"width":9,"height":9}},{"id":"fa065b98-b528-402d-bc21-2c120bfc059a","block_type":"box","text":"rd","page_number":35,"box":{"x":523,"y":521,"width":6,"height":4}},{"id":"675f3ea2-c96d-438e-88b7-21708a55bb64","block_type":"box","text":"Floor","page_number":35,"box":{"x":536,"y":520,"width":33,"height":9}},{"id":"563b3956-1e68-40df-8108-be4c0a852d05","block_type":"box","text":"Jacksonville, FL 32246-6484","page_number":35,"box":{"x":437,"y":535,"width":207,"height":11}},{"id":"96dcd083-9a2d-432a-bd1b-af2a147c2003","block_type":"box","text":"6.43% Class R Shares","page_number":35,"box":{"x":685,"y":505,"width":209,"height":9}},{"id":"32eb01d1-12e4-43e8-8b6a-c6b01d7a7f6d","block_type":"box","text":"BlackRock Advisors, LLC 100 Bellevue Parkway","page_number":35,"box":{"x":70,"y":558,"width":549,"height":11}},{"id":"cf5bcd78-3a78-45df-8879-a118c4966d9d","block_type":"box","text":"Wilmington, DE 19809-3716","page_number":35,"box":{"x":438,"y":573,"width":204,"height":11}},{"id":"76c07252-15bc-4b27-8bda-f7dc855f77f6","block_type":"box","text":"57.11% Class K Shares","page_number":35,"box":{"x":680,"y":558,"width":214,"height":9}},{"id":"e1c8908c-1190-4af4-8d87-0f7568554a6f","block_type":"box","text":"Edward D. Jones & Co. 12555 Manchester Road","page_number":35,"box":{"x":70,"y":596,"width":559,"height":9}},{"id":"3a4a46a4-8d9a-4098-b8c0-8b67e7c0a6ef","block_type":"box","text":"St. Louis, MO 63131-3710","page_number":35,"box":{"x":444,"y":611,"width":193,"height":10}},{"id":"eb4e8c9e-15c9-4202-83bf-8348a5928a76","block_type":"box","text":"25.08% Class K Shares","page_number":35,"box":{"x":680,"y":596,"width":214,"height":9}},{"id":"3aa9b843-6909-49c1-84b0-d5375c3c25ac","block_type":"box","text":"IX. Financial Statements","page_number":35,"box":{"x":69,"y":643,"width":179,"height":8}},{"id":"2bc8db61-6024-4d86-914a-a7b5a786ac84","block_type":"box","text":"The audited financial statements, financial highlights and notes thereto in the Fund’s Annual Financial","page_number":35,"box":{"x":101,"y":665,"width":726,"height":11}},{"id":"5d21f4fe-bbef-48d2-b13a-ad0258911ebf","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":35,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"f2a81603-b4c1-4cdb-9382-122241cf6a99","block_type":"box","text":"(the “2026 Annual Financial Statements”), are incorporated in this SAI by reference. No other parts of the 2026","page_number":35,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"5bba43f4-4290-46ab-9ca9-7c172555fdc5","block_type":"box","text":"Annual Financial Statements are incorporated by reference herein. The 2026 Annual Financial Statements have been","page_number":35,"box":{"x":68,"y":710,"width":833,"height":12}},{"id":"020a75d8-10a9-4a5d-a5e9-182ec5ddd6fb","block_type":"box","text":"audited by Deloitte & Touche LLP. The report of Deloitte & Touche LLP is incorporated herein by reference. Such 2026","page_number":35,"box":{"x":69,"y":726,"width":839,"height":11}},{"id":"b8f2c911-4b14-4b65-8ca3-80dfc1e28a92","block_type":"box","text":"Annual Financial Statements have been incorporated herein in reliance upon the report of such firm given their","page_number":35,"box":{"x":68,"y":741,"width":790,"height":11}},{"id":"aae98608-c700-4199-941c-9b90ab127cd6","block_type":"box","text":"authority as experts in accounting and auditing. Additional copies of the Fund’s annual and semi-annual reports to","page_number":35,"box":{"x":69,"y":756,"width":815,"height":11}},{"id":"0df7a1a4-00a6-40a6-bf7e-a87866dc71e7","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":35,"box":{"x":69,"y":771,"width":785,"height":11}},{"id":"b9baa9ec-c7f1-4164-a924-52d53eceba82","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":35,"box":{"x":69,"y":786,"width":836,"height":11}},{"id":"d877fb6e-6e71-4f8a-a500-ff3337e3c8d4","block_type":"box","text":"I-26","page_number":35,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"f39d766d-340a-4076-b1fc-1a37e65f5e89","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b5b4bbdb-27b8-4b2e-ab26-02efc3464a80","block_type":"box","text":"PART II","page_number":36,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"c1d48994-7267-40ec-8a9e-4d2175c815e5","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":36,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"dde4b25a-d7af-492e-8bba-b5c588c9d700","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Certain Funds may also be referred to as “Municipal Funds” if","page_number":36,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"b5ef6447-66f8-4f51-9793-71503961df39","block_type":"box","text":"they invest certain of their assets in municipal investments described below.","page_number":36,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"3a1040d4-7bd0-4cb6-814c-676a306548e3","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":36,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"0e605d55-c24d-4534-83aa-70d951fb691c","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":36,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"5049fde6-0e1b-4c58-804e-71e56be58c99","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":36,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"4d39270c-0408-46e0-8039-87d0569e047a","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":36,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"968220d6-6de7-4ac6-92cc-8779310ce714","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":36,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"e41e3ecd-ae66-41f7-95cc-ed1ecdb76745","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":36,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"f6f39afc-2843-4c76-895a-e1e8c5737bf8","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":36,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"8357ed23-045d-4c4a-bd60-d93c05241b8c","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":36,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"8a666762-3cec-4c99-b688-89304c2c2e17","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":36,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"f2d6627b-5cce-4dc1-87bb-235469d7e7e7","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":36,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"b005ab68-a573-4084-aa9e-8f5dd9acd2e1","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":36,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"9ed8191d-4865-42b9-8ac2-b8bda8c982c9","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":36,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"a0fa40fb-09f6-4740-8a7f-40960afca196","block_type":"box","text":"Certain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a portion of their assets in a","page_number":36,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"dc39ae44-679a-46fc-98c5-7a5a94e2124d","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":36,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"c7980dad-8d3f-4aac-b4bf-9af3f0ad2c2e","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":36,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"159d501b-3f79-4015-9adb-f1e46d9a33f1","block_type":"box","text":"made at the level of the Master Portfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":36,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"ac86e727-6dff-40da-aa2b-97bd6b73bab7","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Portfolio in","page_number":36,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"fb12cb6c-2d55-4998-8063-db2e56583030","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":36,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"ea1839d9-7845-42fc-af2a-9d4d454eb963","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information about all","page_number":36,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"10a93c4b-906c-4d33-9fe9-71f2513c8584","block_type":"box","text":"funds in the BlackRock-advised fund complex. Certain information contained herein may not be relevant to a","page_number":36,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"05910892-9970-4ce5-b6cd-742d9e846809","block_type":"box","text":"particular Fund.","page_number":36,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"1b7c16f5-641b-4f1d-bdbb-048bff249f9f","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":36,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"76acbdee-6b99-41cf-ae51-fd605802049a","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one or more","page_number":36,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"df902b8a-cb10-4580-b726-9d54f9fda570","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":36,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"d1e1490a-8621-4c8f-bb13-8366b2abf416","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":36,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"6abbcf0c-ec00-47ff-9dda-7a53cf8a300e","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":36,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"f40bffcc-3564-451a-8635-e334517f7b59","block_type":"box","text":"I of this SAI for further information on each Fund’s investment policies and risks. Information contained in this","page_number":36,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"066fede3-26b3-4d90-bc98-c19360091aec","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":36,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"0a4a140e-fdad-4d29-998a-bb9f2ec02090","block_type":"box","text":"applies only to those Funds specifically identified in Part I of this SAI as making each type of investment or using","page_number":36,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"5e45b888-15e3-436c-b7c7-983deeae0d06","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":36,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"7b1322e8-b4b4-4c91-96df-f756748d9222","block_type":"box","text":"a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":36,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"4a704f99-fec8-49bb-8361-f935330ca91d","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a part of that Covered Fund’s SAI.","page_number":36,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"425bca76-1d56-48de-9fdc-1ba5137c0a9c","block_type":"box","text":"Asset-Backed Securities.","page_number":36,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"4cb6dd6d-5c52-43f0-919e-305fdc9df799","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":36,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"c13676f3-465f-46a0-aa26-1854980aebdb","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":36,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"48d6d4ef-16e8-4e29-99ec-0a438ce90db3","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":36,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"c728cf8c-836a-453c-a58d-5efcbf31200f","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":36,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"637d73e8-03b4-4f74-99fb-35f900aa3ce1","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":36,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"bb850695-969f-494f-a139-e2bc2ce53db4","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":36,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"327f4745-54d7-45ab-9e10-2cee60fc2383","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":36,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"e36b846c-0a6e-4371-aa5d-d15569834d5a","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":36,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"5129f4a9-9a49-4270-9006-a33b469486a7","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":36,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"9216e2bc-8838-4779-b9a2-7c73a2385785","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":36,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"a231b6c5-22a1-4ed5-9602-5c844c4d7c7d","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":36,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"1dfe29a4-05ea-4398-a79f-6e00e97305e1","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":36,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"3680771b-102c-435a-b656-01f3fcfc4f71","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":36,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"34b92e60-8014-4344-bb54-c079eab26256","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":36,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"625b0cc5-d9b8-49b7-8794-c8e9592af246","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":36,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"1ca7ef3d-2e55-407f-af57-7f02d34319a3","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":36,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"1a4aac03-5558-498f-8133-06ac252e93a3","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":36,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"b84cf11c-17dc-4196-8e8c-2c0eb437c24a","block_type":"box","text":"change a security that was considered short- or intermediate-term at the time of purchase into a longer term security.","page_number":36,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"bc72808e-4e06-4c13-99e6-04b98d0b7082","block_type":"box","text":"II-1","page_number":36,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"6ad87a0c-d177-497e-9322-cc577b730255","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":36,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3f90fabe-90bb-4a85-a2c3-05d37fd53cc5","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":37,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"f9addd35-fbe0-4ce3-ad5a-4993f494d6b6","block_type":"box","text":"than does the value of shorter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":37,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"4de9c9b9-97eb-4815-9b6d-ee0d955857fe","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":37,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"e78fa5d6-db5c-41af-a446-a4af06f12fd7","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":37,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"8e3ef12c-7224-466e-9f79-bc18b21f1047","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":37,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"9620a3db-94f1-4683-a04c-036905850fb8","block_type":"box","text":"Asset-Based Securities.","page_number":37,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"ada8c853-77ed-4559-98be-ce1b0e977b1e","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":37,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"03331ae2-7fc4-456c-932d-f0d32508fb80","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":37,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"88ffa66b-4550-4bf3-a90f-b27be9387b12","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":37,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"5fe9ab47-5576-43cd-93cf-43067eb4f9dd","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":37,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"bf44da48-5910-4b84-9ffa-e3217cdae379","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":37,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"31d45183-6d5c-418a-9fc4-9a40a61d67be","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":37,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"b8f818b7-7e47-4b30-a627-1d169a94cb48","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":37,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"4b0b2e5f-dfc3-426b-8edc-be0404f12090","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":37,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"f7247869-363a-4682-8dd7-0e87cefaff0a","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":37,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"c0965d6d-5ed0-4a72-b53c-da65468beaed","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":37,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"27a4e278-ddc3-4388-83af-2ccec7ff169c","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":37,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"3cce8423-18e7-4a4c-86ed-6db7c6ecc637","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in","page_number":37,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"5349955e-837e-4cc4-8dc2-6b785d38200b","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":37,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"ce34662a-d149-4465-ae77-b94f78e11c64","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":37,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"c73c46b5-5099-4a85-8278-e6764f1c10c2","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":37,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"0609d5ec-65b3-40e8-a2e0-544ca96783c0","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":37,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"f8800c5d-1c8b-4591-bbe5-7ffcfb241480","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":37,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"c38c32b8-72af-4146-80f7-89331cc57826","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":37,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"b5d6dba5-f4a0-4a17-b18d-3fca075182b4","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":37,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"869376ec-71f1-4315-bc9c-9875e9eab586","block_type":"box","text":"appreciation in the underlying asset.","page_number":37,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"7d92950f-ac4e-49d6-a20f-df7cf2e4d509","block_type":"box","text":"Precious Metal-Related Securities.","page_number":37,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"c7661746-27b3-4a09-96f9-745241c56853","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":37,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"4bfb214c-aefe-4121-9038-48978972c154","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":37,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"09dce75f-8648-4548-8bcf-bef30a623d3b","block_type":"box","text":"e.g.","page_number":37,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"8c326732-af5d-45af-8d1e-f51242875880","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":37,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"f718e753-f8c3-430c-a898-c9d3a9800eee","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":37,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"4e7343fd-1fe8-473b-8778-fa7ac29fb23f","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":37,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"3c7d6173-1169-4d58-8306-7a9563dbe942","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":37,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"09544acb-429f-4d64-b9d3-4bc506f332fa","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":37,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"345b35a5-b1d8-406c-b779-f3ead0a96d0d","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":37,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"44bbc43a-b1a4-4a2d-9364-b382ab4c231c","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":37,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"282d397f-f560-4744-9782-ccfc9b1d3c54","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":37,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"98554a3f-1064-4452-81f8-ce7f2fb08f57","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":37,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"7981f3aa-be4c-44eb-b93b-672382994347","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":37,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"0961eae2-d39f-4845-b38c-a7f79aa76f64","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":37,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"70edcaf2-bab1-44f7-8d0c-560c09e45312","block_type":"box","text":"South African gold production.","page_number":37,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"c2ff4a8f-61ba-4a90-b21e-475b96876b89","block_type":"box","text":"Borrowing and Leverage.","page_number":37,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"4b6d215b-8709-43aa-85c3-47cc41fc471e","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":37,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"a7bdc278-f4dc-4905-b1b0-3030c6be9b1e","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":37,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"2d98f764-4cdf-49e9-89a1-0f44e400f755","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":37,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"7e61be25-0511-421f-a6f5-23744aa48519","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":37,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"a756bc6a-cf7d-4444-9c24-aaa2999bb08a","block_type":"box","text":"other securities transactions.","page_number":37,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"8d90c994-86fc-4aa8-ac4f-ed5682bbb3b2","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":37,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"bcdffca4-3884-4051-9ac5-37a19c0398e4","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":37,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"47241756-0f0e-4ff4-8e03-ae4b8f6a1156","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":37,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"2d9b5ea8-18d0-43a3-8f4b-81be0294acb8","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an opportunity for greater total return, but, at the same","page_number":37,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"5b943917-6d6b-4065-ab4f-a572d1275b9e","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":37,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"1c880f34-731c-45f0-8bdf-d977d76397de","block_type":"box","text":"shares and in the yield on the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":37,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"8a50ad48-393d-46dc-9b8f-035a5f947109","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":37,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"cb8898c0-3f24-46dd-be3f-067f8a14cb07","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":37,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"8460ad66-1f82-4791-a302-77081b219a9a","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":37,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"adf0045c-f040-4895-b267-06a02df3523a","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":37,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"1c70f760-4bee-4392-9153-b03b31ffd208","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":37,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"5ed287a3-b32f-46b8-be73-244622b88fab","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":37,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"6b5f8988-b3fd-452e-9d87-7cfba0da096a","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":37,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"9dc073a7-176d-41e1-b6f0-23bf59f10b8b","block_type":"box","text":"II-2","page_number":37,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"bb3efa35-5c02-48fd-95e9-05455b75fa86","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6ea3174a-d112-4ee3-8259-7f3976e50e7e","block_type":"box","text":"nevertheless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":38,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"730deac2-ba3d-412e-b65e-8261e6ff1838","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":38,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"aeae36c3-20d4-4c29-98a3-14a0c11ccd38","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":38,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"8bf9c2da-c530-4bcd-b929-a52a8844dbbc","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":38,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"be5778b7-4505-460c-b787-1ffd3aedfa32","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":38,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"1a153808-a5ac-4f92-aeaa-4b6b8498a047","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":38,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"4eec88be-645c-4c19-8386-426099a62a58","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":38,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"0c83a5f6-e87a-4a7c-aa8a-5a42ce61dd0e","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":38,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"b41cf84f-353d-4076-9e81-662916548d8e","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":38,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"80a65875-21cd-47b6-8c95-32d2c3f838fa","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":38,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"2f6c21df-9cd8-43f1-a654-72c6a1eaea94","block_type":"box","text":"Cash Management.","page_number":38,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"e2b288a7-0130-4295-9483-406fbcb07066","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":38,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"f8299a79-6cab-4991-a972-da0194ffd627","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":38,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"16840fb5-1b63-48cf-abf9-3a75dfdcef67","block_type":"box","text":"in the opinion of the Manager, a portion of a Fund’s assets may be invested in certain types of instruments with","page_number":38,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"27e148aa-627d-4b12-98b9-346052ce2604","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":38,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"8621ff51-e520-4134-9f20-2304cccdc85c","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":38,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"7d612970-9136-4bd2-9d71-8da7fe19241f","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":38,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"4f901217-0324-4a73-9d38-dbf7b39d7532","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":38,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"8badeedf-1b23-4fae-a225-d9832fe4ff09","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":38,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"4a133270-eae3-4ee4-b6ef-eb463c277084","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":38,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"77760bac-858b-43b4-be80-4f55e9a900ba","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":38,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"3a791d95-9700-4989-9246-79d9f9ae99fe","block_type":"box","text":"obligations or other short-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":38,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"a7a238ef-1a8e-4369-9d87-a8b1e0b0cd80","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":38,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"970697db-409b-47fd-8eb5-08f9bb324d0c","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":38,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"454ec5fb-9890-4d49-9c7e-8f499e4a606e","block_type":"box","text":"Collateralized Debt Obligations.","page_number":38,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"c5a21a20-c4d5-42e3-aeb6-af60b0669543","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":38,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"27dc38ed-1693-491e-9d9b-1f54b4e5ca39","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":38,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"4f1992ec-eede-45ab-8be8-afe05439197e","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":38,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"f3c97442-204d-4048-9843-8e71a58c3df0","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":38,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"44355989-621c-4b8c-b1ea-c47cd10c00d3","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":38,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"ef6cf6d2-9c84-4466-82d4-03ebcd100c84","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":38,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"751490c1-438d-437a-bbe4-f92ac2817ac9","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":38,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"8766d37c-8ed7-4365-8acf-54a24824190a","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":38,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"75ba532e-c658-4657-a97a-9fbf53e7245d","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":38,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"9498e82d-16cb-4a41-9b1f-cbf6732f2362","block_type":"box","text":"substantial portion of which are U.S. loans. Although certain CDOs may benefit from credit enhancement in the form","page_number":38,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"59567c58-9adc-48f3-a815-c76f6218c638","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":38,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"b2f14bb4-5c76-4b50-8490-5f0dad87a537","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may","page_number":38,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"c6531a0a-a10c-483d-89eb-ea477419c104","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":38,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"37739e57-b467-486e-80fe-7a52e87f005f","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":38,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"6ed431aa-0508-4db4-9e40-b638902d40a8","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":38,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"c8eabfbd-f33f-4a83-a060-87f2debc1e03","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches,","page_number":38,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"daa89a23-4305-4627-b926-20f27dd2d493","block_type":"box","text":"varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss from defaults from the","page_number":38,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"74bc4133-121a-4f1c-9c75-05936eee5a5c","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":38,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"573c742c-d0a4-4f20-be24-bccaefcda566","block_type":"box","text":"is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":38,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"eaf6b576-2416-419f-88aa-10da95e9ef96","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":38,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"4394ce30-3603-49cb-a10d-7e0aa9ad469b","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":38,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"dadca278-b22e-4dfc-a773-7c57d0ee53b1","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":38,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"29061995-bd65-4f95-92b8-bc6726ee9263","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":38,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"3222669a-9302-4728-957c-1d691b097c0d","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches","page_number":38,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"3af5c201-243e-4979-bdd4-9e462048005d","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":38,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"b6d6ef6b-fadf-4ddd-b28f-afc69307c9b3","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":38,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"ab35c5e8-e64b-4fdb-874a-d98634068b64","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":38,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"168660c3-6030-4666-b62f-099f9162d30a","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":38,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"7d256427-89a7-41dc-91f8-ca3a4722f7a5","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":38,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"fdf51ef0-17b2-46df-b844-1003b7a9c21d","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":38,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"3b1343b9-7ea1-4a37-a0c7-2596442036d2","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":38,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"5e84307c-7891-4755-9ce6-ae35f83cd5c8","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":38,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"dcf9e096-c8b1-49fe-8fd4-17b7270a613c","block_type":"box","text":"II-3","page_number":38,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"f6f68f27-2db2-4669-9b58-a82c92a7eaec","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c556a316-aa35-4841-a29e-6932cae663e5","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":39,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"77199741-5063-4844-a2a2-cc5a91295eb2","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":39,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"07b49ff0-8182-4d8d-90fa-a89d173b572e","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":39,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"982a6242-dfda-43f6-a30c-a6fe291079e5","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":39,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"f61c54d8-8b20-4c89-a144-b3ce1f57f540","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":39,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"2260a81f-f43b-470d-8c42-c5d83fc1af12","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":39,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"5a278496-3c20-4e19-9e99-e39b272259ed","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":39,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"90d7128a-ed23-499d-a7ec-0162949ee73c","block_type":"box","text":"Commercial Paper.","page_number":39,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"371bc3a1-4386-4bdf-a803-d8086946ea39","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":39,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"3b342c1b-053a-4164-b828-2c74ef2b4fa0","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":39,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"c43c4e63-56b0-4a32-a779-d53577a0fd71","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":39,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"02fa13a9-3e4a-486c-bd96-264ecfa2d072","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":39,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"f66959b2-716c-44ee-82c4-6fa072efcdfc","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":39,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"062944ee-b6a9-40c8-8ac0-2393b83acaee","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Certain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":39,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"5aaed8fe-fe4c-4d4d-9a19-6bd936312f5c","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":39,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"c8636b6e-eac6-44fc-aae1-f0efefb49c40","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":39,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"deb1c340-075a-474c-8002-ec6e655431e4","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":39,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"6d10d891-70c5-4a86-a482-f769f344671d","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":39,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"b17f0e17-5117-4fbd-a044-0dd72d1e3f60","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":39,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"d5980372-13d4-4cc1-b8c7-4211772fe1ff","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":39,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"387aa20d-af00-4e0a-9333-cf94086ff191","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":39,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"75e486f0-24d2-4656-bc53-c362c1b5274e","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":39,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"5c1979d0-7484-457f-afb1-06f7ba927881","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":39,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"e0b0544b-61a6-438b-966a-da600f65cbef","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":39,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"b9dd8068-01a8-4bb8-bad2-83b7f79bc4f6","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":39,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"44e8bb74-4d14-42b3-9ddd-7db075a7e3da","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":39,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"d299dd1a-b087-4bba-a7cf-8ca5db22d38b","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":39,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"69f76d1a-e8bb-4591-9a54-f03720c2b324","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":39,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"85a5d8c3-16c5-41ea-9334-8002a4055a01","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":39,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"f5a0af47-e4df-489a-bf78-f1111db25ec4","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":39,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"2c84da30-a6f0-462d-b057-c91a7d0c7e6e","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":39,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"fd3a9dcc-a1fe-4c47-a16f-4a6eea2e6894","block_type":"box","text":"variable.","page_number":39,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"46b91905-bdfd-45ce-9ec6-88eebbeecf89","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":39,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"9cfa1773-19ac-4c91-836a-3125daa77a4a","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":39,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"f5fa1264-9b76-4c70-9553-50398bcbfbb9","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":39,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"220ed051-8696-4799-a4bd-190a99d6abbb","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":39,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"3a819530-7d18-45e2-bfad-d31441e8c8be","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":39,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"f044df40-e101-44bf-be27-c5500612a68f","block_type":"box","text":"course, there cannot be any guarantee that these investments will perform in that manner in the future, and at","page_number":39,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"ea917c7f-a849-46a2-8646-49dda0632f74","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":39,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"426c2179-8968-469b-a2ca-f393be8d82d9","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":39,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"20b2fbb7-d1af-4c8c-826a-556a36b7d751","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":39,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"07cd87f3-a43c-4f5b-a03b-f33ae51f74a5","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":39,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"40ae970b-5a49-4707-b85f-5c598258bc54","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":39,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"322be996-91d6-4d76-8f7a-71a68f01f4fb","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":39,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"22bc53fa-270e-41a2-98ef-d361f227553b","block_type":"box","text":"correlation with stocks and bonds.","page_number":39,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"71e7a9ec-28a2-46ff-9416-5c44a3cb37ae","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":39,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"fc9e84c6-dadb-4bc7-9b5e-ea1a54da5b07","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":39,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"fe2578cf-3b09-4a0e-a15b-15f0ab0de279","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":39,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"51217fb0-436e-4d3e-8de0-32a73c1da45c","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":39,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"25c688e7-a5d9-45f8-9f58-d95dd445a0fc","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":39,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"72fbf6f8-3c43-478d-9311-369d341137e1","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":39,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"1342c191-bb19-4411-9ec2-c684f1b1b944","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":39,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"a8e387f8-5c0e-429b-9b4d-e294c5802abd","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":39,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"54be0a4c-374a-43f1-8154-de786bf66dd4","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":39,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"fea13fb2-7c5e-44ee-b892-f68983dd8bb3","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":39,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"4242b72b-a523-4695-9114-5360ef95b343","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":39,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"f5e0a7f7-cdd1-4fe3-bf21-072815d0bb56","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":39,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"49412c5e-edb8-4785-9d6b-27b0b320d228","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":39,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"9ab14386-2c1c-45f7-a579-e2f4839290c7","block_type":"box","text":"II-4","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a856fa81-81a4-48a5-92a4-46e62b2c120d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"edba92a9-c789-49d0-ab51-68e0e63f798e","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":40,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"f1827f2e-09ef-44a9-81f6-c89eab9d520f","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":40,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"9bb21d70-9baf-44bb-a1e8-00f7f87fb988","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":40,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"1b7799b6-c260-4710-b1b0-68b26b0eeaad","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":40,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"dd896e54-15a3-419b-87af-561e611da861","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in part on the","page_number":40,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"4513a969-8089-43b3-ab8f-b6dbccd51d19","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":40,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"bdde020b-6f11-4b78-b2af-772628ac5e04","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":40,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"48b70f12-7517-4793-a1dd-87d898cf5f29","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":40,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"c1955fe5-dae3-45f7-9f44-db37e9cff73e","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":40,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"38a1d956-209d-4ec2-a2a5-cc57c8c92aae","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":40,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"06a6da6c-6052-4b0d-8075-34edf35d0527","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":40,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"60876999-79ac-46d7-9293-1a25d7b661cc","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":40,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"c34da646-da24-4fc4-8caa-296b926d904a","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":40,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"5ad6b91c-c7f3-4a4b-90b4-ec63397712ca","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":40,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"8393203e-285c-460b-9ac1-7a859a4587f0","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":40,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"d4b9b1e3-dd7a-454a-a8a0-2627d7180e26","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":40,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"92bacead-5435-45d0-a15c-3c010d092c13","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":40,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"7bd53b30-bd9b-496b-bb66-c6c3f4da0356","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":40,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"e229eaeb-7ef3-4b0c-86aa-14aae553e3f5","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":40,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"09e1eeed-3324-4443-8e11-7bae1ad09b5c","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":40,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"9eeb4fca-48b3-4ed9-be32-bcd0108d37fb","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":40,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"e2a307b7-1cc7-4ae7-aa02-f3d507d6179f","block_type":"box","text":"the Manager believes are relevant.","page_number":40,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"a609bc0a-0485-4ad5-a1c4-6cd411ff1bba","block_type":"box","text":"Limitations on Leverage.","page_number":40,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"637e0fae-a60b-40da-aba1-4b811dce0486","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":40,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"b4bb5064-b352-4759-a078-8370dff4d114","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":40,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"56722242-ed44-402a-a6e7-3ba4f98b349b","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall portfolio. A Fund will not invest in a hybrid","page_number":40,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"de86bfe9-930f-46e1-a9b4-ddc11bbc8587","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":40,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"399b6e48-c942-4570-ad46-295e531af588","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":40,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"18d029a7-59c6-4d9e-9bc6-e81c069e0978","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":40,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"e69a3e14-da6f-451a-9d86-71a6090f86bc","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":40,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"4c0a23dc-924c-4d3b-97a3-a415a18355ee","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":40,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"24b51af8-2e92-4e44-b4b1-9b126aaca512","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":40,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"4dd1b63e-3781-4115-b51e-633fb439dfea","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":40,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"e190aaa2-2d12-4c46-922c-ee722305f53f","block_type":"box","text":"variable lost 1% of its value. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":40,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"f8adf651-f25c-43e9-8663-8d7ebec47393","block_type":"box","text":"instruments in a Fund’s portfolio, weighted by the market values of such instruments or, in the case of futures","page_number":40,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"3542c26f-7b58-4a6f-bbc6-29661ca856b9","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":40,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"5bd6b14e-1ff0-41f4-82de-6d78af447387","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":40,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"7268a9b1-be4e-4deb-81f6-48e74d2b5515","block_type":"box","text":"Counterpar ty Risk.","page_number":40,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"5ff3c73c-6d2b-4b5c-ab7c-85fba1d77a01","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":40,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"a0cd7f2a-024f-4d3c-8bb6-92bc9fd5217d","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":40,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"553b3662-c561-46ce-b014-7b9dc5cae56c","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":40,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"46fcf0c8-45e5-42e1-a65e-4e540b116ca3","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":40,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"59f9b7aa-39fb-434a-9183-ed2b89b0321c","block_type":"box","text":"e.g.","page_number":40,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"2980375c-ad77-4e09-b72f-115741336688","block_type":"box","text":",","page_number":40,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"f8b795f2-9d11-4e6e-ad59-595b4b697f36","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":40,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"b0446565-46d0-4134-af15-749cc22594d3","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterparty credit risk of the","page_number":40,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"21688723-4cd0-4403-9dd2-eb15b627b50f","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its","page_number":40,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"4a3f8f8e-735a-4991-b190-432df51eb06f","block_type":"box","text":"obligations under the structured note.","page_number":40,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"e21fa69d-3f1a-4318-9d80-f48415ac5595","block_type":"box","text":"Convertible Securities.","page_number":40,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"d5de6fd2-b3a5-4159-b5cb-6eada2553d3d","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":40,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"0d0f6656-ecfd-4d87-bbeb-2579c586fd3b","block_type":"box","text":"may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":40,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"3854202a-f55d-40ea-92ff-a7fecf7c4320","block_type":"box","text":"a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the","page_number":40,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"53ab0872-bb9c-4d6f-8736-2c6abe207662","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible","page_number":40,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"21a2aad9-fd2a-4cfe-ac0f-5d138f1d9887","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":40,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"e3e6a864-ed5b-47c7-a6ed-571fa5b8ad51","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":40,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"09b6e8e3-ae82-4e6c-bd12-d882bfb544c1","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":40,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"8bcf8d7c-112e-4c72-9dfc-1fedd436f095","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":40,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"f420ba51-b0c5-42de-84d8-e7038f0bb96a","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":40,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"4061a575-0194-4f26-8379-6625a8870ada","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the convertible security’s investment value.","page_number":40,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"cbfdcf95-925a-4e5d-8989-5e8cb39c960a","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":40,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"f65866eb-0467-43fa-ba84-f8c6dc9c0b41","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":40,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"ae4789d2-4f29-4ddf-8885-c792fe4089a8","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":40,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"1b861753-da11-4376-9d46-81c068857e0f","block_type":"box","text":"II-5","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"9e7ed8a6-c4fb-4524-ae58-b67acabac83d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"98971603-c8f2-4db9-b591-babd6e2c647d","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":41,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"53e1cf88-bf6e-4a83-98d4-78d72c270043","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":41,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"33e043a6-3f22-442e-8214-401abb97f4bd","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":41,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"5495ccc0-cfe7-4c3f-ae2a-6abd4b300977","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":41,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"e61e5d4f-ef92-4ef0-a77f-42d9b34ac508","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":41,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"922d711e-dba3-4382-bd19-17e972085e9a","block_type":"box","text":"feature, however, the interest rate or dividend preference on a convertible security is generally less than would be the","page_number":41,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"22b8ce2c-bbc3-41d0-a3f2-6c8ad6b92ae7","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":41,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"1905958f-87cd-479a-9e0e-5860dd67cf93","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":41,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"e0131202-45ef-42c9-b4ac-aa179bd1a1cc","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":41,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"b3701e29-dea0-433c-b0c2-ea661752eacb","block_type":"box","text":"things.","page_number":41,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"91cef34e-bf74-496f-a71f-cf8fa92538a7","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":41,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"5fcae224-a3cc-4086-ba97-532c8417c5ae","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":41,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"6596f5d8-b2ed-41ee-a16c-7c15e471a69a","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":41,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"467c5c59-7c18-40f1-b96b-a2565c29120c","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":41,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"f4d1849e-168f-4811-9461-d6a9c2b48c58","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":41,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"d9b0424c-be7b-4221-a83d-deae9d6aeb53","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":41,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"21f55d07-4bea-4a8e-9ada-e8063eeb34ad","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":41,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"ea8a6b10-4278-473f-816e-1ba53f8c65b1","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":41,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"010569ce-c90a-4c99-becc-a3b194fb7364","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":41,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"9be29eb9-38ca-4728-ac23-f1920a1cb4f9","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":41,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"4405aa67-ed90-4f15-b217-cddb1f8ecab5","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":41,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"c75da6c3-1914-4705-ad98-0c9140c5127a","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":41,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"c5a75678-cabb-4bbb-9b21-9f732c740935","block_type":"box","text":"i.e.","page_number":41,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"49cb7b9a-dfaf-4e0a-b785-aeb4a25a4dda","block_type":"box","text":", strictly on the basis of its yield) is","page_number":41,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"5fa31ed9-8f3e-44ff-9733-27db1c6a9dc3","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":41,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"5b417788-0579-402a-aaca-e34f56d844a3","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":41,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"aa1f587f-1561-4f3e-8411-4b26b42bd77e","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":41,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"0b224e3c-062e-41d6-b2d8-b52292e37088","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":41,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"4208aeb0-80c5-48ce-ba7e-5a5b8114531d","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":41,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"e4ea59b3-b80c-4c89-bf9e-1fefc178f60f","block_type":"box","text":"the price of the convertible security is governed principally by its investment value. To the extent the conversion value","page_number":41,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"86c8b861-49fe-43b8-befc-4f3ca9e5c99e","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":41,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"320e4d1a-656d-4839-8248-352813197cba","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":41,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"5798081b-fb2e-4b57-a68f-7b4da8893be9","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":41,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"52b74144-253b-4a17-aecc-fd69ef17348b","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":41,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"2441270a-e7d8-4de8-bec2-4b075e2502be","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":41,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"4349bd11-e5b2-4561-ba18-9887950816d2","block_type":"box","text":"than the securities’ investment value.","page_number":41,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"043a2976-f41d-41b5-9d44-c4103f4de320","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":41,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"9cd6777f-39c3-4823-8598-4b698e4c42d5","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":41,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"b4836913-babf-44ca-b867-52e68f8c7a31","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a charter provision, indenture or other","page_number":41,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"12cf578f-1ec6-480b-91f8-29c7d524a964","block_type":"box","text":"governing instrument pursuant to which the convertible security was issued. If a convertible security held by a Fund is","page_number":41,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"7cd4cd35-06e0-4509-875f-ad53b1fb3a6a","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, convert it into the underlying common stock","page_number":41,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"aa02b42c-9a73-40fe-b8d1-534a7ed52ab5","block_type":"box","text":"or sell it to a third party. Certain convertible debt securities may provide a put option to the holder, which entitles the","page_number":41,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"c205bb1e-14ef-4495-8947-df7549971d41","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":41,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"6da11e3e-f422-4d9b-b1a1-d77f54cbc6b1","block_type":"box","text":"security under certain circumstances.","page_number":41,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"87b6a353-1f31-44b3-8946-e94f6b9165e3","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":41,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"2eb7483a-9c4b-4ef0-ab12-a720b2a83ea4","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":41,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"28f9ad49-5c23-41a8-9496-d3172fb840d7","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":41,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"9d2a3ea6-08a7-482b-a1ac-13213e9406e6","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":41,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"04b4cdfc-113e-48ca-ad93-9ecfceec9831","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":41,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"a9b2d0d5-1a0e-465c-b349-f8b3d112cbea","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":41,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"6f7a9c32-db80-48e3-a456-4fc99979a218","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":41,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"511d5db6-141e-4199-a2a6-eaeb9efc53b0","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":41,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"85b06026-0bb8-4435-915b-2b8ffebe106c","block_type":"box","text":"i.e.","page_number":41,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"52b198d6-5c21-420e-bcca-06ae02ee157f","block_type":"box","text":", fixed-income (“fixed","page_number":41,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"1e174c37-4d4c-48f6-b1d3-6c95ffc988bf","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":41,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"bed145e5-02f7-42c9-a40c-8e7d7fb4239a","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":41,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"082d4039-0d69-41ac-8648-e201b412f5b2","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":41,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"0354cebb-e488-4fdf-a801-177a968d75cd","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":41,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"68426883-c4d7-4319-8426-23741c58c87d","block_type":"box","text":"II-6","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"0c3854af-a720-406b-bfcd-9456bbbdf95a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"81bfb7d0-c54b-4835-9db1-4c42a82ed805","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":42,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"05ee207c-321e-4493-aecf-f23bcd480e01","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":42,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"32ee7bfe-7343-49cb-9669-06f2cb092aca","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":42,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"42fc4400-1bbf-4228-ad91-3887fae8c019","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":42,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"037f6598-9d04-4448-9221-b025077d84f9","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":42,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"cf0e1d3e-66d6-4ad0-93a6-2e6a4bc0f16f","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":42,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"f65b5d4a-bebd-4bab-80bf-6915d577e7ff","block_type":"box","text":"component.","page_number":42,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"30bfd276-5e5c-4820-b72c-92e99a493614","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":42,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"3e78e8b9-737a-4009-a50a-9a8fe26b9b7b","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":42,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"b4fe4d2f-7fdc-4fb8-b52e-d1d5eb476110","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":42,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"d17783f3-5adb-412e-9b94-c06e3f6f9320","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":42,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"93c8301e-a250-4ee8-9c04-b1cac2bd5916","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":42,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"9e3014e5-c059-47ef-8075-a0c8d5785b5b","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":42,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"9fda6d15-f0a6-41a6-9515-ac806cdadabd","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":42,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"a05cd403-7b5c-4e80-8fa2-407e70824e2b","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":42,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"47101def-5222-4230-b384-6b38b201bbe1","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":42,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"32d98619-70c7-438e-996d-4dec6c19660b","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":42,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"f72c7df8-2bb6-4555-b129-fab652ce49b4","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":42,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"57a9fa60-a92a-458f-901b-460906c1915d","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":42,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"8784ab28-bf17-416a-a5ce-62abdee871cb","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":42,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"9c632b1a-8eec-4934-aeb7-2d02d6f7a7b9","block_type":"box","text":"favorable market conditions.","page_number":42,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"32b389cd-7f13-4b78-9f68-371d3aaf93c7","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":42,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"cc71f270-dc72-4f72-a134-33c1cc7ba188","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":42,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"79053957-42ee-492f-813b-d2c19395f5f9","block_type":"box","text":"by combining a short-term U.S. Treasury instrument and a call option on a stock, the Manufactured Convertible would","page_number":42,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"e5589d1c-373b-4966-a6a6-2c94679e4aa2","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":42,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"dd87959e-c14c-4238-a549-69d1f6b3692b","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":42,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"89c0392c-ab0a-4af4-b3be-6d5d5bbdb6c9","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":42,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"d8afab46-9081-41e4-95f4-4940371334a1","block_type":"box","text":"Corporate Loans.","page_number":42,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"7cdc4c1f-d0e7-4756-94af-0c1942c6037d","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":42,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"36c0300f-3ed8-4131-89ee-3c14a3f1b1c9","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Certain Funds may invest in","page_number":42,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"5a3d8116-b372-4864-bab3-a6dacc33b441","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":42,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"efab3cab-3411-4748-b2b4-2b2ceb6f29e3","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":42,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"6dfe289f-6bf4-48de-8cfb-7f70d9f04892","block_type":"box","text":"in such Loans in the form of participations in Loans (“Participations”) and assignments of all or a portion of Loans","page_number":42,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"c5822219-1eb9-4a25-8467-3c0be7317a94","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":42,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"890262d7-43b2-416e-95e5-f68df37b5c9e","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":42,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"41478645-c122-474d-bc54-18ef8b1accad","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":42,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"e3daa856-441e-4436-808a-84383b951085","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of","page_number":42,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"96d1be09-96c2-4b19-b5f9-76fdd80b18a8","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":42,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"f53a385c-6985-4655-9384-cfcee7e10e32","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":42,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"eb02c94a-fe50-40e6-80ec-b1c3534102a3","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral supporting the Loan in which it has","page_number":42,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"d2b7d24e-1861-49eb-a765-adfd616d434c","block_type":"box","text":"purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":42,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"db4a3948-582b-4863-bfff-9c5f411572d1","block_type":"box","text":"that is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the Fund may be","page_number":42,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"d9b94f16-c18c-4609-bcb5-c904842e3844","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":42,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"402f47f8-95c3-4da8-bf9b-56e369723448","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":42,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"ad4e9b11-0dfc-43d7-8f02-091323a34d85","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":42,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"c22a17c8-6f58-4798-8b0f-47dbe062d117","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterparty’s credit","page_number":42,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"4bab12bf-773f-4fc4-ad6b-765459d9930c","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":42,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"de7c09e0-19be-45ba-becd-ee1392632778","block_type":"box","text":"whereby a Fund would agree to purchase a Participation or Assignment at set terms in the future. For more","page_number":42,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"0ee651f6-da6f-4d69-95f2-92eb737c6fd9","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":42,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"111c50d7-f132-4f01-81f1-88706549a5e6","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":42,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"7615f4d0-8850-48ce-be57-69773e811c6a","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":42,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"b3e73d70-6535-40ca-8acc-f5a2647ad46e","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":42,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"0c722c96-75e3-4f83-aae3-be84d9574629","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":42,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"8290339f-3e10-4648-875f-b225eafe64dc","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":42,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"bf295a37-226c-4bec-a21a-ae1ce202bacf","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":42,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"09709849-a6e2-4aa8-9b31-e2dc799d4342","block_type":"box","text":"of the borrower.","page_number":42,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"dc2d99c0-e81a-4f56-88fe-5a62aefef139","block_type":"box","text":"II-7","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"654b2320-e73a-4bbb-8c41-6d04c07399d0","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b352e983-a1d3-4002-86a7-7b3f52d73dd6","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":43,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"464d4fc2-3063-47b7-b070-9069fb866915","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":43,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"b0cfa36b-5ea7-43d7-bb98-108b6500512f","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":43,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"6b30de1e-5920-484e-909b-d3cc6a1e5113","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":43,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"4a562422-7d02-41d0-9e08-374b17a91900","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":43,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"9c42f25e-4748-4da8-8888-d39e316ea040","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":43,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"bb8a1493-7980-474f-9de1-fe3b99d1511c","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":43,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"8f210321-b3a9-47f1-ad7e-3be696025749","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":43,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"d1c2035e-9460-4351-9a8e-c83b42450dd5","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":43,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"7c3b4fe3-c689-4422-bb04-186d707efc85","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":43,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"b0a14d4a-e436-48e2-a9a2-03461a148a2a","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":43,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"6e113d64-7645-4d82-a585-0c1d63a8a375","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":43,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"9fa09e6f-5f7f-4894-a526-b9d46bc6ada2","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, a Fund may hold","page_number":43,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"7aa95b55-67b5-4b83-91f2-6758cbe758b8","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":43,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"a97b2434-6205-4277-91a4-47371d1aa09b","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":43,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"047d557c-a903-4a8d-a9bc-1222e328fcf6","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":43,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"4c649b9c-c2c1-4b8d-8002-bcb260015e2f","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":43,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"0a05a266-f0f3-4f03-8a66-ced488312102","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":43,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"10f49f0f-23e1-4edd-85d0-d42b15ab9a9f","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":43,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"823c36b5-578a-4157-b61a-07bbf1099436","block_type":"box","text":"state law.","page_number":43,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"edb15eb1-e7f0-4374-97a9-e070426799e7","block_type":"box","text":"Direct Lending.","page_number":43,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"4658a254-a403-4122-a98d-81763f192857","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":43,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"c0356669-138b-4236-b37b-432f875ce1de","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":43,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"77adfe1c-0f64-45ec-ad3f-222ec3b3d812","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":43,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"2c8a4e15-40d4-48df-8392-30a6db9a465d","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":43,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"7f9a603b-baa5-4122-bdc2-2e1fd94e0da1","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":43,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"ac99b43b-833c-4b2d-b96c-b8beae18b3e5","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":43,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"f98adf73-bc21-4479-a30f-a8b2027edbf1","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":43,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"59581296-d918-42c0-a9b5-dfee1bede213","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":43,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"861e5d40-5679-4317-ab30-58492e961a67","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":43,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"63b74017-f1d0-43c8-b88b-e1e779c7f22a","block_type":"box","text":"money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain","page_number":43,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"90f780f4-411e-438f-9eb5-1103346f4e76","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":43,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"2c0585ec-edf0-49cc-a064-5e13eb5a40bd","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":43,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"d9b0c81b-238e-48da-9660-4c6e99536a06","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":43,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"3fd94fa1-4f5e-479a-864d-82c66eeb69e2","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to","page_number":43,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"a82bb909-4f6e-48a8-9277-608fe3cbf4f8","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":43,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"37d29540-2f2f-45f4-a9bb-eb4acd0baf09","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":43,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"7f103296-19d6-40fb-94cb-d68a34376824","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":43,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"c81ab14b-9d79-451b-8e2d-c4b8424d86b3","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":43,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"a11abff4-bb30-4d38-8dfd-19b37ff81ae6","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":43,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"85e8d17d-97b7-4b73-88ee-f78fabe52b30","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":43,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"aa8ac25e-6936-44de-92fd-afc2ff0d5bf1","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":43,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"de16cde6-81d3-4d8a-a484-8b08969d943b","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":43,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"59a50813-59a6-44d1-b06c-817ee3d09379","block_type":"box","text":"Credit Linked Securities.","page_number":43,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"00695121-cbd4-4351-a082-ea0ee89e219f","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":43,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"5cdc4199-f017-47b2-ba65-927c3dda2300","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":43,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"72fb7745-04c5-4730-aae7-5a514fa5d67b","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":43,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"10959fd2-50ff-4ec7-9efb-efc0fbfd615c","block_type":"box","text":"to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":43,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"c96db137-9a22-4a44-93a7-15181f79b1a8","block_type":"box","text":"cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more","page_number":43,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"6e3b2f93-f017-4b5f-bb79-0fbb28c53273","block_type":"box","text":"traditional income producing securities are not available.","page_number":43,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"ca5614d1-f0e3-4416-8f42-3b7256dc9af7","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":43,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"d898a79c-2a9f-477a-be85-ebc14bf7cd4a","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":43,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"187e48d7-8ee7-4bcb-a235-b26581172ee0","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":43,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"fa3bbdd6-57e8-4f87-8f00-00f18d624e69","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":43,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"7754f0db-0dc7-440b-83a3-4165eeed43b2","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":43,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"ac7988f4-06ef-4e5d-a40e-cb70e6b31886","block_type":"box","text":"II-8","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"2815fef9-7d9b-49ed-95ab-e7d787b5ed41","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e688d545-75e5-455c-b727-d16f2ee480aa","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":44,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"3363ad64-2bc9-4fca-b42b-517576a8c9b3","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":44,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"8617a686-8ded-4b77-9fec-dfe899d9fc72","block_type":"box","text":"the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt","page_number":44,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"c3ba20b2-33f3-4b5c-bc98-bebabe4e2fe0","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":44,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"f49634f4-9389-4bb1-bded-1f74b5f8664c","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":44,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"7e7a28f9-5930-4fdf-b110-09fefe601a59","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":44,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"e2afe651-15ab-462f-b5d9-3b51446076ff","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":44,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"dffc0ef0-fe9e-48f2-918b-f59345da6dea","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":44,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"19a3f37f-b9b5-404c-b564-a282c0cda37a","block_type":"box","text":"investments.","page_number":44,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"b53ace9f-b551-42e6-9cdd-de1a17723d54","block_type":"box","text":"Debt Securities.","page_number":44,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"e4eafa70-0773-48de-9d33-78ecc5e19939","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":44,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"ac9608fd-1f6c-40eb-ad23-eb663bdba3fa","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":44,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"0cbf5085-132e-4364-9136-9f328af7ece0","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":44,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"56cf34d3-9f99-404d-9e16-2ab779626c59","block_type":"box","text":"creditworthiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":44,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"efa68b23-5ff2-40d1-9adb-4ca64bd2043e","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":44,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"b0402035-5ec6-4d9f-bd85-638272a59ed2","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":44,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"679ac0f4-aba1-443a-a2b0-6f7f30ff1517","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":44,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"a62dec68-1a6d-43f9-a441-a62d6fea295b","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":44,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"fb2cfe1a-8b69-4709-b03d-31ff547228a2","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":44,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"4c817dfd-166a-43e0-91f6-81d67d94938e","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":44,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"c502860e-a935-4c6a-9541-d83d48da5ea4","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":44,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"89852c12-9bbc-4b7e-a029-8a15e2f3efb5","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":44,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"3d2aacb8-5376-47e3-87ab-b74f72933838","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":44,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"df125ffd-8334-468f-bef1-6d6469700f9a","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":44,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"6fde6f2d-f759-4612-8f29-b2399e88e07f","block_type":"box","text":"lose value. This is known as extension risk.","page_number":44,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"506faa0d-d11c-45b2-ae08-b53e46b22da6","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":44,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"170fc9cf-1a02-4b86-9ae2-768ef6a5b46a","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":44,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"cb249666-65b7-4f33-84ec-e094e7aeaf1e","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":44,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"f9d4ca08-f193-4bb9-a740-dc8b14059456","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":44,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"65616ddb-2551-41a8-8dd2-db642dbd333b","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":44,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"53f308f9-cc53-4a20-9614-70c790a99b46","block_type":"box","text":"Floating and Variable Rate Securities","page_number":44,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"20bbb801-dc11-49af-ac21-4764211a4702","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":44,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"ff3af279-b741-424d-a4a5-67a1010d401d","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":44,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"69c26860-6ec4-41f4-8fb7-fbd7e824a3f6","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":44,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"9fa94288-7741-44d7-ae01-148572c56f8a","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":44,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"924f9326-546e-47f2-a99c-39ff1cbbec39","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":44,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"6f26d4e7-92fd-4bc9-a2fb-9932aeb295a7","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":44,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"d4dea40c-dcab-4ee5-8743-c71995fcc868","block_type":"box","text":"market interest rates.","page_number":44,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"8698dd9d-9ab8-473b-a9d3-ec1fe1c176ca","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":44,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"88135e9f-da19-4724-ac2a-94f852987cfb","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":44,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"e4e3e748-0c39-42cc-874a-a8cc9269b25a","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":44,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"5a73dc83-5b65-47e2-b9fa-8e52cffecfe6","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":44,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"7d443040-628c-4522-a511-c23a69633e9b","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":44,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"7e7898ef-1997-43d9-8015-5367c3b0a56d","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is","page_number":44,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"a3e4091f-58ea-49c0-ab57-6774434267fc","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":44,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"29a49e8f-c698-4d92-946a-c911812519c6","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":44,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"f1bd699c-32af-41f9-86b8-eacde1d58360","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":44,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"7b4346ec-d765-49d7-97c4-295aafd8c555","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":44,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"d13d4835-f9dc-472f-9498-f1f3c34470b5","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":44,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"7534007c-110d-4641-85a9-168c42ab1977","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":44,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"d8ab9af4-6dc9-4cf7-9799-6c9974d5f429","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":44,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"682c72ee-a8e4-4a92-9b21-5f7ea1069338","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":44,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"d192e817-755b-4d3f-9216-f91166a75b29","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":44,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"70e20c37-dc89-4f80-8776-0e2b7a4e4b97","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":44,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"1ceddcc9-8283-42d8-aaab-bcfb97f1152f","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":44,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"cfe41f47-3a84-4a68-b01e-c9d150751d54","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Certain Funds may also invest in other","page_number":44,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"83d289d7-c954-4021-8280-3f3065c73e00","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":44,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"523b28aa-b431-4adb-8cb5-67c183d9670b","block_type":"box","text":"II-9","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"de4716da-ea03-410c-a8b1-09ab57e03864","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"661e84a1-2f90-4b80-bd2d-4ad284347b42","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":45,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"219c98d2-f5ae-4125-b025-0860daa1e326","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":45,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"b35bee87-3cef-4ea3-9e4e-60cfc5c564a1","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":45,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"54ea36f3-7177-4e0e-a00e-00d1acf39cec","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":45,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"169cc979-1dc6-4f11-afe5-44cc1bc061d5","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":45,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"efa62eab-4450-40a7-a370-d64788e27a53","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":45,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"fa1130fb-1f90-4ff5-99cb-a906c714a5b4","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":45,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"7d24a9e8-27e3-4bfc-a427-496d5d2df742","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":45,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"8522fe4a-bc86-4184-9963-1a45634f8bf3","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":45,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"d002ae1a-eef2-450f-a287-eb7fc18ba74c","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":45,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"1e2533a0-06cb-4332-bc98-56f08eb9a929","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":45,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"befda1ad-25f9-4b6a-8598-04920633752a","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":45,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"12db25c2-b7ba-4455-9af2-fb07a3d63e9f","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":45,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"e0b56792-1a5f-4d6d-9709-76f7ccbdd597","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":45,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"bf22a694-aaf5-4646-a6f6-5b2ce7ecad9c","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":45,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"01ea4a4f-4492-436c-83ee-c007e34132af","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":45,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"3d4e8f52-96e2-4c1a-af20-5aa65a30c905","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":45,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"124c9fed-a53f-484b-9f83-22071b7f828e","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":45,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"be5b73bc-17f0-4221-94dc-7520479e29c2","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":45,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"fb338843-0a2b-43bf-9601-8a69f8450cc0","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":45,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"4c3d36b1-489e-491e-8b99-3d3544d455b2","block_type":"box","text":"United States.","page_number":45,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"74ffae85-2e34-477b-a5d0-12895be94cac","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":45,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"5c50e9c8-41c8-453f-a850-f44881500355","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":45,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"3d1b1872-5bd1-4b11-800a-99411f1aed9c","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":45,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"a39abf0a-649b-472e-8f99-2cf3af5ee875","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":45,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"709c4fb6-b3ae-413a-a616-7cac0d4dc951","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":45,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"ab35af8d-6a0d-4fc0-b6a8-97867e13606d","block_type":"box","text":"Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":45,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"fc9dcb18-b2ce-4503-b249-060b3ef9d31e","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":45,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"8eded3ba-e11b-445b-a244-897600ba76c3","block_type":"box","text":"i.e.","page_number":45,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"0a63f744-fbe3-4a64-b849-52e4d9c2d735","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":45,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"ea9e3353-13a9-4685-93e5-82b01101db50","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":45,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"4e80954a-3118-4d45-813b-f3e97acd97e7","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":45,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"94cbcf24-c50c-47e1-8c3a-6c9607bbf53f","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":45,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"dfa77dc5-de65-4e58-9406-d9624d393b10","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":45,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"51965938-87da-440b-b1e2-b69f793898b9","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":45,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"8a19a148-2def-4c32-90df-478c151dc43b","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":45,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"394518bc-432d-420a-ab0b-ba08f78a3abc","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":45,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"f666ea34-971b-440e-ad98-12fecf53151e","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":45,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"4d5b91ce-6188-415b-a5d7-fdb82b8ae70f","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":45,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"de02e0cc-2b15-4b8c-8afe-b5a1055dfcd0","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":45,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"1fbbcab8-b268-4ef7-ab1c-eb91a9e1edcc","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":45,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"5ba2c41d-ffb0-419b-9709-ac894c267c3e","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":45,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"d104b720-3ae5-48c9-b4b3-7dfd0fb15f26","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":45,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"14bb38a0-44d8-4ec3-9299-ffc3347148a3","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":45,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"05024480-afb1-44e8-8402-ce6986720127","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":45,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"adddcb61-f472-452c-9c0c-c5c9270a2258","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":45,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"e214acd5-6818-46f6-bb82-7f8001980c2c","block_type":"box","text":"risk than higher rated securities.","page_number":45,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"ea414a12-579d-43f9-acef-f61dd2f420fc","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":45,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"fd470063-1c12-4c1c-8e4f-83c8e7344816","block_type":"box","text":"•","page_number":45,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"c6185f8e-9f27-4dd1-90c7-0f22949aa850","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":45,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"b915f61d-126c-4212-a2af-ac5b24dbd43c","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":45,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"843f8056-7eaa-4fdb-9f02-1d74e5e534d4","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":45,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"f62669dd-de75-4471-bee2-243820c5d41f","block_type":"box","text":"unavailability of additional financing.","page_number":45,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"451d3ef2-f769-43e6-ba23-501fad613015","block_type":"box","text":"•","page_number":45,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"b6b89718-e109-454d-8614-197aeda38d77","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":45,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"89917369-a75d-4631-b4a0-962e03ed71d6","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":45,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"9aaad665-9deb-4b35-900b-fe11fcb17c02","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":45,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"ba0c507c-c5c7-4e34-9a4b-39c60fd1436b","block_type":"box","text":"II-10","page_number":45,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9ffb5360-9c82-463a-977f-ed89afeb312a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"100a0663-b9eb-45ce-afc7-3aa071d558e6","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":46,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"37296792-345e-4d36-9b41-832898656cc5","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":46,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"ad714f9c-ac51-4a6b-850c-e5beae4487c0","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"024a4210-0a3b-4775-9a1c-c453948b4a6d","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":46,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"a40ccb6d-2e58-43f0-83e2-1fae86b438ea","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":46,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"931ba440-9c83-405d-b765-975d31565f18","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":46,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"8f23894c-3451-4fb7-a84c-8c0eb7b7d334","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":46,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"e5539dae-2def-4284-8c83-ae289e5eb550","block_type":"box","text":"investors in higher rated securities.","page_number":46,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"fd007cf5-ae29-4f9b-abfc-fe9ac11b99c8","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"4af066d9-2e66-4c68-8b23-37eaa03259a6","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":46,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"e46176f9-6f27-4d0a-b449-851ee19cebb7","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":46,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"b47d4718-5f93-4404-a499-5783cfae376a","block_type":"box","text":"lower yields and may lose income.","page_number":46,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"f5463938-7b83-4b2d-9435-31309b3bfbd1","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"dd8bed20-b7fe-4436-9e8c-16e58d42ee5f","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":46,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"50147219-7d8d-4a85-99eb-1a603720ef54","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":46,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"763e55be-017a-4776-bf04-97794c5c49c1","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"95f06447-f69e-461d-80da-672bd2497147","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":46,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"be4ecf25-0562-4757-8f1a-e0d92f2f1d20","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":46,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"8396e83a-8904-453c-9b67-17e6e7b74c10","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":46,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"74108358-9a50-48ae-a54a-19befec800e0","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":46,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"83f621ab-8189-49ec-9dcc-d114966ecf14","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":46,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"78bdaae3-1f78-4962-9028-990ab790ebc7","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities","page_number":46,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"8f10d8f2-f4e1-4317-b5cc-7011d1582a06","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":46,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"e4902a48-125b-4fee-a5b1-d05ff4b3a2da","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"87ca158b-05a2-4a9e-b0fd-73e747b23a44","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":46,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"e350911e-03e5-4903-b366-b7f47ab1eb5d","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":46,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"d4786fd5-4d85-4e2c-bc1e-1e452847bc4b","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":46,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"0acadc66-d2bb-4be1-8a35-528ed61ad6bd","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":46,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"644915af-ee28-433e-afc5-d1da5c5ec548","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":46,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"0ace328e-00b6-4085-a0f4-8fd120ec31e2","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":46,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"60a8e882-0f1d-483d-aef0-d5610db320ec","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":46,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"f36fdadd-60af-4a07-a0e6-a70c539ca193","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":46,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"1a3e756f-4a1b-40a3-8e35-2ceab4a84728","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":46,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"2d0c9604-c3f4-4f97-81e3-16c4549532b8","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":46,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"cf6cefeb-0564-42f9-9a64-e2ad8eba7e45","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":46,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"31d946fe-e9df-46d7-9af4-232ec4a4befd","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":46,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"8454ea25-ebc5-4954-ad76-3637e19468ea","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":46,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"89402a4e-bab2-499d-855e-62c7296bbe26","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important","page_number":46,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"7051ad6a-7458-4568-bf07-53589b5c5d4b","block_type":"box","text":"role in determining such valuations.","page_number":46,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"29d7561d-f4df-4038-9fbe-0d0b83cca4d5","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"66df0e7d-d6bb-4103-9660-97508eab09f7","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":46,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"90b31476-8096-43f0-b0cc-e78f4844463a","block_type":"box","text":"a defaulting issuer.","page_number":46,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"7faf9c49-31d3-4781-a384-92acf48ea9fe","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"5abe014d-1f41-4a66-994f-190ce1b4847f","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":46,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"c909a9dc-52d5-4baa-b851-4e189381662b","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":46,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"13707e7d-dea1-4e0e-9923-2e27b52aff99","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":46,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"5126fb5c-ef20-4b75-9ef5-a9ca4d6d91cc","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":46,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"0a39238a-5c24-4aca-a310-c185c87c542b","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":46,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"318b41dc-128d-4628-912b-10f80bb1dded","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":46,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"f4ba72e3-f944-4307-8db3-65cabdf4b2e1","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":46,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"e5f608b8-1540-4693-8359-1b2b383d2458","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":46,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"249a1738-f689-4597-9c28-bf2764313b1f","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"80f8a47e-7138-48fe-aec5-91d80a5e2bd7","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":46,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"81aa0afc-db6c-4b3d-8df0-48d46ac8ff2f","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":46,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"7954afa0-0560-4aea-8fcd-a47bfc07709f","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":46,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"1d92b7bf-548c-433a-b11a-8162e5447f70","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":46,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"451d53e1-5bf5-4f52-8d20-9d0ae4d74fdd","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":46,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"af5de30f-ee94-471f-b2b8-53f42c659dc0","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":46,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"5870f557-90bd-45d9-be2e-426220eaa9ce","block_type":"box","text":"higher-rated securities.","page_number":46,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"8e550678-941d-4c5a-ba17-48f4d1039bba","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":46,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"420a137f-956b-4f44-815a-a2d6cf94a262","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":46,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"3e42e755-f4d0-45e5-b60f-36f5612daaa3","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":46,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"a59f0c73-7601-4956-9077-225627e56ea0","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":46,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"57862f0f-cb17-4dbc-8950-d95d652884d3","block_type":"box","text":"II-11","page_number":46,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9ac2b053-01ae-4928-93e5-7d9220828752","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4e84ad2c-b067-4c98-aecd-ec50f9335d23","block_type":"box","text":"well as in an effort to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":47,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"36ec2bbe-129a-411a-87c4-1fa34eb959a6","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":47,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"d13d1f65-aa44-4968-99ff-07c5c836ed00","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":47,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"b813097e-ea99-4f54-902c-eaf5dc907080","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":47,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"84ab2476-6deb-4c2b-a0b9-502901650643","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":47,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"b741402e-1e4a-4112-992a-99305aa27d6a","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":47,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"0c64b7a9-01e3-4a4f-af50-6beecdc0f5ec","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":47,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"cceace40-cbcd-46b6-9c0a-8954bccc9122","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":47,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"6a8433b6-d528-4a0e-80d0-dc420b4f395f","block_type":"box","text":"Mezzanine Investments.","page_number":47,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"13bd5475-8de7-431d-bd0c-abae8ef05e92","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":47,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"c4c40be5-d16a-483a-8152-a9f7ebc47aaa","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":47,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"aedf7d0c-ae11-4695-ac3e-21a82184ba6b","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":47,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"30212e80-3ebd-4cc7-9c80-0b98d5c42dd7","block_type":"box","text":"e.g.","page_number":47,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"3e99be7d-a9be-4f2b-b225-08a34062393b","block_type":"box","text":", with","page_number":47,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"d830f525-a27f-4712-82cc-c0a95157b10c","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":47,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"3bf1a6b2-3e72-4df4-b5a6-1a25522ecf38","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":47,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"bc238bf3-aca2-4cae-b631-9eb48f6bdb23","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":47,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"b619b3ed-fdea-41f4-a446-63b99b6a966e","block_type":"box","text":"other obligations of the issuer.","page_number":47,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"7df70f9d-294e-4203-bf95-48b1b20f5364","block_type":"box","text":"Pay-in-kind Bonds.","page_number":47,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"af26e097-b852-43a7-88f2-73f2ceb2c545","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":47,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"44db7676-081d-4ede-a8bc-ac33e8079e43","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":47,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"bba6cee5-662c-4ed3-be75-a7f40cf1f613","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":47,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"1a4d394a-197d-417e-adf2-0990abd24581","block_type":"box","text":"unless a portion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":47,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"e6075fc3-d072-4d08-ae8d-34e969263ccb","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":47,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"b55b9764-2f41-4e22-bc69-a4591087ec86","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":47,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"33be3ea9-28e2-4910-9937-186c368fb183","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":47,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"40c5a6aa-a62d-4cd9-b586-5090f697994d","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":47,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"19abef85-1092-48e9-bbb4-01c219d5c73e","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":47,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"f530a2c2-0767-42d9-a1d2-3c61dfa77e96","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":47,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"d54e66e0-990b-4b05-9a5d-bcf8dcead7fd","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":47,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"fed7479d-cb5d-4786-a31a-d64ea17f8ab9","block_type":"box","text":"Supranational Entities.","page_number":47,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"6382b853-95e6-4d81-9090-1ff910367ae9","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":47,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"90f6c01c-e88b-4898-ad7a-3903edf9fef5","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":47,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"f1858eda-bc76-45ee-bfbb-4dd10ddd70f6","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":47,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"024bd80b-eba2-4d95-897d-414814384f54","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":47,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"2d5eb8aa-3df5-4d45-a744-afc9b434e7a1","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":47,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"6d5f24e7-0a94-4828-aaed-f1cc6ab88b39","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":47,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"07d6ce0d-230a-4cb3-b867-ae81f67483d2","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":47,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"b909af5d-cf47-4460-b00e-55674ef9b67d","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":47,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"511fd72a-703b-4400-bedd-c9e66371aab4","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":47,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"8690d6ba-53c2-41bb-aa55-081070f12912","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":47,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"3ff43feb-99cc-4cf9-901d-4388fa535fef","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":47,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"71499aee-2693-4fcf-88de-cfb178545d1b","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":47,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"2cb8ce66-8c2f-4e9c-8376-ffb8318e5584","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":47,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"c90ff2e9-ed64-4e36-99de-552c1f3f3e52","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":47,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"4d9953e5-eccd-42c0-93a7-981ba32ce651","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":47,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"4bc43b9e-5e8b-4e47-a1ae-9804d3ffad55","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":47,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"44b102f0-f3ca-4b18-90ea-94591cca1ba7","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":47,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"84ddfb71-e3c9-49e5-abe6-bda56bb6e40b","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":47,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"f1b0b586-fda8-4299-9dcd-ff55196edf6d","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":47,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"1f9310ff-e428-449d-9065-0b54a627a0a5","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":47,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"0ad50993-260c-4155-9cc2-18a6c93791ce","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":47,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"a4afd054-fb4a-4b37-a3ea-92f3f54758e5","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":47,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"a2a0a859-663b-4553-a960-9cdcfcee448b","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":47,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"e8b6619c-d4a7-4dee-bb75-1e164d58a4e1","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":47,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"2a433b7b-5be1-4c8a-a49c-c6c17ec03b9f","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":47,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"379234f3-ac2f-4c87-ae82-6c0fe4af16f6","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":47,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"c3d7e203-5da8-4583-befa-880b25f25e24","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":47,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"137f70d1-e35e-4bb9-82d9-df27c5e04313","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":47,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"2df13870-4a57-4db2-b194-bded4f36d2f5","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":47,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"3f404125-b1bb-4c70-9d40-7b7a214d0a07","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":47,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"768d0784-0f6a-4fb7-8319-2756b9ce6b3b","block_type":"box","text":"II-12","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9335810e-8ad1-4e7a-9522-cbbedc3debd2","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4467d03b-c8e3-4da6-b5db-4449dafeb959","block_type":"box","text":"Derivatives.","page_number":48,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"ec6a5728-0e42-4125-b2bc-def98cdc40dc","block_type":"box","text":"General.","page_number":48,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"6638911c-49cb-42a1-a391-a73e987da7a4","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":48,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"f4466b86-5705-4e32-9eef-32ab3dd6ee06","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":48,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"9d6cf70d-1f0f-4eac-8bfb-8eccaf690974","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":48,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"8251ae94-42c7-4a58-b055-f6471d4310e5","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":48,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"740848de-3b9c-4896-86cc-f670b24c83d5","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":48,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"6ad46939-bc32-45f7-bb5a-813b787875dd","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":48,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"d8bceeb8-d1cc-48e9-95ae-61cc22379343","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":48,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"8afedf90-2996-4966-96c2-1741f1b483c1","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":48,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"7b929164-9a9d-442a-9877-1e6450956285","block_type":"box","text":"i.e.","page_number":48,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"a2a4b505-e05f-44d9-934b-9469e66afddd","block_type":"box","text":", the payment","page_number":48,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"4bfc58eb-99e5-4dd7-aea3-cecd07b9ecc7","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":48,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"8b6e990c-1554-4129-91aa-07b09744e8ee","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":48,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"f286b0fd-b459-4708-ab80-e4ba3c8f250f","block_type":"box","text":"Hedging.","page_number":48,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"09c40b79-67f4-43f5-9de9-d6dfabdc8710","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":48,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"49ba61af-2dce-4a3d-9add-1683bf82931c","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":48,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"ab28f0ca-04e4-4fbf-8fce-fa8ffbba76de","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":48,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"aa68a862-e36d-435a-90b3-765f0f8d87fe","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":48,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"6f818e4e-8c41-4e51-aa2b-7fff060f12ac","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":48,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"bf6c7fc5-38d9-4db9-af00-d8d2e3380c44","block_type":"box","text":"correlation risk,","page_number":48,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"42a7db97-2325-4782-84c1-699b699b5e8c","block_type":"box","text":"i.e.","page_number":48,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"0e3ac7f5-7469-4fc9-a366-a8f9afb308d0","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":48,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"11f4fbc7-9642-44c7-a2be-61b8b066200b","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":48,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"097b3240-f984-49a0-b2e2-0160a623e9d6","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":48,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"436dd5ef-9f45-4db2-ad2d-9bc25549b767","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":48,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"7210731a-ad73-4274-a098-e243d9385530","block_type":"box","text":"Speculation.","page_number":48,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"10204fe3-1e78-4c47-8984-4a897137d711","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":48,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"35b11064-adc7-469f-8334-6f5bb75b6e73","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":48,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"33c2978b-8657-4c70-b614-5c4b1d67b36a","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":48,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"647037cb-0d88-43a6-91a7-5f90af5fc1ac","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":48,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"f95c8f4d-25df-4d58-b368-2aa95661b055","block_type":"box","text":"in certain cases may be unlimited.","page_number":48,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"37f46648-7231-4283-8e08-2a585f7bec40","block_type":"box","text":"Regulation of Derivatives.","page_number":48,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"3f4637ff-b66f-4138-8724-c61fd74dd976","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":48,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"e4d3623f-7403-4d22-bc74-7811f8970685","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":48,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"9b75a07c-477e-453b-8ce9-4fbbcb2599a0","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":48,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"951c4042-978e-45bf-a803-047c76e6416d","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":48,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"63782fd7-7d04-4db1-b56a-66da6b2c7476","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":48,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"8e4337ba-77f2-47b0-ac25-f54bbb8be67d","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":48,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"e8db134f-19de-4bb2-a2c7-c62705b08008","block_type":"box","text":"coverage”).","page_number":48,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"aabba2fe-ed57-42e6-8144-54a5de68994f","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":48,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"a701b0c3-518b-4bcb-a361-c9c5e0997539","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":48,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"59140ce1-2f65-4d9f-b731-c7a621223dee","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":48,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"e259eb5b-5dc0-4624-acab-7c4466a6d759","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":48,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"3128cd1e-200e-405c-ad41-3eb3992e14b4","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":48,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"7337c700-0fd0-4aa2-b349-6e3da0e873d2","block_type":"box","text":"financing transactions (","page_number":48,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"5918e722-317a-419b-9b30-8742d43db7bc","block_type":"box","text":"e.g.","page_number":48,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"4153197f-0bee-4b06-a47f-cae10b6b5e49","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":48,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"53ea968f-c79d-4921-a424-3a92a008b73a","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":48,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"42a32d78-72fe-4555-9014-6586efdbd009","block_type":"box","text":"securities (","page_number":48,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"52dbb32a-2b24-46a6-a347-86ef54caa91b","block_type":"box","text":"e.g.","page_number":48,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"6716913b-0610-430a-ab64-4a0d8d81f4a8","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":48,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"01734ee2-53b4-4d37-9b19-8d65b680898d","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":48,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"23ed1f42-ef06-420b-8386-67236891f353","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":48,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"a3ef0669-8a64-43af-945d-b753263829a7","block_type":"box","text":"Commitments”).","page_number":48,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"a94a3da5-93c2-4dd1-9685-d37fd6310627","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":48,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"7a84cc44-cf8d-4b09-876b-bed63c2d3d18","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":48,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"14e4120a-6099-4183-87ba-f451fcbdecc7","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":48,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"955d21d6-7140-4ffc-bb68-b7d60b40bbe7","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":48,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"a1e74443-a4c9-42b6-8f4c-57e03d71a182","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":48,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"7ff83511-54cf-48f8-b3cf-15d030faf94f","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":48,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"da550360-c154-49e7-8b83-5fa1af1a025d","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":48,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"51592d46-f0dd-40df-95b9-149082bb5c15","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":48,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"f15be3f2-7829-40cd-85f2-78d16f3926ff","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":48,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"f6d8f085-97eb-467a-a2fe-634fd7c7ef87","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":48,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"22316914-19b6-4b19-ae18-25de9979b3d8","block_type":"box","text":"II-13","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cbdbface-bd7e-443c-b19e-1e346ce1b14d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"14d8539b-892c-40ba-ae92-51ae3a375645","block_type":"box","text":"Dodd-Frank Regulations.","page_number":49,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"be240e1a-0986-43b7-8c8b-601b537a81a2","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":49,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"a225ad25-90d2-40c0-ac2f-ea03e6533f05","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":49,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"ef913d7a-10ac-4eaf-8629-c5b38139d50f","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":49,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"6b5476f2-5905-43e1-8eb0-de214a926dff","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":49,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"dbd3422d-b641-4fd6-aabe-865ccf622458","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":49,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"7440f5ef-df61-4f15-9637-1c43b61fd619","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":49,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"3dc9ce31-de41-4f7a-ad17-3db67b5e69a0","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":49,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"b1057b3e-1273-4d49-abb6-8f343b9ae100","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":49,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"eea5a934-2964-4a48-af44-460525b53abd","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":49,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"83f94ab7-710c-4a7b-8cb1-a51268bc9eb7","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":49,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"6d5a855b-d7c9-4850-a63b-8cac3bcd08fa","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":49,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"561c280b-d3bc-4f9e-9104-abfac3fb2c9c","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":49,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"c7fb9dc1-896e-48ac-983d-b023ee59e1a3","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":49,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"5b26474e-3270-4830-b277-5032cb7a5340","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":49,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"0875b5e9-1ecb-4962-8c87-6fc553d88eb6","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":49,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"f9393707-80be-46d5-9b9f-5d3f139b68cc","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":49,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"a717cc7a-9ec4-4e2d-b7f1-b0077351f88f","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":49,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"14944d57-90cd-48cb-abff-341641f87137","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":49,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"fecf572c-8879-4bc4-9f99-30e31a067224","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":49,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"5aefba3b-2b5c-4941-864e-419953e4aa8c","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":49,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"b2dca3f7-5656-434e-a45c-77278882f2d1","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":49,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"dc1e62c4-1722-43e5-9c1b-8cc92cf46968","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":49,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"aafa8f64-aefd-4787-a97f-ff43c89bf5eb","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":49,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"5cde6c05-0e51-482e-b088-ee58ceb7b05f","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":49,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"7c245adf-3f43-40ee-bf4e-7cdea151d255","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":49,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"1b083d62-0065-4c36-85ea-677df46ac0d7","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":49,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"d8c37d73-0e3b-4c9a-abf7-330d28202edf","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":49,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"89057782-762c-42dc-b127-f09909651734","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":49,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"6de2665c-594b-488e-8b1c-19c036ed895a","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":49,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"cbba445e-1c7e-4a6f-8858-52cae02df3bd","block_type":"box","text":"member.","page_number":49,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"2daab51c-3912-4a74-bb8e-f84a637571b6","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":49,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"1d2cb04d-c9c1-4472-9716-78a22a6d6362","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":49,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"1f0406c6-c7ec-4bf8-b787-3d098733c67b","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":49,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"2149ce72-e6cf-42bb-b423-9fee288fcb17","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":49,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"776705de-4728-4e3f-bdde-cacbe8349286","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":49,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"ca99a26e-1fb4-4d75-aa3d-1f32f7266280","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":49,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"ee9ef205-3191-4b13-a82d-ad5a694d9051","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":49,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"4ab15864-cde1-4ddd-b3a9-05ba9ad24bb3","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":49,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"ced6322d-72e1-48e2-bf1d-6f6f240b3dd0","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":49,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"00a9f07e-5d0a-4b43-aef0-80d4b11ec4f4","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":49,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"5681e653-e9c6-4d7c-9cbe-6d561f78ec4a","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":49,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"2f333769-f26e-4ce1-b166-c199d3cf9744","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":49,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"32b00928-ad49-4357-94f6-825f63104153","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":49,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"67c26abf-ef78-4912-9fc5-08eeddc6d3b5","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":49,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"59e2533d-0788-4e7c-8a77-65fe3c7361aa","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":49,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"7546966d-6df9-42a5-87a5-deb6e5297bb7","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":49,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"d17d8411-332b-425e-80d7-f5609e37c7a2","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":49,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"38b4520d-07a1-4582-9818-92073c7938b2","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":49,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"ac39b22f-96f5-4254-b8e4-1053fe4b3cd0","block_type":"box","text":"group of persons acting in concert, may hold or control in particular contracts. In addition, U.S. federal position limits","page_number":49,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"b02d055f-dc88-4acf-b4a1-4795b68a6b19","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":49,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"e1fa03d9-66ab-4dc9-beb5-9190af66b4ac","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":49,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"309858d4-acbd-4e50-8ca6-3b2f98d141e0","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":49,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"a50e4700-8ca0-4c1c-ac99-667347e256c8","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":49,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"ae8a0c02-485f-4a94-b261-0b55e8c728d9","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":49,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"2d784e29-612d-4df7-a141-fb691537924d","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":49,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"2d1dc706-98b5-4157-83bf-99b659979055","block_type":"box","text":"II-14","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"80a15bd4-213a-408e-b640-b8d43a91b7a6","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fb2627bb-7812-45b0-b699-943d0cf5d5f8","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":50,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"445e6ea4-9436-4094-b90a-4a63abbaf5c0","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":50,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"036b8027-09a3-4294-aae1-819c90a93f58","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":50,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"3b03967d-36ed-4415-b3e9-be66ae1597a3","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":50,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"47aa0f44-d0b0-48a1-ba11-b62ddfd1d867","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":50,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"e8a6ad8c-2277-41a8-9bce-18bb5bde6290","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":50,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"6d70e93b-3454-432e-9697-6c0981213151","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":50,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"de5c0dad-469e-4c19-8710-34d5dfef12a7","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":50,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"bd2997e0-e36c-4b20-b060-b3ba0041bfcf","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":50,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"22e86519-a8a4-49fd-8abc-a11bf46bdc22","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":50,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"84f16e1c-3d6b-4cde-b573-3be121925327","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":50,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"1c013171-aed5-4cdb-80d2-5383401ea168","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":50,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"526bdc26-210f-4b14-97e9-f16df97c832b","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":50,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"ca673ba3-6701-4c46-a247-e62bb622e614","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":50,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"c4f3a6e5-15c7-4acc-b0f3-4d2a1ba4dd2b","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":50,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"850243f2-5ac9-426e-88fa-7bed8d2d5725","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":50,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"121352ab-95fe-4cba-a61b-cedf93383221","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":50,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"04ded36d-e278-4d88-ad52-c23726dea805","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":50,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"775de9e4-1807-49dd-8181-3eecd50f450b","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":50,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"fa94296f-ee95-4bf5-8b98-a8741da4ec77","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":50,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"9c133549-2ac6-4b36-8639-4edba2bde086","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":50,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"78094573-59cb-4efc-ba24-bde6c504d5c1","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":50,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"a7625b13-1101-400b-a90c-e42a24328ccc","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":50,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"f3c32185-ed39-4755-97c0-7dc2e932948a","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":50,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"55d0c80a-5da6-4950-9f99-2574d2095a24","block_type":"box","text":"transfers of credit support in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":50,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"b3579e8c-ed2b-49a7-86a6-532f0d9308d3","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":50,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"74b0cca8-c30d-46fd-8a17-93bef71799c0","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":50,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"60346ed1-18e9-4aaa-a5dd-fd23fd83bed9","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":50,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"d3c194ec-be6a-410c-887a-9a3098e3997d","block_type":"box","text":"to a Fund of a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":50,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"07aa6d96-1768-48fc-957a-6cfc8ce7c376","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":50,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"2408bcfd-be59-4ce9-8242-a658358c0c99","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":50,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"df1c9684-ee77-4915-8d16-01f0d71d9d11","block_type":"box","text":"collateral received under such contracts.","page_number":50,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"b4153fbc-1f97-4010-b9a4-601e53dbf3bc","block_type":"box","text":"Risk Factors in Derivatives.","page_number":50,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"04fabcc6-5318-4f32-b819-d252a5ea89ec","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":50,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"a9c9f241-95b7-447f-bd19-dd57c4d4afb8","block_type":"box","text":"Correlation Risk","page_number":50,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"9e4ffd8c-c0e2-4bfe-9826-82d8e5edc4d6","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":50,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"2977ba71-9518-4b2f-bdae-6f5420a333ae","block_type":"box","text":"the portfolio holdings that are being hedged or of the particular market or security to which the Fund seeks exposure.","page_number":50,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"f775c2ad-10f3-4fa8-b948-9d49b8ce5a4b","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":50,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"fd62879e-a610-4709-a0b5-b7c2e53c8722","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":50,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"bfffc73b-d58d-437f-8f54-6efc0b7fa6a0","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":50,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"aec6835a-e178-4f20-97d5-7b5254c0a1e7","block_type":"box","text":"Counterpar ty Risk","page_number":50,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"2f218c44-a231-4bee-9c3a-11b30945950d","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":50,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"e46b1377-b812-4b53-b087-7febd07157ee","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":50,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"69337821-a3a8-4e84-b28a-6d4dfa4270ad","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":50,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"0cda2557-255d-4669-b3a2-2b24fa034783","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":50,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"49508d39-12a6-4f36-b223-6fb90759327a","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":50,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"604bce4c-a90e-4b02-bbb3-39ebe184a277","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":50,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"157004f7-d7e0-4d70-beba-4dade174590e","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":50,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"8e4b6da5-fd79-4322-8ff2-4c77d6a1fd91","block_type":"box","text":"provided the Fund with a third-party guaranty or other credit support. When a Fund enters into a derivatives","page_number":50,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"efa3fae4-e584-4b62-984d-c14e573f804d","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":50,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"2b0cfcf3-0673-407f-91dc-888226bbe773","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":50,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"29ce681d-e1c8-43d0-8d48-24edfc2301e7","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":50,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"e29f6b58-1b75-4ccb-999f-9bc30c4ce1f7","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":50,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"ead91045-f3d5-49cd-a103-1f10e66495cd","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":50,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"4b4786d8-b45f-4748-9f63-8852cb1cd310","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":50,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"bd0282c6-586c-480a-a7f9-8ae0971f8c76","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":50,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"fc2145b2-e91c-40b4-a3dc-cd1b9ab8f0c3","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":50,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"87efdcba-7228-4927-8734-b99eaabb0d63","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":50,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"3f7b338a-9844-485b-ad05-502fdab9a5d7","block_type":"box","text":"II-15","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e156ffaa-142d-4700-95ff-40e648ee0382","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ccc06dd1-61cf-4bbb-91aa-2c611d6c4f8a","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":51,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"76a8dbed-3eec-4bd9-b7c6-49762e25571e","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":51,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"4db39bee-4227-42cf-a9d8-f80ddb4cbdb0","block_type":"box","text":"by the clearing member.","page_number":51,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"22490216-0fd5-4be1-83f9-acb635a2dc71","block_type":"box","text":"Credit Risk","page_number":51,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"bd3b97ce-8a16-4fb2-b3b0-3ee09022c3f9","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":51,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"b4e60d08-63e9-4d34-a909-318b257645f4","block_type":"box","text":"honor its financial obligations.","page_number":51,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"7e0d3c0c-7632-4029-9745-71f246d8ed23","block_type":"box","text":"Currency Risk","page_number":51,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"19c85c89-b985-481f-96c7-dfe176ddd012","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":51,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"d80a25bd-5a5d-4d0f-b390-8cc48d3cbcb7","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":51,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"b2228bdc-0129-42df-a576-da08cc687ec7","block_type":"box","text":"Illiquidity Risk","page_number":51,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"841e8a84-740b-4cbe-877a-832a7b2fb72f","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":51,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"a140a8bf-fb47-4aa7-a0ed-c2dd50e2446a","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":51,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"d2143b52-3799-45f1-b274-4828b3bf18f1","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":51,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"2af737a8-294b-4403-9ac9-d8cd5c1a9ec9","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":51,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"416dc2c5-ee7c-4c82-90d8-638bbad3ab12","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":51,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"7bcaa524-d0b4-4de7-a65d-0aff2d72e69f","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascertain a market value for such derivatives. A","page_number":51,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"c76fb546-3581-4905-b5c4-e9564737115a","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":51,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"df351346-2e77-4d91-ae4e-366f028dfbf3","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":51,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"180b76d4-2f46-4f9c-86c2-7ee23412d1f7","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":51,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"cac1db3b-b95e-4c90-98a0-b201f6ba2469","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":51,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"d966661f-adc2-4236-b55e-0f6abf5f9951","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":51,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"01d81e39-cd1f-4e49-a509-ccd0274f088e","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":51,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"85b3b3f6-973a-4778-9520-1cccb296ae04","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":51,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"2700f61e-4d6c-4900-a72f-d7cb54c005d9","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":51,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"b10e2f58-0c1b-47ef-8469-0b40515aaa8a","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":51,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"1c652ac5-489a-483c-963f-5e339705d709","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":51,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"f6879605-2f0b-4e1d-b4aa-33a3440493bb","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":51,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"b34daa80-75cf-426e-8c54-f1e2b8952756","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":51,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"379f3629-8317-4223-8605-418ec5eb7c23","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":51,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"bdecb3c7-f0d5-4d2f-bae6-d3fc56761d79","block_type":"box","text":"insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements at a time when it","page_number":51,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"d748b876-79e5-4109-8979-84a4e76a2f0c","block_type":"box","text":"may be disadvantageous to do so.","page_number":51,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"24994b30-7f89-4a9c-bfc2-c1c4407fa2a7","block_type":"box","text":"Index Risk","page_number":51,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"33bd4c1d-47f1-4d52-84ab-2d4beaf1ce97","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks associated","page_number":51,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"806cdce1-91c1-4387-8ea6-7a53612c93f1","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":51,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"73329c38-a3b9-4bca-ac67-e71bf1d6e3e5","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":51,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"f493aa99-016b-4ea2-a027-0606b9b66409","block_type":"box","text":"Legal Risk","page_number":51,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"d6b64f07-789c-4b12-b5d9-a659fb11927d","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":51,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"eeb0d752-a7c5-4356-9be4-5d79d00d9201","block_type":"box","text":"or enforceability of a contract.","page_number":51,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"f9aec628-ce7d-4906-b6e2-400585fe8021","block_type":"box","text":"Leverage Risk","page_number":51,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"43ac49b5-93fd-4bd7-93d8-4bf104f9d1d2","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":51,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"c0e17ea9-ff14-4b60-8fb0-2ff74767413b","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":51,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"527c3b41-f1eb-4077-be4e-87a0a8e0f938","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":51,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"62ec6cb6-216d-446a-822d-42f6748713eb","block_type":"box","text":"Market Risk","page_number":51,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"84206abe-45ff-4c99-a2ce-0d43e6b44450","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":51,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"e5dba6f6-1057-41e3-89eb-947717cf91da","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":51,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"027ea132-429e-4800-8fb5-c2421f50583c","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":51,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"1b667243-fc16-4cc0-82fe-e96acee50017","block_type":"box","text":"affected.","page_number":51,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"0a9c7e3f-fb07-4cca-97b5-a360fb02eeea","block_type":"box","text":"Operational Risk","page_number":51,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"71bfb2f3-5d45-405e-8706-12bf6a4c6aec","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":51,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"fe8e722d-6bc7-454e-864a-7d496251a2ea","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":51,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"9fa06fd8-9cd1-4ba1-8896-b1ccfb7c5a37","block_type":"box","text":"Valuation Risk","page_number":51,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"2e8f1e51-67a6-4aef-874b-2944cdcd125b","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":51,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"741e1907-5407-4c72-a5dd-3d867afff1b1","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":51,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"b1b2f4ae-b06e-412c-a2a3-57757c4e83bb","block_type":"box","text":"complex instruments or quote prices for them.","page_number":51,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"be7ec12d-bd03-434b-ab30-20980fba1cd8","block_type":"box","text":"Volatility Risk","page_number":51,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"2ebddd74-e8c8-40de-971e-3ec85ad4c2fe","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":51,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"199cb9e8-338c-4544-87ad-5ec76451e90a","block_type":"box","text":"Types of Derivatives Transactions.","page_number":51,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"c8c232e0-6baa-4401-8b37-48db46f80e15","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":51,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"975751f5-d97c-4a3e-b5e4-42450438eb4c","block_type":"box","text":"including the following:","page_number":51,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"74e2e812-0717-4926-bad3-ca3464f54b0e","block_type":"box","text":"Futures.","page_number":51,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"a4752c6c-b883-400f-8bbc-e4fffd171880","block_type":"box","text":"II-16","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6071cfb9-cb80-481d-af21-6b6681b4be4a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"59fbe724-d1f2-4d26-82ba-7ea4178ce7f7","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":52,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"9ab4ec0e-9622-4b08-bfa4-2be5cb5d9757","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":52,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"38a90b02-5aa8-4e93-8b5b-c5d27c9cd0ec","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":52,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"681fd1c4-7e37-45f5-8ab4-b5692db8ff0f","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":52,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"a0d2fae6-6789-48e6-a83b-30b42b5e2c8b","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":52,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"9dfc76ce-35d0-4b50-befd-54070368a8ad","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":52,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"54c836e5-a137-4b52-9abd-6bde5082cb4e","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":52,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"c36d742f-3aeb-47ea-8270-df17f6f1378e","block_type":"box","text":"market value of portfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":52,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"7b618615-9c18-4c4f-8105-442c63f38f6b","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":52,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"5ff3d8ec-4423-4302-b2a6-7883dc81c783","block_type":"box","text":"the futures position and a lower return on the portfolio holdings than would have been realized without the purchase","page_number":52,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"20f47bcc-3c6d-482c-84e9-4d34d9e04044","block_type":"box","text":"of the futures contract.","page_number":52,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"70abb117-e7d0-48d1-b842-6c014d213fe0","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":52,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"36d5229f-d404-47b5-8f57-b18d330d2686","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":52,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"535c9fc2-8792-407e-9ed4-e5e4b723249e","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":52,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"d3c23391-9666-4e62-bc6e-1f0ef7bd7a68","block_type":"box","text":"relating to the futures position.","page_number":52,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"43455a35-4313-4734-b001-19b31fee4676","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":52,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"35167b00-4d84-43ea-86dd-0eb3cc5ec54c","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":52,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"a461a9dd-4d1a-4a4d-b74e-289dd32092b6","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":52,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"7f1505a0-52ce-4c28-a530-0788b919ea89","block_type":"box","text":"Regulations” above.","page_number":52,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"006efb43-a38c-4b87-8e4f-026d0d753ff6","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":52,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"8f655d8c-2708-46b8-bee8-bbfc83c5b1fb","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":52,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"724a7277-cef3-4a3b-9ec0-8fa1a8c97501","block_type":"box","text":"(","page_number":52,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"356dd8c6-c282-4bed-9a6f-3ed78da40b8f","block_type":"box","text":"i.e.","page_number":52,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"42864a5f-8490-419d-83fe-a2a02de69206","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":52,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"ef3358f1-16c7-475d-a273-e9742eb92574","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":52,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"2b69f3e5-8782-443c-8f55-670ea89a0c36","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":52,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"471bbffd-15a9-445f-99e1-124a80307331","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":52,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"8a3f85e1-2b03-483c-947a-cf286af0f4a1","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":52,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"6bd6221d-1c3d-4266-86be-db405b1e481f","block_type":"box","text":"Fund intends to purchase.","page_number":52,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"a9ef4b3f-1646-4c87-bbd2-5124da243160","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":52,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"856e2503-2cca-4b44-ac2f-75f19875d743","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":52,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"fdd33f97-265e-47f5-aad4-f0c50f142e6f","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":52,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"9f437e75-7fdb-418d-9ab1-20eadda8bc6f","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":52,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"560b62fd-b594-4ac3-a11a-6d654d5aed85","block_type":"box","text":"illiquidity.","page_number":52,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"83bf16de-17ee-4353-9282-5b520d9c74f5","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":52,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"4a30404d-32e5-46d9-b165-4a19457d4d2e","block_type":"box","text":"illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":52,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"547ab2da-a388-4d92-8788-534087090918","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":52,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"2404cb80-4c7a-448f-803e-8050190363b8","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":52,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"b516751b-feff-4a2d-9b88-4f389653757f","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":52,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"680ceaed-b664-4a49-be70-e1fb7f1775b8","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":52,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"e2f3c86c-b83a-4c9e-bc05-c1beda0634dc","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":52,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"89d15d89-3ef7-4471-8e86-c1bd8789482d","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":52,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"0305fc04-b0df-483e-a505-b3bb5de5150f","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":52,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"2ceac179-8af4-4836-8803-0d5fbbb69cf1","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":52,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"a59daf13-1645-4ade-97ab-e8b56259abce","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":52,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"fa7d6534-ef5d-48d9-96e2-5cc7ce331738","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":52,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"be5fa2de-b792-4ba5-8bdc-ba58446c0378","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":52,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"558261e0-c435-4c1c-9928-a1fcf2cfeb04","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":52,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"cdeb77e4-bc3b-4911-8dbd-32fda422f186","block_type":"box","text":"Swap Agreements.","page_number":52,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"e512cda1-0671-45f6-9855-90493409452e","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":52,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"4fdfb76d-62b4-40e4-95f9-0e709aacc2bf","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":52,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"0cd95836-3120-456b-a736-6f33861f153e","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":52,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"e020aa45-0db7-49e1-b8a5-2938c6f4b431","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":52,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"3eb98647-ad83-4b78-b820-43ce85713500","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":52,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"e402cb14-d61b-4ebd-a109-ea243593a295","block_type":"box","text":"a “notional amount,”","page_number":52,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"f4cbbb55-e105-40a4-96c8-736ef0f9f9c6","block_type":"box","text":"e.g.","page_number":52,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"e851907b-be52-458f-9756-885a435948f7","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":52,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"2493d6c7-b927-4e92-b632-4f02815c1720","block_type":"box","text":"II-17","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2f91bc89-079d-402b-be13-116451b46bda","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c05e746b-8d6b-46ee-89d2-992e570b6cbd","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":53,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"1c9ba161-7ae8-4f31-8e74-22810004cb66","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":53,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"545a977f-01d3-4381-bc10-842d8a2b1337","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":53,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"3c7e25a8-8ffd-42fe-8be3-8d726597a4e3","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":53,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"21764448-b91c-482d-906a-72f6f69c769c","block_type":"box","text":"by each party to the agreement. Swaps that are not cleared involve substantial counterparty risk. A Fund will typically","page_number":53,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"2137d768-9910-43b8-a6e4-c64476895a03","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":53,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"cdac506f-af64-49d4-bf7d-0975f07719fd","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. A Fund’s ability","page_number":53,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"63fd4f70-7474-4131-b22e-626bbeb7f5e9","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":53,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"eeccd12c-1e9c-4a54-a3ed-f4e93a7e8068","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":53,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"6c7aadff-405c-4801-b4de-1dfeb4b7e822","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":53,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"c532e032-3ec4-40b7-8284-e0a8ae1fb88d","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":53,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"fb9d088f-0c4a-4393-9276-912c897704be","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":53,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"c06f1558-7e37-4b51-9e8d-004c69f1f121","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":53,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"2616f067-1adb-4760-a196-8e9a3845e923","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a portfolio of securities issued by","page_number":53,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"93a75ba0-aa11-421d-815c-179e2b1b22f7","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":53,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"91ef3ad3-b48d-4237-9066-4f1d0807ece3","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":53,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"8ed871a1-1aa6-4c1f-a1a2-c9cf653ab3b8","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":53,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"bbe0ac05-3b18-4051-a36c-d22341c7f59a","block_type":"box","text":"index CDS.","page_number":53,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"4ac695d2-1487-49a0-a833-95fc7c8cee83","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":53,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"946877d6-9efa-4a61-b230-e29e6b36ec0b","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":53,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"5ec683c3-99dd-494e-a9c3-94af2e2733a7","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":53,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"32669777-49aa-419c-a67e-f47cef73f6f3","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “short squeeze.” In certain instances of","page_number":53,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"2c249706-d625-409a-a2cf-61d204b6e9d2","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":53,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"2ec133a9-a635-43a6-9395-f98ce27a1d52","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":53,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"ffa0cfd4-3036-4b8f-a875-7a1d708854af","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":53,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"937b814f-c17f-4a30-9b34-5ead730cc39b","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":53,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"61517288-467b-46d9-b4c9-2a133afc13b2","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":53,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"d8c74486-deae-4fff-b68f-1792365759e9","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":53,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"20616fb8-e788-4249-8d45-3da1f8fe7e9f","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":53,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"73a69357-09b4-4ae7-a3fe-716d286e1672","block_type":"box","text":"uncertainty as to the occurrence of credit events and the risk of a “short squeeze” by providing that the ISDA Credit","page_number":53,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"a7886d5b-ac04-4f84-9343-b9c457019327","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":53,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"a250dc6e-5fb7-4d49-a820-69ea746f5035","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":53,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"b5a1e780-00c6-4752-8f8f-fb5fcb73a731","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":53,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"2fb04026-8fae-4e27-b041-17bd8b744df6","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":53,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"9a053967-35c2-4077-a8b3-7e62113728cc","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":53,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"c7b39d78-34a4-4cd1-b6c5-dcb1f7465c0e","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Furthermore, a Fund may enter","page_number":53,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"dddc7585-abe1-4ee0-b93c-eb296c07fcaa","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":53,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"330a32eb-997b-4dc6-af18-886c022d0cfc","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":53,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"3c2a09ce-8eb5-42a3-99a7-b32e0ab26526","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":53,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"ddbe40e5-d437-440a-afdf-826f213cb85a","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":53,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"abdfa282-1c0a-435e-a319-83bf9d96e066","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":53,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"cc58bd7f-5fb9-4a70-b497-e5ba8e1e734d","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":53,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"2b43c542-0245-4b50-bb10-fec5713dfa77","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":53,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"b60b34df-bf4b-4d83-8f24-e3cae980f7eb","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":53,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"c121a190-2b09-41a5-a40b-a6a283b64c6b","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":53,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"c8b4944d-8ec7-4030-8f95-d99b7bd3f06d","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":53,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"c48a6643-911f-4d89-a206-2553565165e5","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":53,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"7a8edf1f-b3f5-4539-bd45-7389ec7dcaf4","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":53,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"11230409-83f2-4904-ae90-a20f55372501","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":53,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"dde36f29-a0db-4502-a57e-2f98052d5f4e","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":53,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"14e8e26c-6122-4833-b4e1-8babc0f8046d","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":53,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"fb8efe24-f88e-4ce2-b844-875d7dcd63c8","block_type":"box","text":"conditions.","page_number":53,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"28f3d739-5c3f-44eb-b029-03279f861245","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":53,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"0361c8e2-58eb-4cf0-832c-bf07d73c82dc","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":53,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"d37d9dab-7a58-4f14-83c2-cd43fb8b22ce","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":53,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"460ff324-d8f2-4274-a783-4138326f52b3","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":53,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"9e55ab75-650e-4d0f-a6c2-207fc60e0f44","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":53,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"32495946-a68e-4ec7-890a-fda2e6255f14","block_type":"box","text":"II-18","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e9c1a006-e24a-476d-b18b-cc2e79499f8c","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d85a82d3-9593-4c79-aa92-b98faa4a3406","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":54,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"d585e154-c980-4eec-82fc-5e0c8d68a9f6","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":54,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"6b310cd2-0243-4796-8782-dba38ffe550c","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":54,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"fe373b55-93ff-467c-9244-411864c0c5b5","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":54,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"2982c19f-4e0c-4d73-a5d1-131aa807130c","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":54,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"3b24f8ab-0bdd-4145-b47c-55d901b4e4fd","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":54,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"5e8cb195-0f2f-462e-a749-cc2ffff7d314","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":54,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"b3e2b131-8cef-4fb0-86a3-2a8ca9185115","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":54,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"9b63329a-a86e-4dd9-b054-ff481bcb7ee2","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":54,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"51b030b8-0972-4233-9e99-5a99ee62701d","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":54,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"2b85da07-21f9-4643-b5fb-900a98379223","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":54,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"0d5de795-3511-4a26-b10d-115297c175b3","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":54,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"7b95bd2e-07c8-4253-b581-cedadf5d4c32","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":54,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"edf1731f-c1a5-4af2-874a-96b5ca034a27","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":54,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"9293291f-fbfd-4a60-9dd9-1555c95da98c","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":54,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"0aa6196b-62af-4f69-8668-e79d626c692e","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":54,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"eb4cd1b2-14f6-416c-9293-f5fd8fca462f","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":54,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"69f4df93-0561-48a2-82ac-b1d4b936e83e","block_type":"box","text":"swaps and interest rate caps and floors. As described in further detail below, a Fund may enter into these","page_number":54,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"684176ef-0888-4b02-ab51-d985239e84d7","block_type":"box","text":"transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a","page_number":54,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"30535b6a-933f-4412-b5b0-99e9b47deee8","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":54,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"7d77e765-3876-4e47-9ffa-3c7d43ef60e4","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":54,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"e87f25f5-18c9-42a8-979d-7e3dee99ec40","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":54,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"ac6a3837-50ad-4346-9f38-7323954f20fa","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":54,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"9e7bc81e-503f-43a4-a3b0-a018a82d1832","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":54,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"da4cc923-7900-46a0-8d19-ad0d2bb356ef","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":54,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"1d67885a-3fb1-461e-bb92-e605bee85163","block_type":"box","text":"cleared interest rate swaps.","page_number":54,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"fb6596a7-69cc-456d-87f5-9e030713615a","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":54,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"b2a567cf-4430-4043-8fb1-f0495b374778","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared interest rate derivatives","page_number":54,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"ab5b2242-efbf-4c33-81f1-8222fbf0a7ee","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":54,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"cd131be4-3269-4ba3-b691-0de0ba342de8","block_type":"box","text":"Fund with a third-party guaranty or other credit support. If the Fund’s counterparty defaults on such a transaction, a","page_number":54,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"9cf693db-5de4-4216-a332-134e96e24555","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":54,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"fe3a01e1-20d6-4f1d-a458-3832a564fd4c","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":54,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"1d783a3e-b856-4e14-a694-13653f434fbe","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":54,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"41c52fe2-b97e-404e-8a88-ed7f08a75545","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":54,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"9fb1ba86-c2c2-4fed-985a-cd3bb38f6f79","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":54,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"ab57311d-ec7f-477c-81b6-90db9d6a02c0","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterparty based on a different fixed","page_number":54,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"d13259e7-0110-4ace-a23d-744c85a8326d","block_type":"box","text":"or variable interest rate, index or asset.","page_number":54,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"13cf413e-1e88-4fce-94da-a5c0598bb326","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":54,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"af722200-9382-44d2-b236-8f633139d8aa","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":54,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"e2769fc9-5e01-4439-b943-ebc875365bf1","block_type":"box","text":"such interest rate floor.","page_number":54,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"fde82367-17cc-4f12-9cf5-38f4098c9a91","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":54,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"87b0a2a2-cf4a-42af-b47e-48825fdd6181","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":54,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"5127af6d-f8e7-4676-995b-318e1309ec3e","block_type":"box","text":"such interest rate cap.","page_number":54,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"00469a26-1dcb-4b1a-a63d-76d81b459af6","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":54,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"6284c255-295f-427e-bdcc-869cbd1cc944","block_type":"box","text":"commitments to pay or receive interest,","page_number":54,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"18737414-dbd3-457c-86fd-37dbe73f5681","block_type":"box","text":"e.g.","page_number":54,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"59784677-d1ff-4512-a13e-370f7afe2a72","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":54,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"3b22aa57-ccb2-43ff-88ea-df0e5bd1fcbc","block_type":"box","text":"example, if a Fund holds a mortgage-backed security with an interest rate that is reset only once each year, it may","page_number":54,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"c39f0cdc-4287-4757-ae3f-86a8bfffe320","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":54,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"2a79bb0f-8f98-42a9-a71d-96d7bd217f74","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mortgage-backed security due to rising interest rates","page_number":54,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"4817890b-cba0-4820-8e5a-0270b09d610c","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mortgage-backed","page_number":54,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"a6e76b28-c471-481a-a375-859af5b9ac88","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":54,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"594b6bea-cacd-483d-b613-ce134477e475","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":54,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"97b8d151-9d0e-4ff4-bd48-a0aa16458716","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":54,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"a0341fcf-72fd-4718-b656-2a812a9946ed","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":54,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"8593a225-76df-457e-a081-ce14d48236b7","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":54,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"e78307fb-c66e-4840-aed9-512edd202f4e","block_type":"box","text":"II-19","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aac70533-0fb4-4d9f-8905-511b67ac6914","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5785bd5f-695f-449e-92dc-548dabb16400","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":55,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"16214b75-3726-47a1-89a7-f92550a056b5","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":55,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"1977cd5c-918a-4627-96eb-842c3e306e9a","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":55,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"8a1646fc-3131-4d8d-ad19-224f8acd4b00","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":55,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"0c44deec-e6e2-4bee-8138-9c3ebed68f3b","block_type":"box","text":"Total Return Swaps.","page_number":55,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"5ab73e3e-e12e-451e-81a7-68078082bf29","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":55,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"84b3b4ef-434b-4377-a9fe-2ffe880c09ea","block_type":"box","text":"the other party based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":55,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"ad34d83e-9c58-49d2-98b2-85ed65486883","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":55,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"fc42b6d3-f910-42e4-800f-8f964aacb606","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":55,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"aa1e80ae-0db6-4892-9b1b-65db05cb9ee7","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":55,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"727e459f-4f28-49a4-a58a-9e5a260c1ccb","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":55,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"a2665d52-3f80-4e9d-9f15-71010ad1ae62","block_type":"box","text":"“contracts for difference.”","page_number":55,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"299efe76-be16-446f-890f-5f9bfb4d7072","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":55,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"6b219c32-4c71-4086-9741-55f3be50d1c1","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":55,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"b7f3685f-3867-454d-bd2f-3ee003224982","block_type":"box","text":"required to deposit initial margin but the parties do not exchange the notional amount. As a result, total return swaps","page_number":55,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"3714cc07-f0dd-4ef9-b8d7-e3cc5a4d5eb8","block_type":"box","text":"may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on","page_number":55,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"e19a5fc1-f7e6-40fe-9f6b-f0c74f19eab0","block_type":"box","text":"the notional amount of the swap.","page_number":55,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"e4266157-d39f-40a7-b0f3-8d0581d1c5cb","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":55,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"8b08e56e-7916-445a-bcf3-a7561411ed7d","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":55,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"c72e1669-3adc-4c00-a17f-ff8171ebd942","block_type":"box","text":"Options.","page_number":55,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"dd14d549-99a1-4873-bb95-3462c14503cb","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":55,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"c588c99a-1727-4990-a000-843090afe06c","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":55,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"2c75b46a-ce07-4e3c-b425-2b395ced493f","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":55,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"a5efee54-1bd1-4ee2-b810-a21c0e24a49d","block_type":"box","text":"of the price of treasury securities or an index representative of short-term interest rates. Such investments may be","page_number":55,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"2ed78860-07f5-4658-a2c2-74f078a381d6","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":55,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"9c541875-ced8-462a-b715-4b7893283409","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":55,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"27f8d1ec-b9fb-4c91-99fd-481f0c027232","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":55,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"5a812d03-36d4-4bdf-9794-7d593a637fcc","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":55,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"5ea476f9-dca3-41d2-b3fd-ab4a0cccada7","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":55,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"b4453086-009d-4b0d-b01f-85e8e4b587f1","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":55,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"264877e2-783d-407e-ac2a-e112ac92cfd4","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":55,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"dd0669c7-8e9e-4de8-9a55-1590b6479266","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":55,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"0ecebc36-7684-4f00-90cf-6cea4cd3c5d0","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":55,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"a08bb60e-3b25-48c3-9c0d-18ab448e05b7","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":55,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"c74ad020-89fb-4273-b457-68e8ba042eb3","block_type":"box","text":"OTC markets.","page_number":55,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"c4180379-a22c-4167-b9cd-cf29ca627a99","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":55,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"a61bc977-7f15-462c-8f3b-a2e24caf8c9a","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":55,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"ec119ed6-16f7-44c4-b7a1-eb0312f212e0","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":55,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"7bb73566-4ea4-4c8d-ba87-f4474e1bb007","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":55,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"43c50fe3-267a-4fad-8da2-2d2f02a35dc7","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":55,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"99911cf9-4600-4651-9c0f-491b3fd28c75","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":55,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"29d30f38-7c45-45c9-888a-bfa074fc164a","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":55,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"8eae660c-21b3-4aa7-a215-2d10fcf093e5","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":55,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"e66f0ebd-8b0e-4611-9a3a-2325bc332ab1","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":55,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"b2b6c266-0a68-4f25-9063-7a26176978ac","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":55,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"61dd9abe-8605-4946-9b86-ea613d44a676","block_type":"box","text":"trading of options (or a particular class or series of options), in which event the market on that Exchange (or in that","page_number":55,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"1eda7a3c-0f7c-48b7-a67f-b68c404ed2eb","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":55,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"06fa5925-a218-4e40-8300-432ff7f4ec3d","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":55,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"fe4813f0-60bc-447f-b0f3-4c9e40c92a8b","block_type":"box","text":"terms.","page_number":55,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"63f0efae-4870-4d5b-b507-0f81704b8abb","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":55,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"41e4fc59-7fc5-49c5-80bf-710233a6771a","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concert with others","page_number":55,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"fcf62722-1b00-4692-8160-4d9615181583","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":55,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"928e8278-5887-4d1a-8623-514469893b75","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":55,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"a36c0860-3a6f-4bbe-b658-43993c921e41","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":55,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"b860c35e-d83f-4c90-b9aa-04776cb43e59","block_type":"box","text":"II-20","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"80643203-356b-4dd7-b7d7-7416b3f250c4","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cc5c47b8-8d57-4594-b12c-203bcc9bc278","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":56,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"ab453c57-ca22-4178-9e72-68a2d29361d4","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":56,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"ebf084f1-8749-4bcd-ae88-d196e4008f0e","block_type":"box","text":"Call Options.","page_number":56,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"11f65e62-3290-49d6-83e6-7e11d2da9772","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":56,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"4b137232-f86c-4e47-84bd-fa3a5b9fa40b","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":56,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"04052acd-4825-4124-9851-ff4e89f93ce8","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":56,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"017d8547-e3bd-4d33-a7d3-2ae4318a70f0","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":56,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"f24d19f0-c153-4ba5-b99a-a988dd959950","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":56,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"895f926a-166a-43a5-8310-df3eeb696751","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":56,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"3679d698-c844-490e-a972-6bc829d3ec02","block_type":"box","text":"of the option.","page_number":56,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"46759d31-3eda-42e6-8b15-6bd572ade541","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":56,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"dc483104-0892-4aec-9783-b14535a570fa","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":56,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"b9cc0890-419a-4f3d-8afa-cf9237be5c54","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":56,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"67a54ff3-712f-49a4-9577-71d6af712a3e","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":56,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"a6155a84-baa5-49ed-9444-6261f79f994c","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":56,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"89427d58-2942-4008-9bb4-74edef8b9eb7","block_type":"box","text":"A Fund may write (","page_number":56,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"d0396763-d570-47ea-b41a-385961a3d4ae","block_type":"box","text":"i.e.","page_number":56,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"727ca2f3-0566-47bd-adb8-ee5a18278d54","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":56,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"1cc86090-cd35-43bc-aca2-c34030ba157e","block_type":"box","text":"enter into closing purchase transactions with respect to certain of such options. A covered call option is an option in","page_number":56,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"2cf22f0d-ee29-4ed5-8ed3-d013761bb79f","block_type":"box","text":"which a Fund, in return for a premium, gives another party a right to buy specified securities owned by the Fund at a","page_number":56,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"a31ae057-9572-45a2-97fc-c4a9655ad7f1","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":56,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"3c5166e7-379d-4f50-921f-6f4173fd0f2b","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":56,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"4feaaff2-c1ec-4954-b87b-68d9f2f2256c","block_type":"box","text":"By writing covered call options, a Fund gives up the opportunity, while the option is in effect, to profit from any price","page_number":56,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"04efd5bd-1b30-4cb1-8cab-e22f8094069d","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":56,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"4f22f826-8a59-4d39-bc7a-5501322f55c3","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":56,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"f5320f77-3245-4759-8246-72712e9b5989","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":56,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"bfd6e86d-fe55-4daf-bf1c-776ffe7cc35c","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":56,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"cc22f300-e79d-4297-b327-e7ee7ee42730","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":56,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"cf3f3b96-3fc4-46c6-9705-a51c4c286081","block_type":"box","text":"A Fund may write","page_number":56,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"c2d34148-5e9f-418e-9baa-f8b262283b5c","block_type":"box","text":"(i.e.","page_number":56,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"1e7df390-8f59-4d0a-9523-cae0e2890a08","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":56,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"35641a48-f320-4a09-a259-e380dce136e7","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":56,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"e15a04fa-14b9-403a-b331-a91340e015e9","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":56,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"47cbc38e-43c4-4a28-b483-44481ea99243","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":56,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"235ac53c-cbfc-4936-90e5-6637e0024a28","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":56,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"8c32ab93-1a25-4a4e-9412-5af3bbe906fb","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":56,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"f9ac577f-52ef-449b-9574-e2f38537999b","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":56,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"df5ca962-71b7-40d9-b2c8-f6cf474614bb","block_type":"box","text":"there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls have speculative","page_number":56,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"2025a5fd-ca85-4195-8faa-6c665d70e8e4","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":56,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"702e69e7-ddfe-4c0a-917f-ed88ac401b35","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":56,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"a0e15d81-bcd4-4fbb-aa48-16d9084c3923","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":56,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"925bab75-0a51-41ea-9c49-081221d3334c","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":56,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"abffaa46-d221-492d-9e26-64d4f4538be2","block_type":"box","text":"Put Options.","page_number":56,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"82177495-40e2-4231-adc0-a7569f627c5b","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":56,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"3285dd07-5088-463f-8d52-1fb97bdd63ef","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":56,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"35419e2e-e3d7-4d7a-ae49-5c7b21a412bf","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":56,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"1fe0f6a0-ee10-4253-aa08-32f96caa3370","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":56,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"197c3d5f-ca5c-411d-8492-eb7a3a53d114","block_type":"box","text":"instruments will be partially offset by the amount of the premium paid for the put option and any related transaction","page_number":56,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"919e403e-cc69-4ded-bc59-49456f46fa78","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":56,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"49a92d30-efc6-47ea-9ed9-bdb243ebfce9","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":56,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"752b54c7-0b64-4411-bfb7-d60fcff75761","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":56,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"7b9ab679-a3ed-45eb-976e-b82e0c38a8d4","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":56,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"1dec91fb-4293-4ec6-bfc7-318248dfbfce","block_type":"box","text":"purchase uncovered put options.","page_number":56,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"d38edc44-19e0-4c6d-8525-74f0441e8274","block_type":"box","text":"A Fund also may write (","page_number":56,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"2a580edc-fe1c-45bb-8d7d-cc083a307f77","block_type":"box","text":"i.e.","page_number":56,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"86a4f4d8-f369-4926-a8ea-7f6dfd95d866","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":56,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"796057e5-ad3d-4d4a-b7d5-77a89392d9c1","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":56,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"6f853829-01bc-4a19-b201-eaa5746c89a2","block_type":"box","text":"A Fund also may write (","page_number":56,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"3fad4c84-e3e8-4d85-a93b-ee98958dd7fd","block_type":"box","text":"i.e.","page_number":56,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"40ca3d17-70bf-4ee6-9251-d7c76b29024f","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":56,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"01f74cc4-495b-41e9-8eeb-fe30d9474ad0","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding short position or has not deposited as","page_number":56,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"62fb1ab9-1dba-4608-8b57-74308c42a30b","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":56,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"6c4126d3-e4c0-47dd-b632-25b615e7543b","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":56,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"528e7c7c-37e6-4036-a6fb-586d72837723","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":56,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"921e4b28-ce83-40c2-bb9a-782b0bbffdb7","block_type":"box","text":"II-21","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"da041326-ce00-4fb4-a2b9-d9570baff33a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b2163357-83e5-473b-8b23-3632a7ae796b","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":57,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"0e7d8b75-3700-45db-95f2-25cdd9db612b","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":57,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"4fb7626c-b160-4698-99db-35bf117b091d","block_type":"box","text":"expire worthless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":57,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"048635ed-2fe6-4177-a121-bb2bca95eac1","block_type":"box","text":"the exercise price.","page_number":57,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"ead4f3d4-4b2e-4e4d-b6d2-b620ea8ad0ac","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":57,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"833f9c0d-015b-4f15-adba-bb1457200317","block_type":"box","text":"The following information relates","page_number":57,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"2179c256-3082-401b-9b77-1bd9f5274ca8","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":57,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"cfef06e0-3d64-4a85-a818-6f32215ef763","block_type":"box","text":"Certificates declines each month as a result of mortgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":57,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"94ddf975-2023-4f7d-ba62-7e37828a06b8","block_type":"box","text":"Certificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Certificates","page_number":57,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"5d028636-353e-4673-932c-99eb0924b350","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":57,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"792b4b4b-8d29-4541-8ff3-07f0e6cb7490","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":57,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"411a9f48-93c6-4dfb-ae43-5ffdc817566a","block_type":"box","text":"market in order to maintain its “cover.”","page_number":57,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"290bf778-8d9f-4db8-8adb-d7a0e45d11ea","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":57,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"6905e0d2-7376-4e13-bc5d-92da36b4a199","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":57,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"5666875d-5641-475c-98a1-cb40d4ce67b5","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":57,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"18656aa2-c6d8-4763-89e8-ff0c424e329c","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":57,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"d6315808-35ee-42bc-bb30-1858dfd80dac","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":57,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"9411cd04-0dce-4191-97f4-51e389e973fa","block_type":"box","text":"and incur transaction costs.","page_number":57,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"53b4a5b8-8594-4349-90cf-aecf303f16ce","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":57,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"ed42a249-28d0-4a2b-ab90-e02295301fa9","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":57,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"941aaccb-72c3-4dab-8c7c-bfb9ad30017c","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":57,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"577f75ff-bbf0-46c4-b47f-441078c1725f","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":57,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"d48047cf-43c7-4b1c-b29c-859f3682d53f","block_type":"box","text":"i.e.","page_number":57,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"c3e50bb9-210f-465d-84c6-e7972f7d66ef","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":57,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"8bd5f6e1-090e-48c3-aa54-7415330c8c6f","block_type":"box","text":"Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when","page_number":57,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"55c54c3b-ab2e-408a-a5df-0a7cd597d24f","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":57,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"1f42c2b3-5497-45da-9808-a4252518e6c8","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":57,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"57dffa47-aa6c-4c14-8e8a-2bc7bbb00b69","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":57,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"963876f7-905c-4ff3-8976-9f91ee31d2cd","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":57,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"ffc18e27-0407-4b6a-8e6a-e8298766d8c0","block_type":"box","text":"required, to be cleared.","page_number":57,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"dd0fb47c-96ce-4bc9-98b5-afb3f2d10deb","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment or","page_number":57,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"af866ea6-cbef-4604-98d4-e276765736a3","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":57,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"41881e16-11d1-4637-aa9d-dddf4b2c7ba5","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":57,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"ebef77dc-09c7-42ae-9e78-163b72fc62d5","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":57,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"7221dba7-9270-49ea-bbb4-775b401bcd3f","block_type":"box","text":"Derivatives” above.","page_number":57,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"35499db0-5dfd-47ab-a753-236912755d8b","block_type":"box","text":"FLEX Options.","page_number":57,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"cabe24ab-259e-4989-aac6-a6152a05d4d8","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":57,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"ef40cf46-5b28-467a-9aed-7f12fbb2dae7","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":57,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"8010598b-bfe9-4517-baf2-801bbaba1b7f","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":57,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"ac6b8618-1103-4793-bcc5-f1a5734bb8d1","block_type":"box","text":"exercise prices, exercise styles (","page_number":57,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"01aa1a01-0620-4518-8c05-8858c8f69dc6","block_type":"box","text":"i.e.","page_number":57,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"ca38509c-877c-469c-93c2-652a06b923a9","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":57,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"47ca4bbc-ac83-4c0d-805e-5a21b8dea562","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":57,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"eac48b3a-96c5-4ddd-ab10-5fa3709a8fd7","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":57,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"980d37d6-ffb3-4356-a1de-a51f3a862144","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":57,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"daf537e7-d963-4911-866e-1925d0475d1a","block_type":"box","text":"reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options, including both","page_number":57,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"2433bf6e-c595-45f0-a5d4-ff833d383e1d","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":57,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"0330753f-b839-47da-ba64-0cb31f4e97f1","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":57,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"60b1a337-4fdb-482a-8e5a-f8753a5990af","block_type":"box","text":"FLEX Option’s expiration date.","page_number":57,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"e8c76bdc-29e8-4433-b036-04a6f2c947e2","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":57,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"09091270-cb17-41ed-b7ec-ed9b935a7027","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":57,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"a132eedb-d3dc-4aab-9c06-20200c9821f9","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterparty risk with the OCC and","page_number":57,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"1b40e84f-0e2f-47a4-b671-537b54d1b920","block_type":"box","text":"subject to the risk that the OCC may fail to perform the settlement of the FLEX Options due to bankruptcy or other","page_number":57,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"b9f368fe-4d95-4b68-a810-73942d81ebd8","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the","page_number":57,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"f49c34a2-ead7-44e5-8f68-056cd881e148","block_type":"box","text":"FLEX Options contracts.","page_number":57,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"bffeed7e-0184-455c-86c5-52b28f07686e","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":57,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"e198e34c-d968-4d74-a80c-09d4daf72877","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":57,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"06dc2486-6837-42fd-929a-5cae68bb3f89","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":57,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"8f1d0295-d698-4233-a57c-0f53c7cd1a34","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":57,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"d1d23e8e-f019-4353-84e5-ffc22bb99980","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":57,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"e1597a03-445f-4514-983e-807246d5a28a","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":57,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"f6be0dff-8d2b-429a-ae82-7823e0920998","block_type":"box","text":"II-22","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c4b5e90e-3b0b-4090-9620-661e853c0795","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b91e795e-cfd8-4284-bc36-86c176294891","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":58,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"26b8e452-54f3-4a20-85c0-6e9b178492d4","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":58,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"7f0bc41b-ec98-4107-94fb-4f83ae72a9f4","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":58,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"e4c411da-6870-4c05-9630-0fddc32e4b69","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":58,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"8380973c-8c80-44fe-99c7-d5dc301a524a","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":58,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"67d03a09-d524-4d43-9c62-8c9522a572f2","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":58,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"23f740a5-ab19-4e8e-8eff-3ce4b4bb0455","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":58,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"3feae56c-df5f-4242-a02d-080e090b37c4","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":58,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"13281af2-61a9-4f27-8288-5c4e8c440e67","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":58,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"728460bb-cd6b-4108-836b-b8c7b37033c8","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":58,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"8ca90ebf-5d46-4512-8cb5-bb521e019645","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":58,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"1b76646c-198c-4989-8167-1bc4932a4129","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":58,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"7691a84a-a6d2-4621-b361-b425fdf414f4","block_type":"box","text":"expire unexercised have no value.","page_number":58,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"0d27b28e-bf47-4bd1-8dea-4a23cff80570","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":58,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"6436129c-02c8-4cf1-8bfc-defceecdbd6f","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":58,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"967e3c67-0c48-44fc-baee-a2b3963f7116","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":58,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"0706ff51-eb62-4b24-a65d-319e3d5be9ad","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":58,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"d0b7d270-0600-460d-a1dd-33de639a0845","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":58,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"06eee8bc-2a1b-4518-9b1b-1e55ac25951f","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":58,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"720b1f12-e64f-4675-96cf-76102579f04a","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":58,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"7a2b4622-2042-4ecf-9a12-d3213ac08474","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":58,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"81950edb-57a9-4a09-991a-cb7210d5771a","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":58,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"e1e25899-fcb8-49b1-a119-149bff7b7372","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":58,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"546c7839-51f4-4466-84f0-24987aa15cf0","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":58,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"e40774d5-65a6-4391-9750-9fc9a5a5442e","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":58,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"8d982cd6-f5f4-4199-b973-a4d034169813","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":58,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"2e4012f7-9945-49c3-a954-d149c7e679c9","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":58,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"4183033c-ed77-40e4-93ff-0f9af1b25674","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":58,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"41a0fe7f-3e92-44e4-a438-7148037e2271","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":58,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"624a60d0-f720-4ed9-a47e-ffab1dd59a8d","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":58,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"bb6a0623-6980-4b13-900f-cd8edfe017b5","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":58,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"dcdc4024-844d-431e-85a5-519bd6091d21","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":58,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"199dd567-b1b9-4ccd-9a1f-27fc568e4156","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":58,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"286f2938-1a8a-4354-b079-838ece9da221","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":58,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"d2ddef1f-3d13-4824-9cd5-c71abbeb3776","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":58,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"1afc2565-2a0a-43ff-a46c-a5223943c847","block_type":"box","text":"Foreign Exchange Transactions.","page_number":58,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"f0ac83e5-50d1-49c4-bb81-738e8559f574","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":58,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"64cf4955-8fcc-43aa-90ea-8d6ff4b13af1","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":58,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"c3428e6b-b421-4e22-81ef-6a533af8dffa","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":58,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"ca2520dd-7c2c-4d2a-84e1-f9f27b860cbb","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to certain Funds, to seek to enhance returns.","page_number":58,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"30e206cd-0710-4a64-bbfe-942c740f03be","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":58,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"eae38a57-1ccc-46c9-8f29-9f2c4a39719c","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":58,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"9a755c4e-9649-4bbd-93ff-cd660798f596","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":58,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"eebd5ef5-ad20-4834-8586-9e40c4181d29","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":58,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"ef94247d-e2e5-4e15-bb8f-e1a7ae4d7394","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":58,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"1dce2889-f665-45a4-aa4a-c93c44ed0ac1","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":58,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"532feb73-82c7-43ca-b50e-5840b6cd250f","block_type":"box","text":"part, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":58,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"6adb3fc4-8e6e-4673-8b24-97439bd66867","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":58,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"a2361d7c-9c4f-42d2-b86a-7c04cf1cad15","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from increases in","page_number":58,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"5ff3afc0-2ee4-4f49-8302-9ce1344bfaac","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":58,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"b683c512-799b-46f5-9db5-2ade77154ee4","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":58,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"70370e4b-d6bd-4574-9198-b087941befd7","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":58,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"7afca5c1-8fd7-4cd6-9b2d-0b0ed2f8bf22","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":58,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"c834186a-7cb6-470a-9535-389e8e8239ca","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":58,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"60c5b8dd-0aa8-4a5c-8767-196fe711b82f","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":58,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"3e4ce5db-101d-473f-ab93-b02558446253","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":58,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"f2b61955-9e95-4424-aef2-7599e0ab4547","block_type":"box","text":"II-23","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6d3cccd4-eeac-4ab0-9c76-5c9113521e9b","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"074f658a-b55e-4ade-be7d-7e641bc27f76","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":59,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"85d97369-c437-49b0-b3ad-1a84315f167e","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":59,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"2a1db053-0095-492f-9292-4c968ed7c70c","block_type":"box","text":"Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":59,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"0af7dbd3-b9ca-4490-a2f2-d7c1809a1dfe","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":59,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"908179ec-43c8-49a2-b862-c87ca33f8e5a","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":59,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"bb18f96f-e90c-4036-ba6b-33b6b503f76e","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":59,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"9b6c8cc5-e1df-49ff-aac0-1a745b08f1d1","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":59,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"be09bdd9-d0ad-4a33-8738-d357bde94469","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which certain banks","page_number":59,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"80f2c5fe-63f3-4e08-bdb6-be5320bbed5c","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":59,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"43db7543-f720-4ade-ba81-e4a773fc8840","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":59,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"fff45f1e-6f1d-431b-b136-5f25bae5b175","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":59,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"10efef37-683d-4e98-acbd-51452ae7dd19","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a counterparty","page_number":59,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"6a49cdf1-6b0f-47d8-8711-f9d7332f2664","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":59,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"65175aef-2a62-4998-a0ba-17aa32f271d7","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":59,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"695602af-23b3-4f6d-b55c-a77ae5e67227","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":59,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"e55d71a6-bbeb-4614-a4fc-15e43b4520a3","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":59,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"84326530-3e85-405a-a215-16f4ca4837e4","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":59,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"65770915-6b4c-4673-ac32-f53a6ed26ef2","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":59,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"03de09e5-edae-4e24-a5fe-120009877037","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":59,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"3689317d-9753-4ffb-9132-521b7e29b8b3","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":59,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"e6ae414a-2a24-424b-a175-ab461c7bb9b4","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":59,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"56c566bd-38ec-41cc-964e-fc32acaef517","block_type":"box","text":"involved.","page_number":59,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"df459a81-4b9d-4d3d-81f0-632ea15eb921","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":59,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"d2240b9c-74ce-499a-8be6-649801d2ab5f","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":59,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"8c970b78-21f6-40a4-a95b-b7b72632e329","block_type":"box","text":"denominated in such currency.","page_number":59,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"dafffd86-1f10-4c13-bc00-6a0302f86f98","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":59,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"4c1439d7-d6f0-47b0-9463-780b1988382b","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":59,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"bdd6cf3f-0018-402c-926c-10af59cf7aa7","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":59,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"8b162eaf-c4a7-4351-bb10-7a0185f4e3f0","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":59,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"7d0ba347-93a2-41cb-8ed5-4d334fe97267","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":59,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"0af3b788-713d-41eb-b9d8-0caae9c21a9d","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":59,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"891b0cbd-8fdf-45d5-8ab6-53dac393a901","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":59,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"9342aff4-fb25-42e6-9024-dc76d334b76b","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":59,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"c431a79e-abdc-4002-a3d3-cd6916c14d9f","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":59,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"4a6f069a-c489-453a-925d-78aa3a4f78ad","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is denominated or","page_number":59,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"e23578c1-d894-4afd-9cca-0b768358133b","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a portfolio position in the near future. A Fund may","page_number":59,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"56bb1bf5-fc00-4d7d-b8b1-4b3bfa44f81d","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":59,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"748b713f-bc8b-458b-9ca3-eff959796d0b","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":59,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"3156913a-25a9-47c2-b784-3afde5c05537","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":59,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"f0150858-7cf6-40f2-909d-342c75e1f5c8","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":59,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"7de1ba3a-d5b2-41a9-b987-46b0b06d6495","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":59,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"205a78dc-a4ad-4d61-8036-c9c64c528142","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":59,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"60852153-60e2-4b51-9a68-d18e6ade1628","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":59,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"d95299c9-c472-4022-9aa2-d99fcc509d2e","block_type":"box","text":"of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when the currency to which the","page_number":59,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"d1189156-85b9-4260-bf21-719c35df7a20","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":59,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"01da36b6-9837-4fa0-b068-c3ce50d357fe","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":59,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"8709b2ef-8a6f-4533-bf32-88ec06f9ff1a","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":59,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"c4039fba-4882-45f9-89f8-d26ae7450216","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":59,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"0fb1026a-edff-4e88-bb73-8a8617d53a83","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":59,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"79215007-7fb7-4c46-871e-32a5b766a33c","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":59,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"8eb0c6de-c234-484a-b33c-84ba71919302","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":59,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"92cba8f4-bb2a-432d-936d-b9173b9aafae","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":59,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"1ea9de4d-10d5-4621-bca9-f1b6056fd9af","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":59,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"4e6bdb24-3980-4c1b-836e-3d1d18c7f3fe","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":59,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"688b1a45-639e-4cf5-84a0-c175ff1a87be","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":59,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"ce68adc3-18e3-4fa6-a96c-0ee41e909cd4","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":59,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"9213a6ad-d33d-4d63-bab8-15bddd5b404a","block_type":"box","text":"II-24","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0c5cf2e3-d1a6-4ae9-95c3-1f61c1599cb7","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5e12c62b-ddc8-4007-9cb0-56459802e562","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":60,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"5dc0b79e-4ff5-4719-b70d-2669fde1b73f","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":60,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"fc3e08cb-0f34-4084-b96f-fd227fa7b78b","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":60,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"2eb498a0-5a9d-4bdb-9027-45dcaf824a89","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":60,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"9f71a2e4-28a6-4dd6-a01e-86c3cb89e7ec","block_type":"box","text":"in non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":60,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"e77dc331-4015-4c00-9f63-37ad1c1004a3","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":60,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"fa1e6f1d-c8c9-4116-9346-f9bbc9ee4bbe","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":60,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"a2ffa45b-2aec-4c02-a733-235beb9615a5","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":60,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"5d52d2ab-15e5-4720-94a2-4d526b26dafa","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the party receiving payment. NDFs are","page_number":60,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"3aec2ab4-ac36-49a5-b650-18b68127bccd","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":60,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"b1a88e9f-5196-4967-81fc-f0f29b6a15bf","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":60,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"1e1fd355-ecc8-46aa-ae8c-c24854acbb3e","block_type":"box","text":"traded.","page_number":60,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"3c797e77-1029-44a7-ada7-75034ee266d4","block_type":"box","text":"Currency Futures.","page_number":60,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"1e25e702-ff6f-47b3-9a5f-00af7df12002","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":60,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"28648b77-0638-41ea-b758-2b591d3ef883","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":60,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"5e74493d-0515-4aed-9db7-f508a489fa2a","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":60,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"6ddb09eb-9cc6-41f8-9be7-370b40a04b3b","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":60,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"cec3bb89-2f6d-4bc2-91fd-2b7a129a44f5","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":60,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"3eb864f9-6ee8-4db0-807b-5c8fd15428b5","block_type":"box","text":"Currency Options.","page_number":60,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"2ff0994e-1274-4015-95c0-c3d5fe7a3317","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":60,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"768ff5b9-b5bf-4533-b819-04548b1d15df","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":60,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"68115527-ad28-4b24-8375-b7cae78acdd2","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":60,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"9f5dfc15-3687-4474-9595-f3fc039591e2","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":60,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"9a116903-e607-4032-a390-68b0d78c2a3f","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":60,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"20663cf2-dd7a-45ec-98d7-e4c4c57ecf43","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":60,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"9c87025e-25b8-43bf-83ba-36ec3d93c4fe","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":60,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"d3f6786d-a001-4b4b-ad68-a17eb51ec52d","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":60,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"1b98759e-d513-4b32-bb18-98b64e5446ca","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":60,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"6d280f89-f160-4c31-ba87-3c5e50928cc8","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":60,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"a0c39a60-fba4-4ed4-b4cb-009227e1cbcd","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":60,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"16a5569f-bfad-4033-ba45-daafe61e2cd3","block_type":"box","text":"Currency Swaps.","page_number":60,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"2445679e-8613-4808-aa19-c0ef1b923fe8","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":60,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"3c640347-73a4-425b-b3fa-03b625d7c196","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":60,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"3236fb2f-592b-4093-aa05-123c0db81f99","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":60,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"01bcd42d-0e86-4ce2-b8a3-c81770c806d9","block_type":"box","text":"exchange of the rights of a Fund and another party to make or receive payments in specified currencies, and typically","page_number":60,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"cb7206a8-91d0-4d0f-8bca-e4f8d6a3b127","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":60,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"73a30373-444f-4c1a-98c3-f8c0efbb38c4","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other party to the","page_number":60,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"01965515-840f-47a9-b0e9-eb1ca6068128","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":60,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"1a9330d4-5f20-460c-99d5-b5d9d630c199","block_type":"box","text":"Distressed Securities.","page_number":60,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"e73a9a50-16d5-4b3b-9d8a-2d6abaf82f23","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":60,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"a68dee5f-0cb0-4422-8813-86c681029327","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":60,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"49c99b70-5f3c-40c2-a1b4-997b657224a0","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":60,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"bdd72d6d-cfb2-41ea-9fd1-dafbbbeef1dc","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":60,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"521a1512-4c59-4a46-bd71-782b86cefef1","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":60,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"cc3defa8-cdd7-4d64-8e5b-b36b3ec1f324","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":60,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"e515856f-ecdf-48b9-ad4f-63a65e87587c","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":60,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"d8494c73-c841-40c3-8078-311d83b5bcbd","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":60,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"ae90e559-7d3d-4d44-a6c4-2ffada8d5a2d","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":60,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"fd134013-e11b-49a7-af84-5f74f639a0fc","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":60,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"5f5e8af9-0e6b-4de6-ae98-387641b98efd","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":60,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"838b5131-98ef-43a9-a5d7-779024700fd8","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":60,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"af138a44-aca5-4b6d-99b0-3479e35ec984","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":60,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"4dae01ca-e3bf-4982-88a1-78d2654cdcf6","block_type":"box","text":"significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":60,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"c1b1958f-875a-42b7-843d-76c02af7b1dc","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":60,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"79e6f47f-e6f2-4772-b9f1-4e47e501321e","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":60,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"6b34bed3-8907-47a6-bd6b-8ce6d3e36114","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to","page_number":60,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"56d4214f-110c-4bad-a0aa-614261205b56","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":60,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"1c749a15-e27d-4c93-ad53-4290791ea259","block_type":"box","text":"satisfied (","page_number":60,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"15582299-00e0-4b02-b449-186fd42a2f10","block_type":"box","text":"e.g.","page_number":60,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"00a70114-37fd-4c4b-8e06-bd1ff0a19c95","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":60,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"afe51209-1b8d-4317-95dc-28c68e3bc8ca","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":60,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"9faf7efd-e851-4eec-8964-0fa2e2d8a864","block_type":"box","text":"II-25","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0257d77f-33cb-497f-97bf-8ae5507cfd37","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"330d4e15-87f6-450b-837d-280c80341784","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":61,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"65ae478b-14d0-434c-943d-33df65d7330c","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":61,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"4ecb2044-212a-4343-9e96-155afa6accc7","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":61,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"396ceffe-42e9-4066-9679-7b4c3b863530","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":61,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"377054b9-d166-4e48-be24-b629d2ecb967","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":61,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"ffa63cea-b8c9-4ba3-9272-8aec1579cacc","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":61,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"2d566405-74eb-4910-a1e0-8d32350203da","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":61,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"396fdf3e-dd4e-4c17-a5a1-dbb504c212ac","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The","page_number":61,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"fd28b490-79bd-4e93-8917-d32c0698d384","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":61,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"97ed433a-a1a1-4126-b95e-64d51090f1bc","block_type":"box","text":"affairs.","page_number":61,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"e594ac5b-4224-4760-88be-287897c521fb","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":61,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"16b53d74-6428-40fa-87d0-90d7a7048fa3","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":61,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"574be3ee-d6f5-440c-94e3-1f5f97ab1b66","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":61,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"4b76729a-6a3e-474b-bc62-50364debc678","block_type":"box","text":"consider ESG factors as part of the investment process for the Fund. Fund management views ESG integration as the","page_number":61,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"41d8919a-8b89-41c0-b9f9-7e3f9408d4af","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":61,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"d40ebd0b-cb7f-4722-980c-478565170a2a","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":61,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"0e07d8d7-9bb5-4b85-b586-0f8b960e82c8","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":61,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"88c7c424-26e2-47f2-b42a-88789a8ace46","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":61,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"bfb9b29d-2e6a-472a-bdd3-169602c034b6","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":61,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"71785181-e484-4690-9568-4ac9c96b141b","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":61,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"09fa01e8-0557-4e51-aad5-d3dd23d04c95","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":61,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"b31af3d8-e5eb-46c2-b2e3-d83abcb876e3","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":61,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"12870f2a-396d-4e26-8806-1f5a74b977df","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":61,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"cac2fde4-264e-4dfb-8fd6-e47f99d41195","block_type":"box","text":"Equity Securities.","page_number":61,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"3f4dd171-1804-4438-95c5-e12c394fea1c","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":61,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"f03850ec-0755-4631-9d68-3dfe151c32af","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":61,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"a23fc2e1-1deb-45b3-8622-aea9f021ada9","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":61,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"3ece3a22-bd86-4a10-96e4-cf90593ad834","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio","page_number":61,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"01c4817c-95bc-4d23-af6a-88b4d4b2eb88","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":61,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"d65033c5-3ff7-4418-b065-dc602ac86a12","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":61,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"1911c070-5e91-4199-a2d4-179697797724","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":61,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"5f7ee3da-bef5-420f-86f0-b70318eb5c9f","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":61,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"b53e2b5a-9520-43bb-bc05-82477c30d623","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":61,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"0afcf634-62b0-46f1-87f1-57192d7881b1","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":61,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"0b7f78e0-e87f-494c-8bea-b0118c6ff127","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":61,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"bf38914a-52e0-442f-8bdc-5190ee076568","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":61,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"d014ca3c-95ef-4eba-ba13-ec560b044782","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":61,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"176a8840-0c05-4f6a-896c-e26f7afd969c","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for certain Funds. There is","page_number":61,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"6d59c50d-1b87-4a12-a05d-0a3dcc26bbab","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":61,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"f8e34dad-f3a8-4ca0-afa8-318f56604093","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":61,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"36798232-6aaa-4d7a-b933-c2c013215398","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":61,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"adecb1e7-370f-413a-8b75-0b197b3c2aa0","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":61,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"d6fd3df1-172e-4b4d-b846-7e01bf3927d0","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":61,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"81eee41d-2a09-4828-9c90-46847a38bfb4","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":61,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"96b5f79e-5a94-47b6-9a44-f4a1bbe6e942","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the","page_number":61,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"b368f2f9-34c7-42ac-99b2-60e34fde4cad","block_type":"box","text":"initial public offering.","page_number":61,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"182a6d0d-09ae-46b9-ae86-a17e4df8502e","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":61,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"cf631e6c-d906-4fcc-b244-d31210d742dd","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":61,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"e2c4a30a-b8a8-40a2-902c-09e82237322c","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":61,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"ebf6ab76-43ea-49e3-b370-67b77cce50e5","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":61,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"ce82f02d-cf9e-4a51-aabc-e044f0611b1d","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":61,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"06b83af9-e64d-4736-9f6b-e3420e9f46f5","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":61,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"69b63d55-766d-4e91-bb97-2c5bf0301836","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":61,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"cf0a5fe3-d484-4752-947b-ca414862640e","block_type":"box","text":"more established companies.","page_number":61,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"cbdfc754-4fbb-410e-8b96-1ce143a0b1fb","block_type":"box","text":"II-26","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2badd563-a0a0-4ea5-aaf4-b7e1209c6834","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"43ed9b9b-24fe-4c57-af9a-278a4a57af57","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":62,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"6d6f3777-845d-490a-bc23-47f9a5bff2ca","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds may also invest in shares of","page_number":62,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"a057939c-fece-4087-94ea-32ef73762cf1","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":62,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"7ac3b0ef-f7c8-4b41-847b-7a1c3d62b1e8","block_type":"box","text":"below.","page_number":62,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"05046c49-f53f-450d-bd99-79eba21912b0","block_type":"box","text":"Real Estate-Related Securities.","page_number":62,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"b62a6b1e-ff46-4742-b832-48b671d48baf","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":62,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"66a46eb3-1a2b-41f8-a9d2-0f7619ec71c8","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":62,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"258546b5-ed17-44ba-b403-356b09a0aa5e","block_type":"box","text":"certain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":62,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"9498542c-8ee9-4550-9986-2af4a6818306","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":62,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"022d2bd3-cbce-4cbd-936a-0337f8a5c5ed","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":62,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"b9252955-ec05-40b1-ad55-7463eeb66a94","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":62,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"070668cf-b8ba-4537-a201-7664ab580c30","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":62,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"89c719d1-78c6-4272-8d85-6e1115649959","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":62,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"21d18b1b-926f-431a-af24-c3a7c0fa4bed","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":62,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"438c92eb-cdcb-4855-b028-a37696718de6","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":62,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"e59388a7-f8c5-48f7-9a20-e6bf3a2bef99","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":62,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"e77f5f7a-b59b-406e-b1b8-e1edd591fef4","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":62,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"c886b8b3-df1b-4d9d-9557-a7681b3e7393","block_type":"box","text":"type or in certain other respects, the Fund may be subject to certain of the foregoing risks to a greater extent.","page_number":62,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"b91d8ed5-0eed-4734-882c-46c35e218ef4","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":62,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"267de316-95ae-4134-9632-2466e98ab02b","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":62,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"db4b26c2-dc5e-443c-a1fb-cb82f2d65ffe","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as a result","page_number":62,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"716c84bf-2080-4b13-9ab0-0642f7f0e4f3","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":62,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"5610ed65-e7c7-465f-9e50-c16c736ac3f2","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":62,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"dbf81de6-0fd9-44f6-9992-cd507431755d","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":62,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"36fb49ef-6ae4-49d0-8061-a0828b349bf9","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":62,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"00d107ec-c7f8-4fa9-9692-5a09cab1f4f4","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":62,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"1a4c04bb-2380-4ea5-b3d1-b6228dcbd591","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":62,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"d673f81d-761a-4603-8b57-3e28fc5c8cb4","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":62,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"6cf8a9e3-a622-4403-a240-a723f652120d","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":62,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"b8a5647a-bda0-49e7-bf3f-69d288a10faf","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":62,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"e28402b5-bfc1-4967-8f8b-52f92e2295e9","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":62,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"5af5ff33-d863-42e9-9341-1d4eeb9c7579","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":62,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"f6f32c64-f238-4317-bfb7-429ed0551961","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":62,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"7b71c0f3-817d-4dd1-97e8-4b6a2df92506","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":62,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"5b30abeb-492c-45c2-9e0b-55629cfea1e9","block_type":"box","text":"result, the disposition by a Fund of portfolio securities to meet redemptions or otherwise may require the Fund to","page_number":62,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"05ffa6ed-d308-4002-a3d9-a0de1a97ccd6","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":62,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"1b3aba8e-22af-4a5f-9381-bc2505de7a15","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":62,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"a0e5070a-2578-49ca-b9ad-0b6aad65f2d2","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":62,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"89ff414b-a68c-4a2c-8b21-b03361067649","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":62,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"b0850141-d138-4160-878b-ae8006d8a1dd","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":62,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"8abe6a78-ddab-4b48-9a39-1c92a5345f7f","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":62,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"7bbf3066-dfeb-4f72-a23e-8ee551140b36","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":62,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"2ce08827-9c72-4428-bd6b-4e6512ebe2ab","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":62,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"a44c7247-9a54-406a-9a7c-514c431a85b9","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":62,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"c98fd5e3-67e7-4494-9d97-a8b0aeeadc2c","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":62,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"e52dc153-fa4c-465f-92ba-7d2b5bed8237","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":62,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"70bae660-7baf-45bb-9606-13510079204f","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":62,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"461d3cdf-799f-4743-99b7-1ee54d429d60","block_type":"box","text":"cycles.","page_number":62,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"87a0ae33-df77-4b33-9811-6a1223a4f1fb","block_type":"box","text":"Tracking Stocks","page_number":62,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"3f105da8-2810-46de-bcc3-bc78c44d22c4","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":62,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"b0f5d83f-5f9e-4f07-a214-225b7f04f37a","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":62,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"8080126a-bd3f-4309-92f5-ef08cbb577a5","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":62,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"3ef80aaf-4588-4c2d-b2ff-2e3ca7046f98","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":62,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"c2fff528-3fed-466a-bece-19b53861c33f","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":62,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"4b74f150-41ed-4b67-858c-d4ff93715ee4","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":62,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"40575a68-a481-402f-8bcc-f9e4840eeb0d","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":62,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"e311db5d-7717-4294-bbfd-00f2f2710f25","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":62,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"5252bdf9-ab3c-4976-9b09-d10807200649","block_type":"box","text":"II-27","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ec876abb-75a2-49f8-b040-930a00278dd5","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c9525d39-9a13-4411-a20e-239a3ee53418","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":63,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"973ab0e1-1a09-4620-95a2-8e7e257cfc16","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":63,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"97249c85-704d-4405-b9ef-6fbf6c8776bb","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the performance","page_number":63,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"77e58dbe-3d75-4975-945b-fd2a4ea5c6e5","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus certain fees. Unlike","page_number":63,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"01b1ccd4-01e1-4356-83ca-689c06b4336c","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":63,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"11a1ea88-8839-433c-8aa4-86cc8c152da8","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":63,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"dbc39e93-b954-4fa4-964f-d429dfe13e2d","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":63,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"fa4f6e6f-fb2b-4d39-98d6-5e049b80f0ad","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":63,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"d2be795c-5519-4b35-becc-8a8f0a3a693b","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":63,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"e8588c1a-0db7-409b-979e-aa63a4184042","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":63,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"d2af6c1a-3c83-4068-9035-6da5523db04e","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the","page_number":63,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"a7bb1f86-4f0a-4dbc-8dbc-160f47c04148","block_type":"box","text":"ETN.","page_number":63,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"8193b865-598b-47b0-96c2-b4bd6269bae6","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":63,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"b889a0fc-4a55-401d-bdd0-e95b4e5237a2","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":63,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"229f2457-75d4-4ff3-b1f5-3a33f5645e3f","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":63,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"fe6b0fd1-41ad-499d-ab70-7647be4d8aea","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":63,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"83e57952-dc49-4fa5-ad23-c4db80fae7f0","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":63,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"fa690d6d-d528-419b-867b-e6f81bc9551a","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":63,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"9f9bf8cb-4968-45a7-9906-26e68eae631d","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":63,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"151e31b2-ecd0-4b7f-b496-8957e1388a12","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":63,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"2b75dfec-21ee-497b-bbb2-11c2e9af188b","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":63,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"9e36e140-4281-4425-8abc-c69cf1faf459","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":63,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"39ceccf4-43de-4101-a70b-527d45e72534","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":63,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"f7af0e10-78a6-47fb-9ca3-20e69465fee3","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":63,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"a76f19fe-d4ce-4694-bf3f-5c45564f9c2f","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":63,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"3903c5fb-351f-45ff-bc20-ca6d7852fedb","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":63,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"76b10dd5-455b-488e-8dd9-02863e670750","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":63,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"f9c25c40-bad8-4d17-8f2e-b7d511a82caf","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a court may not","page_number":63,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"b67beda5-fc7c-4285-8588-5eaa87c5864b","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":63,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"8a42c3b9-32a2-4d1c-9904-775058015f77","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":63,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"9df9f193-c397-4aff-b5bb-da332952d0e5","block_type":"box","text":"Foreign Investments.","page_number":63,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"2a36df8d-fa75-4a69-911e-aba56c58c042","block_type":"box","text":"Foreign Investment Risks.","page_number":63,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"8e4380a2-2826-48cf-aa13-9815eeeff69d","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":63,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"a41bc557-9b84-4fab-b9ff-dea489e2d890","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":63,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"4080dbf2-cdb6-463c-8f1f-258f8123a96e","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":63,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"243ae889-a32b-48e1-8c38-6447375c2596","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":63,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"5c8b446d-375f-4068-acbd-77e785a12cf1","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":63,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"66517285-eed8-4f99-ab87-1fef08a0e0d6","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":63,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"535db017-8524-450a-a818-67c1b468f3ee","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":63,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"f17d0afe-55a4-446d-b2d1-1ed287947221","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":63,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"4f335fae-c98b-4a29-921d-470cfcd9dc2f","block_type":"box","text":"benchmark index.","page_number":63,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"12342e18-021a-48be-8e1b-8d563e54cbae","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":63,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"ccc8db85-a2b0-4e7c-9195-5d6831b08e4c","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":63,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"90655b16-c35a-4ac8-9b19-d2b3b4be5d4e","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":63,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"e3869925-7c9e-4838-811e-a782df9a1268","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":63,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"5106c7b8-823f-488a-b9b4-eb5d61c33b33","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":63,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"d9542b2d-7ea9-425b-bea2-378a467c7fff","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":63,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"bfaf572c-9984-4700-b8c5-f911d97b399b","block_type":"box","text":"securities and zero-coupon securities.","page_number":63,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"58143d0b-ea22-4b35-a7e6-f93df20be4ac","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":63,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"8803ac6e-6d53-4df3-8cb4-fb01689043f6","block_type":"box","text":"taxes.","page_number":63,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"941e1e12-157e-42c2-a24a-56affabce70e","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":63,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"878431a6-0b08-4f51-aeb2-974140c2c64f","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":63,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"8b245e27-766e-4fd1-8d09-397fd42caa1f","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":63,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"25130644-e09d-4d6b-93b4-d2963e28ccb5","block_type":"box","text":"II-28","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9aa8d8c7-a300-4491-8667-7a83b2d8518d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7cee27c0-fd0b-40d6-8227-d997740bb5a9","block_type":"box","text":"underlying security (","page_number":64,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"9fa8a369-a011-493f-a601-48f89f798d6d","block_type":"box","text":"i.e.","page_number":64,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"74c441f2-f2b3-4b9b-b979-604321403dbc","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":64,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"a530b497-abc8-48c4-84ee-c0b6f4772852","block_type":"box","text":"Fund is likely to be greater where a large portion of the Fund’s underlying securities or other instruments trade on","page_number":64,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"c2287602-beb7-4530-8a16-fff43dc87eba","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":64,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"49a9ca48-7d19-4e0c-b238-78cd863a3695","block_type":"box","text":"result in premiums or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":64,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"1fa5ddf0-edbf-4eba-b54c-cf51b39b1b21","block_type":"box","text":"Foreign Market Risk.","page_number":64,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"b3af057f-0ef8-4efb-82e7-60bb7201fdd5","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":64,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"44bb92fb-0165-42ac-be13-ff286a7e13b6","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":64,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"932df70c-c473-424c-aa80-b86ace7e71c4","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":64,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"bbce5da1-2775-4e57-a4c6-e8006f553191","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In particular, a Fund","page_number":64,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"17776103-c905-4fbe-970c-b21ca5263cbc","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":64,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"18b01c86-ab2a-47ee-bed8-c203b826e358","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":64,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"d899540f-48b1-441b-b4eb-ccb1e0dac4a3","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":64,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"c8e0258f-712c-4218-b350-7cadc1c2c363","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":64,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"82fa9208-a2f8-4097-aab8-710fe3b05d43","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":64,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"aa503a60-5663-4753-8d9d-08a7d7ec3f97","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":64,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"b5c91652-f3be-4bda-b18f-a562d9385696","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":64,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"459fc3b9-6f68-4aea-b2f8-960aead0b111","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":64,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"bd4f04f0-7c81-49fa-adb8-8d7330800d42","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":64,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"439b0b91-672a-4f88-8eae-3bca239802b7","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":64,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"e10d7efb-d014-4545-ab6c-936d15f320c5","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":64,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"2a16c146-a544-456f-a53e-d20a6c32005e","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":64,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"bda58334-a517-4e42-af3c-0baffb626f94","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":64,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"49589ab0-ea23-4a12-8de4-a53cd56a0565","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":64,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"45c4dfab-ea9a-43e2-b4ae-c70b4ff77eb5","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":64,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"4504a6e6-4b0f-4486-bf47-92d01a16c63a","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":64,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"7d56a8a7-8f5d-4321-a18c-df56baa2e3a4","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":64,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"87023091-fc2c-4a38-a182-dbcfd678c510","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":64,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"4acee40e-c4d7-4894-ab98-67f3dbb699db","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":64,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"daf45c97-b47f-4ead-883f-a079ffb6bce4","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":64,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"0308b8cd-367f-437d-a6a8-7a796becbffc","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":64,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"5cd67b1d-b38f-400e-9ebe-193a78690d76","block_type":"box","text":"Fund’s operations.","page_number":64,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"ea915467-4931-475b-9c3f-0f447800d6a5","block_type":"box","text":"Foreign Economy Risk.","page_number":64,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"54231a22-5114-4573-a5d4-ccbd3f3b5ab0","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":64,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"1c6847c8-3f70-4ef6-ba21-11802dbfbd30","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":64,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"244b47bc-fd2e-44e9-83e3-e091c918e2b7","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":64,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"146ca1b1-2570-43ac-a5ac-fe660b1300b2","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":64,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"4116425b-be6a-4fac-964f-c09bd98d9990","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":64,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"a1838df8-ba65-4fdb-8def-dc5340824954","block_type":"box","text":"measures.","page_number":64,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"36c822d8-e9d6-450e-8518-b415bf7ddbc7","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":64,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"1e6d46fd-3f7f-4804-b6ee-e2e297eee4cc","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":64,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"920f99a1-f836-444a-aa5f-e07b971e374c","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":64,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"af0c8150-9bd5-4f71-af73-2d589b95c88a","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":64,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"81e49b42-b67e-44c9-8b2e-ec6a4813479a","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S.","page_number":64,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"6f25ae1b-7c72-4a11-b500-0dadc74f6884","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":64,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"dd0fe047-2269-4a43-b73d-68939636b67e","block_type":"box","text":"that currency gains value because the currency is worth more U.S. dollars. This risk, generally known as “currency","page_number":64,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"fd47f02f-51ab-4da9-ba42-ef833754ed98","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":64,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"2c22dfe9-bb48-4f88-b7f3-d8ce94613791","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":64,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"c3ba401c-4008-4209-910b-0d1dba4ddb10","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":64,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"394d5ed8-13fa-48c4-8c12-e0a2a1209089","block_type":"box","text":"United States or abroad.","page_number":64,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"7171035f-40de-46ed-a93e-93f61dcfd670","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":64,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"b80d72b2-d6cf-4a71-b58d-0e8441eba1be","block_type":"box","text":"Many foreign governments supervise and","page_number":64,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"99d6f409-5af3-4221-b5a4-598b87cfcfcb","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":64,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"b917098e-5c6d-4aa9-8622-d2f1cfa595bc","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":64,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"0f5ae9e8-1b8e-4df6-985f-fc5ca486cf52","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":64,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"98a885ed-c80a-4c4f-8c4d-8b2760a412fd","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":64,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"ff6cc4cd-7522-42d2-898d-ac3eb67c750a","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":64,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"e79a89f8-a7be-401a-8192-7310dbcfaa79","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":64,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"8f117df1-3c09-44f3-a575-eaf01afef447","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":64,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"5b4cbaba-2a0f-4652-b56a-27f3c8ca2d90","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":64,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"90ef2743-885d-47a8-aa73-1322c2540a12","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":64,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"37a7540a-fc33-4d3c-83b2-cc6ff8df1d64","block_type":"box","text":"II-29","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9610457d-81e9-437f-a8fb-40c3598aca88","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"35741886-5645-4422-b8d1-15af46508309","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":65,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"d93b20b0-9fce-4694-b759-2b383950e528","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":65,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"e9cf3b46-d3ee-42a6-ad34-84232d72e7fc","block_type":"box","text":"investments.","page_number":65,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"af33ebae-4215-48e2-ab47-c91b3f55d465","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":65,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"99705105-8ab3-4e4b-9438-cbcb0bfb444f","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":65,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"14fe6713-7cb3-4db6-9b53-9a24e2fb003a","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":65,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"2bf5f361-311b-4127-bcea-9c38bf97b036","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":65,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"1fc443d0-14ed-4737-95e0-5cb17f9731a3","block_type":"box","text":"their operations. Also, the laws of certain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":65,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"086c461e-9726-4371-a5f6-b88d2add0341","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":65,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"9a322fb9-8dd5-4087-830f-7f865fc03cf9","block_type":"box","text":"for a Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased","page_number":65,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"089fe205-fa27-4fbb-9817-9c02f11b3734","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":65,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"c4a31ee1-1746-4fb6-86c2-5a1360190a36","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":65,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"7fa2736a-8a62-479d-bb70-18239b5099f9","block_type":"box","text":"States.","page_number":65,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"373ffac2-3f61-4ebf-8fe3-de16630eb54c","block_type":"box","text":"Publicly Available Information.","page_number":65,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"94bbba3d-dad9-4f4a-8e89-36e4707f80cf","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":65,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"c9208eca-d8c0-4575-aad8-9273af789272","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":65,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"0c760e8a-1558-4e8f-9415-e61455431c63","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":65,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"4b790f7a-62ea-4c29-b7e7-29c2767e6c23","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":65,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"4e2aea8a-6e2d-42b6-b7be-64426df37996","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":65,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"4f45b4e1-b207-486b-82c4-085430b4561c","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":65,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"902fde69-7674-4670-9b1e-596a3fe6480c","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":65,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"a45de121-d4d0-44b1-a881-4ed1aea1c1a9","block_type":"box","text":"United States.","page_number":65,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"f37a020f-05fa-451b-a4be-9eba5450e6cd","block_type":"box","text":"Settlement Risk.","page_number":65,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"c839b212-49a0-4fac-ae65-eddef2f7a191","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":65,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"42a4774d-5aef-4ff3-a112-4a796977fc6f","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":65,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"0139c6a0-8c33-4cbf-b979-45ade97bb541","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":65,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"2500528c-33be-44eb-b29c-87c8817f7595","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":65,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"8c5eefc7-5c80-45b1-977a-269a2581b922","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":65,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"08aa8720-1db5-4749-9d2f-4fc1a194b300","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":65,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"73a2b497-7353-4bce-910e-d7c5b69e4c21","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":65,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"1bc20675-1820-4304-ae0c-209fdc96ba2b","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":65,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"83481eff-ce36-419e-8ae5-02d67aeb241e","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":65,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"ee4b6746-3a9e-47ef-b610-be751d3f2185","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":65,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"1198a860-ef5f-4bba-906d-cdf659633446","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":65,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"23b1b126-b6ae-40d8-9c39-671cbc061d7f","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":65,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"96254a24-505c-4e2d-b8ca-69a99868d446","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":65,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"f2923b62-936f-41f9-8b59-0bc94b581703","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":65,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"2ae6f9a5-6b54-4d2c-8a1c-84e459eab2a2","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":65,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"126546b8-11a2-4260-b8d2-66afd46a45a3","block_type":"box","text":"Sovereign Debt.","page_number":65,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"038bb852-5da6-4f1e-8d28-206831d800ce","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":65,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"1c96cd6c-ab1d-4908-9f83-fa31a14f498d","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":65,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"551b4722-6458-4a78-a0d0-398b9b6a1e19","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":65,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"0001477a-97a0-4bfe-b8f1-9bab97aec618","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":65,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"0f77d187-047f-497d-b92a-c92c6c68db4d","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":65,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"95d1c8cf-4e66-4ca1-9268-f0fdf87dc4cf","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":65,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"c2bc160b-12bf-4ecb-b62e-ef79894ba4b7","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":65,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"4fd2c0e5-e7ea-4f4c-9d11-594f2f4224d3","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":65,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"a6714aab-b02a-4091-9597-356671faf87d","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":65,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"f79da950-7897-4b1d-b41f-4e787b2cef8e","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":65,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"3e94465f-8a8f-4545-b22d-b352368a68e6","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":65,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"17752d16-e28d-4658-8d33-aa184196e8c6","block_type":"box","text":"achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of","page_number":65,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"7b1df4dd-bf53-40ae-899d-b9a35f829bea","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":65,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"7d1c967b-3b14-4266-aca7-ef75089e560a","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":65,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"3b7c2fb2-307f-448f-bf37-a844e97eb346","block_type":"box","text":"debt.","page_number":65,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"76eb15e2-1ed3-4fa4-a15e-f052e9243023","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further","page_number":65,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"d7356619-9635-4eb0-a3ef-63f6b5ec221d","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":65,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"f4a24fe3-1ea7-4b88-813d-28c2961a9321","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":65,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"c5c1660e-adb8-4eb3-93ba-468114f10cc8","block_type":"box","text":"II-30","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"194dbd9f-bb01-457a-b2d7-cced04b465e1","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f075c9d4-350a-48c3-b5c6-c879a48a7005","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":66,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"bbc49d08-4bf2-44e7-b1b9-5e8162fe7082","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":66,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"4d4bca18-6f13-42ae-b9bc-ce13ea7ad6b1","block_type":"box","text":"interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or","page_number":66,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"28e9858e-128e-43f9-bf49-a866b18127ab","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":66,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"f1d30a09-3190-4b29-bbcf-0e68b89ebe92","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":66,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"5a79e938-6d07-441d-be89-cc22678c127f","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":66,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"2beb1025-3a3b-4cfb-a4c8-906d3a8c6db4","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":66,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"700fdc77-7882-47b2-bceb-172b347d11de","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":66,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"3b511cf9-15ee-4f55-967f-f2beaac60f66","block_type":"box","text":"down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":66,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"7a6ccfe6-6f26-4918-8b74-79018298cc3a","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":66,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"f6bbd677-0066-4177-94ca-751db32020f1","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":66,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"8f8b3fc8-6c73-4e85-adfe-931c8a603365","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":66,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"2f9d7085-ed82-4554-b4ae-0a9937494a41","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":66,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"74f11189-6e51-45d2-9e0b-01583a2e71b6","block_type":"box","text":"in the Fund’s net asset value.","page_number":66,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"92a4ac23-15d7-48de-8b55-5a0395531046","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":66,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"41c3b1cf-440e-48b4-8709-e2a1ccc33bd0","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":66,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"0a44a19f-66d5-4990-bdfd-e0c6de58b24e","block_type":"box","text":"trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a result, economic","page_number":66,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"cfa4bb4d-f6d8-4ea8-933f-195e41982c3a","block_type":"box","text":"conditions of such countries may be particularly affected by changes in the U.S. economy. A decrease in U.S. imports","page_number":66,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"774c4548-6751-484c-9d14-3bc0de8fcd08","block_type":"box","text":"or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":66,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"e2b59ac2-d082-48bd-996d-d4d0c239854f","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":66,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"4cfe7d91-c03d-4a75-a02c-b10e2fb14e95","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":66,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"08a9d731-c41a-4796-9e68-f59a88fa7242","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":66,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"16f687d0-bea3-4e1c-8754-ac61097d0b8c","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":66,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"acf3a203-4455-4a8d-8120-49ab3f736747","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":66,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"9888b82b-4532-4fbe-945e-513ba048180b","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":66,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"0c1b0bf6-3a55-44c5-bf40-f25950b76fa7","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":66,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"e6c62a90-005a-409e-a343-1a6d059952db","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":66,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"e6ea26ee-b858-4cab-992c-b556a8dafa99","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":66,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"1d06e977-382e-46bf-a761-e5a0b657168c","block_type":"box","text":"Fund may invest.","page_number":66,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"208a40a2-019a-42ba-bfc4-f3fcd7bff514","block_type":"box","text":"Funding Agreements.","page_number":66,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"bee65fb3-a381-468b-a88c-92b787aee7e4","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":66,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"46fbaf5a-5bd5-4cc7-b599-9e08f030233e","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":66,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"4f766f7d-9ea3-4dbf-8d0e-bb1f73f50f3c","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":66,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"fd2835eb-9f38-4051-a33c-648d8de5456e","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":66,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"e687894e-7cd0-4d6f-a5cd-e9397b0e8fb5","block_type":"box","text":"not be less than a certain minimum rate. The purchase price paid for a funding agreement becomes part of the","page_number":66,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"c162ede7-8402-4d30-8e5f-e2aeaf5791ec","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":66,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"33769c4d-e796-474a-b080-87d562210ac8","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":66,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"6766912e-4827-4de7-8ea7-523b05c38381","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":66,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"40d72bd1-1e8b-42cc-b665-f6800255cac1","block_type":"box","text":"Guarantees.","page_number":66,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"9b40e183-49d9-4f44-bd74-9b1fcc1d3cd6","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":66,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"4abb8ee0-4201-44b8-82d7-e0626a449f17","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":66,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"93fd495b-3f32-4102-be1b-f932e7ddbec6","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":66,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"2c054861-9bec-4261-a8e1-f43bdab43f82","block_type":"box","text":"Illiquid Investments.","page_number":66,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"13114292-da62-40d0-8485-e8b4da33054a","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":66,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"23ce3d20-61f7-4a71-9657-3c5f123bf356","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":66,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"df77ea4b-c4c2-4e53-9d9b-7966e12b5469","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":66,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"d64b58c7-cefa-4f4a-a4ec-35df08989c54","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":66,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"400da506-a3a8-4df5-86f0-c28610605526","block_type":"box","text":"investments may become illiquid after purchase by a Fund, particularly during periods of market turmoil. There can be","page_number":66,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"f6f27f8d-0b2b-4eb0-a34e-cdc26da8b0c8","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":66,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"a36baa07-9286-4fd2-ac35-f9718ea2977b","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":66,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"17e7bd68-d9d7-4cad-9d24-0fae64499d6b","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":66,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"5c1dea74-5cd8-46fe-9bad-8a116b062000","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":66,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"c50957d9-c8bb-4aba-a709-6d831fa714a9","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":66,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"827d7b29-840f-4bea-9542-5764aaafe20d","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":66,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"5e2a4006-ca0c-436a-81f7-d8e52ec13b04","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger portion of the Fund’s holdings. If illiquid","page_number":66,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"c96690ec-ccc7-4634-a9d7-6b98d44fd1f8","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":66,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"73f63180-8512-447e-9e5d-57711fb67290","block_type":"box","text":"defined below) will require that certain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":66,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"06b3f8a1-63b4-4233-a07d-b5b90d2f979e","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":66,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"75571cae-7b70-448a-98de-375d105e4ba6","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":66,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"f7e0e243-f07d-41dc-910a-4a9ac1b8c6c2","block_type":"box","text":"market opportunities. The risks associated with illiquidity will be particularly acute where a Fund’s operations require","page_number":66,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"62ddb7fc-c936-4e9d-bab8-ac17bd89ed1e","block_type":"box","text":"II-31","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1457d7e0-336b-400b-980a-976509de395d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d30602f5-4676-435e-a260-9bb42c670f68","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":67,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"ae8919d8-6c4b-4632-b121-1e3eccea131d","block_type":"box","text":"short-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":67,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"af160a9a-d535-4587-8ad9-b1a35ee05131","block_type":"box","text":"Index Funds.","page_number":67,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"201d8a94-e9a6-4ab1-80b4-87b72e747276","block_type":"box","text":"Cash Flows; Expenses.","page_number":67,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"1e1e1793-712b-471b-8710-5e7df114e241","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":67,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"b9073d9d-3756-4f19-a25f-f01e5790f116","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":67,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"6481a6a0-aa3d-4851-bdf2-20d4271251f6","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":67,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"0bf1a9e2-b5b4-4bcb-bc18-24012fc8b7ab","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":67,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"55ec6d0d-30d7-4b22-8872-f613f3b17d41","block_type":"box","text":"the investment performance of each index is a hypothetical number which does not take into account brokerage","page_number":67,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"1caa8ac0-d054-45b8-9fc6-8bdc96589528","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":67,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"b91e7377-46cc-4e3e-a168-5e58d0d1120c","block_type":"box","text":"(","page_number":67,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"a9c5f57c-cfee-4ded-999a-83f2d889561b","block_type":"box","text":"e.g.","page_number":67,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"5b759703-610a-4a3d-a6d9-5edc1b8a7def","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":67,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"b975ba8e-a359-46cc-9b4c-86613ebd8214","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":67,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"0ab9f3a4-0c6c-450e-8913-c01c4df72a80","block_type":"box","text":"particular security as an investment.","page_number":67,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"f858f8e3-c37c-45d0-babf-4d9a1eccd801","block_type":"box","text":"Tracking Error Risk","page_number":67,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"fe47ab55-9f77-4ff4-9cdb-7fb248152cbd","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":67,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"53716204-fa72-46ca-a0bf-5635d0de744f","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":67,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"5df3d5cf-e6b9-4577-9934-0c7bf5095262","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":67,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"d1a116f0-efef-4071-9b00-146ee2af3de0","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":67,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"349c7dc6-65e1-45e4-9608-a9df04b47b57","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":67,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"d2d873de-b739-4429-9c50-74db4893cb94","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":67,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"2be84859-1f54-4d3a-ac2f-1b7c65c0fcfe","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":67,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"bb7c1731-2d3f-4669-9871-8a63eee7c362","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":67,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"d3b04860-347d-4665-a6d5-4d1cba0200dd","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":67,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"ae5f3f07-5555-4edd-9f32-9b6401d7e2fe","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":67,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"78346f37-77e9-45c0-a244-a992beabf3a2","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":67,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"1dd5fd62-1590-48e2-a77b-a1b1537a2c63","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":67,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"9ae62825-2243-4a45-a66f-a345ca65350f","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":67,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"f6b18a58-2cb3-4f42-9ed6-0315176448ba","block_type":"box","text":"price growth that does not appear to be supported by publicly available information on the business and assets of","page_number":67,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"0e300c38-e517-4b70-83b9-95c896984013","block_type":"box","text":"the issuer, unusual or significant short interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":67,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"0fe1d059-4e43-4741-942c-be4102e9963d","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":67,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"e87cbbe9-7b1c-439a-b59b-79763fee1cf0","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, alert the index provider as to the alleged issue. The","page_number":67,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"d72559f9-324c-4fbb-9c50-0f94b5fdfb5d","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":67,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"3244c381-d619-48fb-bf3a-8b1ee9b400c9","block_type":"box","text":"the rebalancing of its index. If the securities continue to be included in the index, the Manager may underweight or","page_number":67,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"fffbafea-2310-42fa-affa-48ff5886923e","block_type":"box","text":"exclude such securities from a Fund’s portfolio and, if it does so, such Fund will be subject to increased tracking","page_number":67,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"3556099a-fb57-4330-b8bc-1ebe12ab5245","block_type":"box","text":"error due to the divergence in the securities included in its portfolio from its underlying index. The application of the","page_number":67,"box":{"x":69,"y":559,"width":825,"height":11}},{"id":"7e42712f-8da8-42a6-a074-d053ddb6d95c","block_type":"box","text":"abovementioned analysis and screening to a Fund and its Underlying Index is in the sole discretion of the Manager","page_number":67,"box":{"x":69,"y":574,"width":818,"height":11}},{"id":"ba270541-32f8-4dd3-8276-4dc6b7d8c4fb","block_type":"box","text":"and its affiliates (without any guarantees). The analysis and screening may not exclude any or all high risk securities","page_number":67,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"16e0e77c-c76b-4b80-8c58-8566b56ac2f8","block_type":"box","text":"from an Underlying Index or a Fund’s portfolio, and the inclusion of such securities will result in an adverse impact to","page_number":67,"box":{"x":68,"y":604,"width":835,"height":11}},{"id":"764f5794-5c09-45d7-be9a-7f0ec6db3781","block_type":"box","text":"the Fund’s net asset value if one or more such securities declines in value.","page_number":67,"box":{"x":68,"y":619,"width":536,"height":9}},{"id":"b46643c0-fd51-46ac-9dc3-7f2b5a4581ba","block_type":"box","text":"S&P 500®","page_number":67,"box":{"x":102,"y":642,"width":64,"height":9}},{"id":"ba96f803-0602-4625-969a-56f7ba31c1a1","block_type":"box","text":"0®","page_number":67,"box":{"x":166,"y":642,"width":6,"height":5}},{"id":"6a0abdd9-d969-406c-8bb2-8408a43d2154","block_type":"box","text":"Index (“S&P 500”).","page_number":67,"box":{"x":178,"y":642,"width":134,"height":11}},{"id":"0ffa80f6-1723-4e6b-870b-aa7d8e83904e","block_type":"box","text":"“Standard & Poor’s","page_number":67,"box":{"x":320,"y":642,"width":136,"height":9}},{"id":"6197ac82-d5b0-48cf-b3de-fb031bbcddde","block_type":"box","text":"®","page_number":67,"box":{"x":457,"y":642,"width":6,"height":5}},{"id":"3457fdff-8d54-4709-b0ca-2f822b942d80","block_type":"box","text":",” “S&P","page_number":67,"box":{"x":465,"y":642,"width":53,"height":10}},{"id":"85bd9542-872a-44c9-8437-eaccb04b556b","block_type":"box","text":"®","page_number":67,"box":{"x":518,"y":642,"width":6,"height":5}},{"id":"5e233958-2a33-4345-821d-1f34ba96a5f9","block_type":"box","text":",” “S&P 500","page_number":67,"box":{"x":526,"y":642,"width":87,"height":10}},{"id":"d0aa3c64-b81b-4bbb-8fab-4287e34ee06a","block_type":"box","text":"®","page_number":67,"box":{"x":614,"y":642,"width":6,"height":5}},{"id":"4df32ae3-49e4-4e51-9969-da80c9df47f5","block_type":"box","text":",” “Standard & Poor’s 500,” and “500”","page_number":67,"box":{"x":621,"y":642,"width":280,"height":10}},{"id":"09738780-0878-48ea-82df-5cf2ca977ae2","block_type":"box","text":"are trademarks of S&P Global Inc. and have been licensed for use by certain mutual funds sponsored and advised by","page_number":67,"box":{"x":69,"y":657,"width":837,"height":11}},{"id":"906084e6-464f-4dab-888b-1267c8b2ea18","block_type":"box","text":"BlackRock or its affiliates (“BlackRock Funds”). No Fund is sponsored, endorsed, sold or promoted by S&P, a division","page_number":67,"box":{"x":70,"y":672,"width":836,"height":11}},{"id":"815325a9-7b5b-4c17-a3ca-30ca5797b767","block_type":"box","text":"of S&P Global Inc. S&P makes no representation regarding the advisability of investing in any Fund. S&P makes no","page_number":67,"box":{"x":69,"y":687,"width":818,"height":11}},{"id":"8adf16a1-b32b-40a1-9932-5cba33270b1d","block_type":"box","text":"representation or warranty, express or implied, to the owners of shares of a Fund or any member of the public","page_number":67,"box":{"x":69,"y":702,"width":783,"height":11}},{"id":"29835162-8f1b-4431-8ae2-ca7297afba6a","block_type":"box","text":"regarding the advisability of investing in securities generally or in a Fund particularly or the ability of the S&P 500 to","page_number":67,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"bb7d47ba-e1b9-4140-a714-6036ecf54e5b","block_type":"box","text":"track general stock market performance. S&P’s only relationship to certain Funds is the licensing of certain","page_number":67,"box":{"x":68,"y":732,"width":769,"height":12}},{"id":"0d34d2f9-8022-434b-9dd0-f02c63174eb9","block_type":"box","text":"trademarks and trade names of S&P and of the S&P 500 which is determined, composed and calculated by S&P","page_number":67,"box":{"x":68,"y":748,"width":804,"height":11}},{"id":"28c4f234-8b4e-4041-8223-6a9ddbf51696","block_type":"box","text":"without regard to the Funds. S&P has no obligation to take the needs of a Fund or the owners of shares of a Fund","page_number":67,"box":{"x":68,"y":763,"width":811,"height":11}},{"id":"3c16e169-020a-4f66-96e2-1c36b122058e","block_type":"box","text":"into consideration in determining, composing or calculating the S&P 500. S&P is not responsible for and has not","page_number":67,"box":{"x":70,"y":778,"width":803,"height":11}},{"id":"0f9e6590-3a3c-4d7f-a686-4258f833fa3e","block_type":"box","text":"participated in the determination of the prices and amount of any Fund or the timing of the issuance or sale of","page_number":67,"box":{"x":70,"y":793,"width":787,"height":11}},{"id":"821bb08f-2f12-4fc8-a8c9-cf1ca8cb723c","block_type":"box","text":"shares of a Fund or in the determination or calculation of the equation by which a Fund is to be converted into cash.","page_number":67,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"6ba3b17c-6591-481a-a93f-34fa999c2cf0","block_type":"box","text":"S&P has no obligation or liability in connection with the administration, marketing or trading of any Fund.","page_number":67,"box":{"x":69,"y":823,"width":742,"height":12}},{"id":"323f9424-ff95-428f-a450-1ef1a906a247","block_type":"box","text":"S&P does not guarantee the accuracy and/or the completeness of the S&P 500 Index or any data included","page_number":67,"box":{"x":102,"y":846,"width":761,"height":11}},{"id":"1a062c87-b3a3-40f9-ac65-a46bd10ec8e7","block_type":"box","text":"therein, and S&P shall have no liability for any errors, omissions, or interruptions therein. S&P makes no warranty,","page_number":67,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"d929afed-e94f-49c0-bd02-c5bea39761ba","block_type":"box","text":"express or implied, as to results to be obtained by a Fund, owners of shares of a Fund, or any other person or entity","page_number":67,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"712c7cdb-9295-4488-ba55-07bfa5104fea","block_type":"box","text":"from the use of the S&P 500 Index or any data included therein. S&P makes no express or implied warranties and","page_number":67,"box":{"x":68,"y":891,"width":815,"height":11}},{"id":"c9ac0ef3-fbb3-4947-99ef-a0d3bf69fa4e","block_type":"box","text":"expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the S&P","page_number":67,"box":{"x":69,"y":906,"width":840,"height":12}},{"id":"9cd2dc8e-adce-451e-94bd-8e291345d34d","block_type":"box","text":"II-32","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6e9f6690-3904-4061-9261-57750ea88885","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"00ba726b-30f2-4b6c-8cb3-b0acb963f02e","block_type":"box","text":"500 Index or any data included therein. Without limiting any of the foregoing, in no event shall S&P have any liability","page_number":68,"box":{"x":69,"y":45,"width":826,"height":11}},{"id":"e4de5dbc-4b1f-4088-8f19-9a4bd93db247","block_type":"box","text":"for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility","page_number":68,"box":{"x":68,"y":60,"width":827,"height":11}},{"id":"7cd8a839-05b5-4c61-a750-51fcbb786733","block_type":"box","text":"of such damages.","page_number":68,"box":{"x":69,"y":75,"width":125,"height":11}},{"id":"0d0bc76b-abab-42a9-b496-6b8304d214cc","block_type":"box","text":"Russell®","page_number":68,"box":{"x":102,"y":98,"width":52,"height":9}},{"id":"420a8b51-c6de-4160-aac6-03c6a63e924d","block_type":"box","text":"l®","page_number":68,"box":{"x":154,"y":98,"width":6,"height":4}},{"id":"70c59056-f427-44da-b1e5-941b76512fbc","block_type":"box","text":"Indexes.","page_number":68,"box":{"x":166,"y":98,"width":57,"height":9}},{"id":"0bc0d4c6-08ea-4ec3-a11d-6382649da17c","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Russell","page_number":68,"box":{"x":231,"y":98,"width":611,"height":11}},{"id":"1b62a7bb-a5ce-47ec-b699-1fccc787dc19","block_type":"box","text":"Investments. Russell Investments is not responsible for and has not reviewed any Fund nor any associated literature","page_number":68,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"a07db576-79c3-425b-b0ba-cb1540748c85","block_type":"box","text":"or publications and Russell Investments makes no representation or warranty, express or implied, as to their","page_number":68,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"a380005b-f313-49bc-9950-7b3874241fc7","block_type":"box","text":"accuracy, or completeness, or otherwise.","page_number":68,"box":{"x":69,"y":143,"width":291,"height":11}},{"id":"c4158f8c-a79a-40d8-a71b-5a27f3d82793","block_type":"box","text":"Russell Investments reserves the right, at any time and without notice, to alter, amend, terminate or in any way","page_number":68,"box":{"x":102,"y":166,"width":794,"height":11}},{"id":"49e18b08-6f6a-43e3-8fb4-6b7ab0ad8deb","block_type":"box","text":"change a Russell Index. Russell Investments has no obligation to take the needs of any particular Fund or its","page_number":68,"box":{"x":69,"y":181,"width":778,"height":11}},{"id":"9b946108-ff75-4bfa-8a1f-8b8de6e5158f","block_type":"box","text":"participants or any other product or person into consideration in determining, composing or calculating the Russell","page_number":68,"box":{"x":70,"y":196,"width":815,"height":11}},{"id":"ebac98b5-d5f5-41d6-81f9-b34bee2d54c3","block_type":"box","text":"Index.","page_number":68,"box":{"x":70,"y":211,"width":40,"height":9}},{"id":"e819f7cd-18f1-44a9-b8f9-3c363ee3edd4","block_type":"box","text":"Russell Investments’ publication of the Russell Indexes in no way suggests or implies an opinion by Russell","page_number":68,"box":{"x":102,"y":234,"width":766,"height":11}},{"id":"dd0f99a3-daff-41c3-86b3-7112bd47426b","block_type":"box","text":"Investments as to the attractiveness or appropriateness of investment in any or all securities upon which the Russell","page_number":68,"box":{"x":70,"y":249,"width":833,"height":11}},{"id":"5398a6d3-f9fa-460a-aac5-0ff40da15592","block_type":"box","text":"Indexes is based. Russell Investments makes no representation, warranty, or guarantee as to the accuracy,","page_number":68,"box":{"x":70,"y":264,"width":765,"height":11}},{"id":"fd8722bf-a573-4166-8da9-0572931dd44c","block_type":"box","text":"completeness, reliability, or otherwise of the Russell Indexes or any data included in the Russell Indexes. Russell","page_number":68,"box":{"x":69,"y":279,"width":807,"height":11}},{"id":"e3ac9f1f-69e5-405e-874c-68311a44e317","block_type":"box","text":"Investments makes no representation or warranty regarding the use, or the results of use, of the Russell Indexes or","page_number":68,"box":{"x":70,"y":294,"width":826,"height":11}},{"id":"2d3d01d4-0b85-4a38-8539-f1c62c0f7ec3","block_type":"box","text":"any data included therein, or any security (or combination thereof) comprising the Russell Indexes. Russell","page_number":68,"box":{"x":69,"y":309,"width":757,"height":11}},{"id":"8a032f68-8682-45c1-8a04-efbad3f75764","block_type":"box","text":"Investments makes no other express or implied warranty, and expressly disclaims any warranty, of any kind,","page_number":68,"box":{"x":70,"y":324,"width":767,"height":11}},{"id":"e220a4eb-913d-44f8-8fa0-948dd9ed8799","block_type":"box","text":"including, without means of limitation, any warranty of merchantability or fitness for a particular purpose with respect","page_number":68,"box":{"x":70,"y":339,"width":833,"height":12}},{"id":"b15cd54e-fa5a-4a57-a7cd-f572ad439828","block_type":"box","text":"to the Russell Indexes or any data or any security (or combination thereof) included therein.","page_number":68,"box":{"x":68,"y":355,"width":651,"height":11}},{"id":"569f533c-c3d8-4b46-88e1-a8c15811d85d","block_type":"box","text":"MSCI Indexes.","page_number":68,"box":{"x":102,"y":377,"width":100,"height":9}},{"id":"6d6b697c-8153-4d3c-b6a5-30029248d843","block_type":"box","text":"The MSCI Europe, Australasia and Far East (Capitalization Weighted) Index (“EAFE Index”) and the","page_number":68,"box":{"x":209,"y":377,"width":696,"height":12}},{"id":"89de452b-d5c1-45fa-b839-cae233ba0cbb","block_type":"box","text":"MSCI All-Country World ex-US Index (“ACWI ex-US Index” and together with the EAFE Index, the “MSCI Indexes” and","page_number":68,"box":{"x":70,"y":392,"width":818,"height":12}},{"id":"fae70729-e019-4650-9362-dbd40b0e6809","block_type":"box","text":"individually an “MSCI Index”) are the exclusive property of MSCI, Inc. (“MSCI”). The EAFE Index and ACWI ex-US Index","page_number":68,"box":{"x":70,"y":407,"width":837,"height":12}},{"id":"1f41b39e-f76c-4011-8105-1948a143484d","block_type":"box","text":"are service marks of MSCI and have been licensed for use by the Manager and its affiliates.","page_number":68,"box":{"x":69,"y":423,"width":658,"height":11}},{"id":"68028fb2-df43-4376-a22b-22862aa99e68","block_type":"box","text":"No Fund is sponsored, endorsed, sold or promoted by MSCI. MSCI makes no representation or warranty, express","page_number":68,"box":{"x":102,"y":445,"width":806,"height":11}},{"id":"f786b93e-a50e-4e59-a62c-689d0d6d3c4f","block_type":"box","text":"or implied, to the owners of shares of a Fund or any member of the public regarding the advisability of investing in","page_number":68,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"c9a4bd0b-66c9-4ffd-b7fd-e047a7080c60","block_type":"box","text":"securities generally or in a Fund particularly or the ability of an MSCI Index to track general stock market","page_number":68,"box":{"x":69,"y":475,"width":743,"height":12}},{"id":"c9ff8913-7fea-4bd5-b5d0-e792f87ae15b","block_type":"box","text":"performance. MSCI is the licensor of certain trademarks, service marks and trade names of MSCI and of the MSCI","page_number":68,"box":{"x":70,"y":491,"width":819,"height":11}},{"id":"b1cae837-15a1-40b5-8407-2b0c542dc20f","block_type":"box","text":"Indexes. MSCI has no obligation to take the needs of any Fund or the owners of shares of a Fund into consideration","page_number":68,"box":{"x":70,"y":506,"width":824,"height":11}},{"id":"dd834e39-6110-4ef5-b7c4-cd377a1e18ca","block_type":"box","text":"in determining, composing or calculating an MSCI Index. MSCI is not responsible for and has not participated in the","page_number":68,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"abcf2b3c-0046-4aed-8878-5424caa801f3","block_type":"box","text":"determination of the timing of, prices at, or quantities of shares of any Fund to be issued or in the determination or","page_number":68,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"4dce7572-4ef4-47ce-bfa8-9817e0619c83","block_type":"box","text":"calculation of the equation by which the shares of a Fund are redeemable for cash. MSCI has no obligation or liability","page_number":68,"box":{"x":69,"y":551,"width":835,"height":11}},{"id":"afb71607-61b7-43ec-99eb-1744a5728bc9","block_type":"box","text":"to owners of shares of a Fund in connection with the administration, marketing or trading of the Fund.","page_number":68,"box":{"x":68,"y":566,"width":724,"height":11}},{"id":"df6b9264-e416-41c3-915b-61b4dd35bd6d","block_type":"box","text":"Although MSCI shall obtain information for inclusion in or for use in the calculation of an MSCI Index from","page_number":68,"box":{"x":101,"y":589,"width":751,"height":11}},{"id":"d9eda13a-d4bd-4929-8395-3fcde43cc0b9","block_type":"box","text":"sources which MSCI considers reliable, MSCI does not guarantee the accuracy and/or the completeness of the MSCI","page_number":68,"box":{"x":69,"y":604,"width":835,"height":11}},{"id":"8fe6fcb5-9cc9-41f4-9e79-7cce8d86bf1b","block_type":"box","text":"Index or any data included therein. MSCI makes no warranty, express or implied, as to results to be obtained by","page_number":68,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"23cda9f1-ddfd-4aca-94a7-2b6c9fae844f","block_type":"box","text":"licensee, licensee’s customers and counterparties, owners of shares of a Fund, or any other person or entity from","page_number":68,"box":{"x":70,"y":634,"width":812,"height":11}},{"id":"fc21d723-7e11-4854-8e00-8d0de26b1e62","block_type":"box","text":"the use of an MSCI Index or any data included therein in connection with the rights licensed hereunder or for any","page_number":68,"box":{"x":68,"y":649,"width":804,"height":12}},{"id":"daf3e6e5-42c1-4a39-be6c-981ee04fe15f","block_type":"box","text":"other use. MSCI makes no express or implied warranties, and hereby expressly disclaims all warranties of","page_number":68,"box":{"x":69,"y":664,"width":758,"height":12}},{"id":"083d51c3-eedb-4b13-bc7b-752ea915aebb","block_type":"box","text":"merchantability or fitness for a particular purpose with respect to an MSCI Index or any data included therein. Without","page_number":68,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"e6a3d9e3-750e-4fb0-a9cc-fc68df4a2c93","block_type":"box","text":"limiting any of the foregoing, in no event shall MSCI have any liability for any direct, indirect, special, punitive,","page_number":68,"box":{"x":70,"y":695,"width":777,"height":11}},{"id":"ddd136a6-b95f-4174-8cf8-910dc56c3792","block_type":"box","text":"consequential or any other damages (including lost profits) even if notified of the possibility of such damages.","page_number":68,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"a8c688da-a5d6-478c-b997-fc5f07dfc484","block_type":"box","text":"Financial Times Stock Exchange (“FTSE”) Indexes.","page_number":68,"box":{"x":102,"y":733,"width":355,"height":11}},{"id":"9994f5f7-e4ff-4c66-be79-c0cd49b51d13","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any","page_number":68,"box":{"x":465,"y":733,"width":422,"height":11}},{"id":"a204e661-a948-431c-b823-44ad1dde34bf","block_type":"box","text":"way affiliated with FTSE. FTSE is not responsible for and has not reviewed any Fund nor any associated literature or","page_number":68,"box":{"x":68,"y":748,"width":824,"height":11}},{"id":"9aea6ccd-163b-4692-9b5c-aafb93a63e64","block_type":"box","text":"publications and FTSE makes no representation or warranty, express or implied, as to their accuracy, or","page_number":68,"box":{"x":70,"y":763,"width":736,"height":11}},{"id":"b35dee1b-12fa-4c50-b9ff-08acbb8eb6f8","block_type":"box","text":"completeness, or otherwise.","page_number":68,"box":{"x":69,"y":778,"width":202,"height":11}},{"id":"0e92ccd2-60a8-4f23-9ded-529575859d88","block_type":"box","text":"FTSE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change a FTSE","page_number":68,"box":{"x":102,"y":801,"width":794,"height":11}},{"id":"10d9ddcb-3459-448f-9339-6beaec4b6bbe","block_type":"box","text":"Index. FTSE has no obligation to take the needs of any particular Fund or its participants or any other product or","page_number":68,"box":{"x":70,"y":816,"width":799,"height":11}},{"id":"a3d513de-5754-4d84-b38c-715e4b6382e0","block_type":"box","text":"person into consideration in determining, composing or calculating the FTSE Index.","page_number":68,"box":{"x":70,"y":831,"width":587,"height":11}},{"id":"227206eb-4cc2-4618-b25a-354f80c312b0","block_type":"box","text":"Bloomberg Indexes.","page_number":68,"box":{"x":102,"y":854,"width":139,"height":11}},{"id":"4cd59195-a87d-48e0-9edc-900bfc015651","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Bloomberg","page_number":68,"box":{"x":249,"y":853,"width":636,"height":12}},{"id":"0ed58e75-4493-4ddc-9983-6d7b0543caf1","block_type":"box","text":"Finance L.P. and its affiliates (collectively, “Bloomberg”). Bloomberg is not responsible for nor has it reviewed any","page_number":68,"box":{"x":70,"y":869,"width":809,"height":11}},{"id":"93cbd9c8-c6a3-44be-b28f-4e16c7a76ce1","block_type":"box","text":"Fund nor any associated literature or publications, and Bloomberg makes no representation or warranty, express or","page_number":68,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"d5a038e2-83a7-4638-a766-0112ce42241b","block_type":"box","text":"implied, as to their accuracy, or completeness, or otherwise.","page_number":68,"box":{"x":70,"y":899,"width":430,"height":11}},{"id":"a996d2fd-a298-44fa-a53b-0723ad9c7621","block_type":"box","text":"II-33","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"063d37b5-6cc1-415a-873d-de95f6cc5615","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"96ee1500-bd3c-4563-9e8d-ab72e7c1f43f","block_type":"box","text":"Bloomberg reserves the right, at any time and without notice, to alter, amend, terminate or in any way change a","page_number":69,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"28cb7e62-6d9f-40d2-8767-eb5c8b28a0b9","block_type":"box","text":"Bloomberg Index. Bloomberg has no obligation to take the needs of any particular Fund or its participants or any","page_number":69,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"fe6b9287-e20e-4d67-bbf5-650f89e10063","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":69,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"8e6ec0f3-40ee-4979-bf14-05f414602623","block_type":"box","text":"ICE BofA Indexes.","page_number":69,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"7f2fad9a-22eb-4593-8e25-a6f355fdaa29","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":69,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"01822845-ba09-4ca1-9ec1-8312fb8c96d8","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":69,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"e07f8939-4750-4c9b-a272-6f9fb3c3ddac","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":69,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"be2186f7-d0d2-45d7-b043-dbc0798f4b2b","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":69,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"099ee6a8-ff19-4362-b7ff-dc867fd14083","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":69,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"fb4f81c1-588b-4f3e-a108-36be5343685b","block_type":"box","text":"completeness, or otherwise.","page_number":69,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"a8bbf6a3-b1df-4ad8-bc6a-caff0fc21d38","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":69,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"5646424e-535c-4f2d-9cee-7a9f75b2520b","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any particular Fund or its participants or any other product or","page_number":69,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"72305d57-f15a-472f-b618-cb042d2914e7","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":69,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"a199a48b-c750-4802-8900-9d30d0200607","block_type":"box","text":"Indexed and Inverse Securities.","page_number":69,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"5be97d7f-da7c-4bde-aca6-23a8371f23a5","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":69,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"2c9cc642-c372-4ca1-8261-019609a6093c","block_type":"box","text":"particular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":69,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"91926224-e28b-4d1f-8d51-d00282d7127c","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of certain securities also may be based on the","page_number":69,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"55e35b3c-e6b6-4913-a080-9a8612e21cb1","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":69,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"b919b849-ac74-4be7-8df3-f07ce080989d","block_type":"box","text":"be subject to risk with respect to the value of the particular index: that is, if the value of the index falls, the value of","page_number":69,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"eacb15b5-d1f2-4dfc-a505-98aded950549","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on certain securities may also be","page_number":69,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"0789bd26-0499-4025-9cf1-86d2a3a96e30","block_type":"box","text":"based on relative changes among particular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":69,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"9f749897-3704-498b-9ddc-c8224f71e6d1","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":69,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"f7c37c65-b805-4611-9bfc-ff3637cf956d","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a short-term tax-exempt interest rate index). A","page_number":69,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"b22feb22-2663-4787-824e-f113b7d7f34b","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":69,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"66f3bffb-94c1-458c-a234-7ddcda293d5e","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":69,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"ff969bc1-a42a-48e4-b0a1-73972e3c9606","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":69,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"7ed1bf05-a40b-4c81-85d3-e97c7ca29089","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":69,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"5530066a-f48e-4e7d-813b-6222d6688cb1","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":69,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"aa6004c0-a65c-4570-aadc-2e2f7de61cbf","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":69,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"4db4f895-3312-4cec-963d-cc923716e92f","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shorter-term","page_number":69,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"bec94bf6-c6a4-4c00-afb7-52d26184c753","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such","page_number":69,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"edc80ca7-3845-4527-88dd-cec5f7cd5dee","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":69,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"7168bb3c-9f29-4b12-afe2-d2bcd68de57f","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":69,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"e2fc4bd3-ecff-4e4d-a9ed-e923609f80df","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":69,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"17135b0b-58e9-4458-9fc9-7d2e1f9c56bf","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":69,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"cd27aff9-f1c3-4e69-9bdb-222ddae0da99","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":69,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"4329be2f-721c-4654-bc60-2317c9e614b8","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":69,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"560a30cf-c3d1-4b7f-831f-a675c0440e3d","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":69,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"a876f813-3b5f-4cdb-a41e-781b0c9094ab","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":69,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"ff3e7a68-05ab-49c8-8972-75138a5d7744","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":69,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"849768f6-fd3f-4485-9291-14204caadf70","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":69,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"74d77baf-3b4d-4bb5-a494-f5c31788e163","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":69,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"fcc4fbed-5030-4aaa-be97-1ac71bd879af","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":69,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"f75a5b34-905c-4be5-af2c-2efb3725b104","block_type":"box","text":"Inflation Risk.","page_number":69,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"510ceb63-370f-4518-82f0-79a21aaf85c9","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":69,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"e1c72416-dfe0-4b97-b847-0c29c7c922f7","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":69,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"0b0df365-7fa9-4738-bb6c-9a058c208d0d","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":69,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"bcbc0837-c181-4910-82ff-19a4c3b566b7","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":69,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"627d61ea-9b08-48c8-bc33-8e27d27ba4ba","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":69,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"e3ccb628-a42b-4e42-a30d-47545715bb8c","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":69,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"454301ce-dff4-41f5-86f7-36bcb55b4b9d","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":69,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"a753c2ef-b403-4b7c-805d-667c80da6e76","block_type":"box","text":"the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market,","page_number":69,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"158e1913-a159-4ae0-a749-ad2a2dcb9f73","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":69,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"58bb0681-04b4-4c9b-a50d-efceec4a9e8b","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":69,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"14427218-3f79-4f65-9621-be12f2974abe","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":69,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"4d090c65-af38-4146-a8c9-9e4553a57f34","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a short","page_number":69,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"636a22cc-7dd2-4396-9991-7aa0a5b74be2","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":69,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"b447b59f-cf9f-472e-bb76-0c831d7bfce4","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":69,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"7ef342cd-22a4-4023-92ea-8c645277fbca","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":69,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"bde3e72a-d49d-464c-8383-4ba89feb3d96","block_type":"box","text":"II-34","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fd81e075-15b9-4efc-bd70-5634a266b81d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"04b0b568-6b54-4e0a-874f-622ec3820a08","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future performance. The investment performance of a","page_number":70,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"650281a9-7f55-4c33-8653-2a381ea0f6be","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":70,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"a1ca7cbf-4f3b-4706-bed0-24b557d3a55c","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its performance will generally","page_number":70,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"a6d6020f-2be6-4160-89a6-dbf7f6938ef3","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":70,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"ea520af7-7b5e-42ce-9264-990e01682bac","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":70,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"bc82d22b-c143-4c8c-b93d-0a20e3f41adb","block_type":"box","text":"be available for very limited periods.","page_number":70,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"92fe8c7d-551c-4af7-aad7-1882484ee346","block_type":"box","text":"Investment in Emerging Markets.","page_number":70,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"f2c4986d-2d27-4f55-a1f6-bbeaacb4f4f7","block_type":"box","text":"General.","page_number":70,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"7d04e9e1-1989-42c2-99c8-526a47d21043","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":70,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"81f50308-5970-4c8d-b3a1-1d60c4c39b1a","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":70,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"b76be0f1-0500-4b7c-bcac-e0ef911b5813","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":70,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"f9fd7331-efc4-4ff8-ac90-cfad9a0de844","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":70,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"0f465da5-52a8-4762-8b93-99f2469fd8aa","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":70,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"ff3f5fd4-8620-47c4-bc48-224ee5030f18","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":70,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"e0605c01-a35f-4fc3-9399-b6585f1606cc","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":70,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"c040ca81-7006-4890-8c07-0dfa537ed61d","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":70,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"ccfba810-7e4e-4abe-803c-1d3fb14e01ba","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":70,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"7229f159-d1aa-4d7a-87af-e907d5b1ad8c","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":70,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"993790db-584d-4634-8fb9-19b3d23ad8b1","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":70,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"277e2637-5180-4d11-88c7-6c741ac75d6a","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":70,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"d1ef6baa-e137-405c-b66e-f3f52877fbec","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":70,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"6909f5b5-3280-424c-9938-e6a917bba294","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":70,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"47c125ff-e68c-4a3c-8e8e-16fc30c8c038","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":70,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"6ea569e6-b10c-4ccc-9736-421174366cf0","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":70,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"a6ef5bc1-3491-46ed-bad7-ee80cc48379d","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":70,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"6e331f4c-ad1f-428e-99f7-295ecbb80f10","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":70,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"608b0d9c-2d20-4dd7-8511-6bbbf6eeac25","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":70,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"e5e5b8f6-eaca-455d-9a40-a2c9c3cf73a6","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":70,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"a256e60f-1bda-4220-bfe9-d92e570289a9","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":70,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"8c62f05e-58bc-4042-95ec-b9585cbab0e7","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":70,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"1ae1985c-862c-4170-bc56-f5b0f1448051","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":70,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"7f4b9a2c-64ef-4cb1-adf3-1326813f7eb7","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":70,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"815bc89c-a4d8-40da-b833-18f4c1a6aaa1","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":70,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"73b43b3d-0c07-4b4c-ac52-19445386acd0","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":70,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"6b49d204-0c41-4b65-88df-5f19676aced9","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":70,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"941cb7d6-dd5a-43b0-aee8-afc7dd1b6446","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":70,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"5efbb057-cd7a-413d-ab8a-b1ed924a749a","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":70,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"9efe89d6-0dbe-47b1-b221-436f9ebd264b","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":70,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"f79d190e-4aed-461f-8391-9e0349e25312","block_type":"box","text":"volatile than investments in more established markets.","page_number":70,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"18aa3886-7924-495b-9ac9-05c186050895","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":70,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"81fd0308-d426-4d95-9367-d73b9dbd9f30","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":70,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"0c3bcc93-f849-45c3-97eb-b0947e6bd6dd","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":70,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"6944c784-240f-4ab7-bc5f-7674ad591ea5","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":70,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"e34eed91-7627-4b55-b692-c6d90ba9867a","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":70,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"558086b1-fcee-4e1f-b9a0-e41101499029","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":70,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"a2c3248e-f934-4be0-a0ee-ef1e7da44c39","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":70,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"db17350a-ac1f-40b2-a128-ea0039ac871a","block_type":"box","text":"acquisition or disposal of securities.","page_number":70,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"42fa5d11-a1ee-40eb-bbc0-e9a440ac56d2","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":70,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"11c59869-78d5-4f4b-a1ac-dd237dadde50","block_type":"box","text":"in developed markets, in part because a Fund will need to use brokers and counterparties that are less well","page_number":70,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"cfb68465-0247-4f60-8074-b81009092c00","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":70,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"764ae7ad-7415-4f0f-ad59-c519168dc516","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":70,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"265b6e68-03c8-4ef1-93fb-35b6b680e5a4","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":70,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"d27ca2ce-52f1-4334-8125-881125b20823","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":70,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"0cfa3a55-91f7-4f68-bb5f-e5da9344c673","block_type":"box","text":"II-35","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5e51febd-1958-46db-9d88-06a23342b5e7","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bccb1892-b356-4ff4-bd05-8716c6721a45","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":71,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"0683c7d7-0fb1-42d0-b652-e5c0cb0b937b","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":71,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"15777093-e0cd-469c-b170-f9300b851c3a","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":71,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"94b56a81-3e09-4109-9cd7-35bb48691c14","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":71,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"fe765540-0672-4f0f-8e63-6d8157ef76ee","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":71,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"3b63d889-70d6-464d-9fc8-1e70bd9bbf22","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":71,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"44a25651-67a3-4262-8156-fc139d5dcfe1","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":71,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"0dd2a3bc-72ab-4dcb-a063-061518e4960d","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":71,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"dda13578-ee3a-4e83-ba4e-8695434b512c","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":71,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"1c204e19-4cd3-4837-99f0-564140bdb72b","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain","page_number":71,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"35f2e78b-687d-4af9-b547-afd39e3237c2","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":71,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"1589f62e-9a84-464b-99c3-afabdebfd5af","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":71,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"8ae917a9-7a65-4a89-abca-15032c68df12","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":71,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"69584c14-8e37-468f-92dd-fcd003c3cfb5","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":71,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"064b6c99-059a-4ec4-828f-8b6e255e064b","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":71,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"181f4618-2ce0-4b85-b550-81e5b0f5fc7f","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":71,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"822b3ea4-9d6e-4143-87f3-e493f6bc06ea","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":71,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"05c6b3a8-9449-4f0d-9ea1-b3c210d4b2dc","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":71,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"d540f07d-fe62-4b6c-994e-594359d83477","block_type":"box","text":"performance of the Fund.","page_number":71,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"0db51999-95cf-4044-97d6-376baf8ed894","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":71,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"4bd3d3cf-0f27-4667-ad62-d5fec8ad0816","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":71,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"4338f949-33ca-4d14-b30f-a31a37ac90f9","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":71,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"2187f75c-b9a5-498a-b6c0-2450f6400112","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":71,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"000478db-641d-4f8f-afe8-8cfd7be4df73","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":71,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"73f75647-b356-4a94-b993-de5243e693fd","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":71,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"d77b2471-721d-416f-baf6-c4005dd672a9","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":71,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"0d851299-87ab-47dc-acce-4a0bd2837187","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":71,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"c2b067e4-a49a-4114-871b-705f7d81f5a9","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":71,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"f29a8d75-ea26-4baa-9091-fc73674d5804","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":71,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"55b1deae-af5b-455c-adff-73d3236d8125","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":71,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"2df407e3-9c39-4024-a929-a975fff45fff","block_type":"box","text":"affected by a variety of factors.","page_number":71,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"1afba786-9811-40c5-be95-234133d46c89","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":71,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"f453bd92-65d0-4ea2-b309-6d1f21d014fc","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":71,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"dddb4f94-993c-4120-b42e-e072ba94c8da","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":71,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"52b6c0b0-cc5b-4763-abb4-d33b99c2c7d5","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":71,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"0312ba14-e227-4b07-b466-e39074696cb0","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":71,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"a4e2b35b-8c70-4dde-8f35-9d8e8ddd4e78","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":71,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"80392fb3-7f83-46b6-99e0-1547023abc11","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":71,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"a2da7c9f-f950-40a5-a230-1ac52328f124","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":71,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"a9db0ec3-cbba-4358-a34a-b0f05753791a","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":71,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"ab823422-bd3e-4aca-86c0-99d54d240ee4","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":71,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"d4707332-52be-449f-a5ab-0e29e31b4fb1","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s portfolio. In addition, economic","page_number":71,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"a302884e-26a4-4469-b1f6-eee30c8e62da","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":71,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"a85164b7-4902-489a-a427-b232148a439f","block_type":"box","text":"nations.","page_number":71,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"79f5fb9d-bfe1-4a10-ba06-b465f5786bf5","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":71,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"30623dd6-d1a5-4371-af19-7b809722a2ba","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":71,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"af394580-7999-4f36-81df-4fcd62d8d7fe","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":71,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"da91dfe6-fb37-4c8d-b86b-e6d186981011","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":71,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"cd18f5e7-597d-4572-a16b-2096e67036a4","block_type":"box","text":"certain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":71,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"8338fc8b-9055-40f0-86c1-d5cc94b345e0","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":71,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"7e549cf3-37ae-42e0-aa66-a8bfe7f25ebe","block_type":"box","text":"market Asia-Pacific companies.","page_number":71,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"f949b17c-d59b-45f6-8148-f22894c1b664","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":71,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"c59871ab-4575-47e9-9e77-d9b9d3432878","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":71,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"8bf86ca1-9eab-425a-982a-bcf0067a9190","block_type":"box","text":"services for such securities outside such countries.","page_number":71,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"7b434a2f-2dfd-4f5f-a72a-1e341e9cb3f7","block_type":"box","text":"II-36","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"20329824-c6a7-48a1-9cc2-4313a3630a21","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0d425087-6a48-49d3-9f41-a288d44a84cf","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":72,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"08fe4aa9-a381-4347-8ee0-d0e8bad7739e","block_type":"box","text":"to commercial banks and foreign governments.","page_number":72,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"8c33ffd1-ee6f-4854-ae02-7398e9040190","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":72,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"b49e7f56-ecc3-4aa4-bff0-373ff56dde96","block_type":"box","text":"on a Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":72,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"0626d554-a260-499a-bfba-ffbd9fd49989","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":72,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"234b8d89-c583-4d3e-9345-21a7c004f30d","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":72,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"cc6570b6-a6b0-4640-be4a-7b4cef268e43","block_type":"box","text":"practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may invest in countries in","page_number":72,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"06b52bfc-6737-4a7c-9c19-f14fb198655a","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":72,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"34fe4801-2727-4630-b3ab-4ee52deaad63","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":72,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"bdfea153-231d-4901-843c-78a8ae64d33a","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":72,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"6700c7df-ff2b-44a4-bdc7-5cf911ecd37d","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":72,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"768152f0-101e-4c53-8c5e-4542761e457f","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":72,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"84c5507e-4cd4-4e9f-9666-e1870cd40ff0","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment","page_number":72,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"5d18ccb6-94c8-4763-b829-ee6f685863f2","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":72,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"0c235b69-7c19-41f7-9869-ca79c33584f3","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":72,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"695b4766-b847-436b-af63-d808087b50a0","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":72,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"a1c8d7a4-f50b-44b8-b033-97f22634a8da","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":72,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"5906c386-03e9-40cb-9351-3deb5ab4a62d","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":72,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"55509a35-088e-4197-8628-2773f189607a","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":72,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"93409e74-02ad-4cc8-addf-1ff3f5c5af95","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":72,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"a5f3e06f-a795-415a-95d3-4b8cafd13ce0","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":72,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"b2e81d07-f2c4-4c50-981a-58797d40cf2b","block_type":"box","text":"a Fund may be required in certain of such countries to invest initially through a local broker or other entity and then","page_number":72,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"158d6ab0-24df-4e30-b6f8-c3b26dd27b57","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":72,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"2e314acf-99d7-4e66-a325-5ceba141c7e8","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied certain of its rights as an investor,","page_number":72,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"3b859266-7e68-4853-bcb6-74d407c79e8a","block_type":"box","text":"including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where","page_number":72,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"2567cfba-9408-4b28-8b00-aa7f9622ec1d","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":72,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"f4f6cd64-31e7-4a92-8909-dc68c9dd4290","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":72,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"5c57671f-059e-445b-80ae-75e37cc5d2d0","block_type":"box","text":"investment at that time.","page_number":72,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"b248ebef-5e30-4f93-bd4c-72fcb6140fc9","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":72,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"e5447be4-f972-4700-9ddf-59fff0c7ed57","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":72,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"c5d6ffdc-273f-4af0-b7c8-b6b6ce4bf168","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":72,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"54de5adc-0bf8-4fe4-8288-06a55f0023b8","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":72,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"3b45e108-1be8-4054-a8d1-97da2c351d00","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":72,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"872b5c1a-d9a2-4178-961e-963273ab7966","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":72,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"3c2f520b-8269-41ef-ae41-589f061b5185","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":72,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"49bfb3cb-9d75-419c-b570-3f92b7218c76","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the Fund’s assets","page_number":72,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"e5013c36-ba33-454a-a74e-7a60c66c3b0a","block_type":"box","text":"that may be used to meet redemptions may be further decreased. Even where there is no outright restriction on","page_number":72,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"5883b63d-9fb7-4c11-bc69-287f1a102c9e","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":72,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"16549530-b3de-4e37-8673-787f178be1b1","block_type":"box","text":"example, if funds may be withdrawn only in certain currencies and/or only at an exchange rate established by the","page_number":72,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"9ca06209-c029-4af2-9d1b-fa1f46a0751b","block_type":"box","text":"government).","page_number":72,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"aad5e263-6586-4ebc-9ccb-610f9b04aa7b","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":72,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"bb73a8e5-d764-4a14-9db3-8dd86325277b","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":72,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"06f63ff0-a432-46e7-824e-18a76a5c0c7f","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":72,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"a0be344f-975c-42fe-a0bf-a30ca885dbb2","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":72,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"71e323a2-768d-484a-b5ca-ee665966d7d9","block_type":"box","text":"foreign banks and other financial institutions.","page_number":72,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"b2c3dd56-08ab-4cbd-8ee9-9cd97bba6d4a","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":72,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"75343614-f862-49d4-8226-16c355c832c2","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":72,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"bb82884e-ed78-4648-b04d-de2ae673600e","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":72,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"77e9b0fb-8777-4eb8-adad-0129cb2b6bdd","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":72,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"9be331fa-670a-4007-9cc2-5344ae98637d","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":72,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"0dc34c60-eb5f-4428-adda-c6537d1265e3","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":72,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"fb190fad-1bb6-4fd9-a8c8-5a407fb3733c","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":72,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"0d0737b6-c3d0-4209-a11a-e7114a9a7a00","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":72,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"ef5cd6bf-4e8a-4bb3-960d-a57260b03191","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":72,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"0c73ff06-8af4-430f-976a-78978c169d9a","block_type":"box","text":"II-37","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0de05744-35bf-4997-be61-64418c88bf38","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"12390ae9-4faa-4657-a0f9-8b689b9a7d6d","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":73,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"65555a3e-8d62-4afb-b616-a67eb0acf592","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":73,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"ea926253-60c4-4742-a99f-2854dfdcc9ad","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":73,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"e89b728f-fc0f-4523-b86d-be9f5c3e5909","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":73,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"5d2a293e-c8b4-44ac-b5d4-ec771db84186","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":73,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"f61ad6b8-f864-40be-9930-1b038661866b","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":73,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"76b1de85-7f1f-4f1c-95b9-2d9465a8848f","block_type":"box","text":"foreign securities.","page_number":73,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"3ee46806-ec51-484b-bffe-c267c7bb08e7","block_type":"box","text":"Risks of Investments in Russia.","page_number":73,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"8bbd81b7-0fcd-4e07-b835-fe683164de23","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":73,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"a9968a00-ed51-40b8-9cc8-a876535426de","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":73,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"1bfc39b2-54f1-4c96-b5c4-be8a8b77f227","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":73,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"3ee85ddc-0634-4e1a-8545-78e8135e2a79","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":73,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"6288f061-1b3b-489a-b3d6-c17808bfdb9e","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":73,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"28f2ce7b-2e24-415b-8746-57b0675f195b","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":73,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"633cf1fc-9801-4323-8435-4d37e8005366","block_type":"box","text":"developed markets.","page_number":73,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"2df0037c-f580-4d3e-a40e-fdf442ace2b2","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":73,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"e306411a-0d66-4334-abce-a57337184ca8","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":73,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"0ad0aa34-e39e-4433-b090-f49bb0d39e68","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":73,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"fc2eb054-621e-43c6-90f5-9139d47b4081","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":73,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"6dc26655-a6b8-48c7-9d72-7a53af097a82","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":73,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"8250d4a2-bbbf-4a0a-8cb4-22f44a91ce61","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":73,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"ee8caead-8df1-48b2-bba9-a52674384b9c","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":73,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"bc0b6bb6-c3b8-4c21-ad38-92091db02e3d","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":73,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"eb48b5e8-1f78-43c2-bc36-cde6be15d14e","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":73,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"63166c60-b69f-498d-bb21-f929e6a3c75f","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":73,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"dc5b899f-7824-464e-b8cb-3837b5a53b34","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":73,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"4c34e933-6b80-4364-a470-ee6e39c43278","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":73,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"f6a9eacc-5f80-412e-9c8b-3f555c61830e","block_type":"box","text":"relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its","page_number":73,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"60acd0c0-741a-41c8-b47a-56b1b26491a5","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":73,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"6b60f053-a24e-4377-abea-8acad3040800","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":73,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"074ee83c-3807-47ce-b674-0ba285db9bae","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":73,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"e4819a44-c262-4d46-b47c-65ded28cfe8a","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":73,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"b8a535ad-bb07-4149-aa86-62be7eee0197","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":73,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"5f04f524-f15c-4b18-9230-25855372c470","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":73,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"3cdf95c6-1ea6-49ae-9282-45d6a091bfe5","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":73,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"8dee78cf-da21-404c-8058-adcdb59b537b","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":73,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"4d13b1f1-c9e6-48c3-903a-24aaa422ae58","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":73,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"a530d936-9993-462b-92bf-3b70d694ff47","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":73,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"92f45d35-e910-4996-ab42-67a4e8f6f1f6","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":73,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"495a0332-ad37-4eec-a7a9-bf73b83bd499","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":73,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"8cf6dae2-215b-438e-ae7b-a14c8f67e01b","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":73,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"112b1ec0-fa2f-4398-a8bb-11b8b51dce0a","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":73,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"341d349e-3158-4791-8a57-db9ba0f628e2","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":73,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"fdb0468c-4efa-43bf-b4d3-379fad7b4676","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":73,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"a4b30117-2f13-4197-a239-cdc19e5be633","block_type":"box","text":"sectors globally.","page_number":73,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"dea6590e-783c-4547-b101-adab08641572","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":73,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"7dcb7ab4-da37-47b7-be21-6b8f5418d891","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":73,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"a50a845f-e77c-4a08-b133-932dc45e0027","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":73,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"ab885a9c-20b9-4e19-87c8-785cd03a8c2c","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":73,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"4cb552f2-8e93-482d-8a4b-64bd6a00e190","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":73,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"39976890-dda1-451a-9163-b2943960b5dd","block_type":"box","text":"payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and","page_number":73,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"204d142e-5de0-404b-8247-d185409a9b6e","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":73,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"bbdf2e7c-8ca6-4f53-aabd-a3e6b3f8d80f","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":73,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"32cca824-cfc1-4261-8b51-53ab32cd26a0","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":73,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"06ee2da5-fd29-43b7-87b2-5e795512b64b","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":73,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"1f7bc3c9-1d5e-4abf-b5ad-36281b09e9b3","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":73,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"46ac0bac-15b9-4071-adbe-2d0fbf2c978c","block_type":"box","text":"II-38","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2ca4d3ce-3d5e-463a-9b04-ba1e13b38211","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"10049085-2771-498c-a6f8-bddca47d910a","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":74,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"716dc2d5-3e14-4599-b0ee-8a8040ddf74e","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":74,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"19a33f76-3645-4a2b-8bb5-624d3abbadd4","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":74,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"49fc70e5-093f-4712-8c21-347f1b7fdb7d","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":74,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"3fb87120-e800-425e-b238-5f622cf002c0","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":74,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"c77cf61e-7e0b-45b9-92cc-0a267b1b9a5b","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":74,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"76093564-1449-4708-ade7-d5556ddb3325","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":74,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"60d776ab-abb7-4fad-ac64-4cdd54cca182","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":74,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"e8c76d49-2e99-4099-80ea-63deb707e455","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":74,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"ed4e23de-2170-474e-ba4f-711ba7c85fca","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":74,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"04af56c2-a6b5-4f54-aee5-8c938c8f2d6d","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":74,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"44fd703f-be86-4f6f-9aa5-9c90a399a45a","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":74,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"ff08cb39-471d-4c07-b995-77694a2591ee","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":74,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"627f913d-54b2-4bb4-90cc-52edd4265c9a","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":74,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"adc451db-a459-48d9-8162-8359ca873c04","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":74,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"dde37b3c-1fce-4a3b-b2e3-bd123391f326","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":74,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"95b6ee75-5cee-490e-a1d8-565881e82eaa","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":74,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"4412e6c7-d19e-4b98-ab19-8bf4429b3f64","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":74,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"36e40d62-dacd-439d-aa8b-0b6ca583b9d4","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":74,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"09efa986-093d-4e8a-a748-04e23fe50115","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":74,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"38516b0c-5070-4aa4-8954-7f896cdb8ceb","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":74,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"4a83350a-3b37-45ea-b87d-ea64afd53533","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Further,","page_number":74,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"a9e0625d-e01b-4fa9-8094-d93e3f655932","block_type":"box","text":"under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":74,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"f82e7c03-01e3-4282-a581-38a92d8616ba","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":74,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"1bfde440-92ce-4acd-94d7-3f352dce1b92","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":74,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"011cf32c-675d-41ce-9d70-43414285f8fa","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":74,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"5d728eb4-768f-43cd-a591-aa4d0d9b8aab","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":74,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"d271ac63-7038-442b-9005-15726a9e47e3","block_type":"box","text":"impacted.","page_number":74,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"8b73fedd-1ed8-4b75-92df-2a0857891237","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":74,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"5474b962-734f-4157-a403-e6c20594193c","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":74,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"1e36ed70-f86b-40f7-985f-39ad9ed2b204","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":74,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"f2df7300-616d-42b3-bbeb-4f93aa6f1e71","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":74,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"69b8c602-683c-422f-8cb7-31f0f18f3214","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":74,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"c180184b-3499-4bd1-9a55-70bda95c5f5d","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":74,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"d0b04ac8-794d-432f-b64d-68820249a704","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":74,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"43e1c656-2a63-4211-930e-077ddc1f261f","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":74,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"50b1d751-8dfe-4a77-8dd1-16b7d1cdc8dc","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":74,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"20a29eae-785f-4a7d-bef0-feab6872bed3","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":74,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"ab3b1e14-1605-4d14-a4ca-cc937dd515b7","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":74,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"fbcddb82-f5ec-4a14-ac09-0b9b5c3c86d2","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":74,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"daf1358b-5f24-4478-a82d-709cbfb2a564","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":74,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"f7509ab4-03ba-4dd9-9883-72b2d2db32a2","block_type":"box","text":"economy.","page_number":74,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"321592a5-88ed-4e6d-8312-6d3c6c131429","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":74,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"c4058781-49a0-449c-89bc-02d884f24f1f","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":74,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"9510dae7-e282-45ff-af93-d6798bbd24c2","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":74,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"425e58ba-b0f5-420b-b257-1a59075cf184","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":74,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"4d1f512c-b1bd-43d0-a47f-c4326b7f1709","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":74,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"2a3a8122-4b91-4954-a334-1214ca9817e1","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":74,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"52556521-069e-487e-b85e-a6c7ad11f40a","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":74,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"76c88c73-82b2-48c1-b648-dd15fc9b198d","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":74,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"fa2cf010-efe2-4cd1-b908-bbd706335bdb","block_type":"box","text":"typically the case for investment managers.","page_number":74,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"0a313f47-fa0f-4078-821d-b98b6db6f71a","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":74,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"2dbd7597-caf5-45fe-b557-73f2d2da3b24","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":74,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"34dc56aa-9c0d-4765-8d7a-f71ddc52f754","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":74,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"a74a2df8-6db4-49b9-8e12-60091a301909","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":74,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"0b5d1bc1-9e0b-449d-aab9-ae7a6ce928c2","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":74,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"8aea69d4-5b15-494d-adf3-b4ca40048289","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":74,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"fe1bc1c3-ee60-4122-9765-ab258d6b9ee1","block_type":"box","text":"II-39","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"af00a31f-1fdd-44d3-8fe4-1dc93f1c0ead","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"14941c1f-d842-44a9-9622-3b054bf2cde4","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":75,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"74f53519-eb90-4ca8-9f2a-93bf09c97d69","block_type":"box","text":"significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi Arabia. As a","page_number":75,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"84a38b03-bb95-4a02-bcc9-1250e2f342a5","block_type":"box","text":"result, economic conditions of Saudi Arabia may be particularly affected by changes in the U.S. economy. A decrease","page_number":75,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"9d5c7b0e-fed0-463c-b37b-63f3aa761654","block_type":"box","text":"in U.S. imports or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":75,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"c1fbf17a-3f90-4aad-9706-a8acf0c0ecdf","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":75,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"0898b2f5-7106-44cf-899f-43db7392ae35","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in North Africa and the larger Middle","page_number":75,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"d33c6869-47ce-4bd3-b21f-5f20610af658","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":75,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"d9172f19-7ae9-443c-9355-bf33d3802793","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":75,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"0f5b4535-4706-4dfa-bc38-3b888c7c8346","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":75,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"1938884c-9a4a-4090-a635-bf42f27453c1","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":75,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"2d3f6389-cff3-4fe9-ad6c-08a4c67d6c6d","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":75,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"26315bcc-4147-4139-a7cd-b15536859bb1","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":75,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"39bbb557-dbcb-43cf-aa47-1e4fb9cacef6","block_type":"box","text":"will be indirectly subject to those risks.","page_number":75,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"b751e72a-6cd1-4115-9379-f92d51d615d9","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":75,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"a540e66e-73d8-419e-8c4a-08b40a35453f","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":75,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"ff9dc566-0292-481c-a5fb-cc936ed67f1c","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":75,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"ddcd7cf5-2273-40df-b1f8-eef8deb72b10","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":75,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"084a51a6-1227-47a6-8c2b-6ef7d5cebbd0","block_type":"box","text":"on export of natural resources to key trading partners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":75,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"504554d1-e56b-41c4-8a99-c662eca9c5be","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":75,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"a860614e-7958-4eb9-aef1-b12d107deefd","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":75,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"b8a8bb5a-33dc-4789-ae19-86a697577e72","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":75,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"c7992fb4-faaa-412b-a800-79dd368b5bc7","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":75,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"3620e0ee-db26-4133-a514-3e90a0191e6a","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":75,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"4ec98ee9-8977-4646-b54e-d3c7400d6297","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":75,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"03d649f3-0bbe-4439-b60b-8260aa8de5fe","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":75,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"0d8db39a-0116-4c86-85cd-d2200f2121e2","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":75,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"43da2e2e-4f37-4bd3-9915-971a3b3445b9","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":75,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"d9ce4a2f-94c4-4699-a4fb-4bfba1611452","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":75,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"d1d944d7-4558-4063-b433-8dd640c2d13f","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":75,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"343308f4-39b0-4fd1-a587-27e823aa7207","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":75,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"4d8faf41-7c59-4d66-9cf2-e523387feed4","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":75,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"50214481-bbfd-472d-b0f0-248920c7c406","block_type":"box","text":"impact on a Fund’s investments.","page_number":75,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"b94e4886-c0e2-4dc7-9198-e9b74475601a","block_type":"box","text":"Brady Bonds.","page_number":75,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"e3d1f0a2-79b2-4317-9c0f-e1fd8d73a16c","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":75,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"6efbbcd8-5fc2-4465-a776-c11bd36ee7f9","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":75,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"30c7fd25-88c8-4f36-a349-ed0f23c49d60","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":75,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"2c6efb14-cbd0-46d6-9d9b-5662114e89ea","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":75,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"06592447-7f62-4273-b8a9-464219eaddfe","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":75,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"06b79300-8c2c-41e7-968c-7de2a4662b68","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":75,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"5d33693d-b1ce-4616-b2c6-c275b5d0de6f","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":75,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"c51cf1a3-8bec-4eda-868c-78bcc2acefa3","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":75,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"99cf7f3e-3554-4500-85d4-2c00425acd71","block_type":"box","text":"Venezuela.","page_number":75,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"20a0642f-1ec6-44bc-9fea-9feeb3ff0879","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":75,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"c68784e3-c596-4d24-9a31-ba1b57dd797a","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":75,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"fe526e7d-b8ac-434e-b788-202428160a25","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":75,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"dcab484f-7fe7-49e0-92d9-ea6737fbc473","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":75,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"8360264a-af16-439f-a702-673572436027","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":75,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"dd576c99-23b5-4329-abca-b4524254506b","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":75,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"94ac4fbe-1773-458e-9524-3d05a2c40594","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":75,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"832ea213-1b60-4720-b1f5-47ad5100223b","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":75,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"54ec0878-bf3d-416d-a7ce-20a718c68d46","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":75,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"d3225ca2-6afd-487d-91e7-7001e5a32156","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":75,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"3b7bd5ff-3ec1-4d7a-946a-77f5f7c1b1b8","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":75,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"7a3fd558-7404-46ff-a7c8-658ea92128da","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":75,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"c15b08d6-dc32-4ab7-b316-32489e4df05b","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":75,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"0b6944a9-6645-4eb0-b3e1-6394fa93aa67","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":75,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"3a96d564-1906-4ec1-b923-85cae51e52f1","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":75,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"5e2d7618-7857-457e-939b-db904e4ccb15","block_type":"box","text":"II-40","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"74cea007-1186-4156-9098-54a7fd6168e5","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"08ebfcce-5e52-42d0-ade2-3496cfcfc9de","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":76,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"4eb72219-d21e-40a7-a674-3ef0c4bb4826","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":76,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"8ef41fb5-8834-4585-b242-d2409aa7506e","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":76,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"d1b0abaf-9419-4464-8e4e-974336994abd","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":76,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"b5a4d177-96ab-4ab0-8d2f-8feb882c1d7e","block_type":"box","text":"China Investments Risk.","page_number":76,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"3a355e7b-a53c-4cd5-adad-7bef67fd5d2d","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":76,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"7fab0e22-3756-466e-880f-47cc736226ec","block_type":"box","text":"including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":76,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"2458b4f9-98d0-4072-afe3-e91b05e54059","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":76,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"17ee6f71-a329-468d-9887-a81313b6ba69","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":76,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"666c9c63-c360-461b-83bb-18bf8934e57c","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":76,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"0c7834c2-dce6-4700-980e-8630ade888a6","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":76,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"41e1988f-0b23-4b68-a79e-514fa8b88130","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":76,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"83e831cf-35a9-4bac-8854-2f4fb50c4a78","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":76,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"627994a5-62c6-4094-9189-35c3072025ac","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":76,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"5bb0f3ac-d26a-4456-8c2a-e432439c5a48","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":76,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"2cbf4942-0844-4b83-8cb2-c81123f1c968","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":76,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"9da766c5-4391-4bf5-bdb0-44909dd17e13","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":76,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"75735894-caf9-4777-b573-f8d9cf606a88","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":76,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"24ae67e0-ef6f-4d1d-b596-8f02020ffab3","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":76,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"3eb7d19a-b7d9-4231-aa82-c914586da48f","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in certain","page_number":76,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"09f48eb5-c122-4005-8a1f-7d0e888a2581","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":76,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"7937b33b-736e-43b3-8524-cfb3c2cef4f3","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":76,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"8862c11d-3545-4fed-8e97-a3c3d0baacc7","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":76,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"1693eead-2fbb-4dd0-979c-c99a9f1230d6","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":76,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"e827581e-ebb1-4de3-85c7-80cf9fdfaec3","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":76,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"dad89cc6-9bd2-4fee-a014-d88fa05e235a","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":76,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"a638923b-788d-46b9-bed9-3251365dd3f3","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":76,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"fccdf7e3-cb35-4e4c-8a15-8b6c46ccb403","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":76,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"007749fe-6433-4943-8980-72fef25f6c40","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":76,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"00a6d28e-fd99-46e4-9bf7-897e646eef3f","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":76,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"e93e8e6d-9d7d-49e4-a911-1e8142faad7c","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":76,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"b28bb92b-8eea-4164-9fee-43e8a6967abd","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":76,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"347253a9-907f-4c70-b44e-3b11311198b4","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":76,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"7da6f8a8-bed3-49eb-b373-4e88dbe6eb1a","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":76,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"9d1313b5-78b4-44fb-a5ea-0452a1b6c876","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":76,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"68ba240c-ac9e-457c-99ec-7506bd21de69","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":76,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"0b8e4e1c-8cb6-49e4-a573-269a9a8f1848","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":76,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"a04ed914-57da-4391-a0e4-037479861860","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":76,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"75eb79ff-4181-447b-b396-0ec3c69b44ec","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":76,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"679b6d4d-7ba1-4117-9f2b-3fbbb9d83288","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":76,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"4a507ae3-acfd-47f8-ab29-94ce42543f1f","block_type":"box","text":"restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect","page_number":76,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"3bed0d7a-81ea-42eb-9e98-e79a8557e34e","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":76,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"110ecb1d-25b1-4b2a-8a3a-fbdd92254c28","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":76,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"4a4bdd70-b917-46ad-8bb6-e490edb47c06","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":76,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"4069e394-e8c7-48c2-95df-a1d990b70d5f","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":76,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"c083e748-ce98-4375-9421-175e875a485b","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":76,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"ac84b696-0e8e-4e5f-82a9-d222baea061d","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":76,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"2dfd55d1-53ce-4673-baaa-f04b881ee052","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":76,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"0ebbd8c0-1eae-45ae-b7db-e2e07fe6670c","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":76,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"cbf06f66-8ffa-4be4-96f2-52ba88fb4758","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":76,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"20a4a4c2-1781-4e21-abb2-0be5f6280c23","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":76,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"caa16719-4fdc-4dc3-b7c9-735406f22a29","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":76,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"dd03d898-d4d6-4cbf-ba7e-c72dd7cd92bf","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":76,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"2176809f-4f15-4227-b3da-622568cde0d5","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":76,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"7c60703a-1107-4c82-afd8-e57186e2112f","block_type":"box","text":"sub-custodian.","page_number":76,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"0665fc3f-5f6e-4ec1-b1d9-f07cfd871e20","block_type":"box","text":"II-41","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f81f4f45-4786-4088-817e-2cf2bfffcd3f","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a4a6fcec-a007-4c90-a82a-c329770a27ff","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":77,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"f9bbdc24-8387-484a-9440-0ae5f520454f","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":77,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"a7ac13c6-3097-46f1-a6bd-3a6bb6863698","block_type":"box","text":"on investor protection considerations.","page_number":77,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"31d0d5f9-79e2-488c-a349-885c1cf309d6","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":77,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"0723169f-c538-4b5b-a159-9ee28c42a708","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":77,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"06826d8e-3b3c-4ea1-a7e3-a72b3a75b740","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":77,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"51292b95-c211-4482-a17c-21d8afd08ea5","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":77,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"224a838f-7f5c-4066-8afb-7ae235043337","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":77,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"cc3d67ff-2ea2-4438-8aca-0d2ee8eca052","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":77,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"55e966cf-32d1-4acf-a744-4a5478b7da61","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":77,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"f31240b3-7e17-467e-b64f-5cb670c83a7d","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":77,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"2b7324b1-b3c1-4113-b38d-bb759dab39ce","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":77,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"37b59ccb-3b46-49b7-9d12-b5a6880aff2a","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":77,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"d44c16f9-3567-455b-882d-115824b48033","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":77,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"efd4eb84-661c-4e47-a558-2ee4d1288151","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":77,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"05d0014c-6531-41dd-8c18-96b6b437f3e2","block_type":"box","text":"accounting firm.","page_number":77,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"d09c36f4-19d8-4cda-a6d1-06249e8a6031","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":77,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"796c543d-8340-49c8-94a0-c8307ffb9bbe","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":77,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"d707af6c-a9b9-41e3-bcbf-89180f0f369a","block_type":"box","text":"negatively impact performance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":77,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"4bb4a119-9063-4382-b29c-46fef207e953","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":77,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"eea24d0c-ceb1-4f37-9510-cd6f4b93fa5c","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":77,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"c49ab5ca-12f8-4610-9504-99fe7873768b","block_type":"box","text":"which have a substantial portion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":77,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"9f592e08-9d22-4d03-adcd-46a69d3ec505","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":77,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"6dc7bb56-f557-43b9-ad9c-9e18e90b8cb4","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":77,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"be3850de-1a77-44c6-8904-7649528f457a","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":77,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"1a4f3286-3ca4-4176-b296-a9483a1c86f5","block_type":"box","text":"RMB (“CNH”).","page_number":77,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"a8241fc3-b13f-419a-a241-cdc12b54da71","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":77,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"4068281c-84a2-42b9-9d15-92f38f6fb41f","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":77,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"d75d3e1a-94fc-4082-94e6-07369290b70b","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":77,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"44273fd0-273d-4776-9735-766a7ad7f850","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":77,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"6b2027e0-6ef5-4995-a661-4ab474ff9549","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":77,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"19c365c5-0ed1-4b00-9f8e-e8daca583d3f","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":77,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"7b156e33-ef68-4bdc-ac8d-1797353d9c2a","block_type":"box","text":"represent equity ownership in the operating company.","page_number":77,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"e3330876-1557-4ca0-888e-a1e7e83d7a17","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":77,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"0c4fa848-25c1-4b68-a545-6a5ba8600574","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":77,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"322af2c9-18ab-4d0e-83a6-21bae7d629ca","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":77,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"7a6d754f-c697-4111-8558-960c3eeb121c","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":77,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"0eaf5459-745c-4ca7-8c43-7cd7fd91e18a","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":77,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"4a114266-ebe7-4f69-bc18-0c764939e3c8","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":77,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"23a4e48a-f9b5-4e66-a790-04d067f45de6","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":77,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"97283ef5-a2ea-44e1-a068-676233f93c5f","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":77,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"e5efd0d4-f455-451a-a3ca-1363729ae85f","block_type":"box","text":"company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement would likely be subject to","page_number":77,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"a1b8b73d-1c6b-4994-9eca-a93c371fd112","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncertain and could be","page_number":77,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"a19245e3-cd59-4465-bc54-184514453165","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":77,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"9fc06aec-27ff-4400-9eda-837271dabe9e","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":77,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"b8538a35-ef7a-493f-972f-4d7a7fdab513","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":77,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"570a9bf8-2a7c-4beb-9103-f45084edd1f7","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":77,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"37b04fdc-5e9d-4ea5-aab2-dca973290081","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":77,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"f37195f8-b369-459f-8d3f-edc1401af619","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":77,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"1356a0ed-3bf2-4aa8-b215-24993cf1bde0","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":77,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"632ee7f5-32cd-4bf1-8d8b-983195fb491a","block_type":"box","text":"losses to a Fund.","page_number":77,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"17bb766d-5aba-4be6-af5e-5109d9c6949d","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":77,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"b12e631a-7ac1-4cc2-af98-d65fd8590a44","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":77,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"9548f0c6-55d9-4422-b77c-8336f8fd38c4","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading partners over its exporting of its","page_number":77,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"6ecf7477-82f8-4214-a10e-465e7c68a5a6","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":77,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"b37e7666-bd8a-4e29-b112-2d7702dcd447","block_type":"box","text":"II-42","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"297f703c-026c-4ef2-bb64-7c062b0559cf","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0c908b96-ce93-4727-87d3-b88cce6cefc5","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":78,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"36cfd60d-e907-4db4-93b8-4a2c79ffc5d9","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":78,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"56af43b3-e382-4e8f-a67e-7fc17591257d","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":78,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"fa9b0101-f772-481a-b5bd-34375b4a9134","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and the companies","page_number":78,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"9f1bc914-a622-4db3-a9df-e46b481d708c","block_type":"box","text":"in which a Fund invests. Certain Chinese companies (which may change from time to time) are directly or indirectly","page_number":78,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"fe14ee64-c024-4c50-bfd4-b751a3c9e940","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":78,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"066b7179-277c-45a8-a292-727360cb517e","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":78,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"644a58a3-ebbd-4121-adde-eb0e1e77d62d","block_type":"box","text":"export controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans imports of","page_number":78,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"60574fd4-1e04-4247-8754-47522ba2511a","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":78,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"c7ce440d-4335-43a4-8de8-cab380415974","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":78,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"4c82ac31-e7a7-4dd0-bf48-203ecf58249d","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":78,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"33a4b724-5226-4206-9be8-d36c945954c5","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":78,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"da3a80da-e2a5-42e9-97ef-1c6bee5a0eaf","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":78,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"8d1abb1e-a668-4128-bfdd-f8532d934e47","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":78,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"d2052a67-a891-43e0-af99-7db1b48f879f","block_type":"box","text":"such companies.","page_number":78,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"93b9a2ef-3ecc-4415-9b6c-75f8900fa962","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":78,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"2881f833-3de7-4ef1-9148-cb1ea12ab11a","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":78,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"ca4113e2-7b73-42b7-b9bf-884f3de3893a","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":78,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"0587a751-3086-475f-9e9c-a21b55eddfa8","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":78,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"0c4d21ec-7cef-4c9e-a3d6-734875df303c","block_type":"box","text":"on a Fund and its investors, particularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":78,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"dd799e61-1802-4db8-9e86-fda74e7827fa","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":78,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"55213372-221f-48e5-9ad5-3c95576b6bb0","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":78,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"68ac3ffe-d29f-43a1-b569-a7ebd1095704","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":78,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"0ef29219-7c64-40f8-ad97-53244c9dcfbb","block_type":"box","text":"standards.","page_number":78,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"c2cb72ca-22f4-4683-bb89-5fa183ec772d","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":78,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"ae51f521-f063-4787-bdd8-bf6da9120487","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":78,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"19ec8b10-e4d5-4974-86a8-690938a7fa8d","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":78,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"fa0269e1-7e50-422c-a2d0-34aafbc382d9","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":78,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"5fa99a6a-b0ed-4e22-87cf-f78d16e3a2fd","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":78,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"f0f952a0-f22c-4882-8c99-925ff857b0a2","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":78,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"c5df501d-cae9-41af-a3aa-4cf6a5098fc2","block_type":"box","text":"General","page_number":78,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"1ee2ee4e-621e-4381-b3bb-9c1e10e0c8fa","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":78,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"70700345-821d-46b9-8aae-39227750fe1f","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":78,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"72c21ffe-23cc-4247-a1a6-2f1819f8614a","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":78,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"1369bbbc-2d07-4cf9-b474-9aa82170d67b","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":78,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"ba0aa6eb-0447-4c15-ae0b-91238b0e1778","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":78,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"9e43a0ad-10ad-424a-94a3-0e6c50dba982","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":78,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"cc73df06-1309-4cc7-b76c-02a9688691af","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":78,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"a2a7b275-557c-4413-b70c-45c9e92ed828","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":78,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"919dd080-e10b-4b7b-a626-55915bf5e460","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":78,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"e4144e5a-01da-42ff-b1ba-43e79a5ce76d","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":78,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"2e5cdd0f-05f9-4801-a587-80b177adda69","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":78,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"515f2639-6cdf-4d19-a8de-fd31b7729827","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":78,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"c4fa8546-5d2e-4c86-a7d1-23adc1532791","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":78,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"0e8e3785-4f55-48e7-970c-e303d6ca9beb","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":78,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"bdbafb2c-f773-446e-8a27-3e8c8c004f39","block_type":"box","text":"company established by SEHK.","page_number":78,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"574df0dc-d267-42f3-b95b-1e252b902c93","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":78,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"c8758773-5891-4ca7-95d7-2dddc0717383","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":78,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"0b65080b-ca89-4553-9098-790a757d8359","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":78,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"980393d0-7fb0-4284-9088-4e41e5fe0292","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":78,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"d050863b-5c95-4b04-8c79-0636718e1c12","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":78,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"9cea9609-8cb9-4405-add0-11178373eb0b","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":78,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"020c375c-0178-4325-beb8-afd07f3721c5","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":78,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"205b822b-8e0b-409e-bd89-74673629d415","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":78,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"0f70eadf-558d-41e8-bd44-7f7eea9382d5","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":78,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"3d452528-0a40-4f96-b118-a7f3b39d96e2","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a certain trading day, there must be sufficient Stock Connect","page_number":78,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"a0b2ef30-87c3-42c5-85eb-461eada504fd","block_type":"box","text":"II-43","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c7a795fd-f3e6-419a-a082-7a8e6738c9e0","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c5062f47-0ae3-4770-85cb-b1f53f318304","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":79,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"df9272b6-545e-464a-bd4b-29f33a53ab68","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":79,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"c24f7d18-69b4-4bf5-ade3-b38426b8de05","block_type":"box","text":"out pre-trade checking on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":79,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"4333291e-619a-4147-9225-766847b4f5d1","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":79,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"77dbdeab-35e0-4bdb-ab07-d22dc2574e27","block_type":"box","text":"i.e.","page_number":79,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"a49371d2-bdf6-418d-9971-b8cb2cff2aa3","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":79,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"6addb477-a897-45ce-9792-0ccf1dcdbf06","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":79,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"f5daf907-4f46-405a-b9bb-d8d091c7538c","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":79,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"ebcfa802-8a10-4726-b5c8-a09cea4146ea","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":79,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"995c62ad-0b1b-4070-ba9d-d44f04bee84a","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":79,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"f5339fea-8178-411c-a85c-3afc8ba69ebc","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":79,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"b45fbdc3-cabc-45a7-a17b-33b964caac9c","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":79,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"e6a20712-e4a7-432f-8e51-6a18d3a6a506","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":79,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"4214e7ee-238c-47d2-adcf-1ff8f8fa8ee0","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock Connect Securities","page_number":79,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"9ffef83c-79bd-42d5-acd3-2a9affe638f7","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":79,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"6b7a6271-5ca1-46f4-bb52-b10c6478b488","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":79,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"ce089292-7f5a-4bc0-90ed-bef3cbf8ba15","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":79,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"90c6bf85-6ff9-4996-9130-0f4796a469b8","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund converts the local currency into RMB for","page_number":79,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"46efb6a7-d7fe-43b4-9b1a-9c458fef3311","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":79,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"d7f6a51a-589b-43be-bf6a-217bb4c2f25b","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":79,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"53730d01-e232-4d6d-be6b-1e379b038183","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":79,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"4d9870f7-fca6-4fa2-b2d0-f550db1d0986","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":79,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"85793601-e20c-48de-b897-28008bb1d5b8","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":79,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"1ffab91f-2ef4-4777-94f5-03236aad4bb7","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC courts. The exact nature and methods of","page_number":79,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"70d86ab1-2ccc-4ecd-8a5c-f80fdbc49953","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that","page_number":79,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"a21d7897-35d4-42d7-b46f-89e789da64ca","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":79,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"ed416e12-029f-4218-9e4b-e6be3e470bf0","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the general assets of","page_number":79,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"e7b67dab-f2fb-4e49-8529-bcdd843baa0d","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":79,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"948f9171-fdea-4f3d-8662-4251dbc76dc2","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":79,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"e4c7b6cf-4008-4339-8615-e08a8573cbeb","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":79,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"1c471064-1417-44d6-b7ec-0bc9a36fc74a","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":79,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"a0a1a354-26c4-4f4f-96d5-8f70a7c216e5","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":79,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"3abde0e8-469b-4c1d-9385-a22096870668","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":79,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"dac484fe-b09c-4eae-bcf3-88c6cee6cb02","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":79,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"2b4ec7c5-7f19-460f-a420-fce17eee4f5b","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":79,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"052953f4-4b96-40be-afed-6c81efd7a02b","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":79,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"225d1000-77a5-4694-aef4-effaf0ecfd29","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":79,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"72ac95fe-ad32-473d-8d2e-c888b74c9129","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":79,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"db6b7d62-14ef-49d8-973e-4dbb930712cd","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":79,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"fabd4f5d-79ba-489b-bc16-581f123e6b36","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":79,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"7d2ca234-464f-4598-b042-e9473061d36f","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":79,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"632be6d8-de47-4ffa-b27e-9b2cde5b3a2a","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Northbound","page_number":79,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"590fdaba-4912-4416-8545-d77b25d5b484","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Northbound trading through securities","page_number":79,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"dfd61c5f-aa97-440f-af53-8237ff04d662","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":79,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"ab97654d-731d-441a-82f1-172ae6185a23","block_type":"box","text":"PRC.","page_number":79,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"74f795b5-678d-47a4-96b0-dd0c5d62cd11","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":79,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"eece1e2b-f8ab-4440-9b53-a0ffbdef546c","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":79,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"6a72bf28-2751-400d-bb4c-b622d5ea3cdc","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":79,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"df95680d-3d65-42cf-bb86-109e1fa1bfcb","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":79,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"184057b2-2954-4c21-bcaf-c09c24e765eb","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":79,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"809d4e01-e84c-40aa-8412-7e72b518a26d","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":79,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"e2286adb-95bd-4941-9d21-9692f6c8ecd4","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":79,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"c2c812ac-0598-4d33-8568-d23362e202d3","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":79,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"88c54ac5-6d12-4ccf-888f-66aad4081e26","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":79,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"9e6d62da-7ce0-41b7-9f0f-772116b4a170","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":79,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"21c36521-706c-411e-ae78-7b914babde95","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":79,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"27514843-9793-468d-994a-78190cfee8c0","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":79,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"32c0159e-547c-4bac-83e9-c324e8450b98","block_type":"box","text":"as a result of such changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":79,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"c57a39cd-bded-4464-935b-57c9bc9b77ea","block_type":"box","text":"II-44","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"619c6297-4389-41a6-ad43-1018cdae7c2a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a1d7e64b-31d5-462a-8c24-563d9fc29fce","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":80,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"3da0edb2-6bf7-4186-a9be-81fc581b7e3b","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":80,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"bfc58b46-7c49-46c4-bea8-044a9b54adb4","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":80,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"b1c7ef19-dd52-4600-a805-918e660f49f3","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":80,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"2a6261db-d243-44f2-ba8e-83dd1dc26b94","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":80,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"78c95fb2-3de9-47ad-872b-c6d23caa8132","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":80,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"ddd145da-67dc-440e-8a4a-ae2b6baa871a","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":80,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"acd31b47-7e59-4f9c-a483-3d6be1b6ae18","block_type":"box","text":"Suspension Risk.","page_number":80,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"1d7e0d3a-cd9d-44c3-b05a-fa1d403b302c","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":80,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"b81b0ce4-2dff-4fcf-9480-fda54e224bfd","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":80,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"53e6c09f-e427-41fa-8bad-0d97f165fee0","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":80,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"1e2fd1a6-8a45-4cfb-9712-bf3a162acfca","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":80,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"41420010-03d9-4571-b7df-26c45a6f4428","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":80,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"51368faf-d9c3-40b6-aab7-b9972e870af9","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":80,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"412be75b-6a7d-4368-b921-eef8db6bee3e","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":80,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"f060ba49-9751-40fd-90a7-5e9db108f196","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":80,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"91996159-f48b-4ea1-836f-4e74f879c498","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":80,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"b1378a48-ab15-459c-807b-53c056b1d1de","block_type":"box","text":"certain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":80,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"16889e98-7a0c-459c-8a55-a9e53989d857","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":80,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"093b5bba-e488-4d21-a588-7b17c0fef9b2","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":80,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"890fbf49-dc93-4177-a8c8-22711dfc4064","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":80,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"cc6508f7-3fa7-464b-a083-401e24beabac","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":80,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"39da2710-4a7a-47fe-8f72-f1ce34854b4c","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":80,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"8d4299ff-0cb4-4329-b17b-dc14c6364867","block_type":"box","text":"A Fund may invest directly in the","page_number":80,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"22a673a9-14e8-4dbf-8321-7c3fb81f8198","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":80,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"55341716-b3eb-4bc8-921f-526824006161","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":80,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"a4fc99e8-ee68-41ef-a71c-94411f32ea88","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":80,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"66095c07-3b07-4ebe-92c6-080a16927599","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":80,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"8c485a5b-64ab-48e6-9667-b53f0411588f","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":80,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"9a24534b-039f-4910-b971-cbea82869f06","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":80,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"e2fe4fdf-bed1-4d3f-a2a0-602b239b9af7","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":80,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"9b8d7d72-255d-4e16-81a4-0c4e2932e6c0","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":80,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"9fe5e952-5bc7-4d58-9d33-41fc588ed763","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":80,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"94222a4f-4aff-44cf-9c1e-3c22572b79af","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":80,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"e90179cd-f47a-42fa-9a8a-17a5b80fd219","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":80,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"70ffe2a1-d701-44f9-a728-f9805e60b3ea","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":80,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"d337fed5-639c-4b7e-8c7a-ea2e63fb7200","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":80,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"fed2a73b-ab19-4b43-8d5d-a9e770ff01bf","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":80,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"d27706e1-81c1-4953-b384-392819d61d69","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":80,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"ced1ac0e-f36b-4e1e-85c9-c62a2c0b9057","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":80,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"9ab1f677-3244-49d3-9b92-00a6ab539a44","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":80,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"7c3ed5cb-2d5a-40c2-94f0-305fe61ec174","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":80,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"b5e5c769-fab2-499c-94ef-790850d3cab2","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":80,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"c7017700-2532-4197-91d7-6c826d376cfb","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":80,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"ff290911-9f25-4f00-8c99-ee36ec6bc0e6","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":80,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"8e9fc3b2-8089-4364-83f9-06a8d16ae3e5","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":80,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"86f9d7ff-2fe7-46a1-a628-41656b90146f","block_type":"box","text":"i.e.","page_number":80,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"33400f05-c852-4cf0-8d79-be4da41ce7ea","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":80,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"e512ed87-0d70-4c4a-8e4d-9fb9893ff295","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":80,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"92bf16ed-cda9-4657-9066-ef25c812510d","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":80,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"d7414fba-de12-4a4f-b0e0-cb4311810d06","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":80,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"f4845e3e-602d-4699-a352-81b24239b40b","block_type":"box","text":"will be limited to assisting clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":80,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"30da9369-01eb-42d5-95c9-ef9854f2c0ca","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":80,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"453d6d05-925b-48eb-8959-f231bb3e07b6","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third parties,","page_number":80,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"6679930f-1125-4b24-b89c-a2d13ac60385","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the part of such third","page_number":80,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"9394c2f5-1dbb-43e6-84fd-fbc05263bcb2","block_type":"box","text":"parties.","page_number":80,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"a366d7a6-5bb1-417c-8f86-a63b9b18fa3a","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":80,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"2050481f-d536-4837-bb9e-53d29588558f","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":80,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"fddd4e52-eb1f-4d41-b9ff-c8c3c1f467de","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":80,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"2d4b7a4c-445f-4649-a9f2-77fbb97fb206","block_type":"box","text":"II-45","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fdff2b13-c8a4-432b-ac01-003a7457fc0a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6993bea4-e529-4dc2-9920-e8130a2c5424","block_type":"box","text":"involving a nominee account structure in the PRC courts. The exact nature and methods of enforcement of the rights","page_number":81,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"bd41cedc-f3ed-41a4-b6cd-8f9a1a6cb0cf","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":81,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"af310dfe-b3ed-4eac-a5ec-8fc41c02c9f3","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China Interbank","page_number":81,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"70c3f689-5a5c-47ee-b317-55d14d7cacad","block_type":"box","text":"Bond Market may result in prices of certain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":81,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"66f13899-e09d-4e33-853f-64825a97c968","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":81,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"b1fdac1e-8899-41ca-b10a-58fbb412152f","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":81,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"eacf9ca1-2a10-4d9f-b4e5-216ceedb8716","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":81,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"de0904d6-f4a4-4422-bbce-8e8491f76c20","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":81,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"02cbc361-5d36-42a8-8186-d2e975ffd8ec","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":81,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"9e27a434-e7f5-490a-ae40-1e6f5f65b0fc","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":81,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"1bb4255b-8640-4cd8-acdd-f7e17a63e729","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":81,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"27f87e8b-a7fa-4794-8b3e-befaded77d99","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":81,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"dec519e3-7524-4afd-96de-fdcb8b549498","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":81,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"e7d90e31-b96b-4668-b37f-bf460825ff49","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":81,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"b8d96105-65c7-49fd-9702-66c1fcf02e6f","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":81,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"f77e2803-8ad0-48c3-804c-88b401d494e8","block_type":"box","text":"Fund may suffer substantial losses as a result. Further, if Bond Connect is not operating, a Fund may not be able to","page_number":81,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"84971182-63c5-4556-a257-ef610a98baa7","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":81,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"82b02257-2b2c-4be6-bc42-49f68016b15a","block_type":"box","text":"performance.","page_number":81,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"78386cb0-c7de-4a46-8c53-36a41fdc65b4","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":81,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"cd269cc6-a92e-488f-b717-2cb1ba86eedb","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":81,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"0750922e-cae5-45f3-a55f-dc67924caf00","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":81,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"5ca65c00-46b4-49eb-8bf4-26a79c51e6c5","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":81,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"0c1ff1fd-fa84-4707-8f71-10d63bb6356c","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":81,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"cebe9d69-2200-468e-99e1-669a7683f7fd","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":81,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"edc956bf-7387-465d-8c9c-34250c43e825","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":81,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"68576936-91f4-4c74-ad77-5fb06812bac1","block_type":"box","text":"convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":81,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"74e1b60c-eb56-4f89-8df1-d6ffe8d0f022","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":81,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"cb2a76c7-28bc-4ac8-9b4e-f39354bdf380","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":81,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"ea92d148-6743-40db-8637-5632409028c0","block_type":"box","text":".","page_number":81,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"44b7a746-5f44-46ee-8c55-31ce3d3f2279","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":81,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"20d73ae6-6a0a-40db-a278-460d95667e42","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":81,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"89236b65-3daa-448e-90e5-fa8fb19b0298","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":81,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"e83a0648-fa91-4690-a624-b79045b190c1","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":81,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"402d68a8-512b-44e8-85b4-6025d7024be4","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":81,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"5fd50244-4e37-4a61-85e4-ff148b2b2647","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":81,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"a3a8050e-bd51-486f-b945-3708ceb23b65","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":81,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"fcc1b97c-1631-4f71-84a6-c0fc48183995","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":81,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"e94bb63b-4454-4ccd-a996-bc50b4e14909","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":81,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"3949f4f8-04ed-4651-86b4-a83c2f24cb43","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":81,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"1a659b74-f014-4038-81d8-3a6c8ebf4533","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":81,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"554cb049-b287-4678-97de-57f40189c061","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":81,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"fcf7e550-df8b-40a8-9ba7-c0d2109354a7","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":81,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"4769ffd3-1a97-4da6-89f9-e94c0b2ce06a","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":81,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"e1e15595-6f24-4d86-a9dd-49c8491174f4","block_type":"box","text":"without notice.","page_number":81,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"5aab81fa-e4de-48aa-ad51-8c0ebaf2478e","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":81,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"0144ca4f-e160-4577-b172-3c60c79a3c0b","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":81,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"fb47469e-0991-4a54-bb51-e5be6a04d9c4","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":81,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"5f9d35ce-30c6-48ac-a100-f35e50a2f253","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":81,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"2d6eeaf0-1873-4336-8206-dc324c41f753","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":81,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"150e5d8d-0732-482a-8f27-c54384f20d77","block_type":"box","text":"December 31, 2027.","page_number":81,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"3cb18043-139c-4a03-80f5-f7e2fe34c2af","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":81,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"2814e8c6-8e36-455c-a5d7-72fd608c7989","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":81,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"ef818d12-bea5-422b-b285-e73336888b35","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":81,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"e56165fc-7e98-4120-87af-138337730721","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":81,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"6f0eebd4-fc92-4d20-976d-330cfec00461","block_type":"box","text":"II-46","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ddef3431-a5d7-4427-b490-c549df3c5890","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d07679e1-3e00-4fec-aaa1-c2bf6e5d91f6","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":82,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"4ee322cd-d3ed-465e-b06a-6b2aae999419","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":82,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"6176c88f-cfaf-4890-849a-ead9a4932662","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":82,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"5e170acc-7702-4c50-b139-3a19c7b64b61","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":82,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"1d329278-518a-429a-a2fd-a22d567d2c21","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":82,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"c147895c-bc8c-42f3-8fb5-c18a18f10b71","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":82,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"bcc19550-42db-4503-a530-6df6d2b1e520","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":82,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"89415a5b-ff53-4fe0-af16-7fd2e383adf2","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":82,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"8ebffc51-56b6-473f-8ff3-46a4093f88e1","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":82,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"be69bc39-abb6-4217-bd44-01be210dfe0c","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":82,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"909ec153-9ca6-4cc4-b03c-8a7b665fd662","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":82,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"9e3af7d5-782c-44d9-8153-e36cdd41cb18","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":82,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"d09a5254-5858-4559-9476-10f33b0d9b51","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":82,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"57514384-8ecd-4413-b5c9-899036c9b27c","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":82,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"2ebf1c1f-4eb0-4aa7-bd26-94faa7bfc2f7","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":82,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"dd69386d-4549-4df8-ab32-98fb22128f23","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":82,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"8beeaeeb-e3d1-461d-a1a9-26a3db811780","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":82,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"4bce9b75-b34e-4435-9fff-1eca31639b20","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":82,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"67860a6d-1766-4149-a2fb-43c88f135366","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":82,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"5b3dbbd0-37a3-4f32-bb67-afc4dac82cf9","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as further clarified by","page_number":82,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"30943911-9c04-42af-9381-eaa32c66d373","block_type":"box","text":"the PRC in notifications.","page_number":82,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"385c18e0-eaa5-4732-84f2-e947db388c62","block_type":"box","text":"Investment in Other Investment Companies.","page_number":82,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"f9cba9fd-d767-4687-b646-70c84a7e2318","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":82,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"1cccc453-152b-4bbb-826c-590812fe4687","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":82,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"88520606-3d1f-4328-8057-f4a34419a4c7","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":82,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"1be2d8b5-3455-4a39-b681-e3bc09dae5ec","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":82,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"66643930-3ad3-4cbb-bca3-ad68462be9a0","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":82,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"56dbd6c4-c1ef-4623-8b5d-d09b262b5c0b","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":82,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"06e2b1ba-71fc-4e33-926f-79d97ed4f0b0","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":82,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"5d2c4940-c38c-4c74-b01c-7720c486a8a2","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":82,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"eaf623e9-437f-4ddd-9cac-23d7c768b076","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":82,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"84596d79-d464-4367-b083-f3ff19b016b5","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Portfolio.) In addition to the restrictions","page_number":82,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"e8643529-ae5c-4fdd-9ea2-0f0a6f7de587","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":82,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"7ba25b16-7750-44c7-b70a-e2670e9e31ca","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":82,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"db07b700-64c8-4a10-9981-3eea07655a49","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":82,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"1d554644-37b2-4613-b401-363fc950c022","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":82,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"f4178810-2a29-43c0-88aa-6076ff5ff0b0","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":82,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"2f775add-05d7-4702-9b9b-69a59fe8f7a9","block_type":"box","text":"certain conditions. In addition, a Fund may be able to rely on certain rules under the Investment Company Act to","page_number":82,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"d3080ba3-1b02-4fdc-ac64-377dfac4f456","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":82,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"4880834f-5950-4552-8eea-e347164360b5","block_type":"box","text":"subject to certain conditions.","page_number":82,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"c9512b21-573a-470c-9c16-08d9d46e5a83","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":82,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"d7dabc9f-b7f4-4a88-bac1-8a419af1d13c","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":82,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"a7ed2743-f56d-4d2a-80de-d064935b9a83","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":82,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"00bc66f8-7d4a-4c57-b2a2-45f9d0b82933","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":82,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"7110690f-3ddb-4606-b0b1-66ff638388db","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":82,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"98178007-06c9-4734-a388-47b0b94e93ae","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":82,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"e8a3d01b-5f51-43cc-9aa3-aae34828b70d","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":82,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"41394ca3-ded8-49d4-83ac-c99a0dc7d171","block_type":"box","text":"loss.","page_number":82,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"6723010f-cfc3-4dae-a07a-c96d0b0ca283","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":82,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"d89a89d6-4656-4e12-8834-73f6bb111171","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":82,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"29204e11-06f3-44d0-9e5f-7c21afe1c3ba","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":82,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"0efe423a-738d-40ee-a156-fb1ae8f211c7","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":82,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"043080e4-67bd-476d-aa91-31d642ef5249","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":82,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"8dcfb93c-becc-46df-81d7-b217b149f2b0","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of certain countries will not be","page_number":82,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"39a83df2-11fd-42be-8b73-b28ffd406d2f","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":82,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"12a66caa-2fb9-4ffa-914c-3c2c4e8438c5","block_type":"box","text":"II-47","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e5a069e6-e1e9-4d53-84fb-babf09a2c455","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1bd55a76-6aad-4036-bff2-783c51037b95","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":83,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"776e2c0e-ac9b-4ba9-bb45-e6c5de2512d5","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":83,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"bb51f376-f672-445a-ad42-32132f2a22eb","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":83,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"eed7d07e-ce3a-41d4-abe4-f1b437f45f59","block_type":"box","text":"assets.","page_number":83,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"839078dc-fca4-44cc-a574-3574e1f86c32","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":83,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"a50a43cb-590e-49ca-ae23-84c374ab394b","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":83,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"90deaca5-5262-425e-af75-ffabdd8fa10a","block_type":"box","text":"e.g.","page_number":83,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"1830bf0b-20fb-4b98-875a-ec8a04e5784c","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":83,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"ff08db9d-b170-406d-94bd-8e2dc4882f2d","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":83,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"1e0e2273-60de-4ad7-a403-2cb3d5313477","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":83,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"fdab36a4-cafe-4fc5-83ba-c86dc6e6c1d2","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":83,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"bfb074fa-3532-4739-a5cf-1d074dc4c395","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":83,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"21fd0003-7241-428b-8c73-2b21349a3f97","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":83,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"9f02d502-2de7-4fa5-aa41-a988ef58b9a1","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":83,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"21425a07-804f-455a-87d7-3d54ed9af0b3","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":83,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"134a4a36-25cd-4be2-a93b-679848416501","block_type":"box","text":"countries.","page_number":83,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"671e231d-557b-4525-93ad-82f3602692bf","block_type":"box","text":"Issuer Insolvency Risk.","page_number":83,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"a938ca4b-9707-4a74-bb51-cef793891f58","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":83,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"ece93a66-9d30-40bf-a85b-2ba296de8dfa","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":83,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"9292db37-8663-4148-b4ff-5b79004bbd27","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":83,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"955319b2-c98b-440c-bca5-f99c741403aa","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":83,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"902db45d-0a66-4a95-82c3-18caf1704b82","block_type":"box","text":"issuer uncertain.","page_number":83,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"391313e4-a8cf-44e6-8fc4-f9580fa8f2cc","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":83,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"19a3b0d9-fc5e-4e3e-8b36-40fe413444c3","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncertainty as","page_number":83,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"ea17d6cf-7523-4269-84b0-ab28d54907e6","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":83,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"0f1cfcc4-d368-40a4-ade9-b5c604be4b1c","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncertainty as to when and","page_number":83,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"9842bba1-34ee-417a-9deb-3c0dac9f5d8a","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":83,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"742b290f-4033-4eee-bd64-589476c255be","block_type":"box","text":"eventually be satisfied.","page_number":83,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"dced302a-efe7-4ea8-a857-38cefb81a152","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":83,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"0c084978-a1b6-414c-9e18-f2e337b60bfd","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":83,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"38c1bdc7-f73f-47a4-a638-925d61b34573","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":83,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"0af06d6e-cec5-48c6-9e54-f05e1ecddafd","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":83,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"a358596f-5a03-43b2-a67d-31cb7bd763e9","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":83,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"cf7324cb-e42d-4ba2-831c-498f45fc730a","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":83,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"750020b5-41e5-4b45-9aba-779172d9f083","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":83,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"9908b5b5-ce4f-47b3-9256-22f931710744","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":83,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"f70a624a-aecf-45c7-b7f5-c9cc2405769a","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":83,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"d79cb4c5-1bc1-43c6-9e7b-075d05c4ecf5","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":83,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"a62e03d4-8311-4578-816e-a3a1507c0c3b","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":83,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"9b90c2d2-36b7-4190-af31-67aa2c20e574","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":83,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"d4a1b80f-0a49-4b1e-a1c1-0d5ff0fb74b9","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":83,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"1e6b334b-2025-4911-bb81-27572dc70092","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":83,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"defb6aaf-9003-42d9-a67c-74817368fef7","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":83,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"61a86ff6-8777-4f07-898b-ad51c7276242","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":83,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"3d40d7b1-f0ee-44e9-9578-a53dab8f73e3","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":83,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"bd1998ef-bb26-45ca-affa-791b4612d52c","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":83,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"6750febe-3e41-4a6f-b105-f6d917ad3c7d","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as part of a","page_number":83,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"3ae3289f-3f0c-473c-a966-c4c5c57b5df5","block_type":"box","text":"workout agreed to by a consortium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":83,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"7b1466fc-dd2c-4481-8f5a-2124dd2bb9f5","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":83,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"fc8b03d8-071d-441e-b2c2-28ccdff08cb7","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":83,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"dad09571-a141-434a-8c39-a5d7d410ae41","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":83,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"9283a34e-99a1-4822-9917-443b5bfbd6ac","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":83,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"2ff3d4f3-917a-469c-ae4a-faabbbd7aaf2","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":83,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"0047bd2d-a41e-44f3-b3b2-4c73731fa294","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":83,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"7ebcd0c3-3805-4042-9de2-ee82912e3566","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":83,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"c5fbecb7-9208-4b5b-8cb3-f4b003fbed00","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active participation in the affairs of the issuer than","page_number":83,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"2e785315-a0e8-4aaa-812b-f294c4127f60","block_type":"box","text":"that assumed generally by an investor.","page_number":83,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"7cf792ad-5033-4e02-8441-e1b29273a884","block_type":"box","text":"II-48","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"277c1d19-9ff2-4581-bdb3-b834293b6f97","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f4f4bd2a-a68a-4ebd-8307-ac5f7f2a135a","block_type":"box","text":"Lease Obligations.","page_number":84,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"5896c6ce-aff7-4acc-9d8b-6c93772d17b8","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":84,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"bc2d4406-66f1-4367-b92d-b8ec4812124a","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":84,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"26e9e2cd-6058-4a80-ad7a-28e764d83ecf","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":84,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"05f8000d-7dc8-431a-8b79-8fec57e7f74d","block_type":"box","text":"Life Settlement Investments.","page_number":84,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"3327350c-006c-414a-8260-7cce0fca7d72","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":84,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"bad43d16-8656-4b96-8ebc-75dc9ba505e7","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":84,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"74a6ff8a-8b1f-4330-ac0d-fa74b0db9bbe","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":84,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"53c63277-0b39-4e02-a77f-06b69fa82fb9","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":84,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"ecdee4ae-8346-43ad-85c2-331254d689ce","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":84,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"3c4efb7b-9ff2-41c9-9ced-b5be6587435d","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":84,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"c094be40-becb-4bc0-9a74-7fbd96114449","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":84,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"f488cb6c-145a-4896-8113-a44b94fa9002","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":84,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"c9e27e51-968a-4a95-83cb-87496b4ff231","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":84,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"49235f22-b338-4a51-b05b-42588cbd2f2c","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":84,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"68beebc0-e55d-420b-9af8-e14ca3686c81","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":84,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"3d446766-1f31-41b7-92a1-3349d62637af","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":84,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"92776bf5-30c7-43cd-b41c-54051f05b54c","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":84,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"b2d204a4-e414-41b0-8712-913265fd3732","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":84,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"31c657bc-6f04-44f3-bdf8-e401b54fd28c","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":84,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"b2deef16-76e0-45a0-b238-4e1174fb5b2c","block_type":"box","text":"Liquidity Risk Management.","page_number":84,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"3bacee15-dc57-4c99-bf79-ea58878d9a44","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":84,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"6365568d-d921-42ed-bf33-6a3a0466eaa5","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":84,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"622b4ecf-06cc-4396-a80e-c373a0e71a93","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":84,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"76d4abc5-6941-48cc-9cca-483edbf3fbd4","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":84,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"5a0a5983-df26-4a0a-a3e2-a6817c64a249","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":84,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"3673da55-6389-41ea-a138-5550e760cc87","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":84,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"3df111c2-a2a1-4e16-924d-33c0afee449b","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":84,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"a2415fdb-d67e-4e22-9413-e6c8aca9585f","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":84,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"322a0858-7b20-4386-8bf3-67eac3993c3f","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":84,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"48546881-923c-41af-880a-08ce38ce3ca8","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":84,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"4a9579fe-3c5d-4be6-bfcb-cdd458ee0156","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":84,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"0a611342-9b3a-4df5-a3da-6a5363e65daf","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":84,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"33c10b06-72ae-4f3f-8aec-052c45a6e7d3","block_type":"box","text":"Master Limited Partnerships.","page_number":84,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"fbe2ff4c-b962-40a9-964a-ec13c2bca68e","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":84,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"899b708f-d9bf-4289-85ef-4ae87cd18cfe","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":84,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"2d021c16-b5c1-405b-8a9d-28035d5531f8","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":84,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"8fe61b31-5b2c-46f8-80cc-a3b9d5f5b059","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":84,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"f423b447-a859-43b1-9d61-9b6067973791","block_type":"box","text":"generally have two classes of owners, the general partner and limited partners. When investing in an MLP, a Fund","page_number":84,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"7a5a169f-7740-4541-ad0e-21c95421aca0","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":84,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"d45263ec-b850-4daa-8fc3-23097b49ae93","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":84,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"5ff72064-9047-451b-b56a-91841ce73c9a","block_type":"box","text":"owned by one or more of such parties. The general partner may be structured as a private or publicly traded","page_number":84,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"23c3ac40-78a9-44c7-a9e4-1f10a8233ca6","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":84,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"d134587b-62de-42f7-a4b6-9df5e5c37bbe","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":84,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"ee96cb57-786f-45a9-b65c-53f1e748601b","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":84,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"e59ab7ec-6f01-4782-8f6c-22a838b9f3ea","block_type":"box","text":"in the partnership’s operations and management.","page_number":84,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"9984247f-764f-44fb-9e04-b09987da7aaf","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":84,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"d6420cca-94c0-41e9-a1ee-e433ef2fbb5b","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":84,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"01e3c7b2-74df-4e49-9bd4-a58d178756a1","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":84,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"c71befdf-7d76-4bef-b749-1ce0cbd20bf1","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":84,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"a82e6d43-c7a8-4355-8ebd-47103b08e58a","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":84,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"bf0e4a35-4575-4da0-8307-f64ad8d5d216","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":84,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"dadf1f92-dbe7-413c-bd6e-c86355ad08d6","block_type":"box","text":"The general partner is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":84,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"7f45cb04-84b3-47f0-918f-02dff2304ff3","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":84,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"107748ae-6615-4cb5-898f-fb58d24270c2","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":84,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"b1fe98a1-6c46-44d7-b474-48815126ace7","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":84,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"23d1c7e9-fceb-47ed-9554-4ab92a04b4f3","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":84,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"50ccb988-f087-44df-8337-b855e2f36848","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":84,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"93a9fa52-bbdb-4ab8-9768-7f7bbb5966b2","block_type":"box","text":"order to increase the partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers.","page_number":84,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"1753bdf2-3ad9-4284-bdfc-6733589796bf","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":84,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"b6a2de0b-4b62-4824-bf34-82f875872aca","block_type":"box","text":"II-49","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6c3600ba-abed-4635-b914-4374f47b6c84","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ddffae61-f066-4f98-8bce-acb8551712d1","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":85,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"40a2ab30-f0b1-425a-92d4-746c196e3433","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":85,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"70b2a98e-fb8a-4c25-bbd2-eb13dbad1ae5","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":85,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"98482e2a-9b88-4dfa-8306-fc0f2ad321d7","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":85,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"1ebe876a-0808-45ba-834f-aa7a69f0c4d4","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":85,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"13534de4-3f1f-4f29-ab9d-27e69b9519dd","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":85,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"5c8edc3c-fcbb-4213-b779-45b1c28beb44","block_type":"box","text":"Merger Transaction Risk.","page_number":85,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"8240d7ac-b187-486b-964a-c95b492df5d9","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":85,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"262fe686-2612-4a60-b8a6-465729512d54","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":85,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"3b3a12a9-0941-4800-9d07-098794e2c90c","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":85,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"48282aaf-63b7-4c8c-bc76-488d4c749076","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":85,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"fe8ec7f7-9d61-4527-9b27-e6af71586047","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":85,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"7582f1c8-9b8e-48ed-987e-cbec43bef980","block_type":"box","text":"the Fund and may lose significant value.","page_number":85,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"14fffc98-9a34-4456-a39a-47a46bf440a8","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":85,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"6d132d98-bdd4-4bca-aea5-8aefd7cb1e9a","block_type":"box","text":"Certain","page_number":85,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"fb28aadc-09b9-4448-8066-6c74c03a7fe7","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":85,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"2ac8174e-6469-4a7a-bc32-df1112c5ad36","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":85,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"114682a9-b79c-4d14-894b-7d20f240310e","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":85,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"e8786c43-dd7b-4f92-8255-cf6291324405","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":85,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"b9b9baa3-c2d1-4fa3-8811-81cfe42a39fc","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":85,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"b47d01e2-7e45-4eef-8b10-be394a7d4f5f","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":85,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"ccf4ff78-cca7-4b1c-955b-1e656691da47","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":85,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"76f5e29d-022d-467f-a9b5-6896ecd99d6e","block_type":"box","text":"branches of domestic banks.","page_number":85,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"fd6cff4a-e3f2-4f14-823e-b42588115760","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":85,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"c67afc3c-38d4-442a-bca7-31690f06cf3f","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":85,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"6493fb83-8ed0-4f8d-829a-8ed3b3558f84","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":85,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"378d2047-0a4b-4c14-a604-20a764cdc3b9","block_type":"box","text":"paper of a foreign issuer.","page_number":85,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"9588da6c-45d2-4f8d-ba85-0f34d60fd832","block_type":"box","text":"Money Market Securities.","page_number":85,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"c971fa5c-ff5c-4fb2-8b43-ed5455003287","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":85,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"ce0edf6d-28a1-47da-968b-4be87c2ee8de","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":85,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"4ec6eb99-7a94-4831-af31-053ff73da646","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":85,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"e606411f-2e78-4f8a-88f8-bfc8f6225eda","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings","page_number":85,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"134f3bb1-f29f-4172-8ed2-2f3408b83f75","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":85,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"e9601e79-15fd-4584-a811-e6ad497a9434","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":85,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"8d651d43-f03b-4991-b75e-4371e63b25f9","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":85,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"924ef8fb-597a-4849-a338-3bcd3dab31cd","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":85,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"aa86bf46-2a73-4512-aeed-966e2a86ef8a","block_type":"box","text":"agencies;","page_number":85,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"a86f35b3-cef9-4d14-95cc-2c443c09f076","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":85,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"fc9fffe5-9293-417e-bfc2-96b809921732","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":85,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"147e409c-1bdb-454c-9527-ca0190c38a5d","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":85,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"9ef6b4f3-240d-405d-bf1d-7383e28ba038","block_type":"box","text":"obligations and credit card receivables);","page_number":85,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"f0a9820f-732f-43a6-b346-da236a9c362c","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":85,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"01ac4c69-e0ef-4d0c-ba97-a36e6f973584","block_type":"box","text":"authorities and related custodial receipts;","page_number":85,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"ed986c78-8278-4d7e-86bf-cf6c7fe2e5be","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":85,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"f91503d8-b05c-4d11-8304-da7d3b4bdcd1","block_type":"box","text":"agencies or authorities;","page_number":85,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"8878c38d-2e7f-4dc1-b8fa-4d906d54940e","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":85,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"eaa4986a-4136-4e33-b458-7d3a444bb342","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":85,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"44419344-a3f9-484a-b831-86945a8daf63","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":85,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"55b9c7b1-69ea-433b-a487-7632908f11fb","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":85,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"719500e3-88d8-4af5-bd07-4f510e32daff","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":85,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"05885400-7fe3-4796-b348-ed829030fab5","block_type":"box","text":"States;","page_number":85,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"db1aff6d-ea21-4480-90de-9147255b706d","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":85,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"11379d12-7a3c-44b9-8579-b89b74d87426","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":85,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"3ed2bf68-f658-4a5a-8680-4d6b2458763a","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":85,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"c1862f57-0aed-4964-bf5a-089c1a9a2f14","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":85,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"16640791-6ceb-4bf1-942e-a7bfe34c7c50","block_type":"box","text":"II-50","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"adb5effe-df0d-49ba-bc55-fa1e5f2219ba","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e062149-2915-4d5c-aac9-d839eb0405ea","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":86,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"a5560682-074f-46f8-8895-1759825b2ce1","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":86,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"6af34a0f-7ac6-4137-8a11-cf143973f9ef","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":86,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"8d3e26ce-6edb-45e8-bb5a-7fe64592e6a0","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":86,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"dcaada64-0845-4386-bcac-77f4899ac1d3","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":86,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"ec507e7d-7de5-4dc0-b45b-e8548cf8cc1b","block_type":"box","text":"States.","page_number":86,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"e5a38b1b-d09e-472f-9f5c-a9348d235273","block_type":"box","text":"Mortgage-Related Securities.","page_number":86,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"a6a24745-65cb-4055-8f44-2fe2dc44cc04","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":86,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"8a2a4cba-83c8-4345-a2e0-e70f4a1ac801","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":86,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"3e11fdb2-18dc-4eca-9e95-705d0bcddef2","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":86,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"05982c3c-05d9-4a20-b424-9129f9c8b32e","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":86,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"8b1d4dfe-8d12-46d9-93a2-d30d573a15c8","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mortgage-backed securities differ from other forms","page_number":86,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"75fe8d29-eb46-4725-bdc0-83e6a502324c","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":86,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"8ce93041-e7fd-4f6e-bfe7-221cd666a6e3","block_type":"box","text":"maturity or specified call dates.","page_number":86,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"e7943bcc-5241-489e-adc4-c0a0d35f1325","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":86,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"7457fb22-3736-4246-873e-8f62ee1c2726","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In","page_number":86,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"146d4aa3-c227-43d9-abb3-3d7f1f9e4c67","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":86,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"d41f72a4-1f41-4d6d-990d-acea402d9103","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":86,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"00f9b909-5d39-4702-95be-718f0160103d","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":86,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"e2a9b69b-1ed1-4e62-9511-49fe9b447c50","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":86,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"72194050-69f3-478c-bfb2-53e3fe8a6d8b","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":86,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"022d7e5c-1a40-4a9e-bfa2-59ab46493624","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":86,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"2e06accb-6c60-4cff-b1cd-72e960275f24","block_type":"box","text":"successfully may depend in part upon the ability of the Manager to forecast interest rates and other economic factors","page_number":86,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"542b1031-2900-4285-85d4-74f9328f6a17","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":86,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"f4dec2ff-6080-4ca9-85d7-50ab44d3524b","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":86,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"86f3615d-e132-4023-adf6-d05b696e6c74","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":86,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"a7c60f96-b502-4549-87f9-337958e1c0f9","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":86,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"5698202a-5d86-4019-b8c6-788424971e66","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":86,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"5cc81ac5-d503-45ec-913d-3a2a5b8d5d65","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":86,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"528ba890-563a-4c25-93d8-86f032d83e44","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":86,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"6380155a-bb83-424c-b7db-c3e8e77de724","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":86,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"ada28a1b-f9f3-4db7-ad52-cb9b7c5ac613","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":86,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"ced91622-d5f9-4ee6-957a-f8251935acec","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":86,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"5731190e-7a04-47ce-bd14-256d35d92424","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":86,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"a5dbe30f-1889-4ae6-b082-c6866b895d80","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":86,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"246b05b6-cd11-4091-9c58-9da63cd8aa5d","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":86,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"55377780-c7f2-47c5-b3e4-3ecb78052309","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mortgages may occur at a slower than","page_number":86,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"91d158e9-bb0b-4df4-9986-a54eaedcdfc9","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":86,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"ab379c30-ad4b-474e-85ed-08c33058612f","block_type":"box","text":"considered short- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":86,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"e48a1654-0800-420d-9fec-12715239b5b2","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":86,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"3bc70b32-31e1-4c68-8e28-c839a5914296","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":86,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"610add43-72d6-4454-b966-4e783b1b861d","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":86,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"f913ab18-fed1-48d9-a9c7-de74a34efa4d","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":86,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"b13c7893-85d7-4994-b5fb-3d6f3b85b7b7","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S. Government or","page_number":86,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"32b5dde4-f383-43bf-9f5d-2ff563b40235","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":86,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"81f40484-61c2-4f68-b3f4-48d1d41a19fe","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":86,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"c662949d-a93f-4b7a-beba-c811d1fb85cf","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":86,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"6a0b0b0a-507d-4b96-bdff-c3c85c6ae968","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":86,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"09679410-d828-42a3-99b5-b48e298a9bbd","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through","page_number":86,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"caa32d34-cafa-4512-9a5d-bf5107ca7549","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":86,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"5ba2bda7-fe73-40b7-bb3b-37727e5b080d","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":86,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"aea83a5e-0025-4761-bf53-d6011075f3f9","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":86,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"560122e7-ddef-438f-83ac-2deb325065e9","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":86,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"06ac35ec-f9e6-43c8-abb7-e7a5d1229a13","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":86,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"ce4179db-0401-4460-9d60-7e7e7ac9503c","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":86,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"77856103-8544-4e2f-9a20-ff36ed9dee9d","block_type":"box","text":"II-51","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5313d6f2-3e73-456c-b6e0-6a2eb5eea378","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"949fa4b0-dcda-480c-9b72-eb0936c74f7e","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":87,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"e0bcdb96-aae4-4eda-800e-5a246c8cbd5d","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":87,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"7c8790cb-bae7-4c07-ab1c-a0a38a64a08b","block_type":"box","text":"States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":87,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"e8136815-d7eb-47f7-ba01-ef458378b28e","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":87,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"18ae1c41-4027-421c-8476-f82ca9dc5a5c","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":87,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"947b5ef1-42c8-4134-b86f-4f36f5945922","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":87,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"5fb453af-9d28-49fd-988d-0c192be08157","block_type":"box","text":"faith and credit of the United States, but are supported by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":87,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"847ba4bb-659b-4b80-8d3b-797136a811ea","block_type":"box","text":"Department. Fannie Mae was established as a federal agency in 1938 and in 1968 was chartered by Congress as a","page_number":87,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"5612fff9-73f9-40d1-b35f-f8dbae3fb113","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":87,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"43548264-eb07-4807-9d86-2fce9da04d46","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":87,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"bf3851d4-f961-46c8-b472-cf278b583447","block_type":"box","text":"corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":87,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"f190142c-463e-4936-a1a0-9e147024eb37","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":87,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"9299fb70-ac62-4ab9-8d65-314555500612","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":87,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"79ee7626-57e6-44b6-90a4-4a5103450b6f","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":87,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"5de2beac-a193-4bf4-8c05-3e280d47e5d2","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":87,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"6a0598bb-cb81-432d-8412-e52011818c11","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but","page_number":87,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"0b989e78-01e3-4522-9f37-01f701003e83","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":87,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"b8efef53-b124-4a54-a67a-0bc1942e53fe","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":87,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"d20e56c3-7ecb-4b5a-8803-cdf4f4c00abc","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":87,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"e436193c-f488-4661-b1da-69057b05968b","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":87,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"60f231bf-9c5f-40d8-a686-f2725f801abb","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":87,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"07e2a031-8b6c-46f4-ba8d-5b6c285d6fae","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":87,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"b5cd95d1-379d-4a2f-905b-110ab76e617d","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be supported by various","page_number":87,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"aec4552d-5e5e-472d-8d55-e4426fb37ff6","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":87,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"6f713f8a-4c29-4a65-b951-3e221a3148cb","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":87,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"eb90a2ce-c65c-407f-b557-00e496655e60","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":87,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"0870d7b8-98c4-46d0-925c-d0e182194906","block_type":"box","text":"a mortgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":87,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"36e87ecb-c060-4164-990c-7e0c8883911c","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":87,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"84472acc-4979-4b0e-ad51-2fa295ab28d6","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":87,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"c6da2bbf-69dd-4165-b56a-8c0781f8e584","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":87,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"607196f9-7f6b-4156-97f8-deb4910e6959","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":87,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"c0518c11-a4fc-4b70-a523-68060a2fc723","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":87,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"d24af98c-5036-4a0d-987a-231f726daa3e","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":87,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"b15843e0-2b87-40d8-909e-582fda22e154","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":87,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"fb119741-f121-4951-9977-2e6b8cfa5d03","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":87,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"78c6348e-2b58-40db-be24-861e8b996621","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":87,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"15cd3100-51a8-4a8e-9bef-75b72acf23e5","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":87,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"be88641d-8f0a-4b83-a665-9a26bd4a966d","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":87,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"db610a4b-ad8b-4537-884b-478f0b0960db","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":87,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"6f9d3497-6809-4009-9dde-5a5546e5af44","block_type":"box","text":"rates and maturities of the underlying mortgage loans in a private-label mortgage-related securities pool may vary to","page_number":87,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"f6b399d3-0269-416b-a969-b53cca3b02aa","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":87,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"bb35a7a1-57ba-4bb0-9428-34ea759246ab","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":87,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"1fbc6f3d-8d71-47a6-8ac2-3fe00371e1eb","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":87,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"feb74da7-d3c6-4ed1-a23e-7d650d3cee34","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":87,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"6f85b588-bf3d-4be4-9d40-34a608d325c8","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":87,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"0c4b0fe2-5e89-4413-9ade-e6db8379a5ac","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":87,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"a42cd0dc-6d85-47ad-b573-efe32213271d","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":87,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"d979f760-2fe3-4edd-ad8c-e6298be3d878","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage","page_number":87,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"2aaf74eb-8cc6-4699-aca2-3cd6b6fc70cd","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":87,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"72576288-67b6-4380-9af1-63a01af8e071","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":87,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"56eca932-9184-4457-bcab-0e229cb9a59c","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":87,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"acabfec3-e214-4147-ad8e-6b910a03d41f","block_type":"box","text":"Without an active trading market, mortgage-related securities held in a Fund’s portfolio may be particularly difficult to","page_number":87,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"7d5f02bc-d32d-4c3a-8a15-2e2677f51397","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":87,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"4f735de5-ef6e-45c1-8ced-7a3444042bd2","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":87,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"bf1efd10-36bb-4d1c-9c47-e533bd9ca5c5","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":87,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"47a13a65-eddc-4f7a-9043-05e38ebe2818","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":87,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"0b053d16-c4c0-45d4-a6bb-6023b520dc3b","block_type":"box","text":"II-52","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e80c34c1-2758-4817-a124-c94ea9f70cd8","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d88cfefe-d44d-4d73-a939-ffedb565073e","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":88,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"3723057e-22ac-498c-a636-4ead5fbb3af5","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":88,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"dfaae385-1769-4561-9e33-a4ea7b1b734f","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":88,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"9da43bea-9c3c-4913-b70f-3f49e6d206f6","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":88,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"93eb0aa6-2e29-4deb-871c-7deb7931aaba","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":88,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"400b19d3-b1cf-4c59-8789-c9648698a457","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":88,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"45a3527d-b45a-4379-bbe2-dd184d4c3741","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":88,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"3e3113ec-bd2e-4e4a-8587-902391b6c285","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":88,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"3cb473a1-a305-43e3-9834-991b632d2477","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":88,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"71c635b9-3cf8-45d6-b5f1-5f77a7cbac6a","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":88,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"1aa5c237-f6da-421f-b546-c4b9a9e0ae8b","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":88,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"3aa8268c-e4bb-4129-ab09-9ebdf67a37ae","block_type":"box","text":"only after the first class has been retired. An investor may be partially protected against a sooner than desired return","page_number":88,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"6a2ecdf2-4df3-4efb-8766-2e4db72b4747","block_type":"box","text":"of principal because of the sequential payments.","page_number":88,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"9217c925-0c7a-4f5a-b5e3-d7d7c6e017b0","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":88,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"c0938519-6cd9-4596-ab15-244d7aab7d8f","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":88,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"0567d82e-d3a6-4efd-bb36-f98c905649a5","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":88,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"1a579506-4f4a-4b30-86c5-73e4f23e033d","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":88,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"93637dc3-b085-4a21-b963-b2b9628b8912","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":88,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"eaefce32-5db8-4175-81db-49430297dfa9","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":88,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"77ecee2d-4e34-4964-af99-60792f80e813","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":88,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"4640dc93-8c1c-4a8a-83e6-fda8d899a2a4","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":88,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"52384b7e-4065-4e9f-829d-bb26a27c53a0","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":88,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"6a6f00d3-572a-486d-b321-402e2781e829","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":88,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"4197df6b-582e-495a-9688-42fa6c353784","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":88,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"9a62eb16-43eb-4e63-aa2f-1d8eb4e09a2d","block_type":"box","text":"securities of any single such entity.","page_number":88,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"0ce9ba96-ae8c-4952-8368-5509fdd8806a","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":88,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"ac552af0-81ee-4a3c-94e2-2d83acbe6030","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":88,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"e1f316c5-d63d-40bb-83b7-af03ef72fab0","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":88,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"ed94930d-5c02-4dac-aa51-fe0d5c87d414","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":88,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"d5b218ef-4179-4cd6-9894-fd42c40b3600","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Certificates may be issued in the parallel pay","page_number":88,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"995c0b3c-a324-4d92-95f8-46d900d34d11","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":88,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"b5c68107-86b0-4ad3-8436-6afa66432df7","block_type":"box","text":"accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired","page_number":88,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"03fbe801-dd58-4240-9a89-223262d41385","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":88,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"4775079b-f59e-4d9f-8243-ba1b20f26a43","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":88,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"cb708e64-6c2a-4a03-80b2-e5832fa4aca7","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":88,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"2f7a26de-b77e-4a24-b61d-3d03b8ddec1a","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":88,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"eab2a4f7-ad0d-4f4e-a623-709215716f31","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":88,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"1f7b5dcb-0e06-4bbb-9cd1-828bc9e6ef1e","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":88,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"77b46824-a9c2-40cf-b145-f0ee404acf1a","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the","page_number":88,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"64810ef8-02f0-476b-a084-865926f60103","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":88,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"22d4c102-0983-461a-ab98-e11fca0b833a","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":88,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"c97bbebf-cff5-4fb7-8853-c8221934406f","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":88,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"066cec84-df04-48e9-b63b-8a8526de7d5c","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":88,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"08fb26d2-64d0-40f7-bf59-97cb7aab9160","block_type":"box","text":"classes.","page_number":88,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"5dad6176-6353-4f50-9ae8-fad4fb809519","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":88,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"a1b6bf8d-3f00-41e6-9252-30c055eef2d9","block_type":"box","text":"date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":88,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"285dd6a6-44e4-42c6-9b8b-06f5c06dbe6d","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":88,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"6e0c577e-f01e-458f-a1c9-e7021bf14b1c","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":88,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"2e4d2899-360a-496c-9406-9952ada52778","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":88,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"766b048f-fd80-4261-9f84-bc57290920aa","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":88,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"03fcc820-7b83-42e8-b74a-d56a790bcff4","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":88,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"bb41cb19-61ae-4bcb-adc3-d2faff9378f6","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":88,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"7e3af4f4-25ef-490f-afc9-314b9cf23121","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":88,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"e64e36ee-78bf-407e-8339-cb395c4cdb9a","block_type":"box","text":"generally provide for a fixed initial mortgage interest rate for a set number of scheduled monthly payments. After that","page_number":88,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"458d96e8-60ca-4c59-98b8-b2c0f981d7db","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":88,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"d62d626f-dd73-4a0e-acaa-9ac076449c90","block_type":"box","text":"to a designated benchmark index.","page_number":88,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"8a1454cb-bbca-40e2-8334-4cd291f73139","block_type":"box","text":"II-53","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b3f04af8-9e77-4807-b502-0b2a662e5253","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"982be8bc-dcb5-4e23-a886-f8c529f935b6","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":89,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"2d73c095-4a7f-413c-a61c-923340a9c777","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":89,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"c8215fb1-0e83-432c-9dc2-8464f62e47fb","block_type":"box","text":"the mortgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":89,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"85819eaf-6692-44e8-99e0-34296acf62d6","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":89,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"a4d2c48c-2b04-446e-b53a-7683f3776723","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":89,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"2801a95e-c3d5-4378-b90c-541b60411b8f","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":89,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"84509012-cc7d-429b-abaf-f878b05d98e8","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":89,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"1b7697c6-fd12-4784-ac72-9ad8600fae5f","block_type":"box","text":"balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":89,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"c37a96d6-f8fb-4b11-be93-45b13e4c9b4b","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":89,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"8486e24f-b549-4a68-9f67-5f0e522e18a4","block_type":"box","text":"payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the","page_number":89,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"e7d13b4e-aace-4a5f-9aee-5673f13bf4d3","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":89,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"a8961944-91f2-4401-854e-c5a0e1a24cfe","block_type":"box","text":"CMO Residuals.","page_number":89,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"8c93d967-0a04-412d-9112-b6552af2121f","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":89,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"ef599164-7a9a-46de-99af-b708524c3948","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":89,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"7bedc555-bbc2-4adc-b9cf-b991842181a9","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":89,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"af5ffc65-3a8b-46df-9271-3e7cb718c243","block_type":"box","text":"the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make","page_number":89,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"d2054a37-7b65-447c-bd94-f9950e743beb","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":89,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"00b868c0-5e5d-4729-af01-5e9c1f744d9c","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":89,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"5bc6acd0-9309-489e-a658-4209c3dd59bb","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":89,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"51d0ec2a-3b01-4017-acfe-9cddfc0eee14","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":89,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"853de641-64e8-4c2b-8b2c-30cb32f31b68","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class","page_number":89,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"aae543a9-fe5a-4a26-9a5b-506fadf9b68c","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":89,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"960e533b-ae4d-4abb-81c4-40ced8ea9123","block_type":"box","text":"mortgage assets. In part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":89,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"657c796b-308c-4d44-b44b-00b686981d5f","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":89,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"2f112dee-a6ff-4df8-8fae-6503cce56757","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":89,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"555deba2-b0d2-4556-b024-a39bce0f8fd3","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":89,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"971e636e-eb61-4598-a3c0-fb95b0ac52f7","block_type":"box","text":"interest rate adjustments are based. In certain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":89,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"99c0dd1b-2302-4214-bcb5-c3ae07524d49","block_type":"box","text":"a CMO residual.","page_number":89,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"9fcd62f1-a973-4ea6-b48e-66b51738cb86","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":89,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"c4673fe7-d30d-45c1-adc2-ff581077f165","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":89,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"43766eff-0334-4865-af56-86c97cb62134","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":89,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"fb4d167b-269a-4781-8f93-9e451eedd01d","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":89,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"a4ae32c5-bb1f-44fb-ba5a-f4de938987c3","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":89,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"76b70125-f1f9-4436-bbb9-3cc80bc4b527","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":89,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"4a2a5a0e-e84c-477b-92b3-56c006dba4f1","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":89,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"7ed5e479-5458-43b5-a481-fb59ef6858a5","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":89,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"7daeaf2d-3ec8-4ac4-b967-4bad74eba1fc","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":89,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"4b4fd316-a940-4672-80cd-3462d8b94b8e","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":89,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"582c79b0-5087-4eb6-b6da-59aa6538f5ff","block_type":"box","text":"interest and principal distributions on a pool of mortgage assets. A common variety of SMBS is where one class (the","page_number":89,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"f5b901d6-709d-4a7b-b743-a05f8ff969d9","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":89,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"fa6a4a98-b306-4a49-a633-12ba39f0f6ad","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":89,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"e8b8eabd-54df-4dd2-9c78-b9a0787ac48b","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":89,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"3c2934ac-277a-4384-9dad-3fc8f3a090ec","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":89,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"4a4d7913-c392-408c-9d49-7607b5ba841e","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":89,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"4106232a-1afc-4afe-97d2-2672b1d8f3cf","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":89,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"94a5e24c-41e2-4643-8d4f-19db74acfbfd","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mortgage assets","page_number":89,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"d1b83560-07bb-4afe-a6a6-5a7062a7874c","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":89,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"c2a8707b-a45a-4d24-aeb7-428ce7e26288","block_type":"box","text":"In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed to the","page_number":89,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"63dc8721-db54-4667-b7b2-e974b136967f","block_type":"box","text":"interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":89,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"69d89411-375e-4ff9-9244-5a99659030b9","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above factors, a Fund","page_number":89,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"99cf5a3a-3368-4add-8be2-bf75e0ea66fd","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":89,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"e31f3ff3-4cf4-48b6-b02f-acaf31918d1d","block_type":"box","text":"will be matched with certain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":89,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"6456a7d7-dbb9-4247-a6b6-483daae76ecd","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":89,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"95537d00-25bf-4d64-87a3-3498a0dde16e","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":89,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"86b8034d-9cfb-47cc-a639-0211ac290b8a","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":89,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"fbfde126-dd05-4a28-8b86-a76c878124d8","block_type":"box","text":"Tiered Index Bonds.","page_number":89,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"04bc4bf0-9eb9-40c6-a809-eecfc6738ccc","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":89,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"3981571c-c739-4e3d-9037-cc3be84eed44","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":89,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"a42759c8-f3fd-4eff-a035-9328af44b94a","block_type":"box","text":"II-54","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"89c57b82-cc1b-4c45-9191-87e38dcb6d12","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"63044a3b-706f-4d9e-9ff3-09d2f1f6e1c5","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":90,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"0af76af9-23b1-41f0-8e57-d35f36b68f70","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":90,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"135c3ecd-0a21-4972-a9ae-cfa7d14f37f9","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":90,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"37568cf5-4785-4b0b-9230-0d39d95635bb","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":90,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"410d0c72-2931-47ed-8d0a-c7d0a84be18b","block_type":"box","text":"that of a fixed-rate bond.","page_number":90,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"f58148a4-24de-439c-8b20-f7460d484561","block_type":"box","text":"TBA Commitments.","page_number":90,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"2ad59f72-8032-4842-9740-0a49fa04b8e9","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":90,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"ebd306ce-7a54-4ee6-9ef3-5a6b27111834","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":90,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"53bc6620-f551-435f-9ce9-67f927674c60","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":90,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"9089bdcc-8491-4586-ab5a-3c912008ce76","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":90,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"237a0986-ce75-4193-9758-2027a9c5a7a0","block_type":"box","text":"mortgage terms. When the Fund enters into a TBA commitment for the sale of mortgage-backed securities for a fixed","page_number":90,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"df3b94b6-0a19-45d9-a0f6-cb388464b2e3","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":90,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"210d8510-0373-4fc7-9478-d3ee93d8806c","block_type":"box","text":"short position in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":90,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"fc4b2584-72db-45cd-8784-9ab99a3a3415","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":90,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"9532a3b7-fecc-4cb0-b0e7-fbcecd05c175","block_type":"box","text":"below.","page_number":90,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"ade125a2-4e7d-471d-9fce-e481fd62e628","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":90,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"f0df12c0-d4b3-4fce-a38a-65e792d2149f","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":90,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"06411f65-7d76-4eae-a587-9c5405c276f5","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":90,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"d01f0464-8b44-4751-a98c-a54815323980","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":90,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"0e083224-58ae-4045-8e50-b75ac2689230","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":90,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"f9cc7932-a3da-4d9c-ac2e-1e2b704b8430","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":90,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"6d68c55e-634d-4773-bc38-adbab2603d33","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":90,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"380f7498-558f-4f11-9765-13cfea4fc72f","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":90,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"d44af340-222c-410e-97d0-8ecfc094daab","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":90,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"578b585d-9936-4d87-ab9d-681e8a64e6fc","block_type":"box","text":"securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of a Fund","page_number":90,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"93d17412-c37d-4508-9bc1-e84e32f84d7f","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":90,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"bbbf6ff3-ef1c-4136-b637-ff177095f5ed","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a","page_number":90,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"f259476c-048f-4705-a6aa-c310aa0b3a41","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":90,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"e718e24f-fd47-4f03-853f-5545adc2d816","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":90,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"6c8b26cb-a505-411e-8e81-441002b967af","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":90,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"ce07e815-f6ec-46d8-b04b-07532f3f8864","block_type":"box","text":"Fund’s use of the proceeds of the current sale portion of the transaction may be restricted pending a determination","page_number":90,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"29b5e7e7-6425-47ae-ad22-d86b467c3623","block_type":"box","text":"by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":90,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"5a8c902e-c500-4d2a-928e-bcdde5a6c283","block_type":"box","text":"securities in the forward transaction.","page_number":90,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"0cd31d4b-95a3-4472-82af-fd98395ed7c6","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":90,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"7a5f7269-2431-4d9b-9984-5bf8477a41bd","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":90,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"0858359c-8e9a-4a51-812a-03145cfe90f7","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":90,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"cf50aade-479a-4c3d-bef3-7f38f508779f","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":90,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"e1870649-2b00-469d-9857-4644950776ae","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":90,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"c46f1f99-fe44-4855-a43a-dbbbdcfb5374","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":90,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"0fae3981-74ff-4781-9f33-29883b806184","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":90,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"7f7a34ca-1952-4eec-8bfc-b2510557e806","block_type":"box","text":"securities (","page_number":90,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"1b62c5d3-852a-4983-bfca-add133a130b2","block_type":"box","text":"e.g.","page_number":90,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"6bfa1189-c617-4381-b7e4-6860eae84027","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":90,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"ff03cf42-b8b6-458c-9e48-d5dbb6bb1561","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":90,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"63b5d1a0-2b2f-4e3a-8497-0bb7af8a31c7","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":90,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"f904d20f-9afc-4a79-a79d-5b549b39eee6","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":90,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"c716bdaf-b5ce-4ab6-a4ae-65ae3f7a2023","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":90,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"ab091fcc-ac34-43bb-a17e-654889b385bb","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":90,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"a3c29294-e4fa-48b8-8d7c-96116f23a948","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":90,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"2aae1e68-d6c7-47a1-b4e7-c2ffe9625fc2","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":90,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"76ecfcb2-5ff4-4a32-b3e3-5962ad84fe2d","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":90,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"43c3bb23-02bb-4473-9959-e62aaad16dfa","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":90,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"2c6c16c3-ae7f-4cb7-8fe7-d7b9ffe8b54b","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":90,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"0aad78bc-38fb-4f50-8bf9-15d12426b257","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":90,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"b42871fd-1488-406a-9cdc-f0d7c8206442","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":90,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"1da7de0a-9a5e-4df6-ae4d-4b8bf0209558","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":90,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"93de94fe-958a-4bc1-8031-eb1a15961006","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":90,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"3f7122fb-b22d-4770-84b3-bb705c523083","block_type":"box","text":"Municipal Investments.","page_number":90,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"9faf5a87-8c84-4fa2-9d7e-cc4d6fd83d00","block_type":"box","text":"II-55","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"074f2bdb-7396-4ebf-967e-8f3620a223af","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"347870ad-a08f-4931-b96d-0c58834606ca","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":91,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"7be14beb-0e0e-4df9-8de7-9400e42f6e92","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":91,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"931f30d8-6483-49d4-9aea-7ae787b8828b","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":91,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"4d1d7e9b-3708-4cf9-adea-452a1863cecf","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":91,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"0a2449ee-a9ed-4e13-ac99-6760b1b483dd","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":91,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"2c2b8899-3674-410d-9f1a-20698fc3caf4","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":91,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"ea04b388-0e92-4f02-81c5-a6f46071f4be","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":91,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"c34ffa47-cbf3-4667-93b4-56b5137344b0","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":91,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"02666c53-54bb-4e0d-810d-037637bf5eb3","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":91,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"7adbb2f4-c9cf-4b1c-995e-ede4d1a1224a","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":91,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"eac2bb4d-b2ab-4843-b71b-b94f1ce43c31","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":91,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"63b9319b-e579-4ce3-af4a-336a1ce3d48b","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":91,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"c5d12640-0709-4a32-ad24-33fba20086ad","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":91,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"a2bbd26f-2346-4241-ac7c-15c997d45095","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":91,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"a5f3456c-e248-410d-9d48-9f0943f31312","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":91,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"4d62d3d5-f0ab-4d87-8cd8-76715a1edd3b","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":91,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"90294b52-5439-4ffe-96cb-e6c0998d8da0","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":91,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"28bc3684-bdcf-4932-baf1-6c5cd5b4cad0","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":91,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"e8f48c58-24d8-418d-8acc-f0d88a3d69ae","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":91,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"827b5c34-cbda-4fa6-8081-e17b15bb292b","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":91,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"0382e57c-838e-4c4a-abdc-1f8fb0229d4b","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":91,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"18ece5a6-a4c0-4323-ab1d-5ca41a02cdd8","block_type":"box","text":"The risks and special considerations","page_number":91,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"a5c9f5be-1ae1-4db7-b49a-99a85e8fda4e","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":91,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"8e32d51b-211f-4e5b-ad47-9436617a875b","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":91,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"f3486523-417b-48bc-89fa-03e442e16e6c","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":91,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"56a739a9-036f-4d10-88d1-1e4fe2c3f6ef","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a result of","page_number":91,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"d6adf361-6fd9-48e9-9bf2-6436fa9d373a","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":91,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"1851ec86-10b2-4af5-b8a9-dab99e030fe8","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":91,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"f9c2ec70-7922-4cdd-ac41-ba6e0727af74","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":91,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"3a9acab7-0693-486d-861e-0ee052247470","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":91,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"62696280-d3fe-4f26-895b-fbb801697ee0","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":91,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"8067a770-00f3-4b8b-8f4f-2369bb247443","block_type":"box","text":"II-56","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a4c19d7e-9a72-4967-bd0b-643874825927","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"59c48621-7721-4c8f-83d2-9d536644b74f","block_type":"box","text":"Description of Municipal Bonds.","page_number":92,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"ae6d1337-bc66-4999-b24c-76a921293089","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":92,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"eb36f21a-ca9b-4833-b6a9-75312e091456","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":92,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"7ab13cf8-a069-4531-a256-e2a78c562c93","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":92,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"8a70177b-98b1-45dc-bd07-ca129e837121","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":92,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"06393748-9f05-4f67-bb9a-f68d67f0ffa7","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":92,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"71386855-e72a-4a0a-88e8-78e735e5ab02","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":92,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"d0ca6420-0b3b-47a0-8824-73832e529074","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":92,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"832d0d55-2bc4-4455-83c6-3543bc3deb2d","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":92,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"f9a88cc1-633b-4728-8557-66811a461d1c","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":92,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"d75dd223-1eee-4ac7-a193-a5d8bb55837c","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":92,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"132631b4-286c-4d44-8af4-835ace448c6d","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":92,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"603d168c-08fb-41fa-a0b5-5db1de0618b1","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":92,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"584bbd04-de2a-4636-98e4-ed9050a7035d","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":92,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"44609181-591f-430a-a054-63c5d827523f","block_type":"box","text":"General Obligation Bonds.","page_number":92,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"56306759-a055-48d3-bfd9-47984a0e8584","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":92,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"6e47236c-99e3-4d13-b424-eec82ecc91f3","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":92,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"170fa5e3-3e5d-445a-8425-6bfb4d395229","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditworthiness will depend on many factors,","page_number":92,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"e54257ea-218f-4cb4-9c23-5e6d7db5f4bf","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":92,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"25e4c808-5aa3-49b9-a285-7247563bf016","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":92,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"3b7440f2-4b4c-435a-a0a9-216b55302c86","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity","page_number":92,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"c3955264-a574-4767-a65e-c1381acbcb7c","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":92,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"d10b0117-98df-40a8-adc8-0e6d248c7de0","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":92,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"0b4803b3-16f5-44ee-9e73-c4c78e02f8b6","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":92,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"86034d43-8bf6-45f8-9d81-901dbf4a038c","block_type":"box","text":"Revenue Bonds.","page_number":92,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"3f667154-67a4-4a85-9cab-ba738662237d","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":92,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"6b7a0321-f0ea-439a-b606-6864751a8ce6","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":92,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"6cdedf47-95b9-4556-bacd-51901a75331f","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":92,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"93aabee7-7e93-464b-ab83-580017c60e3a","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":92,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"2efe291f-abd1-43e7-b5b8-b79b411f8222","block_type":"box","text":"viability of such facility or such revenue source.","page_number":92,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"18f06e9f-68fc-46b0-93b0-8dd28bf181b2","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":92,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"aba34d20-a34b-4bb1-b863-845181406c15","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":92,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"eac439e1-a1f4-4948-8722-01c5058c8ca4","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":92,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"7d4da8f4-a46b-412e-a660-24d4824ed11a","block_type":"box","text":"recourse against the property owner, may be junior to the rights of others with an interest in the properties, may pay","page_number":92,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"6ba21d77-ea95-49d9-8b15-75ff7e2f8a78","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":92,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"c86dd4da-e18b-4899-a4e3-657eccbb7b20","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":92,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"cf609984-1203-4839-bf0f-e9e75e49d058","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":92,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"db8c8982-6fb4-4d2e-9367-1dd1ef0f3834","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":92,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"f9cda5f7-c296-4af9-b129-abad14d079f5","block_type":"box","text":"PABs.","page_number":92,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"2f5cb351-cf69-485d-aeec-f1dc1d5af0f9","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":92,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"2e8a69c6-f85f-4a9f-8d66-4436b386aedf","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":92,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"0cde1bd4-cbba-4716-baf2-b0c242bbad52","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":92,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"5b2b5382-5c2c-44a2-953a-92eaa1560649","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":92,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"04852260-7ea5-44b4-9921-a69b2167fc0f","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":92,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"90e75093-44fc-4bab-9d1f-028b7505f1a4","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":92,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"56cd8525-ce6f-4437-8ad2-e492f85bc608","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":92,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"cacda089-0414-47ad-ba5f-7ba73b1b00df","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":92,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"775981bc-4463-468e-9372-176db45a4831","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":92,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"8ae07860-809a-4f78-9449-2d5d6503e5a7","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":92,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"0c80639d-1793-4ae0-be87-87af48e7671c","block_type":"box","text":"the particular facility being financed.","page_number":92,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"c4c7a2ad-fa8a-4968-98e0-d32639d15948","block_type":"box","text":"Moral Obligation Bonds.","page_number":92,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"2f5b25d1-b216-4186-8f56-75930db8de17","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":92,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"b935f315-86d4-4777-ab0e-0bc2fbe4f194","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":92,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"e0889989-104d-474f-bb65-7340f88dec4c","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":92,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"de7bf66c-490d-4a3b-bd55-fcd1a5b7091c","block_type":"box","text":"that issued the bonds.","page_number":92,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"0e877fc3-3496-4f56-b15d-337f11b4b21d","block_type":"box","text":"Municipal Notes.","page_number":92,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"6cced3db-7654-4d3c-841d-87b482aa219c","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":92,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"75df705a-d2a8-4045-975f-c51d24e22058","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds,","page_number":92,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"5f436d03-6564-4f8c-af1e-e91db50ca7fe","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":92,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"e6838c13-8162-4ee2-ab8e-8d4c3c3350af","block_type":"box","text":"II-57","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8f0567c6-f054-4369-ba22-c2c49fb6466f","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7770ba26-da1b-4825-acc4-995810086877","block_type":"box","text":"Municipal Commercial Paper.","page_number":93,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"05cedcd8-ddb2-476c-95be-57fcf0a21745","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":93,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"4de3c852-9c7a-4e5a-9e0c-6a8f05f75f07","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":93,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"b5c9b637-f258-4dce-baaa-a9ec37c64d85","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":93,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"304c05ff-c3a3-48f6-b6d7-f9c45bac2a5f","block_type":"box","text":"Municipal Lease Obligations.","page_number":93,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"040f929c-4c94-4295-a991-48068a922c87","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":93,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"78e298b0-2791-45c1-b279-507ec23419ac","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":93,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"24f7e67d-8c60-4b52-ab14-9eb2d037e856","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":93,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"1b729462-9135-4fc4-a155-d54e98c01524","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":93,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"502be170-9acb-49fc-8c81-27e0049d1286","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":93,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"84219ebf-4737-4dff-8aa9-aa9b32326177","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":93,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"ac9abba5-919b-4b9e-88a3-28394f833f00","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":93,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"c1ed69e9-282e-4202-85a1-cd02c3673d2c","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":93,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"a123c10e-1050-4aad-b236-600bf76ab20d","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":93,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"81c4939a-0f81-42de-a2a5-21cea9546514","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":93,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"f9eb05b8-57de-4ab8-8508-fc81da0e3eca","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":93,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"b15ed84c-2de9-4f63-bb0b-d88111320e6b","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":93,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"ca3a52bd-1639-46b8-806b-cadb32488af9","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":93,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"fa47719c-2971-48f1-a947-0bb89dc4c8e5","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":93,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"2039a31e-776c-4ad4-bad8-ff1d30f07df6","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":93,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"f3633f8b-689d-4673-9175-50bf17d3f2b7","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":93,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"9610a44c-86a3-4888-b046-314832e51750","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":93,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"5dc15cd0-f1f4-4846-b0e2-87f2ed0268f3","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":93,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"adb09a02-8c86-4edd-b918-eb3690924c29","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":93,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"003f2f99-5718-4ac2-9585-1afad6ed5a2e","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":93,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"98b811f1-714c-453b-a5fa-cf0a95b92575","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":93,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"67c6a51d-5e28-4291-943a-eb5dc5b6766f","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":93,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"5b267f67-cbbd-4fae-a77c-c0c04368bb65","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":93,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"bde6fee8-f5f3-463c-899e-8a8a67b4ec13","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":93,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"3c6e8f42-11ca-4f60-8b02-210f7a7786d9","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":93,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"aecb72f3-1d3a-4d78-a39e-e94df1807cbb","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":93,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"2d9bf46f-3e93-4fee-8647-e48730958178","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":93,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"d80c1a70-3853-49bd-bab7-b2b7f9b7331c","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":93,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"92d125ec-0c65-4a63-8a4a-01a196a570df","block_type":"box","text":"Tender Option Bonds.","page_number":93,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"6788d638-f3f9-4408-92e6-73e2116828ca","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":93,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"e1d3baab-c4ba-4f4e-bf38-efd839bba504","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":93,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"719ab159-dd7d-46f2-9bf2-c48351471391","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":93,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"59594808-5955-4ab9-95ba-1c52dc566687","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":93,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"9f4aa73e-c0ae-4605-835b-4989baff3e92","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":93,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"76136f0a-db9e-478b-b0f4-43896fedcd30","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":93,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"78ca5304-c888-444a-af75-b67f6378da03","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":93,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"108a066f-ad99-4e34-a20c-bc6c615236a5","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":93,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"0fe1f4e1-0437-40cc-97e7-7b217a827c68","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":93,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"d2030be9-8f2e-481f-ad00-de01517f880f","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":93,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"7dbe79d9-165f-440a-b6e1-46f13410bd30","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":93,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"779331bb-7a63-443c-bc08-57cf91033471","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":93,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"a1730a50-7a1f-4a50-9abc-6dda90784a1a","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity support arrangement from a third-party","page_number":93,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"34d46a56-60a0-4af6-b920-e4314ca41d7e","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":93,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"deb13006-07bf-4757-befd-d80d0042648c","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":93,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"49592f3b-adac-4518-bcc7-13b91cc44cc8","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":93,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"2ad5b164-0646-466c-a812-cf0350788f68","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":93,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"3e1c67fe-22e2-4705-bb83-0aada3195db9","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a portion of the TOB Floaters sold by","page_number":93,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"d547f166-b399-439d-b1bd-2c3a75f0ce3b","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the","page_number":93,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"9f43b564-73ac-4894-acaa-239f92142683","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":93,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"d2dc1ac2-66a9-43e1-bb7c-395547667345","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":93,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"6b1b7590-bd5b-4227-9b43-ada172a87dfa","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":93,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"52450275-7daf-4a57-a497-ecea9564e02b","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":93,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"a80a2cfa-b3d8-4b2f-95b5-606ecbd71599","block_type":"box","text":"participation in the TOB Trust.","page_number":93,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"f15bd74b-ca8a-4343-8a39-7a287d3f76ca","block_type":"box","text":"II-58","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"756e0a6f-8ffd-4dee-97a8-68d36f201af1","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1935fa6c-242b-4192-af53-76e9fd7e9a9a","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":94,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"d6429057-f0e0-4d13-a09c-e1023b6e2b86","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":94,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"22d9eb6c-4725-4c56-bd5b-401511d983d2","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":94,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"1ecd52b9-43a8-4c87-88c9-38f7844a8209","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":94,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"a78cb737-461a-4960-892e-43171e82ccf7","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":94,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"22efd612-21b9-468f-b09a-2cd5368e25e7","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":94,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"861e574d-70bf-46f9-92fc-ca0f68db278f","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional","page_number":94,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"6eb26b06-f182-41c2-b3a3-f9d0aefe6b2e","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":94,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"8e0eafd1-f6d2-4fc6-b897-4272dd0719b4","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":94,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"b130b4fe-33d8-4022-b599-9bc329b47813","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":94,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"90fadf46-e5ed-460c-b3d1-ee208270d345","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":94,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"0f7495dc-5a34-4e4d-ad84-95dd8c6900d0","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":94,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"d29cb676-a91a-4016-97a1-da7d7c036826","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":94,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"a8eb9aa7-00ea-4147-95ae-3e2129478767","block_type":"box","text":"issues.","page_number":94,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"c67d3132-eb2d-4b3b-8d2b-a02d5c20e207","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":94,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"86e104cd-2cd7-4b3d-be01-16bdaffd01f7","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":94,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"ab456b5d-7b99-4596-bf04-f00ad3572849","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":94,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"af87b4d6-fe27-4132-bf08-f4cc485e9dbb","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":94,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"f3d9910a-184c-4bb8-adc1-7bafdb49309d","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":94,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"5a45fa4f-a3bf-4606-bb65-71a3887e5846","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":94,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"18265ad8-42d3-449f-827b-79d19cd187cc","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":94,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"f95ebf76-d0da-42d7-b1bc-ac305d191e3d","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":94,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"8031b892-a414-47f8-955f-4f21283cbf0c","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":94,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"50e2d567-4ed2-4990-ad62-3d9b3cb80b8f","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":94,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"ed6759b4-70dd-4324-acdf-92d459cabf6b","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":94,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"72198ccb-2922-4530-bbf8-b50c58baf7d0","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":94,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"471bdaf0-1952-45b8-8c38-1783317c7804","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":94,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"c335229b-f2f3-4c65-aeb2-025a9fc95a1d","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":94,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"ba75b46b-8522-4bbc-b772-aa55c8848182","block_type":"box","text":"i.e.","page_number":94,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"9daef903-34d4-4723-a201-02d51dd2f8a5","block_type":"box","text":", the Fund). In contrast, in the","page_number":94,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"40d058e8-c1c8-4cd0-aedc-4f4c634a6861","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":94,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"dbd9077f-9b5e-4a09-ba3e-d5ea448dad42","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":94,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"c10f7a03-5b40-4106-aea4-5fb7495cb549","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically supported","page_number":94,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"ddc976df-e96f-4be1-bf68-5795e99880d5","block_type":"box","text":"by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows","page_number":94,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"5105a7fe-fc81-4c89-8acb-4e259ec1e116","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":94,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"f1f37d95-4dfa-42af-b749-6bc4c5e24dc7","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":94,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"f202eeca-df61-4ab1-827c-279415c37fb3","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":94,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"65e9a91a-9275-40d7-b54f-60c5eae46710","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":94,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"57b785e2-b16d-41ff-873d-4cbb95578877","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":94,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"c6d070cd-a869-472b-80ee-afbc72d62dd1","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the Municipal Bonds","page_number":94,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"af4e59da-714c-47bd-842e-e4afd18a1ad7","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":94,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"14a7cc9e-a511-4090-b564-4f315572890a","block_type":"box","text":"liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":94,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"41778755-ea80-4261-a20c-1ea25e977936","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":94,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"873cd0c0-2449-4f1a-ac3e-e528e824baa0","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":94,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"dd7cd6cd-30b6-4758-b6fb-a799da816b1f","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":94,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"637bc302-2594-4a1c-826b-06d754f39f48","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB","page_number":94,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"2a1d7462-98a2-4d2c-bf33-50e02573325c","block_type":"box","text":"Trust.","page_number":94,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"6b304d4d-9002-450b-8c34-9fbd73f33f28","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":94,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"7dae84be-1478-40ff-89eb-4f0870294cf3","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":94,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"ae55bce0-bdd9-48e8-afc9-71ca21d36a51","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":94,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"4034a5e4-c34d-4fa7-8876-8c53e0722f97","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":94,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"ecccedad-6684-4119-8b0a-c4c8cf5c7544","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":94,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"f4d32830-cadf-4037-af6e-4a67e36adf7a","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":94,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"95c5c87e-06b2-48b4-9420-732e30de6d2f","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":94,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"0b87387f-f54c-48f6-b797-b2965134e39e","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":94,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"65954be0-b159-4afb-9af8-a839e97c78a7","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":94,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"30a0317d-f6a0-40ed-a48a-97918cb70764","block_type":"box","text":"II-59","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8d388bab-d625-4ee7-b102-26ec33c3c01f","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"90292cc3-473a-49b0-b21b-018c9cd1e475","block_type":"box","text":"Since the tender option feature has a shorter term than the final maturity or first call date of the underlying Municipal","page_number":95,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"2a973870-573c-4022-9368-ad82dffbe5ef","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":95,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"99022753-cf86-4221-b4c9-32ebdd770c53","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":95,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"71b88885-77e5-46cc-82b7-0ae8817c463f","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":95,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"fde55d78-8fb1-47c2-a0e0-dd0d07258819","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":95,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"28fbdae6-7f44-4f16-a6f2-c699338473e9","block_type":"box","text":"of which sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":95,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"008f68c4-06a4-40c9-a467-0a5b5b34ea6c","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":95,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"5c562883-7e2a-4ca1-80b5-bfdc86e9b9be","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":95,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"06b41fb0-6433-4250-919e-88b308227630","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":95,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"b65fc79a-80d6-456b-913e-6f1a34869603","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":95,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"d60d11ed-8058-4a12-8e48-76bfadcf65b3","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":95,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"2030e392-a5bb-41df-8aff-ac2bd5c2f918","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":95,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"1be7771d-42f9-4a32-8679-cddf24d2fdf8","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":95,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"f77adaed-fe29-47bb-9d32-bfd9b4d64030","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":95,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"29e23e4e-b326-4279-9f8b-e3665d689532","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":95,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"fe767281-8730-432f-b001-962baaa4b9ff","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":95,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"82d872df-ccb9-42ad-892c-0a7fa0f80717","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":95,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"40258f96-ee56-4a7b-b9af-00f4d910de5c","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":95,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"ab7388c8-0f9e-48d5-98e1-8750437753e9","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund","page_number":95,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"f5465b4e-74af-4174-a8f0-88759fd56c73","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":95,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"74195258-ec13-4f0d-8752-f4b5847726bf","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":95,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"9935ddd4-3e98-4c0b-9eae-3543ba3e66dc","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":95,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"0aed5cc9-af03-421e-a5c9-5403edb42c50","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":95,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"099aa13b-1236-4ed3-82dd-9e209fbe61ff","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":95,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"955e3403-169e-4e71-b2bf-662308138926","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":95,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"0c15bfca-7da1-40d3-9f6b-d66422585838","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":95,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"cc2775d6-7f17-4e4c-8c36-6af824d50321","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-party investors, and the proceeds of the sale of","page_number":95,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"b1b1a623-75ba-4efb-87e3-b677fe2cfeee","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":95,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"c59455e1-9cc7-4912-adf3-cbff2dbe45e7","block_type":"box","text":"i.e.","page_number":95,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"73c3bd42-d42d-4baf-befd-6a0813c86054","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":95,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"2e5efe3f-f385-437b-b209-7bbd10999296","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":95,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"f6684dbe-6f26-4115-a5d0-426081f8b68e","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":95,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"69fa23a8-2ec7-4edf-8790-4dafce55d915","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":95,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"848687c2-47d4-4ffb-9af3-f907956c3f66","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":95,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"4be577f4-7965-4c96-9d39-e36a755f721b","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":95,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"69aec3ab-c085-4239-8580-cfe1af4ed6bb","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":95,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"d4115d2b-0e53-4862-9f77-fa03d5c9835b","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":95,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"5207d757-d8ea-4d8f-b871-0ddf87ab1906","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":95,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"b87fe2b5-fc62-4a56-86ec-cc3aa5b77529","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":95,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"593379c3-2d32-48bd-8d52-ad17877686ab","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":95,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"798450a3-f9ad-4c3e-a44c-e3b86e8eab57","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":95,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"76a89d4d-16f8-4f73-be85-889d4a81fe9e","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":95,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"eabf3c13-f7bb-4373-b301-1911c3f25191","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":95,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"6e161070-46af-44f4-81af-6cb94d02c3d3","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal","page_number":95,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"745504f9-31a1-4b84-a980-c366fa6f9d67","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":95,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"0bd8b2b9-9560-4c9f-8a56-68d58ef2b2af","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":95,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"a8283f4c-5579-43e2-8b00-2c4304c0f132","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":95,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"abe8a8e0-7e8e-4cae-954f-9031065faac8","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":95,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"f0585bc4-9371-45e1-bff4-b04f8abe48ff","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":95,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"50c75b17-82cc-43b6-810a-f20cfe11e96b","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":95,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"fea8b995-b43e-49c2-b469-ab4a04d631cf","block_type":"box","text":"market is not yet certain.","page_number":95,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"1f51fde9-6b6a-4279-aa30-90209dc5afd9","block_type":"box","text":"Yields.","page_number":95,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"bc8977ab-4539-4bda-8f1b-dd86e146ca80","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":95,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"d325a766-615e-43dc-8c2b-e781acdcc9be","block_type":"box","text":"money market and of the municipal bond market, the size of a particular offering, the financial condition of the","page_number":95,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"dc762cbd-f486-4b1b-a250-ee4a48f7e0b0","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":95,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"5f0695ef-ddfd-4cd2-bd3e-b3cb7d1fd1d4","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":95,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"18df0c9a-8b04-4b9c-84fe-d020710b7790","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":95,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"356175d6-4383-44b9-8fb7-09fc3aef8280","block_type":"box","text":"II-60","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7e721d49-0464-49b6-90aa-c937dc692d9c","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"736a5e11-f643-4376-a893-2710cccffa8c","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":96,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"825c9503-65d0-4042-9da5-c5a9d5c26e1d","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":96,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"7ecabd83-4603-40e3-b83c-d76d29be062e","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":96,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"9da91d4e-702f-449a-be6a-bf43dc5c17de","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":96,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"f85cc1a0-0797-4cea-917a-b30073d5f473","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":96,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"067bfe1d-2a05-42e5-bbd0-acb0121816bb","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":96,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"92ae968f-5163-4e88-b3a7-734df498ddcf","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment","page_number":96,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"0467519e-81d1-43b9-8430-4e1536432dde","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":96,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"7a4495bc-10fd-4de9-b177-a3ad1ce4a3cb","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":96,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"83449926-3030-4066-8915-f07d9580abb9","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":96,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"35ca8eb9-c9fd-4bc6-a242-391d8edef8d0","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":96,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"9920d7bc-72dd-450c-bd75-ce39f9bfa0ee","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":96,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"15f17241-aad1-4231-9663-00f9f71e39d6","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":96,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"4061d197-0f49-4e1f-a251-4233e336dc4f","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":96,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"5b276471-3a4c-4cf7-aacf-1b51c1e54387","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":96,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"4845c3f5-8f8c-49ca-b377-84bae0923d71","block_type":"box","text":"opportunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":96,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"f312fbff-97ef-440a-8f61-58e93c30191f","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":96,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"c98b519a-cd55-4751-9819-8f91b32c86eb","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":96,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"3b232467-3a14-4373-87dc-ce97621779e1","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":96,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"645b92e3-d5b9-4c17-a3b4-42b57c88a5be","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":96,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"f8e7c54c-d8bd-41ea-8f04-81dd572353c7","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":96,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"1dc29249-1f0c-4647-882e-57a2c0f63b1d","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":96,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"aaf49f1b-5f32-4287-9982-8a9cc0f03e23","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":96,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"cc3e65cb-a2b9-46c0-bdab-6e304d5f39ad","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":96,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"c65a8525-fb73-4fb1-9968-c1ef682fc0cb","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":96,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"2d4bbac0-a9a5-4f19-971a-5c4f92803a18","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":96,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"65939c9d-f876-4f18-b1b7-d8558a070092","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":96,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"01ea6729-4167-4912-aee6-c1193848179b","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":96,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"8048d16c-410d-489c-8be2-84e41ff8b6e2","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":96,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"c595e59e-c84f-417d-be46-484111332497","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":96,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"08b0cbc2-5eb3-4c9f-b919-00a3e1e69f7d","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":96,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"50cdfeea-f102-4d06-893f-ac3a280905e3","block_type":"box","text":"effectively all or a portion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":96,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"6665830c-db28-4690-b96f-83a1ac9f3667","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":96,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"164ba10c-a07a-4c12-8b82-09d89800b027","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":96,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"af9aef5c-d355-46da-a7b0-83bf64cd97b1","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":96,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"1778c92d-bdad-4c7d-877c-a2fbffc8bf6f","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":96,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"84ffc270-a1a4-49f1-b2fa-6d4a6f9cbb64","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":96,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"48911c75-98b2-48e9-8700-821790330858","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":96,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"d52aa2b4-26b2-4a3a-b4dc-f1eb731f61ce","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":96,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"6dfcf7c4-5106-43e7-9837-52f359db1505","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":96,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"269ebbc6-9df2-4147-a1cf-b55beacba57f","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":96,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"75e035d8-0675-4d6f-9b4f-d358c0a8648d","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":96,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"6426adb4-a66b-48fe-8593-e32cee5eea7b","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to certain market risks, such as inadequate","page_number":96,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"928ab3e3-d83a-41e7-8fa9-ebcab6a2b823","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":96,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"85c3f1e0-fb0a-46a3-88bc-7c6c3a737d59","block_type":"box","text":"Call Rights.","page_number":96,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"c4e6b9d2-9284-4ded-a0bb-ebc6838474e3","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such Municipal Bond","page_number":96,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"a41038d6-ec1e-452e-b7d7-352babad3093","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":96,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"ae058ecf-d6f9-4e72-b0d4-21e1679f8781","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to certain conditions. A Call Right that is not","page_number":96,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"3fee5c8a-2b54-44e2-8734-6c27b1e1aecc","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":96,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"7fc27c19-6491-43ac-bd5d-2601bd9193a2","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":96,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"1d22b38a-044e-4017-9372-a5b6fe3aee85","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":96,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"46216804-8b4a-4eaa-84af-a64b57320f5e","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":96,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"d8c9d716-6cd6-4160-80fc-1d766eb8c783","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":96,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"fb6a1d6a-f86a-48bf-9569-9048733e918a","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":96,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"4e72cf90-cdfa-49ce-ae12-0d5b3bcb10f8","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":96,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"bbb64f88-6851-4352-9bc4-0912227d3334","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":96,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"3efd385f-8748-4ee0-baa1-b5f1d6b44724","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio or to","page_number":96,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"dfd88ca9-09a7-4dfa-9618-8c21b56b8f4b","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":96,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"c092e2a7-e356-4172-80c2-de0e2dba56fa","block_type":"box","text":"II-61","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b8673635-3e53-4455-95a7-77663cfdf19e","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae7701a9-5f37-490a-aee4-382d63cc153b","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":97,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"9fd0463c-d0d6-412e-8f6d-252d2b2ad514","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":97,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"44e6ff94-8f45-4ff0-bb73-bc6bb7680e82","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":97,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"d18bd61f-61e4-4c6a-8f37-3ead3e9c312c","block_type":"box","text":"i.e.","page_number":97,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"5b3c640e-a298-415f-bd18-ffed6785cce8","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":97,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"27815098-50f1-44b0-900b-a94c836282b1","block_type":"box","text":"rates).","page_number":97,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"af1b5ed9-59c1-4414-95c2-8d1ed3f815bc","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":97,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"2839ed8c-bd95-42b3-80bf-78a440b461f3","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":97,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"8c4ab935-68d3-4b06-b4c5-2141996d7ca3","block_type":"box","text":"e.g.","page_number":97,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"09fed33e-dbe7-46cb-9a68-a229d0a5c5c2","block_type":"box","text":", an exchange of fixed rate payments for","page_number":97,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"4403a49e-5a84-4ecd-8ef3-78d776b1e2ab","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":97,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"1afe7772-8ad5-4830-8af3-729fe0c36cc9","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":97,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"a177ea73-724e-4131-82bd-0f73a0911c18","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":97,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"24de9bd5-6e48-47ea-8ad0-263ef1df0a02","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":97,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"6d20e559-c38e-4dce-89b3-74aa5ed86acb","block_type":"box","text":"with the same attributes as the swap (","page_number":97,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"eb5cb216-57ff-4a83-87af-cfabc88be033","block_type":"box","text":"e.g.","page_number":97,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"885a20b5-2859-4898-a2f5-e9c14caf68f7","block_type":"box","text":", coupon, maturity, call feature).","page_number":97,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"da3a318e-1cd5-46c8-bb71-a6564da9f0be","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":97,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"7eb733ca-2eaf-45bd-877f-027d0a2ffd2e","block_type":"box","text":"to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular","page_number":97,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"567b7a4b-bba4-446a-ac72-5c7b6f9ae1ce","block_type":"box","text":"investment or a portion of its portfolio as a duration management technique or to protect against any increase in the","page_number":97,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"e2ef4374-85ff-4699-9eb4-50a2668a7e87","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":97,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"53e8ffc0-0152-4f58-8e58-7e653cc529d0","block_type":"box","text":"short position, allowing the Fund to select the most attractive part of the yield curve. An MMD Swap is a contract","page_number":97,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"56af448d-80de-4555-904a-c11fc53e4412","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the parties agree to make payments to each other on","page_number":97,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"f5281674-e0e7-4c09-9169-795b386039fe","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":97,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"6ac346e2-559a-4d22-84dd-8307f5d07dcd","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":97,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"be0b8fa8-9141-47b2-89d5-e8a99bbba1a0","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":97,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"75eec798-6e94-4e53-8047-532a481255b3","block_type":"box","text":"counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":97,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"fb23fe71-b8b6-4dbf-a0ac-c502925ca8a8","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":97,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"28a2d05f-9cb5-4af4-a86d-ba43b7b10397","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterparty equal to the actual level","page_number":97,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"33a6701f-0d09-4caf-a991-3f27ddcf9b77","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":97,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"aeefada3-db12-4b5d-8c1e-a0342106c06a","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":97,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"2067993d-c0d2-4de3-b4d5-412986884552","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterparty in","page_number":97,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"7f504011-cd89-47e8-a25d-0671477ee873","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":97,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"bf9e3294-6dc0-43df-be63-5bfa312a60dd","block_type":"box","text":"Insured Municipal Bonds.","page_number":97,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"6f47cf92-17af-48ae-b918-52b7a8833f94","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":97,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"034467d9-181c-462c-9143-a8afe1bee907","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":97,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"52d1e770-1fdb-477f-b83d-92f21c4ae4b2","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":97,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"93d187dc-6e31-4151-8845-db6ad2867d60","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":97,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"edaf82e4-0497-4c7d-a81f-6e23d6e2e457","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be certain that any","page_number":97,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"3308acc7-8c45-4d00-bf12-6922d4007d96","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":97,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"45da5ddc-6746-4f5c-90f9-3d9ebc937902","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":97,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"9dc730f9-019f-49f3-a0d4-3f3ee40dd728","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":97,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"351c3e78-db82-493e-b273-252e2bf09817","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":97,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"acca9425-e437-493e-a950-adeb75abeeee","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":97,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"8a3d625f-0ae2-421c-ad3b-f3db4afd8e8d","block_type":"box","text":"bond could drop.","page_number":97,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"b9655d0a-6ffa-4e39-9db0-ccb5e90074e5","block_type":"box","text":"Build America Bonds.","page_number":97,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"d2a3676b-34e0-48f1-89b5-765afb877674","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":97,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"32844bff-5846-464b-9259-26bd5cde6ef9","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":97,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"a4edd911-08a7-4907-925b-1267ca2ebb3e","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":97,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"159ef041-2897-4466-ac83-97b540a90436","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":97,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"8cd05c86-93d8-48db-826a-caf3bfa974a9","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":97,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"11911bd9-21c9-42b5-9aad-79421c5aa352","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":97,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"68338b12-953f-489a-8e9d-3c68f81e6eb2","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":97,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"5105f7c3-235f-45dd-a62f-ebb6276bda7e","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":97,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"531c17b3-56bb-4101-a0be-07f529a451a1","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":97,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"3d3a07e6-a206-40fb-b6f7-708528cd0f48","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":97,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"f4531cb2-1472-4397-a686-8e2d50c2d13b","block_type":"box","text":"bonds issued before January 1, 2011) or certain other specified bonds. If the Fund were to so elect, a shareholder","page_number":97,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"7d3c6756-26f5-4644-9913-b6012cce5e0b","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":97,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"ce3cf513-602e-401d-9284-41f4f45c3e33","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":97,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"b8c912e9-cebb-4b20-a1da-218c323d1281","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":97,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"baca47e2-2a09-4da1-8c36-cfd6541032a1","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":97,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"4658c5fb-741b-49dd-9910-f1f3cee94e0f","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":97,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"3a6ddb29-129a-440e-933d-ce978985f3a5","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":97,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"6425711b-84ce-4d4b-b2a1-8865d3fa92fa","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":97,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"f8db41f2-422e-451e-8098-00c90f8ebc6d","block_type":"box","text":"II-62","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"56cedac1-ef0d-4b5c-a561-2836ce4655df","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6d33e9e3-b6e5-4d42-9aae-ff39cff66ef4","block_type":"box","text":"of the structures used by certain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":98,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"f008301b-1852-4828-a881-ee5f8b1ba43a","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":98,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"420459be-55e0-4622-b9c8-cbbca968e2eb","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":98,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"9567bdfd-7a82-43b8-9d45-b257d7e19aef","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":98,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"f06bd431-da32-4da6-897e-296c01e7554d","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":98,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"1414d8f6-0c71-42b6-ba90-48164af5da68","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":98,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"1ac290bc-2387-462c-8f8b-a775cf8f507e","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":98,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"bebc5cfa-75ae-4b6c-a9a3-ff97229b2f4b","block_type":"box","text":"their face value to the sponsor (","page_number":98,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"82f15b92-b4ae-4bfc-9150-3f5ef7ed331e","block_type":"box","text":"e.g.","page_number":98,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"c10c458e-8800-4f27-a490-0f1640fb0a6f","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":98,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"fbb19578-e31d-4ae9-a039-d3ca41e133bb","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":98,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"885e287f-caaf-4878-a1ec-daabf2e6e2fd","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":98,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"951ff91b-05e2-4a8c-9273-d70c43f84b85","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the Fund’s","page_number":98,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"7fe07911-fccd-4058-b692-e55c3e9abb57","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":98,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"f9b4b827-088f-44fa-a6ad-497051737577","block_type":"box","text":"feature for all or any part of the full principal amount of the participation interest, plus accrued interest. Trusts and","page_number":98,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"00c30008-636b-45f8-8d57-8429ef51cc97","block_type":"box","text":"partnerships are typically used to convert long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":98,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"a70ae396-e17c-4a62-b04f-44ec3f28b7a2","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":98,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"85d4c596-4fcf-4ad6-943f-e891ec1fba53","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":98,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"1902fa41-f586-4f85-8b9b-21714a0e7b2f","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":98,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"84fb50b7-eeb8-41f1-b89e-0240c3b6c4a9","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":98,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"d292b17d-9241-4389-94c0-97a448eeed10","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":98,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"e16bc6c7-0a1e-498e-90d0-0c26aa991830","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":98,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"d26cc811-4451-47b7-b0bd-0eccee4bc367","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":98,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"b43dbb7b-678f-42af-a9d4-b9d68d59a730","block_type":"box","text":"such opinions.","page_number":98,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"36d96371-43b4-4d1c-8e70-09b3ab826895","block_type":"box","text":"Operational and Technology Risks.","page_number":98,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"6f2e8e7c-1b09-4dc8-b75b-6ac31ddbe908","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":98,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"177fc0d1-47b7-4341-8b58-e49333ac4177","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":98,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"0b1924ae-2a9c-4714-8070-17b2451fa444","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":98,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"7c3a071d-2614-4dab-8adc-b5855567d1cd","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":98,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"a9b657bb-3359-4318-b864-8e972ac78c80","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":98,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"9c1cac18-68ed-4d84-b01c-26c2618ed18f","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":98,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"328299df-93a5-46e2-875c-c8976b2b62d1","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":98,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"15332ce0-0ed4-4ae7-b8d3-7257b08215af","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":98,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"006e6c3c-6f7e-4d13-a435-ea9fec94bb86","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":98,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"9cad73e2-8900-400c-9704-4b52c2db4b14","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":98,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"e3539be2-6a81-406f-87c9-b6b39ca7d737","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":98,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"2bdb8f7e-d7fb-4b7c-8af9-aa35247b44a4","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":98,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"98b9d19b-158c-4878-904b-e93f4bf83900","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":98,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"aeee56d1-5b60-466d-ad11-18c8f9db63a4","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":98,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"e55c083a-2994-4af2-ae89-1ae6b6dd783a","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":98,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"c1e6bfc8-0e36-4d02-af8a-a1d2a1a6d0fc","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":98,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"337bba09-9add-46fe-a444-3b4f2f578526","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":98,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"cae931a5-4d10-4e34-b900-4d7707b45d91","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":98,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"99ea3d8b-accb-41f1-9e70-1b39976cfcce","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":98,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"7e54a41b-2454-46ea-901c-85479d51792e","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":98,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"cace5d40-e102-4a78-b29c-7c7a00b20109","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":98,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"f08da426-3dfe-4829-beaa-b57aac814413","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":98,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"71b37318-1778-47c8-bd77-a82bcf339559","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":98,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"e48340d3-30a4-49bb-b6e3-628fdbdf3568","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":98,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"c912e7d0-8d90-4d59-b66b-962f9954a453","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":98,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"f104101b-e491-4866-9ff1-c9266cdea9b2","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":98,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"75f7971a-c7c0-4f01-9cfd-35dec7accb7c","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":98,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"ae860091-b66e-4c3d-b0db-bc8dffee964f","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":98,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"83733800-0e8e-4de7-bf4d-1ca64f5d9608","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":98,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"dd82a441-2887-432c-b689-fe5f8772eeae","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":98,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"d3e9742f-e267-428a-9b4b-588dd99a6eec","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":98,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"5d6f0612-1dda-467b-a15b-99b86e84f493","block_type":"box","text":"infrastructure assets.","page_number":98,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"e5737e71-c191-4e53-8ea9-d697854c6647","block_type":"box","text":"II-63","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"76ea1444-c62e-49ee-9e8e-cc0fdead6eab","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2643bac2-215a-4332-82f5-9ac8b4dad7b4","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party service","page_number":99,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"12b36ebb-3875-433a-8226-b7153306b214","block_type":"box","text":"providers or any counterparties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":99,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"e7211b6f-19d2-420f-99ee-2ef05c4284d9","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-party products","page_number":99,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"f639d120-98fd-40ae-a8e7-6b57ce048975","block_type":"box","text":"or services.","page_number":99,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"8272c7f9-5beb-472d-9661-64bc730bc2ac","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":99,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"75538c87-861b-4702-87d9-b2b730cf7c2b","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":99,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"15fe1d0f-0758-4ee8-a653-119dc21a50ef","block_type":"box","text":"other third-party AI technology applications and users.","page_number":99,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"f6400ba3-3b07-41df-af25-9f93a166b396","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":99,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"cdf02880-d522-4358-bb3c-fe05dca67116","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":99,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"b0471c71-e3fe-4219-9253-137318b9d2f9","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":99,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"16686a89-03f8-4368-bb74-da3949ca9bdc","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":99,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"e44b1e04-8bf1-4ca7-8418-2e25e7cb0fb6","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":99,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"adabcf70-4587-44f7-bad4-1506dfec85ce","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":99,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"76e96176-b2be-4685-ad79-12a615bb5a0b","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":99,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"7143f570-5961-477a-b085-cf3b4b10f328","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to the risks of","page_number":99,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"9c7f7e77-9822-4894-a1b0-50547a720e52","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":99,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"abbdfd32-6d0b-4c3a-8dc5-d1f9825fae30","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":99,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"d586ef34-4e4f-4a4e-872f-700624e179df","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":99,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"c2839f5e-95e1-4028-806d-43f99dbf0d8f","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":99,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"37395815-dbb7-4ea7-bbc0-999d8a0fc548","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":99,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"6e4fbf4c-e1b1-4a9f-b78c-d33d39b42345","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":99,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"74b38d57-18ee-405b-bdb0-e3eabe35b364","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial","page_number":99,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"660be680-9294-4db6-a2c7-3cd058561b7e","block_type":"box","text":"Intelligence Act, which applies to certain AI technology and the data used to train, test, and deploy them, which may","page_number":99,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"66fe7f1b-0ae6-4973-aa88-2625f22f7ab5","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":99,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"1d2d8e8f-5411-4364-a9c2-ae9d6ae4f4f8","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":99,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"05a36480-3c5b-49dd-b77b-a3f04e03aa97","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":99,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"4dd70540-74c3-4991-bfa1-e34cc7ae6445","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":99,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"fce0fdf5-884d-4fd9-bca8-fb61f955e727","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":99,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"e7bf6393-2d0e-40b4-9e34-9a7061dde294","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":99,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"1195060c-8948-4c02-be62-c3739fabf727","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":99,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"e0db836c-7b69-463d-b3e9-b219d2342387","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":99,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"ebb00512-4119-4fee-a299-2daa77963864","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":99,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"4e5cee7b-8aa3-4eba-b349-3d77e15f19e8","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":99,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"2ff8c0fa-b24f-403d-9754-df40a8110c4c","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":99,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"8743afae-b898-4d26-94c0-afdd100a00b8","block_type":"box","text":"plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or","page_number":99,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"71f11322-0889-4a15-9279-7a2429e51b2c","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":99,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"b58773eb-48ce-4c3a-8eca-6c0e7891dd16","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":99,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"19607aef-83a9-4aed-9d9a-ef9b6351a432","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":99,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"f6b46d5f-f11b-4149-ab17-1fd763df3ed6","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":99,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"46257901-4282-47a7-8886-a3873c6caeec","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":99,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"56aaa813-39c5-43ad-8830-0a40659f52eb","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":99,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"58bdca1a-3622-432a-8f22-02662ceb186c","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":99,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"759a6fee-6331-4f24-a6db-8e60ea58da2a","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":99,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"93a5285b-1ecb-474d-ba47-de1996c0e609","block_type":"box","text":"resources to monitor and implement required changes.","page_number":99,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"d200d754-7bbc-4e48-be49-07b69a7b94e1","block_type":"box","text":"Participation Notes.","page_number":99,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"411a1339-e4c1-47cd-baf6-61947e866967","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":99,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"794253c3-84b9-465a-821c-426ba6f90712","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":99,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"ede5b625-d43e-4538-9459-8d9899259a03","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":99,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"2436138c-9b58-4255-a7de-b1ca89123374","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":99,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"d9e8c391-5800-4a24-8733-2f4b3c22ac3c","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":99,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"e84232bd-74c4-42da-99b2-eb48b72bdba5","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":99,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"e7570d2b-2c8d-41c7-bcd4-d0011e889169","block_type":"box","text":"of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A","page_number":99,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"654e4af1-2f75-4ac6-898f-bfd594883ada","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":99,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"b39f2bbf-70cd-470a-acda-cb89f3bc4f1e","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":99,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"faedc2a3-3699-4563-8ce5-07d7734e7cc1","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":99,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"ded6197b-20f5-4cea-b73e-217ec19480ac","block_type":"box","text":"II-64","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f27a65f1-7ad0-46cc-a05e-c7c3818e6d7f","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"02e0bdd5-65c1-4e6c-af2e-9b30fb18f425","block_type":"box","text":"a participation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":100,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"2392f49e-eded-443c-9d33-d77f236ac8dc","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its","page_number":100,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"69834141-b326-402b-9029-bb0c8357d429","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":100,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"3e51fc30-79e8-448d-a8de-3560b66be1d0","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":100,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"46e3d755-a177-475a-8b32-f5ad7fc0299b","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":100,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"0b6b778e-69ab-4493-a3e6-0b237b59d90d","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":100,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"893a5850-3037-4c26-b62e-088166a839b9","block_type":"box","text":"payment that is based upon the then-current value of the underlying security converted into U.S. dollars (less","page_number":100,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"9c64bfac-2333-4ce6-9dde-0b6708b72f9c","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":100,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"e4d2d397-7ed2-4144-a860-55a71d225b9f","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local","page_number":100,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"7292e9ee-5ea3-462f-97a3-e9dd73e039ed","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":100,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"8a56705a-929c-4284-8207-6b1b13d4324f","block_type":"box","text":"Portfolio Turnover Rates.","page_number":100,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"3f600f2b-188f-4022-be93-f92e84033601","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":100,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"306d168c-9243-4a33-bcf2-752995185611","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":100,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"1d42a060-da74-4b13-a691-a8e6687e399d","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":100,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"e18391cb-a1c6-4488-90d2-61c59c840999","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":100,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"2091bcce-069a-44c0-ae92-29588bb4e1c6","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":100,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"9cecdcfe-9df9-49df-affb-2bda80c7ac03","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Portfolio turnover may vary","page_number":100,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"c914cd1f-3b98-490d-999c-d43862c01957","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":100,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"af59bddc-f2b9-47be-aa3f-889cfbc462d3","block_type":"box","text":"i.e.","page_number":100,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"5b71a797-9922-4655-8d2f-b33cf13306cc","block_type":"box","text":", 100% or more) may result in","page_number":100,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"cf63282a-d4f2-4a55-8163-d272d02c7f53","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":100,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"965c3e45-2c61-48d6-af8f-908c618f1472","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":100,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"b03b616e-3c6f-433e-9e4d-0bbb04c822ec","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short-term capital","page_number":100,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"76f8b9a7-b62a-4a80-b191-1021521589ee","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":100,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"07e4a30d-fd7e-4413-8e21-71c3006c9930","block_type":"box","text":"Preferred Stock.","page_number":100,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"0c9bfb59-d1ca-4f76-9012-5958befa9977","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":100,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"3b6cf2fc-553f-4d8a-b498-e5f5ec33cb44","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":100,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"e6b7b13b-9bfd-4798-bdbb-e6147d2ee6ee","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":100,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"3fe29957-5e4b-405f-a37c-5fe8d50a2ca2","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":100,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"9d57ca9a-ad89-4d97-8ed6-8d51d8822d33","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":100,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"d0b87316-9dfc-4027-9b7f-159e7888d79b","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":100,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"14c062c4-50bf-4075-b0a4-e5c7a70be79b","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":100,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"55591bb9-abb9-4470-b39b-c7d932c85adf","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":100,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"1c38a59e-5046-48e7-92af-8d7d1dbb2a29","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":100,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"1dfd27b2-93d4-4909-8cc5-ee6d9b196daa","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":100,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"3e5e1b43-783e-4d94-821c-24f76f2b7337","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":100,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"92fdeee0-7e2b-40e7-b511-bebc31f59d82","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":100,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"2b5f1ddb-0437-4a9f-9e64-81d3f6f3d729","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":100,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"b5cec97b-8c2f-468d-bf26-6b310242fe67","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":100,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"00249212-53d5-49a3-86ae-fab5a7a6e7ab","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":100,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"8797f623-68a0-4d97-b054-ea1eb17b8175","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":100,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"c7789aa2-f5ee-4ab2-bb2a-1a37d244bf26","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":100,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"b14a399c-609f-4cc3-a84a-8a599dc1f79b","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":100,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"1b2a0c7b-711e-4960-86b7-c7cafdcad7d5","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":100,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"649b1a06-e614-4931-a977-6e0f81aef014","block_type":"box","text":"Trust Preferred Securities.","page_number":100,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"7a387416-b2ad-4a45-91e5-c46635415bba","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":100,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"84e4abe7-5f02-47bb-aaec-b428197ea2a3","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":100,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"92305bb1-8f5f-4e58-8d9b-e40bdc716334","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":100,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"36b68bdf-32d4-4ee3-a162-1c5c04de5a53","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":100,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"88e52345-1a3c-4f02-99e0-639a72e78a22","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":100,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"cb1b916e-6223-4d98-affd-f843e5db1c7f","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":100,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"c4b36b7c-bdeb-4327-ae63-4e71ce33a0a1","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":100,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"e1a60d13-e209-4859-b305-e46709edb992","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":100,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"1bb5774b-5e77-4323-b4d4-96c18cffd99d","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":100,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"4dea58af-10d7-47e0-861c-17320531b7e2","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":100,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"ca9aaff1-9b15-49c9-a431-4d6b38904f45","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":100,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"94195dc9-6ff9-474e-a357-b4e085053ba7","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":100,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"c1922e4e-718d-4127-9f54-62c06a33a828","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":100,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"60720907-311d-4faf-86ed-ec166f368a82","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":100,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"9963c1e0-331c-42a5-958e-656f9fb04da0","block_type":"box","text":"®","page_number":100,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"67eb678c-fe4b-41ba-9353-7bfe712f90f2","block_type":"box","text":"”); monthly","page_number":100,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"7452e071-5d99-4d86-aa68-f104c1d321da","block_type":"box","text":"income preferred securities (“MIPS","page_number":100,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"59d0efd6-e547-4e65-bee9-7ce2a3d455ec","block_type":"box","text":"®","page_number":100,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"6d4ac9b2-d105-4400-9a3d-eecad19565b5","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":100,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"f3b4887e-744b-46eb-bd8a-ab6b983bd0ee","block_type":"box","text":"®","page_number":100,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"ef6d9144-16cf-4ba0-ad64-f4a8e8e463f7","block_type":"box","text":"” ); quarterly income debt securities","page_number":100,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"13063b5c-c34f-44c9-9b0c-62675b192853","block_type":"box","text":"II-65","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3b44ce8e-0322-40a4-9c94-490c1ff56969","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e2c76568-ddbc-4dd5-9458-e1030ba48a2f","block_type":"box","text":"(“QUIDS","page_number":101,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"61fbcf6b-e2f5-4726-9c9b-2b302f995a23","block_type":"box","text":"®","page_number":101,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"1aaf3dc2-bdfc-4cb5-b374-80a629f3c687","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":101,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"2d6c807b-9752-47d3-87d2-c9ca5254ded2","block_type":"box","text":"SM","page_number":101,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"8b97b601-0a51-4bde-9f1f-61c07da4e6d5","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":101,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"a5301220-4acd-4667-b1f3-0e07be018c5a","block_type":"box","text":"®","page_number":101,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"16a18ed7-fbc2-4ce3-aff1-cc6c5eeb95fb","block_type":"box","text":"”); public income","page_number":101,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"66703f00-ddd4-4586-a7a1-6fcc5fe39b64","block_type":"box","text":"notes (“PINES","page_number":101,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"cb809c02-ef9b-44bb-aa04-00cf23d747e9","block_type":"box","text":"®","page_number":101,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"1b319adc-0ba8-4602-8ff2-2ecdea1827b7","block_type":"box","text":"”); and other trust preferred securities.","page_number":101,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"7e37a8ee-e2ab-4da7-97ea-3f8918e23111","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":101,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"ffff64ca-14a0-4a7b-a78e-8de9caf9f00b","block_type":"box","text":"In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":101,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"4bb447e5-4d48-42b7-83cc-58d4395a8c8f","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":101,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"a99e7b1b-4268-434b-91b4-cfeb974af522","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":101,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"edab5aff-03bf-4060-b7b3-b69b7459ebef","block_type":"box","text":"regard to whether all payments have been paid.","page_number":101,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"fdbbc040-074c-463b-b8df-8e30ddec4fd7","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":101,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"5ca28162-b797-4244-82a2-3574e5979345","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":101,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"e8cfb881-2c7f-4355-b29d-252fca3afe6b","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":101,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"0d73aa5d-d532-42e1-81e9-ba5d073c245a","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":101,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"adf853d7-fc2d-4dce-adb2-3b3a7d77b8fc","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":101,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"315bdc60-f927-4757-bc7b-ec81e4f6292c","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":101,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"8f3c8474-32b2-4b83-bd97-9d81406cc27d","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":101,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"e9218617-8ce7-41ec-8e96-d049f351dcf3","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":101,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"1262b3ab-271a-4c98-afa8-c094a8da2139","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":101,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"49e4f6df-72ea-48ce-89fe-ea588e120f66","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":101,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"2a462fdc-0266-46f7-8694-5815182a734e","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":101,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"c11caf1a-b56a-496a-b362-6aa081fa6d8d","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":101,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"7a8dcf48-99bb-4c15-acf8-5b72b7ec1776","block_type":"box","text":"debt securities.","page_number":101,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"295e20e8-8eec-4901-8d22-245173323c63","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":101,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"2f1c5037-2d0c-4e26-98ef-d73bceeec087","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":101,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"a4c050f2-d842-4db7-bbad-2f3a9662b6c0","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":101,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"c560096d-fb14-48b1-a0c5-d3ac49a39b76","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":101,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"30cd11ba-e35f-438b-9be9-b7f5f1a0768f","block_type":"box","text":"geographic areas or in specific property types,","page_number":101,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"66b65d6c-04b0-421e-b41a-1fdb93516e3f","block_type":"box","text":"i.e.","page_number":101,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"d14ecd57-38fb-447f-97d8-9647b1092ebd","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":101,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"ca0bb66f-d3b6-4cec-8e26-5c9587d86204","block_type":"box","text":"buildings.","page_number":101,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"566de900-7945-4e15-a901-f2fad8554529","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":101,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"9a2ff25b-20a2-4a36-bc01-43d3a6c39d3a","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":101,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"8a75b569-c795-47f6-a8d2-a60c4f1878f3","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":101,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"0734c951-c100-4d97-acb5-729e93205f78","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":101,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"90fb97f6-bec6-488d-811b-08871789a75c","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":101,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"4cf603d7-56a5-40e5-b404-034674280690","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":101,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"e7080cfe-f90a-4712-956b-16aff4687e72","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":101,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"2c196f81-3f4d-4f0d-96cb-0cd0d2f81afe","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":101,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"491c84d8-b694-44bb-b2fe-a7d11feee54e","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":101,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"6c3a28f6-8a74-4b13-b9ce-9e545fac5d09","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":101,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"9a62a335-dec3-4d4e-b20c-0106386fedaa","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":101,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"a6d6f99a-d94a-4360-8025-a08cf12eed4f","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":101,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"25e986e0-20c9-41cf-bf23-d4002efdda10","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":101,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"928ecae5-a356-4258-a04f-a56c9af054bf","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":101,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"d9dd76ac-39cb-49e4-8db4-71d8a6de5d3a","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":101,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"97b27471-7109-4a40-92ce-9d73baeb0bfd","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":101,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"8eee1713-db9f-47e5-8f6a-5be4ed0a7cbc","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":101,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"4f999415-c202-4fdd-8e54-52d529111f40","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":101,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"63e2e510-0b0f-40df-8ae6-647795fafc9d","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":101,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"a896ab76-a407-4019-86ed-3acfe2a7e2dc","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":101,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"61086be8-798a-4083-825a-5d6dce585518","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s portfolio which is","page_number":101,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"825db4b9-4a35-450c-9610-c80f355c1f33","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":101,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"9002edd3-6716-429c-9216-9d7ab41d2542","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":101,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"57185cf6-de7b-4a43-a5f1-4ab4b610b735","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":101,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"83da2759-c4b2-4404-b5f6-c331df3bcc6f","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":101,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"6a0e7aa5-7280-4ea3-8eba-8eef579e38e8","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":101,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"b91dc1c0-d7e9-48ed-bf24-61bb79f1310d","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":101,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"e74cc825-c00a-4b87-81e8-337febd55ea1","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":101,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"ab202c0e-9fdd-43db-879e-d40ba254a0d0","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":101,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"cb4c8b68-f30e-4dc0-b18b-b1ba430c5976","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":101,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"17caa8b0-2208-4e75-9647-24e2c9fd614d","block_type":"box","text":"II-66","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a253b191-eb34-49ee-a8c1-6857ce6f9515","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"64321abd-94d4-4442-84a1-faf8ea5853f3","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":102,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"57870636-d614-49f4-979b-7fb133b36247","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mortgages","page_number":102,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"48bb0683-7380-4ce6-b5d1-4987c310014b","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":102,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"e480db47-6e69-4930-a331-c8feab0864ef","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":102,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"4e7d6e07-9778-48db-a7ad-036a4a819e86","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":102,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"c86312b7-cc25-4ed0-a392-7013985ce8bf","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":102,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"975a3854-0345-4098-bf4b-2806cf3b3054","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":102,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"9a508feb-2f33-4a7b-824a-fa475f768ec7","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":102,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"6729a6b6-3afc-4440-91e8-1ce70f2d1c9c","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":102,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"b268c727-bcc4-47ef-ab3d-33339ae2eaa2","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":102,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"6852d55a-2f9f-47a1-8cfe-b93cb161b56a","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":102,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"a3b0750d-3ad7-4eee-9f07-44372423e592","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":102,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"b0bdf13d-6371-4e3a-9a07-8f18438af9ae","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":102,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"c98317e5-4215-4994-9faa-6cec56070d94","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":102,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"70095a75-38fa-4835-8150-e9ddc74775ce","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":102,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"5a05ed2a-bfb6-4326-b29f-6bf28e49a7a1","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":102,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"89c7eec5-99bb-4f85-a61f-8b16d2d9e475","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":102,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"2b5dc4d7-6cd0-4f8e-869d-330df468d0df","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":102,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"a011aed2-a0ef-4555-b0f9-8806b189ce7c","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":102,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"2c413aad-cc07-4b41-b108-7a228f467fb7","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":102,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"d09674be-c808-49c0-a492-2e0435c22712","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":102,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"e296a85d-00e0-4212-bff3-ab6df66b7179","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":102,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"20b36ac1-71ae-436c-ba25-c5922ef091a7","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":102,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"b9efb6ae-ee3e-4e02-af0d-d1e7414e3f68","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":102,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"9aa5c2e3-ea10-420e-9b25-26e04e734023","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":102,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"01d54994-709f-45df-8d9c-6acba8f0eb64","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":102,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"42f8138d-5e69-46ca-baa8-350511f3d812","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":102,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"6fd1b312-e6a1-4860-94f6-b7391860fbc7","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":102,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"fe0a155c-c9f4-4844-a411-ee1662897f9a","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is important to","page_number":102,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"366b4964-b074-4249-a140-f02883a03f10","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":102,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"195b3737-446d-4218-9ca8-a4d0bea625a9","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":102,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"4bfed3de-6679-4133-8b8c-45a81bd49b04","block_type":"box","text":"conditions.","page_number":102,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"f6312283-70a2-430b-a8c3-650aea36be3e","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":102,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"0e9e1371-8e3b-4a6d-bbf9-2d3e24b5fad8","block_type":"box","text":"a particular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":102,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"951bbb96-6b4d-44db-bd08-eec5c3fad0b3","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":102,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"e914a43d-9bd2-445e-968f-2ccdc0da0484","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":102,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"1d74e8bd-29b8-4e96-8cee-86e9ccf78f30","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":102,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"394a2cb1-177e-457b-a712-ade33291c737","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":102,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"3c2b1df2-2817-449d-a7ec-2cefeab773ee","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":102,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"c9bdfcd9-5ec6-47ec-b91e-4ecca288ec69","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":102,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"f0fc7a6f-4a5f-41ff-a171-2ac0b3d7a816","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":102,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"2a231b04-8250-4952-9efc-3b7ed27c203d","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":102,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"92f2e37f-aae4-4898-95bf-80ad5c51466c","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":102,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"a72fb5b1-ef50-4144-ac60-8fd8a369692c","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":102,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"71631c1f-30ba-4099-8d79-36d0474ff50f","block_type":"box","text":"affected by such events.","page_number":102,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"832bbe5a-3e78-4ae6-b87b-ace14dfe1ba8","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":102,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"f64451fd-76c0-4db2-92a1-53319e06dea1","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":102,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"3a5766ba-c0c6-4e18-9a70-311758e45d93","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":102,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"f5fea420-20a1-494b-b7f2-93fb8c66a304","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":102,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"3de70ce7-437e-48b6-88d1-c9c46e3e5ca1","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":102,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"c25b8db3-d7c0-44bc-be0d-973206b09fa8","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":102,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"46d20b81-fb02-43b8-8c03-1c571183215e","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":102,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"5b95420d-0d98-4d8e-bc4b-e0d220dbfda6","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":102,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"86202599-d900-4cf7-8646-b3fd7490e1ba","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":102,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"a5dde6b6-8546-461d-8ddc-e00d95302321","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":102,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"62335f70-3ac2-4511-ad84-adf88c0efaa8","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":102,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"74bf0fc3-1434-4347-bb2c-e84f1f77093c","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":102,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"9487b114-8aec-462e-8478-2f9958321a12","block_type":"box","text":"II-67","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6c08a1b4-8eaf-42f7-9438-f4bc2f8d385e","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3ec06e25-961b-4936-97e9-4d3d9bab1621","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":103,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"0c153a27-9236-4ca2-bab7-639bdc537cbe","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":103,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"532cc51e-142f-485a-a8bb-6fff8add0428","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":103,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"89860e08-09fe-418d-950e-ec599519087b","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":103,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"7fdf4ab6-09c2-4f44-8837-2a520d6b5011","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":103,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"236a071d-93de-472f-b642-64052ae1b972","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":103,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"d27e6fd5-be55-49cd-b47e-13a31995d974","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":103,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"1ba990a0-3f58-4046-9b5a-b43f56df6d37","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":103,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"c066536d-4093-4b3f-ba09-b7bcfce8e60b","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":103,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"69dfbbb7-0a0c-4c03-ba5e-6aaa97f39a00","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":103,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"5b092ed6-5547-4ea7-b6e0-63c9f5a882d6","block_type":"box","text":"investments.","page_number":103,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"f27e1cfd-2ace-404e-ac91-bf13c9843a01","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":103,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"86e617dd-b5bf-407a-bef2-4099c6696ff2","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":103,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"517ac073-b316-4b1d-911a-4ecc9b3a9ff5","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":103,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"145733fe-4fb7-4b2e-9780-7f3605c0563f","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":103,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"ad44f80d-efa3-45e3-ae89-79ba78ef6617","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be short term or long term, and","page_number":103,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"c2b0eeb6-3b96-4452-b22d-799acd3e4fd2","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":103,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"3eff86b6-6d7a-4cb0-b99b-957023be2a61","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":103,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"0a9ef40b-0cdc-483b-838f-a150f772904d","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":103,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"07e2f463-5a90-4f1b-9a50-c28faf35bdd1","block_type":"box","text":"Legal and Regulatory Risks.","page_number":103,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"c8f41cb2-78df-42f3-a14d-9aa377161b5d","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":103,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"d357bc17-7b06-481f-abe8-672b2ba8cfa2","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":103,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"b31dbfdc-e815-442a-990e-306253be46ad","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":103,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"840c87fe-3b78-42c6-bee5-b93f12d52d22","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":103,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"9b264850-42b3-4355-b541-778300240e9f","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":103,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"f88d214c-5fa4-4c00-8e54-c753deca62c9","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":103,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"833ae384-e6e6-4ead-b8d8-274f1bff9363","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":103,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"f63354b4-9bba-4464-bdb9-5fb71caee6de","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":103,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"22b1b661-0045-49da-95d0-fa9cb713431e","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":103,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"c0e22466-700f-4ff9-8a4f-85f33b431232","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":103,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"6e44c989-db9f-4440-8c85-947771fe70fc","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":103,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"1630ad85-86c6-4634-a173-278c9b81918e","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":103,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"54a86ffa-1821-4577-b244-fd3eac6e110e","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":103,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"fbd520ea-60e3-4c51-81c2-3c3f11bb8861","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":103,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"5e1ad888-2949-4eeb-a406-1fbdc1553cc7","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":103,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"2b66c089-4757-4f91-a689-cad3849f5986","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":103,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"5dd65367-15fb-48cc-a756-0aef0bf0d0e6","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":103,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"8d0339fc-5a1a-4fa6-8c92-74b6c779b5c6","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":103,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"34f8ada8-15f7-4eae-b12a-7a15055103cc","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":103,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"ca98a9be-312b-4b87-b680-2df30e1c7ab8","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":103,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"e7c90e7e-6a1d-45d2-809a-67792279755c","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":103,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"44e495d3-8207-426d-b5de-b72f118c1bb1","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":103,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"b078c1f9-c4a6-4a73-9851-eb6bf4e9f46c","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":103,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"e85687ca-05e7-4847-93cb-bbccc3ab3534","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":103,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"356cdb05-2c8f-470b-b9d4-5c23f6da2b94","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":103,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"ec645aa4-b8c8-4f23-bf1b-58d44b81a45f","block_type":"box","text":"Geographic Risks","page_number":103,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"728e468f-8c58-454c-b51d-40c95c18d467","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":103,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"4a96065f-54da-4044-8bf1-22ec7f2b13b8","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":103,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"d4d1eea3-2976-4bb3-97c7-69c0751a8d78","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":103,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"009cfb56-ed4b-42ed-85d4-df368d81404f","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":103,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"43928abc-1d1c-446b-b10a-e3722fd6a6b0","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":103,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"14fc5cc4-3128-47bb-a6c1-6d16ed20c22d","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":103,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"ef6a14eb-7532-4217-86bf-df9d055865c3","block_type":"box","text":"Fund.","page_number":103,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"5d860e17-715b-4cb2-992e-14de342dadf1","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":103,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"86a78bf7-5256-44c2-bfec-f570cca7cb95","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":103,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"dda0db44-8abc-407b-8ab0-8d64982dcd57","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":103,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"303e44d6-5c82-4f99-af40-5858762102be","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":103,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"b329eae5-fe1a-4623-821a-d1d1322b6d0b","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":103,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"603c411f-fcaa-41f0-b827-5812ae90b6d2","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":103,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"693a93f2-557d-4816-a5bf-7858ec347ec3","block_type":"box","text":"II-68","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e20c5a63-84b2-4e5e-bdaf-a0bb997cb9a6","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1bbc1b73-042b-43b5-9e8e-e4d05a274807","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":104,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"bf31ab59-3096-4e7b-bc05-068f121b7832","block_type":"box","text":"imposed by a regulator or by counterparties or otherwise may adversely affect a Fund’s performance and/or net","page_number":104,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"78d4bfa1-0299-4582-9d3b-46e954887830","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":104,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"11eb4097-4d78-44dc-ad39-d4082cdbc930","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":104,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"f658140e-4528-406b-9b16-a09abbaa0f3a","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":104,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"927a6a32-d9d1-4081-b8dc-dd02c8ccf03f","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":104,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"295d7733-d954-4f96-8e11-cba9045219ea","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":104,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"2795c97b-3886-402c-9695-331e2e698305","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":104,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"c7a47683-c102-44a1-a98c-4e7bec096422","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":104,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"9164b9f3-3c36-40d1-99c6-7f5e904c7585","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":104,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"d76921d9-99a5-4924-92f2-ca2b0d219be6","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":104,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"77e80aeb-8472-4c36-9202-7d538e898dc6","block_type":"box","text":"e.g.","page_number":104,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"db2c9af4-7743-4780-98b8-85292d0db770","block_type":"box","text":", SOFR for","page_number":104,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"fb5abcbd-b734-4803-ae03-1ec2e7f2be0c","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":104,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"8febe83a-b7c1-4d30-a3e0-ecdf3adaebf8","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":104,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"b17cb1e8-2177-45c5-a413-16c158fd3f74","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":104,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"41df90cb-2611-463e-bd17-332020a1349c","block_type":"box","text":"determined.","page_number":104,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"7d742061-348b-4786-9d96-bf0b550c98d7","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":104,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"ca5ac7d5-5851-4e01-9426-b94081d429c8","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":104,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"ea7c3d72-cb7f-4e26-a3a9-8397379d3d96","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":104,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"988194d9-cb63-4c09-936f-0a80912a7038","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":104,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"e1e25907-1c38-4c80-bb0b-dec52ee36c56","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":104,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"1b86e96b-01aa-477b-ad02-80314378c65b","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":104,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"be524847-4f1b-4f47-9c4a-d66daa7279c3","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk.","page_number":104,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"95f79dc8-4651-483f-a805-10c06ce4ddc5","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":104,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"a2d6019f-e36f-4de2-94dc-cf6fe7808a23","block_type":"box","text":"largely insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate,","page_number":104,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"b20ec7f7-8288-46f3-9f50-60d15c3f70fc","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain","page_number":104,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"cdb952b7-226a-45b4-a946-d78ebbad019f","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform","page_number":104,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"7bdd00f4-1c6a-4f8c-8960-13384b7c0442","block_type":"box","text":"in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based","page_number":104,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"d1f2d656-bad2-4916-9393-72f28ef84d3a","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":104,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"d150fff1-6187-4d7b-9aec-f785d8e05ad5","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":104,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"4edbd85b-40e6-407e-a780-56c6e3067afe","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":104,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"9da05c65-fe32-4658-9223-df72c974f061","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":104,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"770dddd7-861f-43f8-86dc-26aa05f181bd","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":104,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"468904b4-36c5-43ba-97af-a4f021e69964","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":104,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"1ab0d45e-3916-4f80-afb3-eeccbca9b852","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":104,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"4ef0e758-7b83-4241-b1d7-b168fdbdd479","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":104,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"2446e291-f058-4eb4-982f-45013613dd26","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":104,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"c8e66f8f-5f57-4ab2-b998-3d606cb79458","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":104,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"c5578c8b-d64b-4aff-9730-66dab25df39f","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":104,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"c20ee724-1a36-47df-8e99-74b4db0510ff","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":104,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"4a4c4aa3-2f21-4ca6-bf6e-b55636aa5846","block_type":"box","text":"in the future, with the result that relevant benchmarks may perform differently than in the past, the use of","page_number":104,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"40a4c913-e9a5-4df4-8460-ddd1163a9f97","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":104,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"7eeeda42-ffe8-4c6c-9f11-33c2b38876f7","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":104,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"3df8791e-f1b9-473e-b3e8-2bedc7ea2d81","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":104,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"72c9bc3b-e039-4aed-948b-70953d501581","block_type":"box","text":"consequences which cannot be predicted.","page_number":104,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"3c4735ed-7e29-4284-a626-5b0475e3333f","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":104,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"5b6272c9-19b8-4992-81e6-6edc2733775b","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":104,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"6a9a984f-6b54-4ace-b971-02c6633e6833","block_type":"box","text":"sale contracts, the other party agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":104,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"31b92d5e-3e35-4386-89b4-e1cdb6855e8d","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":104,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"6b1754eb-3530-49c9-8317-1e514ad4572a","block_type":"box","text":"term of the agreement.","page_number":104,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"aff895e0-80fb-4e36-805a-ed0877e53c39","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":104,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"dadf777d-a5f1-4f1a-aacd-d02ab9c5234c","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":104,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"49e9823b-0c0f-4ae0-a919-3b867459a3e8","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":104,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"6c9d8036-5e18-4fde-b551-ba240d0fdf34","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":104,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"1b45cc22-f66e-4b6c-b8c6-98e28911837e","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":104,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"59b8306c-c8f6-4783-bd52-a933c3cdb9f5","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":104,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"080c2994-07c8-4477-b468-acaf7c77f47a","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":104,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"b96850d5-0bfd-474b-96e7-97950976e75f","block_type":"box","text":"II-69","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"111bbe98-5361-4bdd-ae36-7a820743e53d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e0e9b1b-6264-4f7f-96ea-323543df9b73","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":105,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"2175a11f-6a81-407c-83b6-61ce0de03ad7","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":105,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"227d1bd9-a882-4406-970b-0aecdbb2466e","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":105,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"a34377f2-0453-485d-8a60-2b3a54b4ef6f","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":105,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"25b653b3-7806-4b65-bdd8-6d72b56b90be","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":105,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"2d65d002-aeda-4825-9943-7dca25efe2ff","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":105,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"95afe617-b403-4bcd-a3b9-fe5c27ea2853","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":105,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"fbb0240a-3736-473d-a921-bb226e52626d","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":105,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"7dc069cb-d303-4c70-acb0-a1795f1f6b82","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":105,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"798e5f12-b042-4f31-acff-00a0b6c4aa1c","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":105,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"f3c34d32-123d-49a4-b8c0-b647b7c530bc","block_type":"box","text":"sub-adviser will monitor the creditworthiness of the seller, and a Fund will require the seller to provide additional","page_number":105,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"1386d7a5-243a-4272-a38a-a109f7400bbf","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":105,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"65ccb042-6228-4c18-87a0-34acfcd8842a","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":105,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"d9cbe8ad-2424-4e80-9cae-4f7bac7dbef9","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":105,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"6ca30f36-a998-4875-9872-bd42a6ba7760","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":105,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"c278ba46-23ea-4b15-ab77-4cc1f5d532d8","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":105,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"109233fb-71b2-41d2-81b9-b366393644fa","block_type":"box","text":"or by another authorized securities depository.","page_number":105,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"6d7cb553-9b2f-454d-963a-50e2ec4f7ae9","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":105,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"e7eaf7f0-6729-4778-b7e5-b72409f47785","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":105,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"404eadcb-eb10-4701-b608-b2915acf3f91","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":105,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"53d33e91-94e6-4728-a111-930ddb4c3383","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":105,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"a3d811f9-7362-490c-b577-da3749194988","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":105,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"5d59bc13-39f7-4fa1-a2c1-d7b26e5100c3","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":105,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"e30acb4c-1ce0-4c35-a2eb-93229ebee0e6","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":105,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"b14cefd2-527a-44f6-8d71-32c3acaa34af","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":105,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"c008af2d-5e01-45a9-8774-285424707d76","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":105,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"d274967f-ab6c-46f1-856b-83e17bb2744c","block_type":"box","text":"the repurchase price.","page_number":105,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"f0e4f1a9-ac7a-42cf-ac97-cfb2d05f7d08","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include cash","page_number":105,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"0b1cc331-3d70-4a80-80fb-ce5e1f639fd6","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":105,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"07e929b5-ce1b-4479-9c4e-6786a57e31aa","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":105,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"72a35680-5590-41f0-87c4-e82597b83d4c","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":105,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"499d2a2b-8dd7-4525-810b-4512a7fb002f","block_type":"box","text":"strategies without the repurchase obligation.","page_number":105,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"537c45aa-f33c-4b8c-bbea-8d8e6e5bbefd","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":105,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"865fce9e-dbe8-43d7-b3b4-faea436a3555","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":105,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"897e070b-0f76-4a8e-9b05-5fe801c7c52f","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":105,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"5b9a4764-7e2c-400b-b659-ae9ab3f3d0ad","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":105,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"ddacdce4-f890-4072-bc04-13f6417e2671","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterparty’s repurchase obligation, a Fund would retain the","page_number":105,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"e6d79dd9-670e-4dfe-b929-f8d13bd4986e","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":105,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"8f913e8f-d298-4097-b545-a50b75aa26a0","block_type":"box","text":"i.e.","page_number":105,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"b15f51f5-1247-4f4b-9074-78e5bd9b6625","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":105,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"0dfcb903-282c-45fc-b948-616780a52f5d","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":105,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"4711357c-0a0e-4226-b215-8a28ca72ee5d","block_type":"box","text":"the amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":105,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"253cd019-b9b5-41b0-997e-5fef0bd452e5","block_type":"box","text":"and income involved in the transaction.","page_number":105,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"d1e5474b-834c-4831-b3c4-ca8caa23892b","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":105,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"47d80838-4fcf-4c87-83f8-374aa6994972","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":105,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"be500449-a9ec-4a6f-bd20-dcbc83de8abd","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":105,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"6aa206e9-94a4-44fa-bddd-9d5c861da7fd","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":105,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"dfaa0865-5ffc-452b-8afa-bc301b7b398c","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":105,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"d7edfe67-1bd6-43dd-880b-949cf292ad91","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":105,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"4aeca97c-6c14-4321-84e4-2da3ff82c789","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":105,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"2e7845f1-4dc6-480f-8d98-6d5eb02fc71f","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":105,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"6d66af0c-9c73-46b8-ab24-fe883bbfd8d0","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":105,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"99912e01-801a-45b8-b839-260751bdf68f","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":105,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"f491a980-9851-4f77-a412-40578a3e9a2a","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":105,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"40284882-f2fc-4b15-af10-e7e2f5e471fc","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":105,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"68686627-6b2e-4e35-9163-d87d5b7c7f0c","block_type":"box","text":"Restricted Securities.","page_number":105,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"8aa5410c-16b9-42ae-8cfe-d9d31aaa20d9","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":105,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"7c62a70c-ff9f-42df-b8ee-7e6af8eaf2cd","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":105,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"ef8e2756-67a7-40db-a1ee-0fd407176827","block_type":"box","text":"II-70","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d916d1b2-670a-4986-859a-4fd8bb7e05bd","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b1a5618c-9164-4f08-93cb-e9a001d1a362","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":106,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"b2dddf83-760b-4944-b765-56cf5ea51b39","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":106,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"338e9492-c394-43f8-a3c8-ea9d57db9fbc","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":106,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"8f68a20c-307b-4b31-b097-33f5f6eee562","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":106,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"26efcebe-cf7b-472b-8467-62414c2e892d","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":106,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"1cd1f087-c3f2-4df4-851a-89eef89f0774","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":106,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"e4543e82-164e-4246-8633-19da65a1e283","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":106,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"ddfa0dc8-6b9b-4a59-8b47-f27f3f5d8753","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":106,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"40d0058b-3cad-4fd0-b7cf-c1584481cbd4","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":106,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"d9591ad8-49b6-4897-befb-a4123cfd5bd5","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":106,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"5e466a32-cd2f-4e3d-8755-d53a7db41fe5","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":106,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"daa87d71-714a-4d80-bf04-c6d026761bd1","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":106,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"29fd0123-45e9-41e7-9122-4b1b9d0a9317","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":106,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"ba7557fb-725a-44b5-af6c-de2a84765a44","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":106,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"17bfbee9-6f0b-4471-82f4-1ce0143f03fb","block_type":"box","text":"character of the issuer, which party (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":106,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"8c1a22e3-b37e-4114-b73c-f9625ecfb039","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":106,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"ba94a347-851c-4f11-a847-ae6f43d2e922","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":106,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"95360a84-43b6-47a5-96e9-533fe11e1f34","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":106,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"02192b43-14d6-4ff6-b67f-83075b4a8e25","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":106,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"377cce8f-be3e-4f11-8317-7f14170ffda3","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":106,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"5645f853-87d3-462a-abc6-0dd1d0790f61","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":106,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"1a354271-6c5d-4698-a063-874d99391097","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":106,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"f0065be3-f208-4bbe-8bac-fceb6d3a6bb2","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":106,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"1a49e27b-2730-4a5d-a282-8aa0fe2e7bd0","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":106,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"af2ad7d0-bb9f-4702-99f5-bd808c5be6e0","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":106,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"d5f4eb68-b678-4490-a670-979aa38eefc5","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":106,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"e4372593-9591-4dec-aa0c-01ae598ed963","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":106,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"b6175f5f-7a60-4308-911c-c80638b23505","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":106,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"0d3b9590-a6f3-4ef8-8929-b2c0322d36c0","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":106,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"85df017f-d9ae-4e59-b513-d24ce7210225","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":106,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"21275391-6f18-4b28-857c-e077413cd09f","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":106,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"6a0b3653-e3df-4b6c-8e3c-a92f5ae5788d","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":106,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"7a4a7625-05fc-4578-b271-c46a23181e38","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":106,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"a48f4004-ea80-4b15-9237-f6ec1288d628","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":106,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"45a8830b-0030-47f7-b7ca-2e40fa405004","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":106,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"2e9ed9e7-819e-4886-872b-3cdffa961a71","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":106,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"b79ed1b6-8812-4c2b-be8f-1bbafdd79721","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":106,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"075f8f45-779f-4143-8807-cc1a9c6fce7f","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":106,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"24c0302b-2c44-4c2c-bcc4-2dea0e3e3ec7","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":106,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"ed63c960-fd00-460b-9353-be3cfaa940ee","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":106,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"b3096e2d-aada-4b7c-9449-6531b1213e97","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":106,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"55d61c2f-0b91-486f-b0d7-bbf7c12748d5","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":106,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"cf1f2c1d-52b6-4b14-a30d-c31d3ba595f4","block_type":"box","text":"offer other liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":106,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"89ac4ab9-1054-4ae3-9d63-bafcd9024324","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":106,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"32fd2836-a5e6-4bf5-9caf-5269b60fbbe1","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":106,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"7d9d8998-6788-485e-8659-e1ef1260e8f2","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":106,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"8d08d21c-77b0-416a-80cd-5e479e3c005a","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":106,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"897794e2-d140-4210-a035-8c8f87fd498a","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":106,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"7971cd1e-6a6f-4b8f-9678-a7d0c4993739","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":106,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"45d618e8-b738-4d5d-bf75-a8e3dee2016b","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":106,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"41a23880-7453-474f-affb-d43056539032","block_type":"box","text":"investment opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":106,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"c42fc83f-d4ed-4f80-973d-2093eae0a303","block_type":"box","text":"especially as that Fund grows in size.","page_number":106,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"715559b1-b26e-404c-8236-9b3079d0ee6d","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":106,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"26260ed1-e486-4f2a-92f5-60d8dde6b7f0","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":106,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"f2c7ba89-8f26-4d6f-8985-280628c28953","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":106,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"976532c5-7972-4af0-a251-e4fdf8c2dd03","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":106,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"7039e3a5-7794-4a0a-a8ac-a425406a8197","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":106,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"5a07d561-bec7-4ea7-8f31-3fe0e71ba5d8","block_type":"box","text":"II-71","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aadc061e-fcf1-43e6-8c0a-36d36eb77c0b","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"25ea31c9-e56e-4464-adae-5590b0eb692b","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":107,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"0b2382bf-0387-4d3c-8ce0-0889dd6f02e4","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":107,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"876b9f52-6efb-4c47-9483-dcec6db66bc0","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":107,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"d0bd0a8f-1f45-4b0e-9da4-fd4582c44602","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":107,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"27fe3c7c-d5ac-469c-8743-d21cf8218834","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":107,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"89ed5d5a-655b-4f8b-b9c8-852f8379c14a","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":107,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"d36ccbb2-13ac-4c8c-bf4e-9a1f934e0c5e","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":107,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"439835fd-2653-4165-b6c2-bb8e946c042e","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":107,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"33e0f35d-4d89-4cff-8217-aff77d36a8cf","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":107,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"3b10778a-0052-4609-9d18-0cacf5b8612a","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":107,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"78d84189-3032-4078-94e4-6f6acb51b2b7","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":107,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"8c5dd268-9052-447d-aa16-ebe17edb7920","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":107,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"7e8473b7-8052-40c0-baba-ce3b1f6010af","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":107,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"e74638ae-7963-4725-96cc-109ba7b52555","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":107,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"d5a7862b-848d-4d7d-9a33-62ed09dffcd2","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":107,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"a26cc2d3-32d5-498b-a252-d337a06a99b1","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":107,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"59dfa1d3-5ddb-4e08-ba0d-ac4056dd7f86","block_type":"box","text":"to another party and agrees to repurchase them at a particular date and price. A Fund may enter into a reverse","page_number":107,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"7b88dade-e11d-492a-871c-8574d13b474e","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":107,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"42bce54a-57ee-4705-85c7-7cd29f598dc3","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":107,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"b1f10afa-ff3d-4ba9-a5e9-1a9dae426953","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":107,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"ad2b4524-1d26-457d-b2a4-ba5cd65fa025","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":107,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"75b75efe-740d-4dee-ab40-c4ced010346e","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":107,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"d2d59800-1b37-4042-aa8a-ba1a591a50bd","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":107,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"d6715113-01ba-451e-87a7-2eae94bf8dd5","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":107,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"2754ad9f-b5b2-42cf-a320-cd9be668d436","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":107,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"c7761f60-abc9-4c95-bda2-30e000b916d0","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":107,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"de0f27c4-df81-4be3-a295-d2a5d21fe4fe","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":107,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"12bb0819-bac9-4ff8-9d31-e656b5e2dd0e","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":107,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"90ea9f90-92fd-4012-920e-4f4d6cdcaab6","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":107,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"6441a01b-3ced-4568-9254-6157cfa815e8","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":107,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"79480fb6-874a-4503-ba78-1a3c54f90a3d","block_type":"box","text":"similar financing transactions (","page_number":107,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"1bc99359-cb88-4f2c-b548-9941312548f9","block_type":"box","text":"e.g.","page_number":107,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"83a3a36b-c321-42a6-b722-bc5b11b0238d","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":107,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"71ba5f1f-86de-42d6-ad32-792463ce792e","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":107,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"aef4ddb5-3a6b-461d-86a0-a2bd6f8f2837","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":107,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"daf43c33-10f8-4628-8791-d173dc364ae0","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":107,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"fb346f8d-025a-4f74-b2f8-a2f3305e0fa6","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":107,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"45d0a292-58c1-4ece-97a8-c3918f1e4eeb","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":107,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"89a754d8-bbb7-4f4d-9583-3299775cfd68","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":107,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"7720bf67-edc4-4993-81f4-5ba566a14d55","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":107,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"b987fda6-207f-4b01-b07b-bac796f5a819","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":107,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"bbde8c39-1b17-4536-b386-3dc9fe479e09","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":107,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"50b20447-12d0-40da-b8fa-bce2747cb18c","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":107,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"e3e5f003-94ac-49fa-8781-ac8fcd5fa051","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":107,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"325c5da9-1172-49c4-bbb2-191c8bded1a8","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":107,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"5166397d-eefe-450e-bd0a-8817c51e0cbc","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":107,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"bf91561f-3a02-48bb-bc31-868c8b61d73d","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":107,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"165340f4-af02-4bc5-9c1d-0afbfa4f11f6","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":107,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"e0231fbc-0f92-4639-a08f-d2cc7c0d9528","block_type":"box","text":"amounts to be received under such agreements.","page_number":107,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"1b9836d6-6921-4646-a40d-8d5c01522fb1","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":107,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"f580ab01-bced-411c-82f2-9a5a788e6525","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":107,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"843ae1c1-5f47-4057-beb1-21489040308f","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":107,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"2e987c8b-26ff-4283-be4f-6b0c6673661e","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":107,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"1e2029dd-daea-4ca5-bf4b-44ee6b6215f1","block_type":"box","text":"normally have a short life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":107,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"ffe23fc3-19fb-4ecd-af0f-c19d73695c95","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":107,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"dbb906b9-e4c9-4f5c-8b39-0160ee49101d","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":107,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"9083877e-1048-4f9b-8a0e-c7e41cf7ed30","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":107,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"3bd67762-d9a4-4e28-b663-ca91bcd69d10","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":107,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"91758699-6fed-4869-a1e7-31983058a34b","block_type":"box","text":"II-72","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e7efde42-8b90-4862-848d-8416cb40fb9a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e4501f34-198f-4219-8009-41d7d5a010e7","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":108,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"5769a18b-0a20-4f45-9cca-8b59ebe6a8e9","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":108,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"5ad6bd2f-5923-49c5-9785-7b02e6c4b3ca","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":108,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"a1d4670c-6439-464e-b5c0-6df118bbbbf7","block_type":"box","text":"Rule 144A Securities.","page_number":108,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"89f70d0e-52ff-40a1-8355-d9076bdc59f9","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":108,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"14495c3b-7960-4d10-8a95-6f6ae5c1a342","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":108,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"61fbfe75-6cd7-4ef9-8428-d0c92491b68e","block_type":"box","text":"Securities Lending.","page_number":108,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"6bddc848-6df7-46ff-8446-75e45cd3defd","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":108,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"2a73884f-4bca-4d18-a131-91f4ccaf3cca","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":108,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"a911076d-a353-45d9-be79-dc2a5ceebd39","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":108,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"557f8acd-1e2e-49e6-aa5b-ed3133314f6e","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the particular Fund exceeds one-third of","page_number":108,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"2b5ee735-7933-487f-8427-517fcabdb8f3","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":108,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"3ffa1de5-778d-4bcc-bb45-29d68a2b04a1","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":108,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"a35e3091-c60d-45f1-b841-ff1784f3dfc4","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":108,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"cb15b2cf-9e21-4338-b548-e2323f9250bf","block_type":"box","text":"the securities were not on loan.","page_number":108,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"f6fab7da-7abd-485f-b3bc-24f623901745","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":108,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"0f62c79c-c6a5-4140-a8cf-ce497ba63769","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":108,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"854dc627-4a06-44e7-a340-eb313cd45420","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":108,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"4408c0c9-485d-45d3-b293-8d9dc7ca44d8","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":108,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"d5067291-139c-48e9-848e-3397574a40e8","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in certain short-term","page_number":108,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"573ff40c-43d8-4157-9ae6-475c2ab14fee","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":108,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"34fe109f-54eb-451e-98a9-accf3f762999","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":108,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"093da965-a030-4380-a522-51630726bc1b","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":108,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"ac4f2f50-7a95-41ba-990b-a98143a78c9b","block_type":"box","text":"i.e.","page_number":108,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"79e0f263-ae12-4a2b-8093-b76d9991ff3f","block_type":"box","text":", the risk of losses resulting","page_number":108,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"dbd4471a-0d67-4190-8f22-965054a69477","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":108,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"f3c18aaf-51df-4fc3-90dc-1786c08e9198","block_type":"box","text":"i.e.","page_number":108,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"c46d02cf-f530-4209-a42f-d866f4c078d3","block_type":"box","text":", the risk of a mismatch between the return","page_number":108,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"93bef199-bcb6-43d9-aa4a-8728937b08b9","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":108,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"433c172d-3b3f-438c-9695-b8ea27b0d189","block_type":"box","text":"i.e.","page_number":108,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"ffc8a128-2a3c-4c7a-8215-2fed7d755d98","block_type":"box","text":",","page_number":108,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"c19afde8-9304-444f-a17c-9c513d4500d8","block_type":"box","text":"the risk of a shortfall at default when a cash collateral investment is denominated in a currency other than the","page_number":108,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"2ca06a70-811f-4f39-9555-f1fc34b996ba","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":108,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"db7f963d-d850-40c6-8fd8-796d3f379278","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":108,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"ea1f46a3-13f7-4627-8f0c-e8906aa9f349","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":108,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"bb603ab4-8d44-4bb7-84d7-ad9b025911d6","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":108,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"e79ba803-7869-48f3-ae48-6ee297c610f1","block_type":"box","text":"are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":108,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"76e5dda6-4a35-40ca-8b4e-14fddfc3d2d5","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":108,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"dc370398-fd6a-4f08-a9da-34ae1742d2ea","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":108,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"d3099cc4-e520-4bae-8d7a-892f1ec867e5","block_type":"box","text":"securities lending counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":108,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"1443113b-0ba5-460a-8326-a7b376d67368","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":108,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"d92b323e-94cb-4c48-af17-66b940b96ad1","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event","page_number":108,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"b4166059-0bcb-43c0-bb57-596bee557b7a","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":108,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"1e36f184-a82e-4d29-807f-525217a6939e","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":108,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"28dce620-43c6-4e4d-8a44-31142bcea1ef","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":108,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"527e8046-9575-48fc-b04d-cac2be66684f","block_type":"box","text":"could lose money if its short-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":108,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"154313c8-6563-4a0c-868a-f671cf0c1fc9","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":108,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"ae7a3302-31b3-453b-bb22-9c59b44ccf85","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":108,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"1497bf52-c033-45f8-8e6e-5db44a9a3aac","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":108,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"6c0b9552-afa6-4bc4-98bf-0efcb9262ed4","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":108,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"b6a342f0-6db9-4640-ba07-9b49d1029d97","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":108,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"3b1582df-00c2-4c9d-a605-d53d1e1a9968","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":108,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"553b834d-3bac-46fb-9434-a5341b476a3c","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":108,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"d629a1a1-14c7-4311-82b1-06062f572dd7","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":108,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"abca7ad1-e86d-4cfb-a241-9b2f19ae1c7f","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":108,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"199fb956-cfad-403f-a880-5c7ce67e86d4","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":108,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"5bccfbff-c385-4ce6-a4e9-62bd50182642","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":108,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"0dd00136-3ca1-4268-a507-b3ef09e6a04d","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":108,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"f3eea003-7f67-404d-8780-8d842c55dff1","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":108,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"2cf0c4ac-2782-42b3-991b-d7b02ca2e9a5","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":108,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"0295f2e7-6104-4241-aaef-57291ae03141","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or","page_number":108,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"a8d99aef-a9c0-4751-ba6a-d97e7f65a7b8","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":108,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"84b8b026-c070-43ec-a61b-b834aa00bcf6","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":108,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"88af1e80-da26-438c-8cfa-2676ee6184a3","block_type":"box","text":"II-73","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a9e7b43c-7b84-4abc-bafa-08e987fee56c","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"12545d4f-0dff-4b52-a631-1bd597d4e400","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":109,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"7c43ca86-5b85-4405-a2e8-5c2a60eaf2a1","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":109,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"9f6f5485-1caf-48d2-8a7c-bf2eacdfba89","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":109,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"c59a7bf6-f22a-4950-97b7-73c73612398f","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":109,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"b9bd0fbc-6e51-4408-aba0-4f493f7cbf56","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":109,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"76bb1efe-ac6b-40ba-afd8-f7399dab8b47","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":109,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"96ddaa87-d846-4384-b630-5bfeba54b53c","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":109,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"540b2c80-0c05-4a52-bc2b-d535246b606c","block_type":"box","text":"entered into in connection with short sales. Compliance with this rule is expected to be required in late 2028,","page_number":109,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"0d221f1e-99fd-4756-865c-dcf9e09af7fd","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":109,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"63628cda-553f-4de8-b2fd-00a1fbf37147","block_type":"box","text":"the current expected compliance date.","page_number":109,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"a7c6ddc6-44fb-4896-8198-94021e3841fc","block_type":"box","text":"Short Sales.","page_number":109,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"f22372b2-ab03-4fda-bdcb-998f2a603770","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":109,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"8e97ca60-2b16-4272-91a2-229ade2da885","block_type":"box","text":"value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":109,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"a8257851-862d-4774-96be-2fb02e791ef0","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":109,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"b4ec81c2-2681-412c-a6b8-c621f8455628","block_type":"box","text":"“against-the-box.” In a short sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":109,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"513ecf02-a088-49f9-8aff-567ddcd934e3","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a short sale, it borrows","page_number":109,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"71e78015-9254-4eed-8b12-3e7969f97b05","block_type":"box","text":"the security sold short and delivers it to the broker-dealer through which it made the short sale. A Fund may have to","page_number":109,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"2cfe09ee-d895-459d-bcca-338ec6b7fd5e","block_type":"box","text":"pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed","page_number":109,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"dc7589b6-82ba-45e1-b259-38c6a5c7f1e8","block_type":"box","text":"securities to the lender of the securities.","page_number":109,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"6a12724e-ed5f-47ac-a2fc-6129825eb748","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":109,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"11f280c4-233d-4434-9676-a9edd15e85c3","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":109,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"61745ca9-b652-4879-9343-131b88d50ee8","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":109,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"64b66717-8b03-4220-bd4d-e924b0a3193e","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":109,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"28eead34-5f88-4297-8c04-60a20dc61e5d","block_type":"box","text":"market value of the security sold short. Depending on arrangements made with the broker-dealer from which the Fund","page_number":109,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"3173e72f-6f7a-45cc-acba-9f0e827141a9","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":109,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"cb95f1a8-c506-4785-a181-eb94ba200cc5","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":109,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"a5e00584-8b83-458a-8921-104d89efcfa9","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":109,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"3f39e598-fb03-4098-a7fe-eb0501ecb9ec","block_type":"box","text":"securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a result of a short sale if","page_number":109,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"173b2a2f-d519-443c-bd7e-b16ae7872c44","block_type":"box","text":"the price of the security increases between the date of the short sale and the date on which the Fund replaces the","page_number":109,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"ee19a208-2c03-467a-ac15-0c46b2e0b84e","block_type":"box","text":"borrowed security. As a result, if a Fund makes short sales in securities that increase in value, it will likely","page_number":109,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"1d524e16-e555-4243-a402-f4c9f804d126","block_type":"box","text":"underperform similar mutual funds that do not make short sales in securities. A Fund will realize a gain on a short","page_number":109,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"caaa970c-4331-4435-a5c5-015e11049f55","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":109,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"578a1626-00d2-4599-a878-a3a5b996bd04","block_type":"box","text":"close out a short sale position at any particular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":109,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"09916fc4-37cb-4ee1-bf21-090c6dd3c137","block_type":"box","text":"the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the","page_number":109,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"24d2aea7-2187-4d8b-955f-910bf2359fed","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":109,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"1eaed028-1072-4332-8288-050d81f24f72","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":109,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"4f938c74-f680-4443-aab6-c95b59c3b7b8","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short sale","page_number":109,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"a3620b34-8fed-4ae1-b758-70c1b86d4bf9","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":109,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"550b6bdc-c0e6-4b5e-a0ea-5c612844845b","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":109,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"2fa5e6c8-d117-43be-9ce6-a614f9200b2f","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":109,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"3cea855a-90df-43cf-9e6d-d99d94f350ac","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":109,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"f24fc54e-3e77-4094-9c58-2376953b819b","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":109,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"a42aa0f6-bd84-4cf8-91c7-c07ea64c9391","block_type":"box","text":"Fund’s ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its","page_number":109,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"cc5219a5-a749-46d6-8f84-c8527bc4f001","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":109,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"2eb97d9d-5266-4928-a054-9c734962bde5","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":109,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"e71aefcb-820b-4d95-b3b5-a5479786aff2","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":109,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"2db65324-59c7-4267-bce1-1afd754d5a02","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":109,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"b97c3257-103b-420d-84d0-ac321a8dddc0","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":109,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"d2afe3d4-4f78-4dad-8a87-c828c3d52de5","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":109,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"3ac5a3eb-ed7c-43cd-bdbc-86b2ee731704","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":109,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"38b65548-c052-4c27-83d3-da1fbe5b2f34","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":109,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"3c1c2606-5a7a-4d75-9645-ee14b31b0954","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":109,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"b0f7c270-cc45-451d-9e2b-480b35e6d96e","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":109,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"8964af4a-d320-44aa-9126-c0d13f4a8e74","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":109,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"de3e917d-e523-4b6e-bd71-04deea530a1b","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":109,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"e4cce311-843a-45b2-bae4-b70b05d59e38","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":109,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"3ce8a048-95c3-4213-bb3e-9083883162c3","block_type":"box","text":"II-74","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a37c8426-c849-40cc-8095-b4f0de8fb345","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"10bd5638-7228-4a33-95e2-baec45d88b9f","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":110,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"be48ca68-63b1-4e5f-8eec-414b692d0046","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":110,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"3aa2b222-0170-45d9-a7ad-c7ed2c6b55c8","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":110,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"57569af2-079f-478e-815c-c789b3691b0a","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":110,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"10ed7735-8dea-46e8-ae6f-72fb89669b2d","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":110,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"908dbd46-afea-4e6e-9e80-44f9506b439a","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":110,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"11be7f4f-3ebd-4519-870e-7f339cd469ae","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":110,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"227386e9-5117-49b1-889d-77807c65fc67","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":110,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"34e15a42-3381-40e8-9e8b-d45dccfdf495","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":110,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"0885449c-5f32-49a6-aacb-c60136f551ab","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":110,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"de459351-bd78-4e86-beda-0006fa7b9cc3","block_type":"box","text":"certain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":110,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"0b0e3b0b-4ee6-48a3-884b-5ffaf5ff9fb2","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":110,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"c0b0eb0b-b3c1-4bac-a929-69ed18bc8d0f","block_type":"box","text":"Standby Commitment Agreements.","page_number":110,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"6e94a3b2-7fd0-47ba-af27-783df4c16867","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":110,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"8f631eb6-797f-40ca-9668-1dec6d8cb2b2","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":110,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"782d8813-e427-466d-9a62-c2218f0a94b5","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":110,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"805ba2fd-2341-43b7-9c4e-3edd0bf4c7c5","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":110,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"104db204-39e0-437b-95d3-631f6cb1a551","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":110,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"c4b2fca1-bea4-471c-963e-580388886bab","block_type":"box","text":"advantageous to the Fund.","page_number":110,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"c1e5ea54-8a3e-46c0-8eb2-5137ee4b31ac","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":110,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"9e00fa9c-efb0-4f5a-8187-74470730813f","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":110,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"3fa14d09-9944-41f6-94cf-eaac6e1abbac","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":110,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"fb54df4b-5eba-42a5-b00a-2c19bba4c784","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":110,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"5933220d-dcf6-4be1-a087-a47eb72f976e","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":110,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"74b41d34-335a-4399-b217-386af5ac2c19","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":110,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"d5045042-bb66-46eb-8c51-643682c5b9ca","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":110,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"f04ad6f5-f8fe-46d5-b7af-1de1b863dc5c","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":110,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"b877a0a7-7de1-405a-8791-d2944beff7ad","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":110,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"151bd715-63ed-4980-8eeb-15de27bd6221","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":110,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"abbc3699-012a-416a-a7ed-0f050f9bb63e","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":110,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"fee21fa7-024e-4772-875c-db398b9d7055","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":110,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"6c3b2bae-4262-4f44-b658-ed8d78da58f5","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":110,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"bf9b4475-9922-4fb0-b9cd-78b11f54ccc7","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":110,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"7fcef940-b004-4f6c-90a4-75b881cfae98","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":110,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"18a73270-ddf7-4ab2-9462-a171ea7ce3b9","block_type":"box","text":"Stripped Securities.","page_number":110,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"645f2574-eac8-48a1-99cd-b1eb4fa1a7d4","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":110,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"646127dd-331b-4f04-bcac-6884bf1a914d","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":110,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"d37d7fa2-2cc1-4223-b76c-bcb61a437629","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":110,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"9c4d00ba-6bcf-427f-8291-f5d0339721e0","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":110,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"bae7e92c-5048-4965-a420-5cdfdca66964","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":110,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"d630cf15-ac2c-4e48-a4f4-6abdaec06747","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":110,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"4f4c8a1a-c350-4b1f-9d29-beb5f45d0ace","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":110,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"d59e706e-b10b-4e26-a29a-0c09dbdef8ac","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":110,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"6124a3df-e91a-4b1d-b2f8-43a6c0c30bf0","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":110,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"1597cdf2-49e6-448c-8de1-52673ab2b28c","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":110,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"a2ffce37-b223-4081-9ae3-22349f3fbcdd","block_type":"box","text":"Structured Notes.","page_number":110,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"971f450e-72af-47d6-b0f1-338e08665f17","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":110,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"60ccaed2-e61d-47c5-967e-1a716c04eb44","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":110,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"7f04b3d1-9480-462c-aa2f-c4a0e78cdf7d","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":110,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"cd0eefaf-f309-4112-98b8-8414103d0588","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":110,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"b335e6bf-a9e6-4576-80ef-448a43658bac","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":110,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"f63fd35d-a6bf-4089-88bb-9a85c48a09c8","block_type":"box","text":"may provide that, in certain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":110,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"bf2ce320-47e2-48d3-9454-0edd85b957ea","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":110,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"77737220-806f-4518-b82c-cd1f15e657d7","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":110,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"32b255ca-4e09-4edf-95f1-f66d9950dfb1","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":110,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"15dbb26a-b326-48a3-a0c1-213611e77cf9","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":110,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"3782fcef-1d4d-4f86-b141-83b34931fa80","block_type":"box","text":"II-75","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"feb782f2-5087-4cea-8223-6cc11f8ae7cd","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"efa87884-45db-4bbc-aee3-16b39988f195","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":111,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"950b238a-cccb-4f16-80e4-29a821f22911","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":111,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"147347e6-b250-40a6-8293-0145ba5fcd75","block_type":"box","text":"the risk of loss.","page_number":111,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"07bff21d-dfa0-408a-90b4-2b7c4f35b72e","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":111,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"2818d237-5632-4f8f-9fc0-acbc04e0f8ae","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":111,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"0e508e07-ddc4-4c7b-8b8f-df82b19b7b17","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":111,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"407cf6a5-6e35-4142-bcd3-7db2a9e168f8","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":111,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"2392a3ec-9e68-45f7-9587-6fc3ad0d5626","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":111,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"dab52519-deef-4e9f-887b-04338ae3a72f","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":111,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"99e9ed27-4dfb-4a64-90e0-e6c5900bc400","block_type":"box","text":"Taxability Risk.","page_number":111,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"c35816e2-f60b-48a9-80a9-74a3d8d68d21","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":111,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"f53ae1d2-1abc-488e-a660-2e6791c2eb86","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":111,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"2d03371e-ed36-42cc-b268-e66662ff0189","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":111,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"dc015e9b-f2a5-4c99-a815-a19b4353433e","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":111,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"9cd78ef7-b4eb-468e-b39e-7c55ee800e50","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":111,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"f77048c0-5171-4be2-b27a-e605a5443ae3","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":111,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"8b65f68f-e6b8-4313-8b8c-fb2f6a150a06","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":111,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"c12d4874-1150-492d-9a3d-987640cccba5","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":111,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"5323ec0b-e18b-4901-9d44-10bf0602086b","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":111,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"40bb52b2-f571-4266-95a6-6170a1e8b972","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":111,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"bdca248d-dd99-47ca-8004-ffc21686b307","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":111,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"7c3d3159-965a-4c11-a18d-b2d60c903c6d","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":111,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"ecb688d6-73f0-46f5-926c-8876c3a00405","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":111,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"f38f1e49-8bc8-454f-8f5e-1f0b300a5040","block_type":"box","text":"local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":111,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"608fd148-814a-4f84-9af1-7e0f128c6f4e","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":111,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"dd17405e-bdb1-4f2e-8332-ec0effa34053","block_type":"box","text":"the value of an investment in the Fund.","page_number":111,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"ad8ff62b-b3b8-46ad-93c6-5f701a9f02fa","block_type":"box","text":"Temporary Defensive Measures.","page_number":111,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"45566e9d-38ca-4578-86cd-7e661400a6a6","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":111,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"5fdc8487-97da-4046-8f67-5997ed0103fa","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":111,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"e955bd9a-628b-4b40-adc6-3c08e5e752a0","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":111,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"b46d3ad2-1726-43af-bde3-634df55d45f5","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":111,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"3712e533-52c8-4610-a05c-e3a2a349acad","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":111,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"d2d35b68-a759-4317-90cb-d8eb6f475531","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":111,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"4e81965d-8067-4931-8f83-63b40a0c6d06","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":111,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"abc2f94b-348c-45e3-89a3-9686cb3a5669","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":111,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"38440d7c-c53d-491d-9b7c-cd9b5320277d","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":111,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"091494ca-8a60-46c3-bd6b-8acce0f89260","block_type":"box","text":"its investment objective.","page_number":111,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"f3dd7810-fe8d-47c5-8bcd-4c8d57826a54","block_type":"box","text":"U.S. Government Obligations.","page_number":111,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"167713bb-f80d-4612-8042-6ceba0bbc752","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":111,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"7ae94d8b-e673-4339-ad90-2f1999f6792e","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":111,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"d22fdc55-6c84-498b-94ec-83f9b6536d7e","block_type":"box","text":"U.S. Government are supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of","page_number":111,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"218c604e-eb19-4d8c-a5c0-be2ae1eed870","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are supported only by the credit of the agency or","page_number":111,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"1d82188f-871b-47e3-9c1b-d571d655be73","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":111,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"d7350601-4273-41c7-8df8-aae6fbae7c05","block_type":"box","text":"support to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury","page_number":111,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"3c2eb0f1-42b6-4ad6-9be6-ffdbdfe71fd6","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":111,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"50da3e2e-89b9-4929-a0d3-0a6dc2628370","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":111,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"19b544af-3fb7-4edf-81ff-36a0e80edc65","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":111,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"e195496e-41b7-44d4-878d-8823f54ddb3d","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":111,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"c69bbc37-8f88-4941-9c28-bb5db5efd98d","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":111,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"f9c4122d-f4e5-47e1-baaf-4c99dc8ff463","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":111,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"ef38a5f0-4007-4110-9f22-d685c3876323","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":111,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"933fbfd2-6bc3-4a06-be11-7dc656583ffa","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":111,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"18ef090f-8a11-4d2d-b749-4c78343b86b3","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":111,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"02042604-1227-4d87-aef5-51f2467fe4f5","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":111,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"31bb6401-a8c6-43c5-a6d5-005f9c7311bb","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":111,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"d582acb9-77a6-44f3-989b-4630eb02593f","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":111,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"5b42429a-f897-4e92-ab45-7603735c289e","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":111,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"3bddc8ef-7b0b-419a-a523-238835c75fa9","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":111,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"3f30896d-ed4a-4dc4-9aa9-ce27105312b9","block_type":"box","text":"II-76","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e7ac5c3d-ddf9-429f-a643-4907aca9cf3d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"31ae8444-38e1-41c1-9376-0515b088d05c","block_type":"box","text":"U.S. Treasury Obligations.","page_number":112,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"571cf74f-f6ff-4bcd-a7aa-2a25133c5488","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":112,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"56dacb37-76c3-4627-ba93-3f06739956f0","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":112,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"02a8194f-57e3-4e68-8ecf-8e8cad65f811","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":112,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"c6ff6bb3-ecc6-4123-a7d7-f17de7115fb1","block_type":"box","text":"that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to","page_number":112,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"f51cbbdb-47d5-46b3-9653-827dcc22e896","block_type":"box","text":"do so.","page_number":112,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"68c1dd3c-538d-4626-8ed3-6c03e0508515","block_type":"box","text":"U.S. Treasury Rolls","page_number":112,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"92c992bd-8a3d-4a62-a5bd-46a9ef5e62c9","block_type":"box","text":".","page_number":112,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"c3f349e6-df30-4041-bded-e3262e7a92ed","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":112,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"8db13efb-dbd4-487f-ad0c-5648ade15195","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":112,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"8a9f50d1-8827-42c5-986c-6977829b6128","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":112,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"c24ae4ab-4b27-43de-a531-b4f377fea965","block_type":"box","text":"maturity of a Fund’s portfolio and increase the interest yield on the Fund’s portfolio by extending the average maturity","page_number":112,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"3324a7a8-6908-44f0-b348-80ee01a2f31a","block_type":"box","text":"of the portfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":112,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"e1c98a3e-8de4-4a7f-9eb8-3d24d1e15e7f","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":112,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"23c5cc6a-28dd-4c76-92b9-911caa771aeb","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an opportunity loss if the counterparty","page_number":112,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"c7cead2e-e7cf-4bdd-9ba9-147e65038e65","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":112,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"505537ce-21e5-4c11-a4f4-11497e72378d","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":112,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"7673f9b6-f53d-458c-8b84-fed1dd56ed0f","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":112,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"e200e8ab-cfe8-408e-875c-ea7d05e0bbc6","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":112,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"e178384b-f6e7-45f7-8dfd-39cd458c7ddb","block_type":"box","text":"Utility Industries.","page_number":112,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"30529483-96a9-48cc-ae9e-5e63587f0646","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":112,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"34aa72eb-3f9c-48b1-985e-bf11b30b34a0","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":112,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"3a795ede-e36e-4c88-a9e6-8d4b70c58c31","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":112,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"0f8e03b8-e349-4d63-9901-b4235b8a4618","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":112,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"f4942394-203e-4e91-9780-e6bc9f1ebb01","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":112,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"b62be256-d6ee-44f9-a237-f18b3ab8c5a8","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":112,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"259ad8f7-f823-4ba1-a91e-ffd7eebfa0db","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":112,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"54e0b8e6-f2bb-4043-be42-38d2a969577b","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":112,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"f655eb7c-367c-4cfc-8514-d48fc85d0302","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":112,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"658826a6-a459-4f33-93e9-5053e44fc375","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":112,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"257db1a6-16ce-4723-8ced-4bebc304c82b","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":112,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"fc7d03ad-70b6-45d2-ac2b-1264da46ada8","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":112,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"16b35824-9ee6-486f-b4c3-bf94898f2d6a","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":112,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"cb902b74-243f-451d-a3ea-df8b89983e53","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":112,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"3f4a4012-b04a-4fc3-8a60-8315c86cece2","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the issuers of securities","page_number":112,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"010bd2e8-e1fd-4e91-826e-d4c9007747ac","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":112,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"6ed833cf-00c1-44ee-83aa-05c00db3ae3a","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":112,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"6822ecdc-98ad-4d9d-bc46-9df5cc6bfaf8","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":112,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"963b70aa-f110-4f72-9d29-8e109139c182","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, particularly a hydro-based electric","page_number":112,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"57a718ff-880e-411e-b488-4540ddc8e4ad","block_type":"box","text":"utility.","page_number":112,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"36fd216d-fec5-4890-bfe1-9a73af291d59","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":112,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"bf08e492-e804-433b-ae99-9ad4b9c829c7","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":112,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"5d99adda-6166-4472-a8f7-579444b6db99","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":112,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"95803f7f-acd6-4cd3-8f81-64883fa9097a","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":112,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"2c8a335c-4895-404a-a176-9000ea1c15d5","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":112,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"985811fc-f164-4e07-bdca-622c8b2c7b13","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":112,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"42a88957-d4dc-4df9-9e1b-461857595f41","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":112,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"39be543d-41af-4f08-9617-53beeff5050c","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":112,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"23c30640-b93a-42c0-8553-172e9d752be0","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":112,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"fe33a168-096b-47e3-b374-adc7f85ba3fb","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":112,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"88041c7f-ca02-428f-bf17-a5aa09836924","block_type":"box","text":"continue in the future.","page_number":112,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"80c83296-ec53-47df-bb34-f2f6a40d3888","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":112,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"9d60111a-73a3-44d7-8d56-483f2b0fb448","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":112,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"f8ba2e89-4a5c-4859-a2d7-4719dbb1731a","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":112,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"1b196eaf-5072-4f13-9241-8d0260709439","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":112,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"0960f822-e078-4e3a-a876-ed966b1c1f45","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":112,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"ad80e05d-5051-4c31-a978-9fce5565af1b","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":112,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"b3a600f9-8a17-4acb-95ec-ab261b9540a2","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":112,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"81ec66ac-9610-4d6e-a92e-b87b2021997c","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":112,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"6301496f-74b3-4e3f-b01d-170b3c5fd348","block_type":"box","text":"II-77","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d459006f-a23d-4259-b834-6ebc415a250d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e1080d48-f3f4-44a1-a95e-41f617e3c427","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":113,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"11b736fd-568f-4fe5-88bb-733a88283bb9","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":113,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"e7486c91-e3e3-4bad-9d32-7cd6febff16b","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":113,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"ad1f2099-ebb6-4eb0-8867-0c8b689110ed","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":113,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"ac09280a-0ddf-4fb5-ae75-c6128408b799","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":113,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"226c7720-dbec-4f78-a095-7907999c70dc","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":113,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"1053e9f7-0613-48d2-85f9-c53fa3686562","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":113,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"899b89a6-4e3e-41a1-9496-a68e02913259","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":113,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"c389fc51-f7cb-4765-815d-f2f7c8a076f9","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":113,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"d8cdd9e7-358c-4023-bda4-2d8f418bc9bb","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":113,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"c21cc523-42e0-4be6-9fd1-add2434471ab","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":113,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"5c922be0-60de-4b7c-ae23-fbc244c6e40a","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":113,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"32ddcbd5-0ee2-4155-acb7-3f2307e9cb59","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":113,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"033fb0b8-f121-40b3-998f-3070ecd7d51c","block_type":"box","text":"ways different from regulation in the United States.","page_number":113,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"09f416cc-946d-460e-9be0-fb4d982ddfc2","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":113,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"54113769-fb4b-4410-9858-4e84eef4a383","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":113,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"33a44d3b-edf5-433a-ba7f-fa6ffb665a69","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":113,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"e7334720-7078-4534-82a2-9c7fb9e3d915","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":113,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"625c02e2-4b12-4e05-bab2-17b3d25e3371","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":113,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"d3f09502-016d-4cfa-8092-2667c9d838a5","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":113,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"7381ccf9-d1aa-4b8c-9664-d5d8e869fe30","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":113,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"4f5d5d25-1b7c-4e8d-bf40-3b0b9a47ba9e","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":113,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"17ef7767-4b51-4b29-a6ea-de2a18a619f8","block_type":"box","text":"increase.","page_number":113,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"08fcaab2-2188-4b6d-92da-da8f8e9c37bd","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":113,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"c88a12ab-ddfb-437f-bc63-be7e481cc6f4","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":113,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"1c160e3b-a5a1-4562-9b80-1da58a989a44","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":113,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"21ca5394-9691-4c2d-99b7-b32e4f985edf","block_type":"box","text":"Electric.","page_number":113,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"91ccee0d-374a-4fef-b03e-d5bfd95a7dbe","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":113,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"661dd8b0-d81c-4ecd-8cf3-755edd65788f","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":113,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"e5765fbf-2c6d-4e84-989b-e1e3dd340598","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":113,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"0e024ef8-2aff-44c4-8d18-47fcdca4b131","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":113,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"2960fafc-2a7a-47d1-94d2-8aca2857c430","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":113,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"2d3bc6b7-bb8f-4d25-93b5-338ebee8d505","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":113,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"2219a293-6001-413c-8a47-b61c80466ad4","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":113,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"acc96e89-568c-4e0d-a09a-1945aacffae1","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":113,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"f7c16332-66fe-4325-8812-f0fbda81c538","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":113,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"5d546ea9-e72f-451e-a537-7d9ae3671e09","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":113,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"28e8b6ad-eb6f-4fd2-b4c7-aefd789f4db2","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":113,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"5593360a-60b8-43ce-bbf8-ec06f35d31bd","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in part with customers. In a period of rising interest","page_number":113,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"d56d4996-f23a-402f-85d1-a5adff5f0570","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":113,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"22fee32d-66d8-49bb-9ee4-7c998aa3467b","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":113,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"4e0cc039-9ca8-4c43-bbfb-1053d6103a18","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":113,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"1296db81-1c91-4d4e-b1b0-2416abd9053c","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":113,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"83856c64-067a-4db8-a550-6ea18ec40eab","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":113,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"febab099-98bc-4186-81b4-48a0a18e710c","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":113,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"a29a94bf-fb49-48a7-b120-a149917b44c0","block_type":"box","text":"and for decommissioning such plants.","page_number":113,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"44a4e378-40f3-4431-879d-ba18bd5f89c9","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":113,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"5df9fe71-5e96-4de0-9a42-ec4c67f17279","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":113,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"bbfff2f1-69bd-4f42-ac39-b743082c3da9","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":113,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"965f0e04-7e88-4a75-a5a8-6e5689fcd655","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":113,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"639d8bc3-9c0b-4010-9c07-0bd1609c7e37","block_type":"box","text":"is expected to be the least competitive and the more regulated part of the business, may see higher ratings given the","page_number":113,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"9a6d362d-fd15-4ac7-8cc1-6ce5d79713e4","block_type":"box","text":"greater predictability of cash flow.","page_number":113,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"7a345222-e083-44e9-a112-02bc6e119e04","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":113,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"e0ace97b-512b-4a16-af2e-ca1d5adb7a3d","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":113,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"b7043de2-5265-48d8-86c6-c322fbef3c1e","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":113,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"76e7e738-d078-4a91-a15b-88cc0b314a49","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":113,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"bedef525-76b9-4bb1-afad-bcdf56e5efb6","block_type":"box","text":"II-78","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8be9871c-e6e0-4072-81f8-a236b28b1ee1","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a7151fbe-cfff-4746-8ce6-a76c941b05c5","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":114,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"0e759b13-830c-47ff-a3ca-28f6f0fb8404","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":114,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"0f9f1d47-b252-4425-94aa-6bffb8aa7d9d","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":114,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"c2728fac-48db-4a61-96fa-9c3b03aa9e63","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":114,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"189666b3-3767-44e3-ac9d-9f5c509b7b0a","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":114,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"4c6198bc-05e9-44dd-8cda-87742b5cbebd","block_type":"box","text":"Telecommunications.","page_number":114,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"dd13035d-7f70-423b-b802-abd488cf423e","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":114,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"e666c2a6-2eac-4a0b-ac0e-2d0515834b41","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":114,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"b404886f-6c78-4e2e-bcc4-162d97916bba","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":114,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"d63f1ef8-7dff-456d-9778-882f1c29cd19","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":114,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"d891023a-fb08-47b1-974d-77e3f17b4142","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":114,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"c4cf4610-c016-4d00-ae97-28d2e97c3e7e","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":114,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"bb8a71a3-0cad-4738-b6c6-b89472a4f29c","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":114,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"5c353204-99ed-4b64-ab41-d1d48f373216","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":114,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"8fd728c9-2981-4d83-949e-07a627310d9f","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":114,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"4b66d9da-898f-40a6-b0df-137a1965247e","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":114,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"90311b78-228e-40cf-8ed8-6480d793d8ff","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":114,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"8c0dbcfc-cc52-4af6-8904-7d76a50a1531","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":114,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"92c220a4-47a1-4bb7-9ac3-bc1cb85e8656","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":114,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"dd524a9b-f2aa-4d1c-96d9-1f57becb8f2f","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":114,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"15b3ac90-e2fb-4c54-ab5c-85738a8e06df","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":114,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"4038e4a8-b1d4-462e-ab2c-163c02abe9cc","block_type":"box","text":"residential, corporate and governmental customers.","page_number":114,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"b680a8ce-4856-4b16-b178-3d1a007a1899","block_type":"box","text":"Gas.","page_number":114,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"08b63920-d9c6-4db7-a288-1e34c9b043b3","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":114,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"e4d488b2-9bc7-45f5-b674-f5a4bfeb46a6","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":114,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"3725908a-c55f-47ef-b16c-417c2b7b5bba","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":114,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"1e334283-9925-46a5-8338-a95a95526f5e","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":114,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"4557156e-e1fe-49d8-8fde-97494b7d6e97","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":114,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"49019ccb-0282-4793-83fb-9cfa019c5217","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":114,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"1b8388f0-d715-4ee1-ae18-4f9f2b7f2d50","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":114,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"b52f20aa-53a1-4736-b0bf-e080e1a707e1","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":114,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"d55da571-a7ef-401b-abcb-bfe24b165808","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":114,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"2208f9cd-ccb8-40d1-b299-64ed34b7dad5","block_type":"box","text":"Water.","page_number":114,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"4e009e2d-fd3c-400a-920d-b69f8d4861a4","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":114,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"d3bb167e-c7e9-4270-a02b-27c761c6388a","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":114,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"c2064058-0146-4efe-be3f-7664fefd9a3e","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":114,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"84333bd9-dfb8-4f25-9ef8-9c5d3a570b5c","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":114,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"278797d7-ba0f-45ea-a49a-030c518de05a","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":114,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"88f9174a-76bb-4204-87dd-858d085265a0","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":114,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"7c7b3657-c248-4be3-8944-2aadcd160771","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":114,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"44354bd3-64dc-4503-b8af-e6c2b9cc5422","block_type":"box","text":"Utility Industries Generally.","page_number":114,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"aa105f4b-2858-40de-ab2b-068710a448c8","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":114,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"3c5c4276-e4dd-42f1-9279-b2972404cecb","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":114,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"fba19de7-f5ab-46f2-8b90-5eb9efd3558b","block_type":"box","text":"not develop in the future.","page_number":114,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"d4fcf5e4-7519-4b40-92c2-607222f2a531","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":114,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"a9129732-12c0-46a2-bcc2-59611a1165d3","block_type":"box","text":"A Fund may purchase or sell","page_number":114,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"fa422fea-c0a2-4578-9a07-9b16fa062465","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":114,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"763eeb2d-ba84-482c-978b-14e42125a6f2","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":114,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"291e0250-d753-4efc-b231-5d165cfe2924","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":114,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"b8c396f7-9b0f-4b49-848b-45f911790772","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":114,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"81ab2b72-cd8a-4aec-a836-aaf03da88ecd","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":114,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"f5984b9f-7a2e-45af-8a0f-9753ae067d29","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":114,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"140c1264-681d-4655-814a-ccb5767b1605","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterparty generally will be required to post collateral when entering into","page_number":114,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"531516b6-3cc4-4958-9494-6e72a03346e1","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":114,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"65bafed7-362b-4f2e-8e15-64d43052fd04","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":114,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"65d6ae88-47aa-4117-94a3-c505251e0aa3","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":114,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"15e69ff9-83dd-4230-8876-afc7832358d2","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":114,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"aa83256e-8432-4497-bc43-053cfe6d4502","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":114,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"5a67a130-929d-40e3-a8cc-24f5e2fa3f56","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":114,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"18b71788-919d-4af3-847f-511d316327c3","block_type":"box","text":"II-79","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"421639a2-0e41-4351-a208-ff28b430db4b","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0d592ba1-2561-4ec8-8cd4-8b19a08eb1e5","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":115,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"414f2d9a-b56f-45c4-978e-ae4c4f2aa1f6","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":115,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"e16434b9-c79e-4336-8e3a-1c22bb6c4cdc","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":115,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"996254f4-d3cc-481a-af61-860307f72d48","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":115,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"1aa2bb5b-360e-4c82-9340-2934f9433ccd","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":115,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"17c798ad-1ed5-49bc-8070-835a4cee3233","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":115,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"0fd4daef-7dd7-462c-9b59-e305a99cadce","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to","page_number":115,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"de2864fe-fc21-4ae2-8d4d-0316e5c9c60d","block_type":"box","text":"consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an","page_number":115,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"662fb0be-0253-45d4-9028-4e26cf43905f","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":115,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"5bf7fcc1-5ae4-4b25-ab27-ed9f9d7743ee","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":115,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"a9c53bfe-aa73-4095-8f33-b24f40ee8a81","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund starting on the","page_number":115,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"a955a099-17df-4476-931e-6fba3046f7a1","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":115,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"ecbb2e52-6b76-4577-913a-c4b2d0e58103","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":115,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"2e568a76-decf-4a57-9c1c-161974643a3c","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":115,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"8295952b-6fa0-49e8-827e-bac2e3c04ce1","block_type":"box","text":"securities (","page_number":115,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"e2cbeded-5a54-41da-b7ae-e03b2161753a","block_type":"box","text":"e.g.","page_number":115,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"00c9b888-9c54-4d0d-92db-f9f78363ec33","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":115,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"c53dddc0-fc84-410d-ba84-f520bde48f6b","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":115,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"acfa207b-995c-4220-bdf2-a338c7ea5a1a","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":115,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"76978d9a-12c5-4e96-9f3b-59bad0e334f1","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":115,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"86c0ac97-33b2-43bf-9a09-f920805aef62","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":115,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"2359f02d-179b-4797-9d3c-5ccfe85f9d83","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":115,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"5381fb55-18af-4097-914d-b627d07dc379","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":115,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"b125b56f-0030-43f6-bab5-ed19bae9249c","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":115,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"87e7d7e8-4fc5-4a8f-92f9-236dbe18743e","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":115,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"7cc6246c-959f-4d2e-b348-1d95678c42f4","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":115,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"e2135ac2-1902-44f9-9f96-904e40698686","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":115,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"15dafe36-5624-4819-93eb-250848970eaf","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency","page_number":115,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"1c7a84b3-e298-46a3-b369-f386472ff0c0","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":115,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"1b34d944-3999-464b-887d-61eac1a05789","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":115,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"03655c9e-61ed-4c18-a06b-ee8a65982502","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":115,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"7a582b60-2d87-45b0-92c1-75e78136771b","block_type":"box","text":"Yields and Ratings.","page_number":115,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"ef2e2f87-7431-45ff-b4e8-5e955d5450ab","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":115,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"4cf926ee-f0d9-4823-8196-6830fdf9d584","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":115,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"36b2de52-11bd-443c-b8f4-fa274c0fc855","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":115,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"489ee1b1-70fa-4d8b-bf1b-b053a0482253","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":115,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"ffc96341-67ab-4637-89ce-95a5e16db3bf","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":115,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"54bad173-27c5-4bda-a6e3-2d79ac077780","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":115,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"8bb22903-0b8d-44f4-b509-dcdd26180efb","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":115,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"cf7479d0-b294-447a-b50b-cc967669a659","block_type":"box","text":"continue to hold the security.","page_number":115,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"0e91ba90-9fcc-4273-b7d7-86408ee73860","block_type":"box","text":"Zero Coupon Securities.","page_number":115,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"9ff01b16-f96f-49d0-8cad-c83f416f4f9f","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":115,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"1ed7d8c0-c559-4388-a05e-0752ce027e3c","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":115,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"5f17801c-e75c-4287-b0db-706e96884420","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":115,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"adc79eea-8102-4589-8db8-86fdefb47a7c","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":115,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"b769e34a-14a8-4f31-9c6a-76f5cac96a63","block_type":"box","text":"security.","page_number":115,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"29ba02a5-3176-4a61-a147-960b6450615a","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":115,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"5e011388-a295-43b2-81a9-c746b7046914","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":115,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"8dfe3c2c-eb06-444d-bc7b-d38292d6fe66","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":115,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"c525f4d9-3bd9-4cd3-a927-057ae9b4198d","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":115,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"c771c241-b0e0-4199-879e-a1ffd37ee480","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":115,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"57720e40-32b5-491a-a039-b15e4d36897e","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":115,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"91ca5f3f-23c6-4595-90a0-bdedb44b8033","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":115,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"dd491c6c-8294-41b4-9f8d-ac1677dd39d1","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":115,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"232c0ffc-93ce-45fe-a829-9d5266e83101","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":115,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"76a96232-1eaf-478a-b93b-91c748fc2de8","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":115,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"14d909c5-08f6-4f3f-ad28-8bf0f70258ae","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":115,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"ed4a0519-411d-44c4-8722-b094c64e7078","block_type":"box","text":"II-80","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e1bff3cd-85a3-45f6-b60f-17e9e797b4d3","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9bcc0946-75f3-4c09-af5a-1ed838b6ce12","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":116,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"e2e241c0-7b80-4cd6-86f8-10160762c571","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":116,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"38bf99ba-aa8e-4e85-b5fa-5fcb911a06c1","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":116,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"933526e2-a154-4b97-90ba-4aaec46f67e4","block_type":"box","text":"intervals.","page_number":116,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"0e4f458f-832d-4a12-afb3-f89079388dcf","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":116,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"a47615e9-1fcb-47a3-ba56-2581dc94ddb9","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":116,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"a124e621-9a86-49a7-824d-c322e1b87aa3","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":116,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"740b78fb-7f98-4dc6-bfa0-b745c6747afd","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":116,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"f1486159-b1ad-45bc-b6fd-8f20f8b8c329","block_type":"box","text":"exposure to zero coupon securities.","page_number":116,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"478f5825-d2da-40f5-8246-a2c434ba29d8","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":116,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"395413be-1b9d-4dda-bf35-6067e9f61485","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":116,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"55d4865e-c893-4b19-93bd-ca2d62a82f43","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":116,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"52205733-9681-4e54-880f-11d3419a5107","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":116,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"483c197e-649c-4173-b03f-1ecf9c605234","block_type":"box","text":"Suitability. (All Funds)","page_number":116,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"aae12320-90f8-4483-ab52-b1be76cd700d","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":116,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"cb64106f-45e1-426f-a187-42e91731d1b3","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":116,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"57954432-cc51-4bb6-954e-e3a851bb1c80","block_type":"box","text":"investment program. The suitability for any particular investor of a purchase of shares in a Fund will depend upon,","page_number":116,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"3f1d94eb-65e4-4f05-9a86-9cd088fda384","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":116,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"6c956972-ea48-4a7f-8437-e4aa2a08e725","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":116,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"d079f9c3-6abc-4023-b126-fa5273cba069","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":116,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"8a664ab5-afba-4483-8739-687331b4b067","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":116,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"78b2638f-9871-4b52-9f5c-ca4d8c19c01d","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":116,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"b3b9548c-9517-47c0-b923-ef70fb3bec07","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":116,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"14ac3f3a-035f-4a0d-8823-f881eee2fa27","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":116,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"6ff44523-0684-4d43-b9fe-5525099e8205","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":116,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"24cd5a93-984f-4681-9685-95813b2c952a","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quarter of the taxable year, (i) at least","page_number":116,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"36900288-bd9d-43d4-99bb-fd313bd40c44","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":116,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"d7b88e66-c364-469e-9afe-d5fee395a482","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":116,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"82ee2700-d735-49bb-8009-4b505348ccc1","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":116,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"b92d35aa-1a25-46f3-bb95-7c13f284df65","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":116,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"0b3fa474-6b0c-41b5-a528-9273d06f6e1c","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":116,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"239c376a-11e8-43e8-b656-b5376386769e","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":116,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"8661fcd8-faa1-4744-b5a1-3ecc11e0abe9","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":116,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"3d4e06ba-79cf-4650-a0b2-ead5be11ec12","block_type":"box","text":"(","page_number":116,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"7a56bee2-0ec9-4680-8c4a-ee98a146c6e9","block_type":"box","text":"i.e.","page_number":116,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"48d5bd11-aa09-481d-9fce-c936ddabcc0b","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":116,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"aa82a5c9-8cfd-4088-b2b5-fd190290f751","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":116,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"ffa51ba1-bd10-4ef6-b23c-ba02cd789d32","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":116,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"3dbcbb09-52ce-40a5-989f-adcf2ef94ad9","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":116,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"9004402c-6e21-49d1-b7ef-657294ed979e","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":116,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"15ade08d-ab77-4165-ac66-1575e81e6606","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":116,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"6091d39b-10b5-42f8-a1fc-c1733527ba9c","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":116,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"543fb4bd-0c94-4b91-a554-3ec410bc1453","block_type":"box","text":"regarded as the sole issuer.","page_number":116,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"ffc32737-30a9-48f1-bf77-9763bde7ef7e","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":116,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"52030905-4e1d-4a9c-b576-fb697c915e6b","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":116,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"56c2b324-757e-4647-8377-0e608dfa5bfe","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":116,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"4ec5c081-5efb-4751-9be0-98b59847678f","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":116,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"dfe6266b-0c89-4c97-b81e-707c0d74b558","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":116,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"ec95f8e1-dfd6-4c02-9eea-665bfadade24","block_type":"box","text":"75% of its total assets.","page_number":116,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"6a59049f-5c8e-401a-8b6e-24430658eb0b","block_type":"box","text":"II-81","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1a21a1d6-6a48-470d-a1e9-77386cfb4c3e","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"01d91b27-2e40-464c-8fc7-624f9151d6d7","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":117,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"cfa7aeb6-757c-49f0-80b5-3b05ff6cd22c","block_type":"box","text":"Directors and Officers","page_number":117,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"89f47818-d1e2-4e59-b750-7cd232b75b00","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":117,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"99e9a94b-ea41-487d-b58b-8892e7185ae2","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":117,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"6eb9bc76-a320-43aa-a7fd-67b2cfd4969b","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and","page_number":117,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"83018c59-7d38-413d-835a-af4ac4741023","block_type":"box","text":"certain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":117,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"1a3c4053-04bc-4fdb-b837-dc7af96841b8","block_type":"box","text":"Management Arrangements","page_number":117,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"a0350529-0635-485d-a881-e6961af8d717","block_type":"box","text":"Management Services.","page_number":117,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"bd2a7c8b-6bd8-4c36-807f-b6c45bfa9789","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":117,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"a007a7fd-98cf-4120-a64f-54a08f7d655e","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":117,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"c537da67-ba59-4a93-85ff-fb8554e59b5b","block_type":"box","text":"portfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":117,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"281bebd4-1d86-4a75-841e-51fad169e3f6","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a particular security rests with the Manager. The Manager","page_number":117,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"1b880284-29f2-4573-8044-c940fefecd0b","block_type":"box","text":"performs certain of the other administrative services and provides all the office space, facilities, equipment and","page_number":117,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"13122c26-89ef-4759-9812-1fb094838eb6","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":117,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"f0764df5-037d-494e-a593-0311565e86e5","block_type":"box","text":"Each Feeder Fund invests all or a portion of its assets in shares of a Master Portfolio. To the extent a Feeder","page_number":117,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"d2fc13dd-e64f-4a7b-bee4-18739ed0d910","block_type":"box","text":"Fund invests all of its assets in a Master Portfolio, it does not invest directly in portfolio securities and does not","page_number":117,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"e1a9ae0f-1d9f-43c2-bde8-585f73dd4e7c","block_type":"box","text":"require management services. For such Feeder Funds, portfolio management occurs at the Master Portfolio level.","page_number":117,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"a08a66bf-3277-4627-a9cb-5e82f16103b1","block_type":"box","text":"Management Fee.","page_number":117,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"4cd347ab-1a5a-4f87-9e0d-16e1bfb3c379","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":117,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"52bf4c14-20e6-4af4-8aa0-9666aa195b75","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":117,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"dbed310b-c94b-467e-8ff1-a5d73857a5ac","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":117,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"7852c91e-d852-4b69-aeb3-ee62113ba2b7","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":117,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"0626f365-66e0-4b71-b7f3-c2905312e62e","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Part I of each Fund’s SAI.","page_number":117,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"a54926fe-71e7-4fed-97ae-5c8c9ce9426f","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":117,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"8ec57b00-9b1b-4dda-82a7-e90e7a6ad83d","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":117,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"d7038dd4-52c0-403c-845d-e81e8db60b33","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":117,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"2110cfc7-b310-4ca6-b689-0d83396637b8","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":117,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"17c6aef5-4497-499b-b1f6-04b3294af379","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":117,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"57e94d4c-08cd-4abe-b7e1-3c22aa5ff80e","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder reports, prospectuses and statements of additional","page_number":117,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"e2d7a168-d667-44c6-aa1b-e0fa258ede44","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":117,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"261292ff-36dc-4369-b43d-b28e60bd272f","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":117,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"f57fc27a-ec07-4b03-928f-77bbe8359899","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":117,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"7d66f639-9587-4380-8627-29174888da6f","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":117,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"0c941eb6-8d4c-4ef2-ae72-440c3c8164a8","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":117,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"3a19736d-a643-4284-a883-a8e255251f3f","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Certain accounting services are provided to each Fund","page_number":117,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"061f9662-9599-4abb-a4f1-fbe0a6d76ea8","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":117,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"e537a82a-85a8-4be6-8436-0a628a152886","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":117,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"581fe082-69e2-4875-bdc2-6b7bdfab5728","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. The Distributor pays certain promotional expenses of the Funds","page_number":117,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"557ae6f1-58d6-4321-87cc-ef0e16574a14","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Certain expenses are financed by each Fund pursuant","page_number":117,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"bbe0a727-d9cc-43c0-afc0-237a520781de","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":117,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"b71e1db0-798a-4085-979e-b2c2babbe3b5","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":117,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"5a8ab86f-516b-4538-9c2a-c2c88aff022a","block_type":"box","text":"Sub-Advisory Fee.","page_number":117,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"de27d1c2-5282-4923-9045-f72499a0ca84","block_type":"box","text":"The Manager of certain Funds has entered into one or more sub-advisory agreements (the","page_number":117,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"127a0779-398f-4303-8bde-2f3a98256588","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":117,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"116681a7-a834-4374-a665-ac9e5a87162c","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":117,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"7c6f0e61-339b-4097-81aa-cb3140b66023","block_type":"box","text":"Organization of the Manager.","page_number":117,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"9dac5794-2b0e-48aa-9d6c-e2395191d3ca","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":117,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"19aa68f2-1caf-4706-b93e-bcd2d5865dfe","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":117,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"3232f9ff-2018-44fb-ae2d-dbb0488d1b47","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":117,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"03630424-4c4c-4fca-8701-8db643d0bf0a","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":117,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"7774ea77-c6ac-499a-b6d8-c9e8219e67c5","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":117,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"04b5cc60-609c-4e4e-8630-4821e1516636","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":117,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"d5b81025-3964-479e-9a11-53cfee0b9294","block_type":"box","text":"Duration and Termination.","page_number":117,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"2f3dcc45-48d4-4d5b-936f-7714de05416f","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":117,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"6f594f6e-8f80-4bde-9650-1cac36ee00f5","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":117,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"99f0f470-a4a3-470d-8f7a-9f72e9d2ba31","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":117,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"fdd559d2-0075-427e-aa35-7a4aad54c169","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not parties to such agreement or interested persons (as defined","page_number":117,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"c2200fd9-30ff-451c-a03c-f9b973ee10d5","block_type":"box","text":"II-82","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5ce3a7aa-9369-4e4b-9ceb-d1626c0939bc","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d07427ae-b64e-48ff-989d-228d7d39413a","block_type":"box","text":"in the Investment Company Act) of any such party. Each Management Agreement automatically terminates on","page_number":118,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"07dcc91d-8d43-49a5-ac82-ad8ccc031d67","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either party thereto or","page_number":118,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"b58434a5-e138-45c7-8ea7-4f5b57396d71","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":118,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"634047a6-a576-4c22-b258-22c39f6dce22","block_type":"box","text":"Other Service Arrangements","page_number":118,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"76e408bf-df7c-4743-82a7-312a85ab8292","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":118,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"99302fd0-4a25-48a5-bca2-3c59c391d49a","block_type":"box","text":"Certain Funds have entered into an administration agreement","page_number":118,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"d1f2f2ac-0138-4160-8d34-7d121400e09c","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Part I of the Fund’s","page_number":118,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"8cb9ad26-d8b1-47e0-b141-fb469bd2542f","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":118,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"77895259-fb77-40bd-b133-135a9acda5f5","block_type":"box","text":"annual rate set forth in each applicable Fund’s Prospectus. For information regarding any administrative fees paid by","page_number":118,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"971747a1-f286-497f-af03-98ca918c0703","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":118,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"0b798f55-09ed-4eea-b263-fc37d76e3896","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Part I of","page_number":118,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"3172c796-6d94-409d-bbde-65a973e3a5a1","block_type":"box","text":"that Fund’s SAI.","page_number":118,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"001a210b-fc8b-492c-b3ea-66fdf8c5e6a2","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":118,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"19dae620-e1cf-4d82-af24-7e542268f52d","block_type":"box","text":"certain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":118,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"ebe35956-36e9-44d2-9ad9-ea66e6202894","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":118,"box":{"x":70,"y":271,"width":809,"height":12}},{"id":"02f2b9cc-4cd0-4882-b0a5-4cb4d54fc20f","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":118,"box":{"x":69,"y":286,"width":826,"height":12}},{"id":"b69811b5-45bf-4739-85b7-59a7bdae9fc3","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":118,"box":{"x":70,"y":302,"width":362,"height":11}},{"id":"5c57344c-5734-4cfb-8471-05c8469d8776","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":118,"box":{"x":102,"y":324,"width":390,"height":12}},{"id":"dba9dd18-b22c-4968-b459-4f11de953eaf","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":118,"box":{"x":499,"y":325,"width":364,"height":10}},{"id":"af69a8df-55a7-4266-8831-a01177ec3d07","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":118,"box":{"x":68,"y":339,"width":832,"height":12}},{"id":"3b90e68b-2020-49fb-9b12-facf45d8f496","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":118,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"84fca39c-cafd-4968-9361-854008e4bab1","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not parties to such contract or","page_number":118,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"eb7a1e54-460b-43f2-a2db-f940685b1d6a","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such party. Such contract is not assignable","page_number":118,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"3dde96e0-e58b-49bb-8b68-fac445018102","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either party thereto or by the vote of the","page_number":118,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"8af116d5-e061-46ec-9c67-dafa148f6f27","block_type":"box","text":"shareholders of the Fund.","page_number":118,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"d1d6dcf0-d5d5-4ab7-a2d1-fbf08185518b","block_type":"box","text":"Transfer Agency Services.","page_number":118,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"6f2fb321-80f5-4b28-943d-5f1ce9918fc4","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":118,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"a9247d78-40a1-441a-9831-b87a7d2b1e6c","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":118,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"b9b67551-0abf-4d35-a1b9-6477379a6f60","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":118,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"df2d8ae5-a01e-43dc-b266-7806f8760f62","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":118,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"677caae4-b424-4b4c-9699-7f91d572ca67","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":118,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"364b2159-7b00-4f12-aeef-c9c5d0091e1d","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":118,"box":{"x":68,"y":513,"width":839,"height":12}},{"id":"0d5881a2-90c0-4e45-9d33-e7c28d22f224","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":118,"box":{"x":70,"y":528,"width":831,"height":12}},{"id":"6ee4cb45-a0d5-47e9-a6e1-e160f0a21833","block_type":"box","text":"for certain accounts that participate in certain fee-based programs sponsored by the Manager or its affiliates. For","page_number":118,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"03a47a55-9cc6-49ce-b02a-5257c533b959","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":118,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"a354fd86-53f5-464a-a22c-e3b489d2df41","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":118,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"e8e10453-48b9-45c0-a56f-396d3d920cd2","block_type":"box","text":"class on a recordkeeping system.","page_number":118,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"a4295a94-2796-4bb5-85d2-1aefdcf9db2a","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":118,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"1f29cab4-ae20-4e9c-a6bd-90c6b99015e4","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":118,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"d5e3d253-259d-44dd-9206-1b2a11eaa072","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":118,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"d1b943af-28f2-4572-b1c6-db34e8829bf1","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Part I","page_number":118,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"75a5b7a4-bd44-4b8a-9ede-1d7513d9d0c5","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":118,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"c8991ed5-0948-4106-b256-842f2377e92d","block_type":"box","text":"Custodian Services.","page_number":118,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"3169d3fd-a5b3-4372-9212-153e3587b138","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":118,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"b575a25b-b734-4c72-86f9-03fa64048a24","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":118,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"ee17a493-a8d6-4afe-b090-21e1fe503d7a","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":118,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"944a21fc-4ccc-44c8-9566-3bada51db8ae","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":118,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"5c16ab46-1cf6-433f-814c-cf11f618c1a3","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with certain foreign","page_number":118,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"1f42dfda-7487-49d4-88b0-a5d004992f8e","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":118,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"880c81f8-3057-4abf-8ecb-28798c8ff96c","block_type":"box","text":"certain assets.","page_number":118,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"e2754cb6-450e-4238-940c-3acb91bebad9","block_type":"box","text":"For certain Feeder Funds, the Custodian also acts as the custodian of the Master Portfolio’s assets.","page_number":118,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"4b3f5beb-ab45-4e9f-9feb-e69b1e9fde18","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to certain Funds, on a monthly","page_number":118,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"d391d8f1-00b9-4b23-9574-2993af8a4ef5","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":118,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"489d68e2-12e6-42f1-a882-7519b2892124","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":118,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"b7274866-2229-4670-9222-e87d4e00e079","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":118,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"d572ea2f-0630-4b5f-804f-dff3ea89aa82","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":118,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"704ddabc-60f9-4970-9c7a-0f214de87cbc","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":118,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"7855a545-059e-4edf-a9c8-cb1ec5df9ef8","block_type":"box","text":"Fund.","page_number":118,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"6f8dcf02-96f8-4112-8f10-be084a63d782","block_type":"box","text":"II-83","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e247f889-8292-473e-91da-0155d64f523e","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9cbb2f63-1f04-479e-baec-6a4c7fdb1d9e","block_type":"box","text":"Accounting Services.","page_number":119,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"52b86884-3aa5-4c50-b253-e991516ac1e5","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":119,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"6bf22d86-cc2d-4d7f-91f1-a3a8280181a8","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides certain accounting and administrative services to the Fund. Each","page_number":119,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"4ccddefc-6570-4b79-a98b-1943a8bb1852","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":119,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"55ed8c48-dde5-4ef2-ab89-e6cf40f4d1d2","block_type":"box","text":"Master LLCs.","page_number":119,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"8f500c93-f21b-43b2-815f-2ba43fed4208","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":119,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"317628d2-0543-4c95-8889-8d1589b20567","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Part I of each Fund’s SAI for information on the","page_number":119,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"2a33f840-d0dc-4491-8d5d-2d3c6a7d7c96","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":119,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"ccc798b7-8fa2-4ce7-9e05-1a4a6f6cc71f","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":119,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"77be66a8-5701-4e61-859e-1c886121b950","block_type":"box","text":"Distribution Expenses.","page_number":119,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"b0db80ce-2c1a-4708-a8c7-eba688423ed1","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":119,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"7afeda8b-1a7d-4e5d-a684-1ae3a8549ddd","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). The Distribution","page_number":119,"box":{"x":68,"y":196,"width":807,"height":11}},{"id":"dc85e433-1908-4984-bccd-9110054768de","block_type":"box","text":"Agreements obligate the Distributor to pay certain expenses in connection with the offering of each class of shares of","page_number":119,"box":{"x":68,"y":211,"width":842,"height":11}},{"id":"8c3c351e-c9e5-493d-8456-016e500aeaef","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic reports have been prepared,","page_number":119,"box":{"x":68,"y":226,"width":813,"height":11}},{"id":"14b3c4ce-1d1b-45bc-b7f4-ee15db9acd39","block_type":"box","text":"set in type and mailed to shareholders, the Distributor pays for the printing and distribution of these documents used","page_number":119,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"afcc37db-39e8-4013-877b-831068d3ae31","block_type":"box","text":"in connection with the offering to dealers and investors. The Distributor also pays for other supplementary sales","page_number":119,"box":{"x":70,"y":256,"width":799,"height":12}},{"id":"5997c077-2e81-40f5-a854-5e00fff43549","block_type":"box","text":"literature and advertising costs. Each Distribution Agreement is subject to the same renewal requirements and","page_number":119,"box":{"x":70,"y":272,"width":788,"height":11}},{"id":"da7f0632-1f72-4a32-92e3-c970cf28a8cb","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":119,"box":{"x":68,"y":287,"width":513,"height":11}},{"id":"d388c0c5-046e-426c-8373-d5337e34cd37","block_type":"box","text":"Code of Ethics","page_number":119,"box":{"x":69,"y":317,"width":105,"height":9}},{"id":"72ab5390-58f7-4743-a030-28b06edaed20","block_type":"box","text":"Each Fund, the Manager, each Sub-Adviser and the Distributor has adopted a Code of Ethics pursuant to Rule","page_number":119,"box":{"x":102,"y":339,"width":780,"height":12}},{"id":"60f7d060-8b00-4462-8ac2-53c4036bcf24","block_type":"box","text":"17j-1 under the Investment Company Act. The Code of Ethics establishes procedures for personal investing and","page_number":119,"box":{"x":70,"y":355,"width":794,"height":11}},{"id":"06af6dc6-239a-489f-8f99-df3684c9ebe7","block_type":"box","text":"restricts certain transactions. Employees subject to the Code of Ethics may invest in securities for their personal","page_number":119,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"546b5081-ba9b-4c10-8672-d9d3bf3eca4d","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":119,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"edddf4fb-a11f-4cbe-9bb1-4ecd25e4c893","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":119,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"5cba38e2-5f34-4972-bb64-69c3abd47377","block_type":"box","text":"The Board of Directors of each Fund and the Board of Directors of the Manager have each approved Portfolio","page_number":119,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"b19bdf83-72d8-4044-b795-ad0b19534252","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":119,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"2a1822ae-f1c1-4812-b2bf-442e13310a9e","block_type":"box","text":"portfolio securities, as applicable, and other portfolio information. The purpose of the Policy is to ensure that","page_number":119,"box":{"x":70,"y":467,"width":778,"height":11}},{"id":"1608145c-d02c-4a03-9b5e-20dbb8c6b711","block_type":"box","text":"(i) shareholders and prospective shareholders of the Funds have equal access to portfolio holdings and","page_number":119,"box":{"x":69,"y":482,"width":737,"height":12}},{"id":"65058f99-5f4e-4c68-9fcc-9929e13c6fec","block_type":"box","text":"characteristics and (ii) third parties (such as consultants, intermediaries and third-party data providers) have access","page_number":119,"box":{"x":69,"y":498,"width":829,"height":11}},{"id":"9f614b42-3ef6-4219-a3da-90bf93bbc5b3","block_type":"box","text":"to such information no earlier or more frequently than shareholders and prospective shareholders.","page_number":119,"box":{"x":68,"y":513,"width":701,"height":11}},{"id":"5d0b0a38-bdbf-4110-a082-d0fdf09fd621","block_type":"box","text":"Pursuant to the Policy, each Fund and the Manager may, under certain circumstances as set forth below, make","page_number":119,"box":{"x":102,"y":535,"width":791,"height":12}},{"id":"914e01bf-fa15-4951-913b-fb106d87618c","block_type":"box","text":"selective disclosure with respect to a Fund’s Portfolio Characteristics (as defined below) and Portfolio Holdings (as","page_number":119,"box":{"x":69,"y":550,"width":819,"height":12}},{"id":"786e9ee7-69cc-4253-a3e0-4a971826e9a6","block_type":"box","text":"defined below). The Board of Directors of each Fund and the Board of Directors of the Manager have each approved","page_number":119,"box":{"x":69,"y":566,"width":824,"height":11}},{"id":"f6b51748-6c49-497b-ab29-6818350150c1","block_type":"box","text":"the adoption by the Fund of the Policy, and employees of the Manager are responsible for adherence to the Policy.","page_number":119,"box":{"x":68,"y":581,"width":813,"height":11}},{"id":"935ef094-ed53-4ec6-be62-8c863c1a84e6","block_type":"box","text":"The Board of Directors provides ongoing oversight of the Fund’s and Manager’s compliance with the Policy.","page_number":119,"box":{"x":68,"y":596,"width":761,"height":11}},{"id":"b9cf3045-39a9-4e68-99a9-68389d0c7c7b","block_type":"box","text":"Notwithstanding the above, there is no assurance that the Policy will protect the Funds from the potential misuse of","page_number":119,"box":{"x":70,"y":611,"width":825,"height":11}},{"id":"4c2c3171-1f39-4dcb-a5b5-d019c2f46127","block_type":"box","text":"holdings information by an individual or firms in possession of that information.","page_number":119,"box":{"x":69,"y":626,"width":565,"height":11}},{"id":"431f5387-13c7-4692-a060-4affbec6574f","block_type":"box","text":"Disclosure of material non-public information (“Confidential Information”) about a Fund’s Portfolio Holdings and/","page_number":119,"box":{"x":102,"y":649,"width":802,"height":11}},{"id":"62f1d320-3b45-42cc-9468-7a921f6c055c","block_type":"box","text":"or Portfolio Characteristics is prohibited, except as provided in the Policy.","page_number":119,"box":{"x":69,"y":664,"width":520,"height":11}},{"id":"a11fcc93-3300-46d5-8476-fe3944c2770d","block_type":"box","text":"Confidential Information relating to a Fund may not be distributed to persons not employed by BlackRock unless","page_number":119,"box":{"x":102,"y":686,"width":797,"height":12}},{"id":"eab1a19a-2e5f-436c-bdf1-d801f669bffd","block_type":"box","text":"the Fund has a legitimate business purpose for doing so and confidentiality obligations are in effect, as appropriate.","page_number":119,"box":{"x":68,"y":702,"width":829,"height":11}},{"id":"7704d84a-c57b-492b-aa2a-f74214e1497e","block_type":"box","text":"•","page_number":119,"box":{"x":69,"y":725,"width":6,"height":4}},{"id":"5cbcdac3-dfaf-4233-b7f7-a1e3aec8bf81","block_type":"box","text":"Por tfolio Holdings","page_number":119,"box":{"x":102,"y":722,"width":126,"height":11}},{"id":"594561ed-79c4-4a96-aac3-8a6e086c756b","block_type":"box","text":": “Portfolio Holdings” are a Fund’s portfolio securities and other instruments, and include, but","page_number":119,"box":{"x":229,"y":722,"width":671,"height":11}},{"id":"5360c323-461a-49f3-80cd-35dee31c118d","block_type":"box","text":"are not limited to:","page_number":119,"box":{"x":102,"y":737,"width":125,"height":9}},{"id":"ff8175e3-6c74-4f62-bfb9-18ee6aa0b1e7","block_type":"box","text":"•","page_number":119,"box":{"x":102,"y":760,"width":6,"height":5}},{"id":"fbf2cf1c-c4b4-441d-8af6-6379a1b7a879","block_type":"box","text":"for equity securities, information such as issuer name, CUSIP, ticker symbol, total shares and market value;","page_number":119,"box":{"x":134,"y":757,"width":768,"height":11}},{"id":"e106d63a-12d6-424a-b075-e5a53b718797","block_type":"box","text":"•","page_number":119,"box":{"x":102,"y":780,"width":6,"height":5}},{"id":"53119dcc-4092-433c-a092-1a564368689e","block_type":"box","text":"for fixed income securities, information such as issuer name, CUSIP, ticker symbol, coupon, maturity,","page_number":119,"box":{"x":134,"y":777,"width":720,"height":11}},{"id":"b4e9ecfb-e36f-424c-99a4-3b3f8d07d902","block_type":"box","text":"current face value, market value, yield, WAL, WAM, duration and convexity;","page_number":119,"box":{"x":134,"y":792,"width":529,"height":12}},{"id":"d51c9b41-e56a-44d7-8365-3df027c98120","block_type":"box","text":"•","page_number":119,"box":{"x":102,"y":815,"width":6,"height":5}},{"id":"3cfba1ef-af65-41c8-a970-eea90400b131","block_type":"box","text":"for all securities, information such as quantity, SEDOL and market price as of a specific date;","page_number":119,"box":{"x":134,"y":812,"width":664,"height":12}},{"id":"f6578b0e-9198-4e80-903a-21e8d30a1567","block_type":"box","text":"•","page_number":119,"box":{"x":102,"y":836,"width":6,"height":4}},{"id":"4553c225-a672-42f3-a0d3-7e0c1815855f","block_type":"box","text":"for derivatives, indicative data including, but not limited to, pay leg, receive leg, notional amount, reset","page_number":119,"box":{"x":134,"y":833,"width":731,"height":11}},{"id":"f07b16af-c302-4973-8b63-92ffcc782385","block_type":"box","text":"frequency and trade counterparty; and","page_number":119,"box":{"x":134,"y":848,"width":271,"height":11}},{"id":"b74fab57-31fe-4146-a8ca-3e82068c157a","block_type":"box","text":"•","page_number":119,"box":{"x":102,"y":871,"width":6,"height":4}},{"id":"74dd4779-7410-4191-b0cf-f2d0862f2ce7","block_type":"box","text":"for trading strategies, specific portfolio holdings, including the number of shares held, weightings of","page_number":119,"box":{"x":134,"y":868,"width":712,"height":11}},{"id":"3c092071-919b-4732-a105-1547b94fbc9a","block_type":"box","text":"particular holdings, trading details, pending or recent transactions and portfolio management plans to","page_number":119,"box":{"x":135,"y":883,"width":726,"height":11}},{"id":"43454f26-febe-42d9-ae3c-9b9337468349","block_type":"box","text":"purchase or sell particular securities or allocation within particular sectors.","page_number":119,"box":{"x":135,"y":898,"width":533,"height":11}},{"id":"7bef453a-7e18-4ef4-bef9-5e791f14755c","block_type":"box","text":"II-84","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c4d7a0f0-8bf9-4973-be20-b3472905ebf0","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a10e722b-bd7a-4d16-8ad7-92c79accddb2","block_type":"box","text":"•","page_number":120,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"7374cd13-9666-49f7-8a2f-629ba22e8ee7","block_type":"box","text":"Por tfolio Characteristics (excluding Liquidity Metrics):","page_number":120,"box":{"x":102,"y":45,"width":377,"height":11}},{"id":"0c011406-9b24-49ca-9e64-b853f8ed1cf2","block_type":"box","text":"“Portfolio Characteristics” include, but are not limited to,","page_number":120,"box":{"x":486,"y":45,"width":404,"height":10}},{"id":"68693521-73f8-4261-93b1-005f7b7d7db9","block_type":"box","text":"sector allocation, credit quality breakdown, maturity distribution, duration and convexity measures, average credit","page_number":120,"box":{"x":102,"y":60,"width":807,"height":11}},{"id":"77cb3929-3edf-43c8-a89f-a5923d5a5056","block_type":"box","text":"quality, average maturity, average coupon, top 10 holdings with percent of the fund held, average market","page_number":120,"box":{"x":102,"y":75,"width":745,"height":11}},{"id":"f613f341-6d4e-46a0-99f4-34bbf0ea1ad7","block_type":"box","text":"capitalization, capitalization range, risk related information (","page_number":120,"box":{"x":101,"y":90,"width":427,"height":11}},{"id":"63bc231a-509d-490f-88e5-35e2548e6ed5","block_type":"box","text":"e.g.","page_number":120,"box":{"x":529,"y":91,"width":25,"height":10}},{"id":"8bda2f95-da3b-4a10-b3f5-2695d5c2ca29","block_type":"box","text":", value at risk, standard deviation), ROE, P/E,","page_number":120,"box":{"x":557,"y":90,"width":322,"height":11}},{"id":"87f65712-11ad-4eab-b8fa-6265516a2fa0","block_type":"box","text":"P/B, P/CF, P/S and EPS.","page_number":120,"box":{"x":102,"y":105,"width":177,"height":11}},{"id":"9e0777ed-00cd-4b8c-8be8-c282f7dd5671","block_type":"box","text":"•","page_number":120,"box":{"x":102,"y":128,"width":6,"height":5}},{"id":"48a077be-54a7-464c-806f-573faae35336","block_type":"box","text":"Additional characteristics specific to money market funds include, but are not limited to, historical daily and","page_number":120,"box":{"x":134,"y":125,"width":766,"height":11}},{"id":"4f9f36f4-757a-4cfc-950b-a463b394cb82","block_type":"box","text":"weekly liquid assets (as defined under Rule 2a-7) and historical fund net inflows and outflows.","page_number":120,"box":{"x":134,"y":140,"width":670,"height":12}},{"id":"f2da655b-1846-440c-b14c-2b47eeb5aa90","block_type":"box","text":"•","page_number":120,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"2a3baf27-7867-4df2-b3b5-2028b226a8f3","block_type":"box","text":"Por tfolio Characteristics — Liquidity Metrics:","page_number":120,"box":{"x":102,"y":161,"width":318,"height":11}},{"id":"e49c2ba3-b525-43c3-bbae-50d0391bec5f","block_type":"box","text":"•","page_number":120,"box":{"x":102,"y":184,"width":6,"height":4}},{"id":"575a0326-aaa7-4b3d-b45b-8625c5d1672b","block_type":"box","text":"“Liquidity Metrics” which seek to ascertain a Fund’s liquidity profile under BlackRock’s global liquidity risk","page_number":120,"box":{"x":135,"y":181,"width":754,"height":11}},{"id":"74dbc319-785f-44c5-8abf-f0be27d93972","block_type":"box","text":"methodology which include, but are not limited to: (a) disclosure regarding the number of days needed to","page_number":120,"box":{"x":135,"y":196,"width":746,"height":11}},{"id":"d291196a-87cc-4447-b7cb-7b8a522cf8db","block_type":"box","text":"liquidate a portfolio or the portfolio’s underlying investments; and (b) the percentage of a Fund’s NAV","page_number":120,"box":{"x":135,"y":211,"width":721,"height":11}},{"id":"7d8a1e82-377e-46b0-a8b8-c6d10a4fb590","block_type":"box","text":"invested in a particular liquidity tier under BlackRock’s global liquidity risk methodology.","page_number":120,"box":{"x":135,"y":226,"width":621,"height":11}},{"id":"89d4cb27-5c1e-4c91-b45d-5d67770eead5","block_type":"box","text":"•","page_number":120,"box":{"x":102,"y":249,"width":6,"height":5}},{"id":"5a82beb9-7e57-49c8-8503-d5457ca56abc","block_type":"box","text":"The dissemination of position-level liquidity metrics data and any non-public regulatory data pursuant to SEC","page_number":120,"box":{"x":134,"y":246,"width":771,"height":11}},{"id":"b17d7659-d901-4851-8d29-9ad2ef1bdedd","block_type":"box","text":"Rule 22e-4 (including SEC liquidity tiering) is not permitted unless pre-approved.","page_number":120,"box":{"x":135,"y":261,"width":568,"height":12}},{"id":"c0e4a49b-6b9e-4378-ba74-c7c96ff5522d","block_type":"box","text":"•","page_number":120,"box":{"x":102,"y":284,"width":6,"height":5}},{"id":"5286bb23-f973-4d36-b84f-e88a73326123","block_type":"box","text":"Disclosure of Liquidity Metrics pursuant to Section 3 of the Policy should be reviewed by BlackRock’s Risk","page_number":120,"box":{"x":135,"y":281,"width":755,"height":12}},{"id":"e26f7689-ed2c-49d2-a58a-ba37039d7670","block_type":"box","text":"and Quantitative Analysis Group and the relevant portfolio management team prior to dissemination.","page_number":120,"box":{"x":134,"y":297,"width":716,"height":11}},{"id":"511ab7cd-04c5-4034-a18b-252f964f3590","block_type":"box","text":"Information that is non-material or that may be obtained from public sources (","page_number":120,"box":{"x":102,"y":319,"width":553,"height":11}},{"id":"34543485-9393-4207-9441-e7a94b13679f","block_type":"box","text":"i.e.","page_number":120,"box":{"x":658,"y":320,"width":20,"height":8}},{"id":"174032e5-5a47-4f10-9422-907a2785d416","block_type":"box","text":", information that has been","page_number":120,"box":{"x":680,"y":319,"width":193,"height":11}},{"id":"53c7920b-8a25-4f21-a4e0-66018afaea8c","block_type":"box","text":"publicly disclosed via a filing with the SEC (","page_number":120,"box":{"x":70,"y":334,"width":305,"height":12}},{"id":"c0d15933-e584-4138-a868-96f1bc3412b8","block_type":"box","text":"e.g.","page_number":120,"box":{"x":377,"y":336,"width":25,"height":10}},{"id":"453c1665-d044-4868-9461-ddc8a1feb62b","block_type":"box","text":", a fund’s annual report and annual financial statements), through a","page_number":120,"box":{"x":404,"y":334,"width":485,"height":12}},{"id":"3764bfa0-1e71-4e96-98eb-d1dbaaea5e4c","block_type":"box","text":"press release or placement on a publicly-available internet website), or information derived or calculated from such","page_number":120,"box":{"x":70,"y":349,"width":817,"height":12}},{"id":"4c698419-228c-47f4-90e2-cf5e41850208","block_type":"box","text":"public sources shall not be deemed Confidential Information.","page_number":120,"box":{"x":70,"y":365,"width":433,"height":11}},{"id":"eb49a87b-bab2-4020-9f33-94f876ccf99a","block_type":"box","text":"Portfolio Holdings and Portfolio Characteristics may be disclosed in accordance with the below schedule.","page_number":120,"box":{"x":102,"y":387,"width":747,"height":12}},{"id":"8443fb72-382d-40c3-b2b7-71133ee1d99c","block_type":"box","text":"Prior to the time periods designated below, non-public portfolio holdings and portfolio characteristics may only","page_number":120,"box":{"x":102,"y":410,"width":806,"height":11}},{"id":"b6076996-f067-45b5-bc41-a61615da4552","block_type":"box","text":"be disclosed with both a non-disclosure or confidentiality agreement and Fund CCO approval.","page_number":120,"box":{"x":69,"y":425,"width":678,"height":11}},{"id":"da091470-a014-4160-8e57-47b653d2ab31","block_type":"box","text":"Thereafter, BlackRock","page_number":120,"box":{"x":753,"y":425,"width":156,"height":11}},{"id":"cd685d38-d0de-4d97-81d3-6895ba144a63","block_type":"box","text":"may disclose such information to shareholders, prospective shareholders, intermediaries, consultants and third-party","page_number":120,"box":{"x":69,"y":440,"width":838,"height":11}},{"id":"dc8d08d4-7749-449d-bab9-f410a4e50506","block_type":"box","text":"data providers. BlackRock generally discloses portfolio holdings and other portfolio characteristics information on the","page_number":120,"box":{"x":69,"y":455,"width":837,"height":12}},{"id":"4bde897f-0553-4a2b-b68b-cf3f7d6427b4","block_type":"box","text":"lag times established herein on its public website.","page_number":120,"box":{"x":70,"y":471,"width":356,"height":11}},{"id":"4bf5871a-8617-46e8-8376-33e32c0e959c","block_type":"box","text":"II-85","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6115d6f8-6c92-4e9d-ae1a-528a5feaf835","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"050d6cae-60b4-4ab7-a0dc-dd6f8325e7af","block_type":"box","text":"Time Periods for Portfolio Holdings","page_number":121,"box":{"x":440,"y":69,"width":254,"height":11}},{"id":"9791efe2-2cba-4aae-8850-eaa270425458","block_type":"box","text":"Funds in Scope Days After Month-End — After Which","page_number":121,"box":{"x":339,"y":91,"width":536,"height":11}},{"id":"e24f9afc-8632-4ba9-aaff-43600272c150","block_type":"box","text":"Portfolio Holdings May be Disclosed","page_number":121,"box":{"x":609,"y":106,"width":263,"height":11}},{"id":"8eb785ce-b330-4809-9c55-2e36330c05b6","block_type":"box","text":"All Open-End Mutual Funds (non-money","page_number":121,"box":{"x":231,"y":129,"width":277,"height":11}},{"id":"c5c7c5ee-55c6-43b3-84af-fc5ed0deb86a","block_type":"box","text":"market) except those noted below.","page_number":121,"box":{"x":232,"y":144,"width":243,"height":11}},{"id":"d727af03-40af-426d-9850-f45a48f530a5","block_type":"box","text":"20 Calendar Days After Month-End","page_number":121,"box":{"x":578,"y":129,"width":244,"height":11}},{"id":"f8154eef-c24a-4d53-94fe-a4ce52560439","block_type":"box","text":"Global Allocation funds,","page_number":121,"box":{"x":231,"y":167,"width":167,"height":10}},{"id":"9eeb97f8-0939-45de-8e77-9d176e96a261","block_type":"box","text":"1","page_number":121,"box":{"x":400,"y":167,"width":4,"height":5}},{"id":"4fd9666c-f1eb-4a83-9eb0-641d2aa091f7","block_type":"box","text":"BlackRock Core","page_number":121,"box":{"x":410,"y":167,"width":110,"height":9}},{"id":"b47c1169-2153-45ea-a44f-f65ce27dfe04","block_type":"box","text":"Bond Portfolio of BlackRock Funds V,","page_number":121,"box":{"x":232,"y":182,"width":261,"height":10}},{"id":"dff7be5a-ae22-4472-a8e3-3de04ead8b45","block_type":"box","text":"BlackRock Strategic Income Opportunities","page_number":121,"box":{"x":232,"y":197,"width":298,"height":11}},{"id":"08899971-e996-4c9c-8b94-6fe84e01b423","block_type":"box","text":"Portfolio of BlackRock Funds V, BlackRock","page_number":121,"box":{"x":232,"y":212,"width":300,"height":11}},{"id":"81225a80-dc90-48f0-b8a3-5930c5201533","block_type":"box","text":"Strategic Global Bond Fund, Inc., BlackRock","page_number":121,"box":{"x":231,"y":227,"width":312,"height":12}},{"id":"128fe656-5069-481a-a794-e908ec284d8f","block_type":"box","text":"Total Return Fund of BlackRock Bond Fund,","page_number":121,"box":{"x":231,"y":242,"width":306,"height":11}},{"id":"6b9b0b8e-30a8-4a78-9eee-1d11b47d1293","block_type":"box","text":"Inc., BlackRock Total Return V.I. Fund of","page_number":121,"box":{"x":232,"y":258,"width":283,"height":10}},{"id":"67c71ecc-0cd4-4a13-804d-ac085ca0e835","block_type":"box","text":"BlackRock Variable Series Funds II, Inc.,","page_number":121,"box":{"x":232,"y":273,"width":283,"height":10}},{"id":"42c17350-6afb-4d92-b0ef-b9ca5c6bc3e0","block_type":"box","text":"BlackRock Unconstrained Equity Fund,","page_number":121,"box":{"x":232,"y":288,"width":270,"height":11}},{"id":"3a5cb32b-9b48-41b7-9c42-f9ab583c829f","block_type":"box","text":"BlackRock Systematic Multi-Strategy Fund of","page_number":121,"box":{"x":232,"y":303,"width":316,"height":11}},{"id":"d5c9a589-4429-4c2b-b0d9-80b9cab707b9","block_type":"box","text":"BlackRock Funds IV and BlackRock Global","page_number":121,"box":{"x":232,"y":318,"width":296,"height":9}},{"id":"a7eb9bef-ec4e-49c0-bac3-d13e47b4b615","block_type":"box","text":"Equity Market Neutral Fund of BlackRock","page_number":121,"box":{"x":232,"y":333,"width":288,"height":11}},{"id":"f23739db-88bd-4a89-aed9-1992228d1933","block_type":"box","text":"Funds","page_number":121,"box":{"x":232,"y":348,"width":40,"height":9}},{"id":"ac759c2f-f432-4595-88fd-e665b2fb5ff2","block_type":"box","text":"SM","page_number":121,"box":{"x":274,"y":349,"width":10,"height":4}},{"id":"77aa04f2-d403-4a2a-92ba-01740cd6b254","block_type":"box","text":".","page_number":121,"box":{"x":287,"y":356,"width":1,"height":1}},{"id":"4171efb4-3944-4021-92bb-0029517833e1","block_type":"box","text":"60 Calendar Days After Month-End","page_number":121,"box":{"x":578,"y":167,"width":244,"height":11}},{"id":"bbca8950-175e-4fb3-b19d-bfc9fac04a1c","block_type":"box","text":"1","page_number":121,"box":{"x":823,"y":167,"width":4,"height":5}},{"id":"2743dfc3-28fe-40e3-be1d-e30c7b23b2dd","block_type":"box","text":"BlackRock Capital Appreciation Fund, Inc.,","page_number":121,"box":{"x":232,"y":371,"width":298,"height":11}},{"id":"b9d0b24c-09dc-499f-a8b8-477d12fc754c","block_type":"box","text":"BlackRock Equity Dividend Fund, BlackRock","page_number":121,"box":{"x":232,"y":386,"width":308,"height":11}},{"id":"ce98242f-2c70-4b30-ab92-2d464c1f2628","block_type":"box","text":"High Equity Income Fund of BlackRock","page_number":121,"box":{"x":232,"y":401,"width":271,"height":11}},{"id":"9c71b5e8-633e-477a-bffd-142bf586a979","block_type":"box","text":"Funds","page_number":121,"box":{"x":232,"y":417,"width":40,"height":8}},{"id":"262d4c2c-7738-46b3-b4bc-e82f0e228b81","block_type":"box","text":"SM","page_number":121,"box":{"x":274,"y":417,"width":10,"height":4}},{"id":"e6895fd3-5346-4a54-aac4-836712c08129","block_type":"box","text":", BlackRock Large Cap Focus Growth","page_number":121,"box":{"x":286,"y":416,"width":260,"height":12}},{"id":"67c86723-4db4-41a3-83ac-6195b994898c","block_type":"box","text":"Fund, Inc., BlackRock Large Cap Focus Value","page_number":121,"box":{"x":232,"y":432,"width":318,"height":11}},{"id":"51c7baae-d582-44be-88ca-a8174517bc95","block_type":"box","text":"Fund, Inc., BlackRock Mid-Cap Growth Equity","page_number":121,"box":{"x":232,"y":447,"width":316,"height":11}},{"id":"9b22178f-4692-4262-8436-cee345b8acaf","block_type":"box","text":"Portfolio of BlackRock Funds","page_number":121,"box":{"x":232,"y":462,"width":203,"height":9}},{"id":"6094ab9c-39b2-44c3-a20f-1a4190772f3f","block_type":"box","text":"SM","page_number":121,"box":{"x":436,"y":462,"width":11,"height":4}},{"id":"75a99b37-1521-45a1-a6a4-0f7b679925cf","block_type":"box","text":", BlackRock","page_number":121,"box":{"x":449,"y":462,"width":81,"height":10}},{"id":"be73473b-39ac-4877-adcd-5b73c8dec52e","block_type":"box","text":"Mid-Cap Value Fund of BlackRock Mid-Cap","page_number":121,"box":{"x":232,"y":477,"width":297,"height":11}},{"id":"d514e57a-764c-407e-bdc2-c043ef83ef99","block_type":"box","text":"Value Series, Inc.","page_number":121,"box":{"x":231,"y":492,"width":122,"height":10}},{"id":"6c25b442-e18a-4e81-8778-c50f97b456c8","block_type":"box","text":"15 Calendar Days After Month-End","page_number":121,"box":{"x":578,"y":371,"width":244,"height":11}},{"id":"7ab408de-fc93-4494-ac0a-1dac0bc373f9","block_type":"box","text":"Time Periods for Portfolio Characteristics (Excluding Liquidity Metrics (Addressed Below))","page_number":121,"box":{"x":158,"y":515,"width":661,"height":11}},{"id":"3a32d3b9-39e5-4c8f-97fb-fa6df47cea38","block_type":"box","text":"Funds in Scope Days After Month-End — After Which","page_number":121,"box":{"x":339,"y":537,"width":536,"height":11}},{"id":"4db296aa-2ad0-48ba-945d-80ded265d2fe","block_type":"box","text":"Portfolio Characteristics May be Disclosed","page_number":121,"box":{"x":585,"y":552,"width":311,"height":11}},{"id":"4d5bee0d-2492-4b7e-bcf8-519346d7e9c4","block_type":"box","text":"All Open-End Mutual Funds (non-money","page_number":121,"box":{"x":231,"y":575,"width":277,"height":11}},{"id":"2ef20d13-71a3-4dc3-99d3-f7d3fa01d1cd","block_type":"box","text":"market)","page_number":121,"box":{"x":232,"y":590,"width":52,"height":11}},{"id":"8aa97962-9fe5-4cf0-bf3d-cfc4e99976f0","block_type":"box","text":"5 Calendar Days After Month-End","page_number":121,"box":{"x":578,"y":575,"width":234,"height":11}},{"id":"680ad1e6-ed60-4974-b608-b38b753d32e4","block_type":"box","text":"1","page_number":121,"box":{"x":69,"y":615,"width":3,"height":4}},{"id":"f625dce8-c139-4078-8c7d-574e019561d1","block_type":"box","text":"Global Allocation Exception:","page_number":121,"box":{"x":94,"y":615,"width":164,"height":9}},{"id":"21b83fed-1c61-43e6-91e4-ceb4efadd996","block_type":"box","text":"The “Global Allocation funds” include BlackRock Global Allocation Fund, Inc., BlackRock Global Allocation","page_number":121,"box":{"x":262,"y":615,"width":598,"height":9}},{"id":"fb650e68-83f3-40de-bcdb-8b98e86c01c9","block_type":"box","text":"Portfolio of BlackRock Series Fund, Inc. and BlackRock Global Allocation V.I. Fund of BlackRock Variable Series Funds, Inc. Information on","page_number":121,"box":{"x":94,"y":625,"width":784,"height":9}},{"id":"6be1c7b2-ceed-4b4b-818b-c0df2f41b1e2","block_type":"box","text":"certain Portfolio Characteristics of BlackRock Global Allocation Portfolio of BlackRock Series Fund, Inc. and BlackRock Global Allocation V.I.","page_number":121,"box":{"x":93,"y":635,"width":795,"height":9}},{"id":"118a71a3-7f87-41e9-be8c-5fc91b48dd22","block_type":"box","text":"Fund of BlackRock Variable Series Funds, Inc. is available, upon request, to insurance companies that use these funds as underlying","page_number":121,"box":{"x":94,"y":645,"width":757,"height":9}},{"id":"31039365-818f-4c04-a453-83c8c65df865","block_type":"box","text":"investments (and to advisers and sub-advisers of funds invested in BlackRock Global Allocation Portfolio of BlackRock Series Fund, Inc. and","page_number":121,"box":{"x":94,"y":656,"width":797,"height":8}},{"id":"30004ece-1108-4cfc-bd7a-80b01979abe6","block_type":"box","text":"BlackRock Global Allocation V.I. Fund of BlackRock Variable Series Funds, Inc.) in their variable annuity contracts and variable life insurance","page_number":121,"box":{"x":94,"y":666,"width":793,"height":9}},{"id":"472f0f20-998b-4ba0-93f6-c8e565268222","block_type":"box","text":"policies on a weekly basis (or such other period as may be determined to be appropriate).","page_number":121,"box":{"x":94,"y":676,"width":511,"height":9}},{"id":"1aa616ea-08dc-45bb-b370-62ddbbe51159","block_type":"box","text":"Open-End Mutual Funds and ETFs (Excluding Money Market Mutual Funds and MM ETFs)","page_number":121,"box":{"x":163,"y":694,"width":651,"height":11}},{"id":"4a0b0c0f-023f-42ed-ac5a-753001446760","block_type":"box","text":"Time Periods for Portfolio Characteristics: Liquidity Metrics","page_number":121,"box":{"x":350,"y":709,"width":434,"height":11}},{"id":"49c197e6-75ce-4149-8444-96dd784ba56d","block_type":"box","text":"Funds in Scope Days After Quarter-End — After Which","page_number":121,"box":{"x":339,"y":732,"width":540,"height":11}},{"id":"55ceb8d9-940a-4b9a-8f61-0011c48f94e3","block_type":"box","text":"Liquidity Metrics May be Disclosed","page_number":121,"box":{"x":613,"y":747,"width":255,"height":11}},{"id":"8591ac65-ab67-4fef-bcdd-cef1c0aeb16c","block_type":"box","text":"All Open-End Mutual Funds and ETFs (non","page_number":121,"box":{"x":231,"y":770,"width":300,"height":11}},{"id":"95f89dbd-d80c-4580-86fe-cdf75293784a","block_type":"box","text":"money market).","page_number":121,"box":{"x":232,"y":785,"width":108,"height":11}},{"id":"d660cf18-7093-4937-9da3-be9f5a66b290","block_type":"box","text":"60 Calendar Days After Quarter-End","page_number":121,"box":{"x":578,"y":770,"width":253,"height":11}},{"id":"76be3a10-626d-41a0-b3c6-38cc203c2411","block_type":"box","text":"If Liquidity Metrics are disclosed to one party, they must also be disclosed to all other","page_number":121,"box":{"x":232,"y":808,"width":631,"height":11}},{"id":"543fcc06-8f2b-42a5-9233-0a36a67ece49","block_type":"box","text":"parties requesting the same information.","page_number":121,"box":{"x":231,"y":823,"width":298,"height":11}},{"id":"152ddd43-6cae-48f6-b72f-107cc56075cc","block_type":"box","text":"Money Market Mutual Funds and ETFs","page_number":121,"box":{"x":340,"y":864,"width":281,"height":11}},{"id":"e636a9aa-638d-430c-b7c0-3412c29890a6","block_type":"box","text":"2,3","page_number":121,"box":{"x":627,"y":864,"width":11,"height":5}},{"id":"c4cd03d6-2492-4927-a9bb-84640527cb15","block_type":"box","text":"Money Market ETFs will comply with the disclosure requirements under both the Money Market (Rule 2a-7) Policy and","page_number":121,"box":{"x":75,"y":879,"width":834,"height":11}},{"id":"a6b61530-e4a1-4105-bf9a-b4f0e82b7e96","block_type":"box","text":"the ETF Rule (Rule 6c-11) Policy.","page_number":121,"box":{"x":74,"y":894,"width":229,"height":11}},{"id":"38da6b58-599a-4fc7-8a7b-8b0dc45dd450","block_type":"box","text":"II-86","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9188f4a2-4fbb-4bfa-9de9-4494a5d3b3e3","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dd5b76b8-651d-48ea-b038-02bef3f33223","block_type":"box","text":"Time Periods","page_number":122,"box":{"x":520,"y":49,"width":94,"height":9}},{"id":"4fb28df7-5448-413e-9b45-7b4502a2f8a3","block_type":"box","text":"Prior to 5 Business Days After Month-End 5 Business Days After Month-End to Date of","page_number":122,"box":{"x":243,"y":72,"width":659,"height":11}},{"id":"57a6f548-9210-4b24-8055-9a17063c4718","block_type":"box","text":"Public Filing","page_number":122,"box":{"x":697,"y":87,"width":88,"height":11}},{"id":"478cb3fb-9a68-4ceb-b581-7e94e494f654","block_type":"box","text":"Portfolio","page_number":122,"box":{"x":75,"y":110,"width":61,"height":9}},{"id":"75fc2ccc-44f6-4b36-a519-26acdf8e609c","block_type":"box","text":"Holdings","page_number":122,"box":{"x":75,"y":125,"width":61,"height":11}},{"id":"c08f77a5-2597-465d-9104-402ef65693b5","block_type":"box","text":"Cannot disclose without non-disclosure or","page_number":122,"box":{"x":231,"y":110,"width":297,"height":9}},{"id":"fcb509fc-876b-4bfb-9903-97ba6108c3e7","block_type":"box","text":"confidentiality agreement and CCO approval","page_number":122,"box":{"x":231,"y":125,"width":310,"height":11}},{"id":"a61f3690-9221-4c51-b2f6-2422dad68817","block_type":"box","text":"except the following Portfolio Holdings","page_number":122,"box":{"x":231,"y":140,"width":271,"height":11}},{"id":"92435a90-18e6-401e-88c5-991d6c2d55bf","block_type":"box","text":"information is required to be released on the","page_number":122,"box":{"x":232,"y":155,"width":318,"height":11}},{"id":"01d93d82-f4af-45ea-902a-5e2b66171836","block_type":"box","text":"website pursuant to Rule 2a-7 on a monthly","page_number":122,"box":{"x":231,"y":170,"width":311,"height":11}},{"id":"28b0eb00-4bdd-447d-84ff-e6899a9310d7","block_type":"box","text":"basis: name of issuer, category of","page_number":122,"box":{"x":231,"y":185,"width":244,"height":11}},{"id":"3b06517b-35c8-4e85-a60a-341e21e03424","block_type":"box","text":"investment, CUSIP, principal amount, maturity","page_number":122,"box":{"x":232,"y":200,"width":325,"height":11}},{"id":"94f92be9-184f-42ad-9918-92feddbc09aa","block_type":"box","text":"dates, yields and value. BlackRock will","page_number":122,"box":{"x":231,"y":216,"width":273,"height":10}},{"id":"e8c544c4-8d44-4a5d-bad1-cbe9e2ee46db","block_type":"box","text":"release this information on the following","page_number":122,"box":{"x":232,"y":230,"width":286,"height":12}},{"id":"eb53ea60-6f39-460e-b0d3-a4c6d78fb7a0","block_type":"box","text":"timelines or on a more frequent timeline than","page_number":122,"box":{"x":231,"y":246,"width":323,"height":11}},{"id":"8d617b63-a218-473b-aa4a-669b8442c94b","block_type":"box","text":"required under Rule 2a-7:","page_number":122,"box":{"x":232,"y":261,"width":179,"height":11}},{"id":"ae48ecb0-af28-4d0e-8444-a39407748c70","block_type":"box","text":"•","page_number":122,"box":{"x":234,"y":279,"width":4,"height":3}},{"id":"d1384fd4-c042-4cfb-8eac-999b54316a04","block_type":"box","text":"Government MMFs: Daily portfolio holdings","page_number":122,"box":{"x":241,"y":276,"width":306,"height":11}},{"id":"4f090fde-bd6e-47c0-86d9-bf7468a221fb","block_type":"box","text":"are released on the website on a one","page_number":122,"box":{"x":241,"y":291,"width":266,"height":9}},{"id":"92578b16-e636-4ef0-8476-866acd850420","block_type":"box","text":"business day lag.","page_number":122,"box":{"x":241,"y":306,"width":122,"height":11}},{"id":"2a4b1750-2d69-4b16-b72a-1fff687c3f0c","block_type":"box","text":"•","page_number":122,"box":{"x":234,"y":324,"width":4,"height":3}},{"id":"f965c503-5197-47cd-87b6-acb3ec66dab7","block_type":"box","text":"Money Market ETFs (prime and","page_number":122,"box":{"x":242,"y":321,"width":218,"height":11}},{"id":"296afc6c-0e24-4e44-9e5d-bb870afe2fc4","block_type":"box","text":"government): Daily portfolio holdings","page_number":122,"box":{"x":240,"y":336,"width":261,"height":12}},{"id":"b7e2514c-c622-4c28-9156-0282eaa2de24","block_type":"box","text":"information released pursuant to ETF rule","page_number":122,"box":{"x":242,"y":351,"width":294,"height":11}},{"id":"a344d8e1-677f-4b5a-9fbf-a917a489a12d","block_type":"box","text":"requirements.","page_number":122,"box":{"x":241,"y":367,"width":97,"height":10}},{"id":"9606b00d-c64a-4bf6-ac13-1af1b7e43d7e","block_type":"box","text":"•","page_number":122,"box":{"x":234,"y":385,"width":4,"height":3}},{"id":"26b8f5ce-0973-4a4e-ba1c-5a48c2efdb09","block_type":"box","text":"Certain Money Market Mutual Funds and","page_number":122,"box":{"x":241,"y":382,"width":289,"height":11}},{"id":"93b71f38-0656-448a-af15-2b54bbd69cbd","block_type":"box","text":"Money Market ETFs: Weekly schedule of","page_number":122,"box":{"x":242,"y":397,"width":285,"height":11}},{"id":"22f8b9e6-e789-49df-98be-8dc81f464750","block_type":"box","text":"investments (PDF) is posted to the website","page_number":122,"box":{"x":242,"y":412,"width":304,"height":11}},{"id":"2e8533fd-55a8-4650-a6af-ec2850dda83a","block_type":"box","text":"at least one business day after week-end.","page_number":122,"box":{"x":241,"y":427,"width":296,"height":11}},{"id":"99135b47-c57f-4e71-9da9-71fbb2457d99","block_type":"box","text":"(The Cash business identifies those Funds.)","page_number":122,"box":{"x":241,"y":442,"width":312,"height":11}},{"id":"1e2baa37-0955-48eb-a432-8c1242ea7c09","block_type":"box","text":"May disclose to shareholders, prospective","page_number":122,"box":{"x":578,"y":110,"width":300,"height":11}},{"id":"3aa3bf03-0f6f-43ba-a9ea-1b8af830574f","block_type":"box","text":"shareholders, intermediaries, consultants","page_number":122,"box":{"x":578,"y":125,"width":297,"height":10}},{"id":"8ab080e0-8399-4438-895d-c7e430c7e360","block_type":"box","text":"and third party data providers. If Portfolio","page_number":122,"box":{"x":578,"y":140,"width":294,"height":11}},{"id":"4963054c-aad3-4d62-9e14-815c4975b71f","block_type":"box","text":"Holdings are disclosed to one party, they","page_number":122,"box":{"x":578,"y":155,"width":291,"height":11}},{"id":"aef80994-0c44-4859-b387-ef116397d3f1","block_type":"box","text":"must also be disclosed to all other parties","page_number":122,"box":{"x":578,"y":170,"width":302,"height":11}},{"id":"388a1520-c882-448b-8301-63202d084aaa","block_type":"box","text":"requesting the same information.","page_number":122,"box":{"x":578,"y":185,"width":236,"height":11}},{"id":"082d3fc2-07c6-4fd8-811c-6adf2ca22223","block_type":"box","text":"Portfolio","page_number":122,"box":{"x":75,"y":465,"width":61,"height":9}},{"id":"ea9ac5a0-e77f-4681-a0d3-cfa8e6b0355f","block_type":"box","text":"Characteristics","page_number":122,"box":{"x":74,"y":480,"width":111,"height":9}},{"id":"2107496d-07c9-4b0d-ad91-25eb9451e0a5","block_type":"box","text":"Cannot disclose without non-disclosure or","page_number":122,"box":{"x":231,"y":465,"width":297,"height":9}},{"id":"78bedf97-9170-4767-b948-dc207220e654","block_type":"box","text":"confidentiality agreement and CCO approval","page_number":122,"box":{"x":231,"y":480,"width":310,"height":11}},{"id":"3dc0cb78-8ede-400b-8a52-0f44a8732759","block_type":"box","text":"except the following information is:","page_number":122,"box":{"x":231,"y":495,"width":247,"height":11}},{"id":"cc81fb27-31da-4c04-8c2d-96ae8c39eb02","block_type":"box","text":"(i) required to be released on the Fund’s","page_number":122,"box":{"x":231,"y":510,"width":287,"height":11}},{"id":"33aa8f98-b24b-4c9e-bd56-6dd98d762dbe","block_type":"box","text":"website daily (","page_number":122,"box":{"x":231,"y":526,"width":100,"height":10}},{"id":"19972fc8-a9b3-41c8-8bc1-36eeafbfae3a","block_type":"box","text":"i.e.","page_number":122,"box":{"x":334,"y":526,"width":20,"height":8}},{"id":"87ee6308-1f4d-47af-95a7-7a6e37a23504","block_type":"box","text":", each Business Day as of","page_number":122,"box":{"x":356,"y":525,"width":186,"height":11}},{"id":"b7520930-3f0a-4eb7-a401-0a38444fd025","block_type":"box","text":"the end of the preceding Business Day):","page_number":122,"box":{"x":231,"y":540,"width":285,"height":12}},{"id":"8a74598d-4bdc-4585-ae44-072ba2b4b8f4","block_type":"box","text":"•","page_number":122,"box":{"x":234,"y":559,"width":4,"height":3}},{"id":"6918661d-cd34-44a2-8877-b78dcdc4e650","block_type":"box","text":"Historical NAVs calculated based on market","page_number":122,"box":{"x":242,"y":556,"width":309,"height":8}},{"id":"a6aee35f-ba8b-4090-bafb-08d2e0826e9e","block_type":"box","text":"factors (","page_number":122,"box":{"x":240,"y":571,"width":58,"height":11}},{"id":"cfeeb8aa-4208-44a5-af64-ee4754e4cfb3","block_type":"box","text":"e.g.","page_number":122,"box":{"x":300,"y":572,"width":25,"height":10}},{"id":"fff6de66-0812-4b2c-82b4-d0d0e2166fa8","block_type":"box","text":", marked to market).","page_number":122,"box":{"x":328,"y":571,"width":143,"height":11}},{"id":"7744f68f-d1c0-41c8-b280-e550af84b459","block_type":"box","text":"•","page_number":122,"box":{"x":234,"y":589,"width":4,"height":3}},{"id":"fb62cca1-d9cf-426e-8ba8-dfc514cfad16","block_type":"box","text":"Percentage of fund assets invested in daily","page_number":122,"box":{"x":241,"y":586,"width":307,"height":11}},{"id":"cd60e01f-082d-415d-a18a-9a85dc04bc70","block_type":"box","text":"and weekly liquid assets (as defined under","page_number":122,"box":{"x":241,"y":601,"width":304,"height":11}},{"id":"f42fdc9b-dc42-4b88-9de5-237738ef7c26","block_type":"box","text":"Rule 2a-7).","page_number":122,"box":{"x":242,"y":616,"width":75,"height":11}},{"id":"bf0770cd-71b1-4670-950a-5a38d89f7925","block_type":"box","text":"•","page_number":122,"box":{"x":234,"y":634,"width":4,"height":3}},{"id":"372e1fd9-74e5-41b4-ba53-dbc2730c87a8","block_type":"box","text":"Daily net flow information (inflows less","page_number":122,"box":{"x":242,"y":631,"width":273,"height":11}},{"id":"50cb2e22-0517-41fc-9d29-7130186cde1b","block_type":"box","text":"outflows).","page_number":122,"box":{"x":241,"y":646,"width":67,"height":11}},{"id":"e9033bff-f515-4e41-8b0c-b06704cd6442","block_type":"box","text":"•","page_number":122,"box":{"x":234,"y":664,"width":4,"height":4}},{"id":"0cf4db85-b8db-4b44-9103-d5d4fa72441d","block_type":"box","text":"Other information as may be required by","page_number":122,"box":{"x":241,"y":661,"width":287,"height":11}},{"id":"1cad7a96-8ca1-43ed-b96b-22f951dfa1e1","block_type":"box","text":"Rule 2a-7.","page_number":122,"box":{"x":242,"y":677,"width":70,"height":8}},{"id":"a1a5db85-a280-4977-911a-6fe10c14304b","block_type":"box","text":"(ii) voluntarily released on the Fund’s","page_number":122,"box":{"x":241,"y":692,"width":262,"height":11}},{"id":"51c316fb-a4dd-439f-bfbb-1763aa24643b","block_type":"box","text":"website daily (","page_number":122,"box":{"x":240,"y":707,"width":101,"height":11}},{"id":"cb2b874f-57c5-4074-9641-ee0e3993266b","block_type":"box","text":"i.e.","page_number":122,"box":{"x":343,"y":707,"width":20,"height":9}},{"id":"8838be0e-76b3-4e20-883e-91be6d0fe146","block_type":"box","text":", each Business Day as of","page_number":122,"box":{"x":366,"y":707,"width":186,"height":11}},{"id":"3bcdf2a0-84bf-4b33-a6dd-d617e8c33de8","block_type":"box","text":"the end of the preceding Business Day):","page_number":122,"box":{"x":240,"y":722,"width":285,"height":11}},{"id":"690f050d-bcea-4fdc-93aa-b000170dc59f","block_type":"box","text":"•","page_number":122,"box":{"x":234,"y":740,"width":4,"height":3}},{"id":"04e6ab16-6b37-4d94-b312-b9ce1eca6d8b","block_type":"box","text":"Fund SEC yields, WAM (required monthly),","page_number":122,"box":{"x":242,"y":737,"width":295,"height":11}},{"id":"e55f02d2-9837-43e6-a2f4-6fb61e4e8ab5","block_type":"box","text":"WAL (required monthly), fund size and share","page_number":122,"box":{"x":240,"y":752,"width":314,"height":11}},{"id":"25628392-4229-4920-9caf-e9bfc0197430","block_type":"box","text":"class size.","page_number":122,"box":{"x":241,"y":767,"width":73,"height":9}},{"id":"9b3086fe-d01b-4c77-9d87-944280b73b88","block_type":"box","text":"May disclose to shareholders, prospective","page_number":122,"box":{"x":578,"y":465,"width":300,"height":11}},{"id":"1535d80f-5196-41e9-b07b-2db24386feef","block_type":"box","text":"shareholders, intermediaries, consultants","page_number":122,"box":{"x":578,"y":480,"width":297,"height":10}},{"id":"252be2e5-6c86-40b3-9ca5-547b37093fd9","block_type":"box","text":"and third party data providers. If Portfolio","page_number":122,"box":{"x":578,"y":495,"width":294,"height":11}},{"id":"da0a37fa-dd66-4509-adca-3f520e563f93","block_type":"box","text":"Characteristics are disclosed to one party,","page_number":122,"box":{"x":578,"y":510,"width":300,"height":11}},{"id":"f8e0809a-2bfc-4f65-938a-9c9ec1e16f4d","block_type":"box","text":"they must also be disclosed to all other","page_number":122,"box":{"x":577,"y":526,"width":283,"height":10}},{"id":"a9cb3a57-1748-4dc3-8cb8-edfebf94e182","block_type":"box","text":"parties requesting the same information.","page_number":122,"box":{"x":578,"y":540,"width":291,"height":12}},{"id":"fd41dc59-c6c1-41a6-9841-7eafeb812df5","block_type":"box","text":"2","page_number":122,"box":{"x":69,"y":785,"width":3,"height":3}},{"id":"df52f124-23ab-49ad-b6f6-1612c662e109","block_type":"box","text":"BlackRock Short Obligations Fund","page_number":122,"box":{"x":77,"y":785,"width":200,"height":9}},{"id":"bab5badc-7f1e-485d-8108-ed9d8a284719","block_type":"box","text":". Fund’s holdings may be disclosed in accordance with the frequency for money market funds.","page_number":122,"box":{"x":278,"y":785,"width":534,"height":9}},{"id":"fe81946f-a9e6-49eb-bd9f-af78b5717642","block_type":"box","text":"3","page_number":122,"box":{"x":69,"y":800,"width":3,"height":3}},{"id":"b3331023-4ba5-4a26-b67e-712f74ed5bc2","block_type":"box","text":"Circle Reserve Fund Exception","page_number":122,"box":{"x":76,"y":800,"width":179,"height":9}},{"id":"1cb3da27-2bac-44dc-9afd-90a2a0c24dfe","block_type":"box","text":": Information on portfolio holdings and certain portfolio characteristics of the Circle Reserve Fund of BlackRock","page_number":122,"box":{"x":257,"y":800,"width":634,"height":9}},{"id":"2f11fe37-ca11-49da-8ace-0b6c85d93a8a","block_type":"box","text":"Funds","page_number":122,"box":{"x":69,"y":813,"width":33,"height":7}},{"id":"b35b3adb-16a5-4add-a8f4-a61619d589a8","block_type":"box","text":"SM","page_number":122,"box":{"x":103,"y":813,"width":8,"height":3}},{"id":"3cd2a90a-9249-4dd2-81e4-d769edaf1dc6","block_type":"box","text":"may be made available to the shareholders of the Fund, upon request, on a more frequent basis as may be deemed appropriate by","page_number":122,"box":{"x":117,"y":812,"width":748,"height":9}},{"id":"0184fc77-22fd-4831-a602-e7902525ac03","block_type":"box","text":"BlackRock from time-to-time.","page_number":122,"box":{"x":69,"y":825,"width":162,"height":7}},{"id":"91393f20-d4c9-4e5c-9777-5f5341f5dd83","block_type":"box","text":"Guidelines for Confidential and Non-Material Information.","page_number":122,"box":{"x":102,"y":848,"width":404,"height":9}},{"id":"b65336d9-fb96-414c-99b4-4904c2dcb10c","block_type":"box","text":"Confidential Information may be disclosed to the","page_number":122,"box":{"x":512,"y":848,"width":346,"height":12}},{"id":"a11263a6-d1ba-4378-8de6-32ed8cb42534","block_type":"box","text":"Fund’s Board of Directors and its counsel, outside counsel for the Fund, the Fund’s auditors and to certain third-party","page_number":122,"box":{"x":70,"y":863,"width":839,"height":12}},{"id":"21825dd2-1209-4b28-b65b-4065564b7c39","block_type":"box","text":"service providers (","page_number":122,"box":{"x":69,"y":879,"width":130,"height":11}},{"id":"2b9acbae-7ee7-4cd8-8e54-2fde84efcaef","block_type":"box","text":"e.g.","page_number":122,"box":{"x":201,"y":880,"width":25,"height":10}},{"id":"a289676d-d109-4359-a995-25e87cdccd3d","block_type":"box","text":", Fund administrator, Fund custodian, proxy voting service), securities lending borrowers,","page_number":122,"box":{"x":228,"y":879,"width":630,"height":11}},{"id":"89393962-1231-4335-91fe-92a1c8c410fb","block_type":"box","text":"broker-dealers that are fund counterparties and shareholders and their representatives that participate in applicable","page_number":122,"box":{"x":69,"y":894,"width":829,"height":11}},{"id":"d569c1d5-f50b-4848-8ea0-d285ccb4eee8","block_type":"box","text":"redemptions in kind. Non-disclosure or confidentiality agreements will be in place with such service providers,","page_number":122,"box":{"x":69,"y":909,"width":781,"height":11}},{"id":"7f2b2605-0ae3-4c22-93dd-2543c828f84f","block_type":"box","text":"II-87","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"89db68a1-2c08-4232-95e0-c426932386a2","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":122,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b6aa95f-d6ac-4ec4-9398-e14ecdd3d8a3","block_type":"box","text":"borrowers, and broker-dealers. With respect to Confidential Information, the Fund’s CCO or his or her designee may","page_number":123,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"accfe48b-75b1-4238-abfc-13e793a5e9e9","block_type":"box","text":"authorize the following, subject in the case of (ii) and (iii) to a confidentiality or non-disclosure arrangement:","page_number":123,"box":{"x":69,"y":60,"width":765,"height":11}},{"id":"2b27b158-e0e8-406f-aea8-deca6a784cd8","block_type":"box","text":"(i) the preparation and posting of the Fund’s Portfolio Holdings and/or Portfolio Characteristics to its website","page_number":123,"box":{"x":102,"y":80,"width":787,"height":11}},{"id":"a6f58981-ca32-4fb2-b606-493db4b60f72","block_type":"box","text":"on a more frequent basis than authorized above;","page_number":123,"box":{"x":131,"y":95,"width":346,"height":11}},{"id":"11b91d17-1616-4177-9271-32678889087f","block_type":"box","text":"(ii) the disclosure of the Fund’s Portfolio Holdings to third-party service providers not noted above; and","page_number":123,"box":{"x":102,"y":115,"width":738,"height":11}},{"id":"09b99a8f-881f-4513-aeaf-1c471cee38ce","block_type":"box","text":"(iii) the disclosure of the Fund’s Portfolio Holdings and/or Portfolio Characteristics to other parties for legitimate","page_number":123,"box":{"x":102,"y":135,"width":804,"height":12}},{"id":"1158fdfc-128f-4e73-8bd3-d6e10ed98bce","block_type":"box","text":"business purposes.","page_number":123,"box":{"x":131,"y":151,"width":138,"height":10}},{"id":"6c50903b-09e0-4529-9ebe-8dfffe205b72","block_type":"box","text":"Fact Sheets and Repor ts","page_number":123,"box":{"x":102,"y":173,"width":177,"height":11}},{"id":"108d17dd-269f-4a43-8017-71e9bc931209","block_type":"box","text":"•","page_number":123,"box":{"x":102,"y":196,"width":6,"height":5}},{"id":"143cf2d0-f960-4ac7-9a32-b5829a1dec96","block_type":"box","text":"Fund Fact Sheets are available to shareholders, prospective shareholders, intermediaries and consultants","page_number":123,"box":{"x":135,"y":193,"width":756,"height":11}},{"id":"acd978f3-cd69-463f-ac05-bf03bcc06ca3","block_type":"box","text":"on a monthly or quarterly basis no earlier than the fifth calendar day after the end of a month or quarter.","page_number":123,"box":{"x":134,"y":208,"width":744,"height":12}},{"id":"b75c8bd9-008a-4720-addb-a1c14b3e97b3","block_type":"box","text":"Other Information.","page_number":123,"box":{"x":102,"y":231,"width":128,"height":9}},{"id":"49cb2f8a-659f-4043-879d-70bf368154a4","block_type":"box","text":"The Policy shall also apply to other Confidential Information of a Fund such as performance","page_number":123,"box":{"x":236,"y":231,"width":651,"height":11}},{"id":"15676c71-74e2-4026-90f1-d1e3c40a6509","block_type":"box","text":"attribution analyses or security-specific information (","page_number":123,"box":{"x":69,"y":246,"width":372,"height":11}},{"id":"0909b96b-b1d3-4a5b-9a8f-3d51968c572f","block_type":"box","text":"e.g.","page_number":123,"box":{"x":442,"y":248,"width":25,"height":9}},{"id":"111a0c56-f798-467c-875d-af4158174f7f","block_type":"box","text":", information about Fund holdings where an issuer has been","page_number":123,"box":{"x":470,"y":246,"width":427,"height":11}},{"id":"dd3655c0-5d02-4d6e-97d2-5a33791705ac","block_type":"box","text":"downgraded, been acquired or declared bankruptcy).","page_number":123,"box":{"x":69,"y":262,"width":372,"height":11}},{"id":"8720d2ea-cc61-49e0-aa36-4e8a65e7bf98","block_type":"box","text":"Data on NAVs, asset levels (by total Fund and share class), accruals, yields, capital gains, dividends and fund","page_number":123,"box":{"x":102,"y":284,"width":781,"height":11}},{"id":"33da6559-ba0e-4df5-b4a1-59dead63cc64","block_type":"box","text":"returns (net of fees by share class) are generally available to shareholders, prospective shareholders, consultants,","page_number":123,"box":{"x":69,"y":299,"width":818,"height":11}},{"id":"9466fcda-5226-4b12-9235-4156bcc18c0b","block_type":"box","text":"and third-party data providers upon request, as soon as such data is available.","page_number":123,"box":{"x":69,"y":314,"width":562,"height":11}},{"id":"2011943d-1325-487c-8a50-512df9346efa","block_type":"box","text":"Contact Information.","page_number":123,"box":{"x":102,"y":337,"width":144,"height":9}},{"id":"8cf4ec7e-85c0-4b01-babc-07737a8b9c73","block_type":"box","text":"For information about portfolio holdings and characteristics, BlackRock fund shareholders","page_number":123,"box":{"x":253,"y":337,"width":639,"height":11}},{"id":"0c01c8f0-989f-47e4-89b5-9591c1d6257b","block_type":"box","text":"and prospective investors should call the number set out on the back cover of the Prospectus.","page_number":123,"box":{"x":69,"y":352,"width":672,"height":11}},{"id":"6651049e-a8b9-4643-aac6-43f09cab48a9","block_type":"box","text":"Compensation.","page_number":123,"box":{"x":102,"y":375,"width":105,"height":11}},{"id":"0a62c61b-95dc-429e-a683-089bf0782823","block_type":"box","text":"Neither a Fund, a service provider nor any of their affiliated persons (as that term is defined in","page_number":123,"box":{"x":215,"y":375,"width":672,"height":11}},{"id":"32c91777-f7e5-42b0-9182-da7be929360c","block_type":"box","text":"the Investment Company Act) shall receive compensation in any form in connection with the disclosure of information","page_number":123,"box":{"x":68,"y":390,"width":837,"height":11}},{"id":"c78d2344-515d-41f4-8fbe-97ba73eaa215","block_type":"box","text":"about such Fund’s Portfolio Holdings or Portfolio Characteristics.","page_number":123,"box":{"x":69,"y":405,"width":461,"height":11}},{"id":"bdb10780-1959-48b0-9d13-d1a3e8dbb428","block_type":"box","text":"Ongoing Arrangements.","page_number":123,"box":{"x":102,"y":428,"width":164,"height":11}},{"id":"bc3ee69e-4e31-47e8-b527-ea6dd63cc752","block_type":"box","text":"The Manager has entered into ongoing agreements to provide selective disclosure of","page_number":123,"box":{"x":272,"y":428,"width":605,"height":11}},{"id":"b5a6db41-b803-4cea-b57b-ccd9e9df4b8e","block_type":"box","text":"Fund Portfolio Holdings to the following persons or entities:","page_number":123,"box":{"x":70,"y":443,"width":420,"height":11}},{"id":"4746a6a0-093e-4a4d-9207-ec44c7ea661f","block_type":"box","text":"1. Fund’s Board of Directors and, if necessary, independent Directors’ counsel and Fund counsel.","page_number":123,"box":{"x":70,"y":463,"width":707,"height":11}},{"id":"8267b2c2-ceee-473e-8f3a-497b257feaf0","block_type":"box","text":"2. Fund’s Transfer Agent.","page_number":123,"box":{"x":69,"y":483,"width":190,"height":11}},{"id":"483f82a7-1360-4217-8403-2d2fe0b5fba4","block_type":"box","text":"3. Fund’s Custodian.","page_number":123,"box":{"x":69,"y":503,"width":160,"height":9}},{"id":"58519bb8-afd1-4382-ae18-a666ae6cac52","block_type":"box","text":"4. Fund’s Administrator, if applicable.","page_number":123,"box":{"x":69,"y":523,"width":278,"height":11}},{"id":"85b0a39f-5242-4ba8-b55d-2fd8596c39fb","block_type":"box","text":"5. Fund’s independent registered public accounting firm.","page_number":123,"box":{"x":69,"y":543,"width":414,"height":12}},{"id":"ed99665e-5950-4159-a5d2-452539929864","block_type":"box","text":"6. Fund’s accounting services provider.","page_number":123,"box":{"x":69,"y":564,"width":291,"height":11}},{"id":"7d64bc2a-899f-49ff-aa5a-d8889aae591b","block_type":"box","text":"7. Independent rating agencies — Lipper Inc., Moody’s, Fitch.","page_number":123,"box":{"x":69,"y":584,"width":451,"height":11}},{"id":"07ee3094-1b55-42f3-b36c-f46b7ab69ea9","block_type":"box","text":"8. Information aggregators — S&P Global, Bloomberg, eVestments Alliance and Informa/PSN Investment Solutions.","page_number":123,"box":{"x":69,"y":604,"width":837,"height":11}},{"id":"925d0e82-4592-40ba-b164-fcf9b2adcb26","block_type":"box","text":"9. Pricing Vendors — Refinitiv Limited, Refinitiv US LLC, ICE Data Services, Bloomberg, IHS Markit, JP Morgan","page_number":123,"box":{"x":69,"y":624,"width":796,"height":11}},{"id":"6839d73b-2435-4166-aca3-5aecc8331389","block_type":"box","text":"Pricing-Direct, Valuation Research Corporation, Murray, Devine & Co., Inc. and WM Company PLC.","page_number":123,"box":{"x":102,"y":639,"width":690,"height":12}},{"id":"583753c9-7477-4be5-91f9-b24485e099bc","block_type":"box","text":"10. Valuation Providers — Houlihan Lokey, Lincoln Financial, Chatham and Kroll.","page_number":123,"box":{"x":70,"y":660,"width":573,"height":11}},{"id":"416e1a9f-ebba-42b8-81d7-11c1511972fa","block_type":"box","text":"11. Third-party feeder funds — Stock Index Fund, a series of Homestead Funds, Inc. and Transamerica Stock Index,","page_number":123,"box":{"x":70,"y":680,"width":827,"height":11}},{"id":"1b0f21dc-5fe8-4f0e-b7f4-8bc623a9fe51","block_type":"box","text":"a series of Transamerica Funds and their respective boards, sponsors, administrators and other service","page_number":123,"box":{"x":102,"y":695,"width":741,"height":11}},{"id":"e7d31bd6-b5ee-4397-b541-2bceafad3cd7","block_type":"box","text":"providers.","page_number":123,"box":{"x":102,"y":710,"width":68,"height":11}},{"id":"e69a091b-336c-4b55-afa6-73d9123695b2","block_type":"box","text":"12. Affiliated feeder funds — iShares S&P 500 Index Fund, iShares U.S. Aggregate Bond Index Fund, Treasury","page_number":123,"box":{"x":70,"y":730,"width":790,"height":11}},{"id":"75b8300c-640d-467e-a1f0-64962cbb54c8","block_type":"box","text":"Money Market Fund (Cayman) and their respective boards, sponsors, administrators and other service providers.","page_number":123,"box":{"x":102,"y":745,"width":803,"height":11}},{"id":"5b5d9f94-a1ba-48d8-a477-d15f6140cf87","block_type":"box","text":"13. Other — Investment Company Institute, Goldman Sachs Asset Management, L.P., JPMorgan Chase Bank, N.A.,","page_number":123,"box":{"x":70,"y":765,"width":821,"height":12}},{"id":"32cbe9cc-4901-4dd3-b0a6-e07fb0ec7138","block_type":"box","text":"Mizuho Asset Management Co., Ltd., Nationwide Fund Advisors, State Street Bank and Trust Company,","page_number":123,"box":{"x":102,"y":780,"width":732,"height":12}},{"id":"aeedc49a-2ae0-4fc0-9c08-d97eeb6fd8a7","block_type":"box","text":"Donnelley Financial Solutions, Inc. and Silicon Valley Bank.","page_number":123,"box":{"x":102,"y":796,"width":416,"height":11}},{"id":"c1f6e4a7-6a2d-4dc5-9b9a-34724b7d1e41","block_type":"box","text":"In connection with effecting redemptions in kind, the Fund or the Manager may provide information about a","page_number":123,"box":{"x":102,"y":818,"width":762,"height":11}},{"id":"b4484716-ae2c-4586-8106-25a44e9ec8b8","block_type":"box","text":"Fund’s portfolio holdings, such as the securities to be delivered in connection with the redemption in kind, to a","page_number":123,"box":{"x":70,"y":833,"width":790,"height":12}},{"id":"38c379d2-f726-44ba-a99a-12a360344e03","block_type":"box","text":"redeeming shareholder. Typically, such shareholder will be subject to a non-disclosure agreement or other duty to","page_number":123,"box":{"x":69,"y":849,"width":806,"height":11}},{"id":"ee6ade47-2be9-426e-acca-77855a319b2c","block_type":"box","text":"keep the information confidential.","page_number":123,"box":{"x":69,"y":863,"width":238,"height":11}},{"id":"fb2f8a6c-b742-4921-a530-8ca6647ffe09","block_type":"box","text":"With respect to each such arrangement, a Fund has a legitimate business purpose for the release of","page_number":123,"box":{"x":101,"y":886,"width":720,"height":12}},{"id":"e180aea2-fe02-40b6-9024-747293edf60f","block_type":"box","text":"information. The release of the information is subject to confidential treatment to prohibit the entity from sharing with","page_number":123,"box":{"x":70,"y":901,"width":836,"height":12}},{"id":"4c078dd8-eb49-42d8-9f08-e4509d365bbb","block_type":"box","text":"II-88","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ed207e90-fee2-47c6-b05b-35292d8d4457","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":123,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c8921f4b-6d09-4946-ab75-33919936713b","block_type":"box","text":"an unauthorized source. The Funds, BlackRock and their affiliates do not receive any compensation or other","page_number":124,"box":{"x":69,"y":45,"width":770,"height":11}},{"id":"f295cfd5-1bd0-4a4e-bd88-32f2245aea6e","block_type":"box","text":"consideration in connection with such arrangements.","page_number":124,"box":{"x":69,"y":60,"width":375,"height":11}},{"id":"22c23cc1-0d9c-41b6-93b0-cb0120dd96f4","block_type":"box","text":"The Funds and the Manager may monitor, to the extent possible, the use of Confidential Information by the","page_number":124,"box":{"x":101,"y":82,"width":762,"height":12}},{"id":"f22f0b47-b1ad-4cc3-b060-0c93be512696","block_type":"box","text":"individuals or firms to which it has been disclosed. To do so, in addition to the requirements of any applicable","page_number":124,"box":{"x":70,"y":98,"width":781,"height":11}},{"id":"a9e3d0eb-5ee0-4945-913e-90f24eee3a18","block_type":"box","text":"confidentiality agreement and/or the terms and conditions of the Fund’s and Manager’s Codes of Ethics, the","page_number":124,"box":{"x":69,"y":113,"width":775,"height":11}},{"id":"c1c8c3ad-f489-47a3-8f8a-1a6424069c8d","block_type":"box","text":"Manager’s compliance personnel under the supervision of the Fund’s CCO, monitor the Manager’s securities trading","page_number":124,"box":{"x":70,"y":128,"width":830,"height":11}},{"id":"48b29954-76db-4e69-947a-f274a934016f","block_type":"box","text":"desks to determine whether individuals or firms who have received Confidential Information have made any trades on","page_number":124,"box":{"x":69,"y":143,"width":836,"height":11}},{"id":"c7700473-8add-46f0-aaf3-c48e45494abf","block_type":"box","text":"the basis of that information. In addition, the Manager maintains an internal restricted list to prevent trading by the","page_number":124,"box":{"x":68,"y":158,"width":822,"height":11}},{"id":"c4f8a0c6-97c0-4d69-af57-f0ba21c0d050","block_type":"box","text":"personnel of the Manager or its affiliates in securities — including securities held by a Fund — about which the","page_number":124,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"9e63f128-15cf-40d6-8536-a5358be444d8","block_type":"box","text":"Manager has Confidential Information. There can be no assurance, however, that the Fund’s policies and procedures","page_number":124,"box":{"x":70,"y":188,"width":831,"height":12}},{"id":"9df70127-ed4f-4aff-b547-6cb590481832","block_type":"box","text":"with respect to the selective disclosure of Portfolio Holdings will prevent the misuse of such information by","page_number":124,"box":{"x":68,"y":203,"width":764,"height":12}},{"id":"0e880d09-0e04-4708-b8c6-ad4609d56baa","block_type":"box","text":"individuals or firms that receive such information.","page_number":124,"box":{"x":70,"y":218,"width":351,"height":9}},{"id":"c0872cbf-7c84-4b9c-8d2e-612b0c009d2c","block_type":"box","text":"Potential Conflicts of Interest","page_number":124,"box":{"x":69,"y":249,"width":216,"height":9}},{"id":"5f65af92-a8d2-4fc8-8458-3fbd61fd7593","block_type":"box","text":"Cer tain activities of BlackRock, Inc., BlackRock Advisors, LLC, BlackRock Fund Advisors and the other","page_number":124,"box":{"x":102,"y":271,"width":727,"height":11}},{"id":"ba74d6a3-7de6-483c-b852-578077bab9b4","block_type":"box","text":"subsidiaries of BlackRock, Inc. (collectively referred to in this section as “BlackRock”) and their respective directors,","page_number":124,"box":{"x":69,"y":286,"width":829,"height":12}},{"id":"a70575da-682b-49b4-b750-239aac64dccf","block_type":"box","text":"officers or employees, with respect to the Funds and/or other accounts managed by BlackRock, may give rise to","page_number":124,"box":{"x":69,"y":302,"width":802,"height":11}},{"id":"7bc1596a-0d98-423e-bd3e-6416a99b7070","block_type":"box","text":"actual or perceived conflicts of interest such as those described below.","page_number":124,"box":{"x":69,"y":317,"width":507,"height":11}},{"id":"cf53521a-0027-468c-b80e-888825225d55","block_type":"box","text":"BlackRock is one of the world’s largest asset management firms. BlackRock, its subsidiaries and their","page_number":124,"box":{"x":102,"y":339,"width":731,"height":12}},{"id":"5c3ec124-67b0-4097-abc7-434ef34471c7","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":124,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"9a10c734-6514-4528-b198-c519aa910344","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":124,"box":{"x":70,"y":370,"width":786,"height":11}},{"id":"e8e0369a-63e5-47ba-9b03-8a8fe56646a6","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":124,"box":{"x":70,"y":385,"width":829,"height":11}},{"id":"b84044e9-c1c6-47f0-9182-5335d1b85253","block_type":"box","text":"and have interests other than that of managing the Funds. These are considerations of which investors in a Fund","page_number":124,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"8e510ce1-acf2-4806-a6db-a8b3b262fd07","block_type":"box","text":"should be aware, and which may cause conflicts of interest that could disadvantage a Fund and its shareholders.","page_number":124,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"5b68d7db-c85f-4579-af65-ca79aa23328f","block_type":"box","text":"These businesses and interests include potential multiple advisory, transactional, financial and other","page_number":124,"box":{"x":101,"y":438,"width":722,"height":11}},{"id":"8a11b8eb-e10d-420a-92f5-49172aba9bd1","block_type":"box","text":"relationships with, or interests in companies and interests in securities or other instruments that may be purchased","page_number":124,"box":{"x":69,"y":453,"width":827,"height":11}},{"id":"7e3f92fd-a8a2-48bd-b834-605a301d5e32","block_type":"box","text":"or sold by a Fund.","page_number":124,"box":{"x":69,"y":468,"width":125,"height":11}},{"id":"0848cc65-d483-40d5-8c49-e4066faa69a8","block_type":"box","text":"BlackRock may have proprietary interests in, and may manage or advise with respect to, accounts or funds","page_number":124,"box":{"x":102,"y":491,"width":762,"height":11}},{"id":"e7ba0cb8-b891-4f0b-b440-39835a1506ba","block_type":"box","text":"(including separate accounts and other funds and collective investment vehicles) that have investment objectives","page_number":124,"box":{"x":69,"y":506,"width":806,"height":11}},{"id":"bf3e220d-971e-4244-a137-b0fd7f8e74a4","block_type":"box","text":"identical or similar to those of a Fund and/or that engage in transactions in the same types of securities, currencies","page_number":124,"box":{"x":70,"y":521,"width":828,"height":11}},{"id":"65713425-63ea-4364-babd-db1a5ed96970","block_type":"box","text":"and instruments as the Fund. Such other funds or accounts may offer exposure to strategies that are identical or","page_number":124,"box":{"x":69,"y":536,"width":808,"height":11}},{"id":"b97b0855-14cf-40a2-8093-d00f59001420","block_type":"box","text":"substantially similar to those of a Fund but with different fees and expenses, governance and structures, and/or","page_number":124,"box":{"x":69,"y":551,"width":803,"height":11}},{"id":"e9d37191-e1b4-4d14-b6d5-528d370ce147","block_type":"box","text":"services provided by BlackRock","page_number":124,"box":{"x":69,"y":566,"width":224,"height":11}},{"id":"4b027077-fe19-47d4-a709-7a1e95255b7b","block_type":"box","text":".","page_number":124,"box":{"x":295,"y":574,"width":2,"height":1}},{"id":"58c9b8f7-185d-4b29-954a-9bf0ddca2c1b","block_type":"box","text":"BlackRock is also a major participant in the global currency, equities, swap and fixed","page_number":124,"box":{"x":304,"y":566,"width":603,"height":11}},{"id":"c9c385e6-7305-49a1-a67a-da10c0700fc9","block_type":"box","text":"income markets, in each case, for the accounts of clients and, in some cases, on a proprietary basis. As such,","page_number":124,"box":{"x":70,"y":581,"width":791,"height":11}},{"id":"c1d70730-fab9-4410-88c5-6bec4eeeca97","block_type":"box","text":"BlackRock is or may be actively engaged in transactions in the same securities, currencies, and instruments in which","page_number":124,"box":{"x":70,"y":597,"width":835,"height":11}},{"id":"1e9cdabc-99dd-4c5d-bcc9-7e0ba7571990","block_type":"box","text":"a Fund invests.","page_number":124,"box":{"x":69,"y":612,"width":106,"height":9}},{"id":"723fbe7f-325c-43c1-b7fe-e7d486112012","block_type":"box","text":"Such activities could affect the prices and availability of the securities, currencies, and instruments in which a","page_number":124,"box":{"x":102,"y":634,"width":785,"height":11}},{"id":"af2fb741-599f-499f-8aa3-b7c9f6b01eef","block_type":"box","text":"Fund invests, which could have an adverse impact on a Fund’s performance. Such transactions, particularly in","page_number":124,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"e9cfab1c-7419-4013-be11-faae47280b14","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":124,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"905b8612-0b77-4b0b-be5e-e54f8abf18a8","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":124,"box":{"x":68,"y":680,"width":652,"height":11}},{"id":"17f55127-8547-4531-8dc0-9eb316ecc101","block_type":"box","text":"In addition, the portfolio holdings of certain BlackRock-advised investment vehicles managed in an identical or","page_number":124,"box":{"x":102,"y":702,"width":787,"height":12}},{"id":"736e4bc8-da8a-4afe-b476-54207101dfc9","block_type":"box","text":"substantially similar manner as certain Funds are made publicly available on a more timely basis than the applicable","page_number":124,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"022fde67-55e4-4103-848c-ff1084a7cf6b","block_type":"box","text":"Fund. In some cases, such portfolio holdings are made publicly available on a daily basis. While not expected, it is","page_number":124,"box":{"x":70,"y":732,"width":816,"height":12}},{"id":"e551c57a-239a-4584-b827-48f168a8b1dd","block_type":"box","text":"possible that a recipient of portfolio holdings information for such an investment vehicle could cause harm to a Fund","page_number":124,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"7f203c3b-06fc-4b0e-8cd2-88b9ebd661e6","block_type":"box","text":"that is managed in an identical or substantially similar manner, including by trading ahead of or against such Fund","page_number":124,"box":{"x":68,"y":763,"width":813,"height":11}},{"id":"a85b4523-66b2-477d-b224-d44715e7fada","block_type":"box","text":"based on the information received.","page_number":124,"box":{"x":69,"y":778,"width":247,"height":9}},{"id":"187a5544-5067-4a35-b11e-be60d8da807a","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the assets","page_number":124,"box":{"x":101,"y":801,"width":777,"height":11}},{"id":"043eda59-aaad-415a-8bdc-eecd0ffcec39","block_type":"box","text":"actually purchased or sold may be allocated among the accounts on a basis determined in its good faith discretion to","page_number":124,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"6bd0e9b6-c936-4765-a824-e5c3482aea55","block_type":"box","text":"be equitable. In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":124,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"78ed3739-d27e-44a2-8175-210b8310a05f","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":124,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"248a943a-9b4b-42a1-96a4-7b025ae04c02","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, particularly, but","page_number":124,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"ebd18b4d-d739-4311-bada-aea3de5d3a5f","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":124,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"3745c0fd-dc99-49f7-bf03-8836f40dc8fb","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":124,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"71e14b67-c738-43d6-ab57-7012c6678279","block_type":"box","text":"information that is also used to support decisions for other accounts. When BlackRock implements a portfolio","page_number":124,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"1756f091-48c8-4ba4-86f9-7010a572016d","block_type":"box","text":"II-89","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6d8d78d2-f98e-4fe8-96fa-5ef3bb4dd387","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":124,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fffaaaba-12ec-4669-9fb7-d9d8468b8e99","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":125,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"4dfe67da-88a3-4510-8d5d-c7aa610ba0b1","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":125,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"8d92c692-7887-4cd0-bb31-4ec0bc501daa","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":125,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"4fe6bab2-cdce-4385-8cc1-1a18bca5fcce","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in certain cases, elect to implement internal policies and","page_number":125,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"78cb3dbd-e356-4ed0-84bf-a22ea95d14ac","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in certain","page_number":125,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"a2f2fc5c-8167-499f-8571-da5505fe8b58","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":125,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"8c95bb44-0e53-4d48-81f3-fe3caf99810f","block_type":"box","text":"Conflicts may also arise because portfolio decisions regarding a Fund may benefit other accounts managed by","page_number":125,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"1faa0437-97f6-4e26-b16f-aa7b46b67bdd","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a short position by a Fund may impair the","page_number":125,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"02907b1a-b195-4145-887a-3767d37e720d","block_type":"box","text":"price of the same security sold short by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":125,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"df2ba59b-75f6-48e0-ac21-d20751268d9f","block_type":"box","text":"purchase of a security or covering of a short position in a security by a Fund may increase the price of the same","page_number":125,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"131d8fdf-e8f4-47a9-8739-7533deeee7ac","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":125,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"dec097a6-9a4d-4479-9ccb-ce3ae9d0d173","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":125,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"d76982c4-1886-42c1-b4aa-4891e73b645a","block_type":"box","text":"extend credit to different parts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":125,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"af59d3f2-9c79-4951-9ace-24813466d2c7","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":125,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"4d7815bf-b8ea-4a05-a407-a6bdc65f9831","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":125,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"7405c06a-19d4-47bf-97c8-33be7bacebf3","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":125,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"3a2af36b-9008-4110-9730-43191095d1bd","block_type":"box","text":"Funds) hold positions in multiple parts of the capital structure of an issuer, BlackRock may not pursue certain","page_number":125,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"e5e2bf39-1af5-4abc-8fe8-663cf181fbdc","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":125,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"82df91a2-496e-4787-a6d3-3993096c2f29","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":125,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"856dc5b6-ae7d-413a-af24-8d753bcb160d","block_type":"box","text":"particular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":125,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"8f042465-5cbe-4213-953a-8351cf33883d","block_type":"box","text":"business units or portfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":125,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"4273fec8-3c55-496e-8225-9e21c6c5a61c","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":125,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"1632016a-26f5-4246-8d2d-13c022cfbeee","block_type":"box","text":"Funds.","page_number":125,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"d368569a-7b51-47dd-8ee6-cdd3e4849d1d","block_type":"box","text":"In addition, to the extent permitted by applicable law, certain Funds may invest their assets in other funds","page_number":125,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"4b2822cd-5cef-4b60-a64f-2871eecc5804","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same portfolio managers, which could","page_number":125,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"3a7617d7-87ed-433e-836a-70e1d374b4c1","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":125,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"db10889a-048e-443e-86e4-27682de6f07e","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including portfolio managers.","page_number":125,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"1555d0c1-cd16-416a-a0e9-badcbcadb519","block_type":"box","text":"Third parties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":125,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"37b35592-4d08-4c37-9228-c97fa9be0f5f","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":125,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"efaab391-011c-4c33-810b-afb7bb367e5c","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":125,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"c0e41329-0c00-468d-bac6-8fa06cbc9d98","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":125,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"d01a3ff1-e4a2-4c2a-a3f2-6942976fbee8","block_type":"box","text":"to retain such third parties to provide services to the Fund.","page_number":125,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"44e7c2cb-b51f-4597-a36d-d193780e46f3","block_type":"box","text":"In certain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":125,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"a14a6665-e26e-46c2-a409-246b18805bf9","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":125,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"06f1f06d-6969-4d12-9566-9e6eb8dcc46a","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":125,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"52a67d15-5faf-4947-8683-f9a7a80a539f","block_type":"box","text":"based on each party’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":125,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"8e12c434-5d0c-4db8-95c4-b46707478683","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":125,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"b0d1c90f-b556-4013-816f-7f5029c6f91a","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":125,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"2148f1e4-7872-4735-b9e9-07b4a13f8f29","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":125,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"e1eccd7c-44a8-4a2a-9466-eb7ca0f37ff3","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":125,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"58bce71d-a851-46a0-a642-555095c1f370","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":125,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"821d2cec-6765-4218-b9c0-41dcc20dfa6a","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":125,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"77af04e8-719e-4d85-8471-8ade64e86253","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":125,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"19985513-65b3-4b83-9cb2-df97f45d488e","block_type":"box","text":"case.","page_number":125,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"0976af60-6b4c-4414-a8ce-ee2ea7da81bc","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":125,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"2c213fe4-0377-4525-ba57-79582aa17c41","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":125,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"6101e263-4ab2-4a4a-8c6f-b0d4103a24ef","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":125,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"9bf47e47-d167-46c8-b3da-bf6f0dbe8001","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":125,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"5e2c2141-00c0-48ed-b123-12f3f282f86e","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":125,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"ea6f1db1-24d7-4aae-bca0-89093df080f1","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":125,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"95c2e71f-0c8c-4c7f-85ce-ef7614dfa4fa","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":125,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"99c48e47-41e2-47a9-a420-ee891b190296","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":125,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"11378add-9710-43c4-b5a8-c6b81c706a1e","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":125,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"d57fe699-9c4d-4f5e-b03f-a9553eed87da","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":125,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"25e8144e-b2c6-4521-8cdf-02c6918406cf","block_type":"box","text":"II-90","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3546202b-1cc3-4de4-9665-ef982d816011","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a4e39684-d773-462d-9b01-aaeae4c31bf5","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":126,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"fe79561d-f4d8-4656-b306-6a86b871312c","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":126,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"c26db512-67f7-4631-8309-e98e98650d97","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":126,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"67d534c9-794f-476e-8056-86afc439c488","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":126,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"996417e1-0bf0-40c3-9997-e5bbcd637bda","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":126,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"3b84f0e3-7781-4df3-95ca-f87ba4541b4a","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":126,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"32e300ba-7697-4cb2-b14f-827b17ed2693","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":126,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"5108683b-4ff6-4508-8a2a-dae9facac3fc","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":126,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"df1750c4-8fc5-4df9-8744-1768fe069860","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":126,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"0797d640-a7f2-441c-b236-6b844c518832","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":126,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"545b6a08-4cad-4294-8dd0-6f715221cb80","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":126,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"98af3918-a047-458a-96a0-ae2328f4b01c","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":126,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"9d22ef6a-9ff4-4af3-81bf-bd46852bda03","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":126,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"192e1bad-3e30-450c-80f7-a6ad5861b18d","block_type":"box","text":"managing a Fund.","page_number":126,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"b600332a-7c0c-472e-a02c-842a16097c82","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":126,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"f3da66db-6087-4caa-8eb5-54dfff042152","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":126,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"431059d3-bc03-4049-80cd-3b9e3847303f","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":126,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"e25f7ef1-65a2-48da-ad62-5993290106be","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":126,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"d7ef29ee-2ae8-4bf7-9635-a2715f5e776b","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":126,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"16fae4fa-dac9-4b4f-b734-d6045f226259","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":126,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"d49d88e4-bbb2-48d0-8dfa-443435d2273c","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":126,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"3470b5aa-0b18-4633-9ffb-15e8c4ecdb8e","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":126,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"eaa7650d-3634-42e9-a921-4372dfda1789","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":126,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"df565dba-8cd4-4d25-982f-2d7a0e1df2fe","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":126,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"9a527b41-4933-4f07-9019-8c379fa8dffb","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":126,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"cf7233dd-4277-4a4c-99b0-0add0dd5805c","block_type":"box","text":"as the counterparty, principal or issuer. In such cases, such party’s interests in the transaction will be adverse to the","page_number":126,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"ac165d63-2898-464c-9b81-de466b9287e3","block_type":"box","text":"interests of the Fund, and such party may have no incentive to assure that the Fund obtains the best possible prices","page_number":126,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"78f1dcec-8719-4e30-b374-c24e11739ddb","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":126,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"c4d8fc4a-96fc-483a-9aaf-add42ab09628","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":126,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"b2fd6e4d-6df7-4f92-a839-9142628e4df5","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":126,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"a017d5b2-cd72-4b4a-bb0f-9cbe9f141248","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the performance of the Fund.","page_number":126,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"f159f4af-afcf-453c-adca-ec926452cb7c","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the performance of","page_number":126,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"a43befe6-e760-427a-83f8-16762772d29a","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":126,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"e3c1eabb-f64e-473a-b9db-db6d484ab28b","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":126,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"365decea-0532-42c7-bd17-51c201f3fbeb","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":126,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"07151730-1947-4f02-8dbd-47e50e4e5647","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":126,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"ed049fc8-45b6-4258-b4b1-85f022c17f8f","block_type":"box","text":"under management for BlackRock.","page_number":126,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"b0fffbca-62fe-4f17-a441-3e926078266f","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":126,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"7da3af90-9b21-4a8d-af30-f2f605bef9c0","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":126,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"1f924940-ec69-419b-b7a3-499d338db1dd","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":126,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"73fb9397-7bd4-418d-bdfe-4d238af5825a","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":126,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"345e656f-6088-4282-9be6-dc19ace6e119","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":126,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"fb857e61-970f-4b58-8c64-199f72a35b67","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":126,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"4f377b9f-d72f-4a7e-a76a-4e98d45feb8a","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":126,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"b3acc629-b546-4234-b51c-1be12bc8acf0","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":126,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"bc48e20e-c5e3-4806-aa26-028f486d656d","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":126,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"f17fa378-c655-4b96-b7dc-c5dd57aabf8e","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":126,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"092f6694-cf9d-42a2-b5bd-c25713f0071b","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":126,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"f84e1ad2-1fe5-46c6-b344-8c8d43a2792a","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":126,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"7454acaf-0ed1-4e87-8bb2-91d5c9184505","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":126,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"f3e70a49-197b-433f-9b3d-55881c7a34b9","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":126,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"901b20e5-cbdd-4103-9f23-62b7321d3fe0","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":126,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"18e6e496-12f3-4fdf-b669-262c53d355c3","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":126,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"549142bc-7cd6-4cf0-b839-12f0e6628093","block_type":"box","text":"II-91","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6dc1cb9f-dbae-408c-a026-7cf664bc32e0","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":126,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b56f4a6c-99e7-4be9-9664-0d25308ce094","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":127,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"33e2d3f6-53e8-4f6b-96d3-29b5996e2784","block_type":"box","text":"any such fees or other amounts.","page_number":127,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"3a2592b2-9ee8-40a8-9b35-a684b1eb9faa","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":127,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"50168714-d2cb-4740-9050-7dc434c1a9cc","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":127,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"f611ed29-b5ac-41f1-9471-b22825589772","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s own","page_number":127,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"cef70e2f-895b-4b53-b88f-d5d68a3fe6d7","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":127,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"997a898d-1fab-4f91-8b10-5f85a257d2d0","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterparties will rely on the credit of","page_number":127,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"aa681e35-3b14-4f5b-8c14-a6a547ab0c17","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":127,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"9f8e755e-52da-49c2-bf62-89bd09c0bcaf","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":127,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"6f163871-57a8-4610-9f2d-9bc31d10d295","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":127,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"576b9c33-2609-4a88-ac95-bcdd00fc64c8","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":127,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"2e6b4bbe-a98c-4c9e-a541-b18fdf7a8b58","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":127,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"d1064c2b-0f71-4e46-bdde-72b03201e181","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":127,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"9b638ef3-d2b4-4bbc-94a2-eb9631216bc6","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend particular","page_number":127,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"25e3d93d-9333-4bea-9422-fd4826bd0114","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":127,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"566fc494-be40-4832-b62a-45f79bc4b2af","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":127,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"9d99725c-cb33-49be-87f4-32f0f83e0afa","block_type":"box","text":"BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":127,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"caf60217-df5c-49fb-a109-6aa073199e09","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":127,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"2c923495-7e4a-443b-9fa4-0c6a0422c7cf","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":127,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"8aacfa82-c584-4044-843a-ff2cc96b94e8","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":127,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"c4400d02-c9f9-4317-b8c9-fdd56595e75b","block_type":"box","text":"potential dollar exposure of collateral shortfall resulting from a borrower default (“shortfall risk”) in the securities","page_number":127,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"2ac550bd-b369-4af8-89f0-f9498605f1f7","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":127,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"048ea88a-467c-4f13-a03c-69c769c6d9f6","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":127,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"d5419f4c-ae9f-4a0d-842a-a5febdab250a","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":127,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"e2d50bcd-0265-4cb0-9a73-dc960b6da8ba","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":127,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"25ed2fe2-3cc5-4be8-aa73-8dc92a3fe16b","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":127,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"0163c632-88fc-49ba-b318-2233c751ba5f","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":127,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"521024ae-476b-4a35-80d8-d2e7992da4b3","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending opportunities for certain loans (including by","page_number":127,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"470d967c-e0bc-4421-a73c-a47f6f95b770","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":127,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"51b0a6ef-9889-4797-8a61-16dd109ab0a8","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":127,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"9b7a7d65-2f7c-4400-9207-c831d30d1e35","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":127,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"0da36a2e-cbce-4a32-a995-1269237273c8","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":127,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"02d1f19d-0aaa-4a59-b9da-ee6fd0d3930c","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":127,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"6481d748-b303-45c5-ac8f-239f3e6731cd","block_type":"box","text":"particular securities or types of securities, or for loans overall. In addition, some borrowers may prefer certain","page_number":127,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"dde3b977-bef5-4459-9089-8a784dacc698","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":127,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"ada70386-4fdd-4283-b4e1-4e638ccbf5d4","block_type":"box","text":"regulation.","page_number":127,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"560003ee-f3f5-4eb1-92a1-426b9509e361","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":127,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"27629944-fb35-4cb4-9b20-d9d833f70cc1","block_type":"box","text":"order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":127,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"49905d20-c500-406f-9acb-b94a8b609fcc","block_type":"box","text":"various program limits (","page_number":127,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"83b74c0c-bcb9-4a45-9a86-732d4612e64e","block_type":"box","text":"i.e.","page_number":127,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"4de7176e-f5e0-4c4c-b962-e8775d8b9c83","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":127,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"4f97ca97-006c-4075-b0a1-dbb87fab28ec","block_type":"box","text":"hold the asset at the time a loan opportunity arrives; and (iii) the lending portfolio must also have enough inventory,","page_number":127,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"97d82758-9aaa-4654-ac99-592fac31617d","block_type":"box","text":"either on its own or when aggregated with other portfolios into one single market delivery, to satisfy the loan request.","page_number":127,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"01cdb56c-cc23-4024-81c0-a238ddd1b116","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":127,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"c73cad35-477a-4cef-baaa-1a428aa75731","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":127,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"47caa8fd-4963-45f7-9414-dbaac3924141","block_type":"box","text":"Specifically, short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":127,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"780bc6af-b6e2-4e7a-998a-79d57368e461","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":127,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"c4533718-419b-46bb-a103-9e5d51033bc9","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":127,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"a68c993b-1ffb-4fd2-bae0-bccb61a06361","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":127,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"c02f657b-e401-435c-8559-d9512c630951","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":127,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"0cfad0a6-39b9-4898-88d8-9d81eec0190c","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":127,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"659a33d9-8c75-4c0e-94b7-42f7abf11f17","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":127,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"ff0f2617-e3f3-4cb8-81d1-f7a31b44f621","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":127,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"d84e1396-cdc8-4215-ad33-9b74b7e0a3d6","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":127,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"89cccfee-dbb8-4126-887d-bebe76591244","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":127,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"4bcfda69-266c-4b34-95ab-333cfaabd34a","block_type":"box","text":"II-92","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"30c5ddd5-8407-4b4a-99f5-ccc67cae27e1","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"69609966-84cb-4b6c-8a85-cc62fc912103","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":128,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"d6df1eda-376b-465c-9b73-261b4fd5faf7","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":128,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"5351666c-6180-4c41-b2d4-2d2ffa1b370f","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":128,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"b2347dff-3787-47a6-a141-fc53f8d41275","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":128,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"bde7ffc3-4ac6-443c-aa2b-6a7256f1c21c","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":128,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"68dc6b4d-e920-44f0-b454-36263167ecda","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":128,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"86610ef2-5346-41a1-a98e-be6aa9c4bee0","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":128,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"72cdd63d-06d6-4211-915c-7009ea153879","block_type":"box","text":"sub-adviser to certain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":128,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"232ad2b1-e00e-40b1-b2a4-7d1e03d97140","block_type":"box","text":"than through client commissions.","page_number":128,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"437bc0ef-aba5-4266-ba2a-b874e85e2c16","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":128,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"60620eba-dcc6-45f7-aad5-d56a4dfdc371","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":128,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"663cf12f-540e-4882-86ed-1e3e854cab7a","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":128,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"6a958918-f1f9-4cdb-9293-638d1276f9d3","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":128,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"56ebbaf5-b277-4689-8aee-3c6fc08ec496","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":128,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"3b8513ed-8012-4eb3-90f3-926c52df0547","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":128,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"aac79b98-37c2-4f10-8d2a-b399ebc3a288","block_type":"box","text":"research-oriented software and other services and products.","page_number":128,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"a9942347-0963-46b8-a4d0-de84a3343a28","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":128,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"75bfd474-0a29-4167-a419-7c7c487107ab","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":128,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"ab52728a-ffb1-4295-a5bf-550cc655897d","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":128,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"da33b55b-4b7f-4e55-aeab-420163e91c1d","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":128,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"25e75865-1535-4082-aa7a-360aad1703dd","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":128,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"a9b0a6b6-26de-45ef-bbc2-abbf8af30880","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":128,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"9a7b2497-8e96-4f4a-942f-51c58a7c6501","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":128,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"d7016b8a-b3b6-4a32-8a39-6d1c88ef7828","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":128,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"3f5e5420-8f55-41df-8294-78f0e731d24f","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":128,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"531f3db7-95da-4086-9585-400b5b877d67","block_type":"box","text":"and services itself.","page_number":128,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"a366a764-08d1-4da0-bab7-b211f6076a12","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":128,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"ad49bbb4-2ae4-41ca-b758-e4262c614b22","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":128,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"cfe0eb91-cf1a-4137-a5e4-5ae986bb289b","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":128,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"ac5d9545-7de5-404f-a884-243822c1c6b9","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":128,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"e13d070a-cbfd-4413-af36-fb9c5c3811bc","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":128,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"9dd2f37e-a44d-45f1-ba71-2d73d3ee2bfb","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":128,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"87d8f8c0-8b5e-4d4a-82bd-eba4549e7c22","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":128,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"f3d9af81-a9a6-45d0-b64a-65f7771dc060","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":128,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"375d51fa-0486-4c41-9629-afc1bb747885","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":128,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"1e79e2fa-bc1c-4a09-a321-02beaaa02ba8","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":128,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"fc3238d5-3023-473a-8c99-597843d14af5","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":128,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"dccaafaa-b494-4e46-b617-33c836fbdff1","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":128,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"0dea2a3b-b477-4d12-beda-0e5fe7a773ca","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":128,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"70896a11-8e1a-47fd-9e2a-4100abab5a6c","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":128,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"4bef3880-3e5a-46cb-b55a-3060e4381ec6","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":128,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"2d8a35da-b3d6-450a-ba79-9b8ce4aaefbd","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":128,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"8e9cd430-9375-4a2a-a8a8-aee858f383b8","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":128,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"a621ecc2-99ac-4495-9e80-85e8ded71018","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":128,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"a999bcd5-8d37-472e-b757-dd73bf5e7472","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers select MEMX as the","page_number":128,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"61cc21ee-f0e8-4fb7-94c9-c1e5b88ee287","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":128,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"bed744cd-a737-4f78-aaf9-225f727d82e7","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":128,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"4c744177-a12e-4780-b717-538e4509b958","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":128,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"11b3aac3-730c-45e3-a7aa-df9e880a0c27","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":128,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"674b2086-fab1-4e5c-9321-f909d03a73ad","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":128,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"dd8308a0-b968-4878-ae7d-4e7c221f2681","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":128,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"3d113b4f-670a-44ec-a46d-e57a9c831c0e","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":128,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"9d30bb6a-1d42-4a67-85af-335d2ece26c9","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":128,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"d4259443-5101-425e-b4f1-07d7582b026d","block_type":"box","text":"II-93","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e38a29a2-cfd8-42e4-9472-328e8609d12f","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":128,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab84ffa4-0020-4a6d-82f1-b12caffcbff2","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":129,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"6e2a46a9-47f5-4b5d-87d9-bbf13c6be1f6","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":129,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"d76f4ea1-975e-41fb-aef1-c2823b1b40f3","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":129,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"427f7bba-2509-44de-9a81-014cf62c0d35","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":129,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"6453ce42-2f1a-4fa3-9996-a3c966c09da4","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":129,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"69d3770b-4040-43ed-ad69-e34092ed5fdc","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":129,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"1bb9e0e1-8b88-4d9d-97c9-7376208056de","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. BlackRock seeks to","page_number":129,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"ba768040-8dbe-465d-8160-3ae235206930","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":129,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"b02ccc86-76b4-41a1-b2b8-b2b98d2e7720","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":129,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"0418e96b-7da4-4752-9a5e-cf213187860c","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":129,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"7210f06b-f383-4794-b852-caede04504ee","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":129,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"c1bdb37d-b223-4590-99df-f6c6492a5a2b","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":129,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"cd6ecebf-efa1-4aa4-81b3-269ee3c4fbf9","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":129,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"c2f1a279-326b-43d0-9d4d-fca15e65585d","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":129,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"54156a46-b415-4726-9853-dc7f76a371b0","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":129,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"e6565c6a-bf4a-45b7-8026-813908c53e57","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":129,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"7d8b66a5-0b49-4629-9ec4-4d9655486709","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":129,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"bb3cb0d2-0e17-4648-9916-8305c868beea","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":129,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"421d9004-85fc-4e3a-915b-e7c3e2dbab7e","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":129,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"8d11eb8c-8909-4f9a-8c5c-6b8a964b27d5","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":129,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"294da8b1-3bed-459b-b451-a13f0cbc37a6","block_type":"box","text":"sales of certain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":129,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"c2323662-a4c0-4805-82bf-4cb051dd39c2","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":129,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"a1ac6b7e-b612-4556-bd1c-98cabe1b282e","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":129,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"10360012-0dd0-4913-a6fb-a0bc32f924c9","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":129,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"a7c92f85-8f59-4270-83d8-87ca0eb00138","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":129,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"cec6375c-dbe4-47d6-8daa-88b2b72bab10","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":129,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"aab22245-3aae-4628-a031-d4e352b9d35d","block_type":"box","text":"BlackRock may provide valuation assistance to certain clients with respect to certain securities or other","page_number":129,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"2967fbd5-7204-4424-9244-2ed3ee9445c1","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":129,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"2d788803-b9a1-408f-8e0f-6015f5805de9","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":129,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"709154ac-a09f-4c4e-87c7-a448f1b5cfa2","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":129,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"276e37b5-4f41-4706-867e-57893b221e09","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":129,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"c28b533a-13ea-4095-a80c-0fe663790b8a","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":129,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"7f3ce1b6-56f9-46c8-aa41-d83efad2a5ca","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":129,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"56115928-78f4-4192-b7c0-df58b84ea4ae","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":129,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"2cfe3473-1c82-4483-82b9-c95e38a1af61","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":129,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"33c95f83-25d9-4439-b28c-2a32d9a2f954","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":129,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"318d6677-3780-4a12-b1ef-e449a1c05ee7","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":129,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"c9dad78c-fa9a-4325-97f8-19577e7f32ac","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":129,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"6e825026-d10a-4595-b0a8-1fc0faf1760f","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":129,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"810a0539-b33a-4eec-8ed8-57288a7ffdab","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":129,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"5c305345-2902-491a-9d8f-50c6ea93c23f","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":129,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"2d62ef99-1880-4fbe-a545-d4959ecff43e","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":129,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"a1880c1b-ec1e-492f-b650-3bd7f260ee03","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":129,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"409436ea-236c-441b-97e2-40a7bff2971e","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third party valuation models, fair value","page_number":129,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"cb34411b-6304-4df6-9fa9-48247fe39fa4","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":129,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"1a3ab1bd-7984-4918-abf6-46a8e119ff05","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":129,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"9cbcda06-c9fc-443e-bbb1-519a6f4d9340","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":129,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"eb62e2f8-5a0c-4303-a022-23ec99062c20","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":129,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"4e3636aa-82a8-4257-8d7b-737403448efb","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":129,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"43915007-66cc-4c5c-8cf8-a334912415a4","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":129,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"0e41b16d-ab18-4ee0-8359-12ba4c1cf100","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its short term cash investments in","page_number":129,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"d4462d73-ab42-4c1f-8bcd-77e503314ed6","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":129,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"00a46440-8311-41db-a895-4af4acbda9f9","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":129,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"c0bb7afa-e102-4c5e-8992-714fffdb7e95","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":129,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"eb3cf8d1-0129-4340-a8bf-09746039edbb","block_type":"box","text":"some additional expenses.","page_number":129,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"d4a77437-a09f-4179-bca0-fc8c65a57ec8","block_type":"box","text":"II-94","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"80822ff8-b349-4a7c-9766-116264c9a32d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"26907951-00bb-49e9-b0fd-ede3d21504cf","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":130,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"b0c58696-d80f-46bf-939d-7e7e622e4873","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":130,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"fb1c2566-211e-47e7-8a8a-9a919ac463a9","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":130,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"63bbfc08-e573-4eb4-a490-405faa564e26","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":130,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"77de4b92-7291-4048-982e-334a3fd0c0e1","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":130,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"ff0df0bc-da1e-433e-8d89-4b392495f9ab","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":130,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"5f7ff517-c1bf-484f-ae3a-eb85ab2ebe00","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":130,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"ded290dd-caa8-4220-bb68-c1e9aeb92ab3","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":130,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"1d56c441-9dc1-4fdc-8096-1a0410b727e8","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":130,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"468186f7-b284-45bc-bc75-66e665a3dbf0","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":130,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"fa888381-fe4c-471e-9b2c-70cb199cf466","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":130,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"936e77e0-51e4-44b2-a2ee-cca043c00252","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":130,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"0fe238f8-29ec-4f1d-aa55-9d981305be90","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":130,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"4661f07d-caa6-4327-af41-3fb635d5715f","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":130,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"5ec73e88-2377-4a0c-a493-12e551939df2","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":130,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"7887b895-39b9-4f91-833b-4c3d11de7e0f","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":130,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"56121347-541e-44bd-b057-a512f8a7ec93","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":130,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"00358b69-bd68-4949-9cfc-f254ca5c6485","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":130,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"154b5de9-1ffe-4a55-980a-ba3d4c9ba858","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":130,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"9c0b3155-40e2-49ca-871a-a9df944535ba","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":130,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"3b862f2c-89a4-4909-9b67-2032eb321433","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":130,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"b4b2d369-88ce-494f-ae28-9bed111a5c61","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":130,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"3c9170e1-8727-488a-b429-5cbee6686d47","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":130,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"6e6064cd-ce2a-4807-9257-0064c860b9af","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":130,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"4697fa21-e44d-4f65-b034-bd0db14a3715","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":130,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"089bc5ca-fedc-46cc-90f5-67791b37cf45","block_type":"box","text":"public information about the company (","page_number":130,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"93606beb-ae66-414b-a08b-99fe53636878","block_type":"box","text":"e.g.","page_number":130,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"ffeceeb8-1d61-42b1-a2a0-5b279ddae737","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":130,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"0b5e48af-6ab7-429b-a8f1-f33f43ca4d71","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":130,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"c14e0e9a-6ed1-4514-88b1-014ad636468b","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":130,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"94fd3c65-62e7-4942-960f-7e1cca104eac","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":130,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"7c66e17c-7717-4d99-94a9-b26dd97f8e39","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":130,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"6fa85530-0b51-4d38-a903-7980f36241aa","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":130,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"411e0e87-7ad9-4fa6-b63d-8b95234db5bb","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":130,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"15511c49-ee6e-4316-946b-d03cec99f6f8","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":130,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"085afc71-35fb-42cb-b78c-f994df967afe","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":130,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"05c3e32d-c042-4798-bcb5-f4b0c373340d","block_type":"box","text":"of the issuer.","page_number":130,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"39a9a9a4-6c37-4dcc-bfda-d38862bf1a4b","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":130,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"024a9941-3d49-4b1d-95b2-b44c5582883f","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Certain","page_number":130,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"45e9d2bb-cf69-4be3-b542-933063f15e96","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":130,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"80b7cee6-0261-4fca-b55d-a3c74f2671b8","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Certain portfolio management teams within BlackRock may","page_number":130,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"683f054f-0eda-400c-9df5-56f33963fbbd","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":130,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"733587ac-b7ad-4e07-bf23-77b4cb5cbf38","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ portfolio management teams. The","page_number":130,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"a7ec551f-04bd-43e0-941a-8fa8c7531be0","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":130,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"4f72baf0-ff19-4cbb-accd-578f1c5120a9","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":130,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"d391a130-9e8e-4bb5-b494-b7f343528c1e","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":130,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"bd1b7686-6942-44c7-ae3c-f15a0f71ce6f","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":130,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"c992f3be-25e4-4302-ba71-3a35b88bc071","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":130,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"03f494b8-8ebb-4670-88fc-86a9af8b333c","block_type":"box","text":"portfolios and voting proxies with respect to all other portfolios. As a result of information barriers, certain units of","page_number":130,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"89b92c2d-4af3-45bd-b176-81b4441407de","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":130,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"5ff9af34-d8a9-456b-afef-e644e70545c5","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":130,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"2237ed5a-13fe-470e-b88b-09de1e7bd671","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":130,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"d3f1f184-3b30-4475-891f-e45e6060cc42","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":130,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"4d6d7002-9e95-4bb3-9803-0599ce7009d9","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":130,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"d9fac3a4-f2b6-4047-a598-8f1299e2cbaa","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":130,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"d985c0e4-1025-4313-895a-59a86452c9b9","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":130,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"8a867c8f-d1ce-4aa4-820a-56f824d20025","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":130,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"eff7f506-a7bb-43f6-8d43-7f0368cf2169","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":130,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"288f1204-8d88-49c1-b6bc-23f56c4235fa","block_type":"box","text":"II-95","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b65dbb8c-655f-4628-8781-3a660e628146","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ba41e91-d6e4-4eda-a362-ba5d2ece8049","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":131,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"ec086d84-8944-4b03-b2e2-a67068cca5eb","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":131,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"c8ebde96-a6ef-4e31-b7e7-b14d55367a0c","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":131,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"88aecd2c-b437-4cd7-b207-93d82a8a1685","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":131,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"9d754201-fef0-4cca-8b9d-82e46c36d9f7","block_type":"box","text":"a barrier.","page_number":131,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"8dffd2e3-e38e-459e-829b-ef124aa9ad99","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":131,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"27be8553-0092-4be2-a888-c073b9e0b0f1","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":131,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"4be0c6c9-6852-435d-9df2-27dceefc0138","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":131,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"d6490c14-a78d-4c18-bad2-6ba3156ce5ac","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":131,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"d54e1d8d-b7e0-4493-bbb0-5f019cd7adf0","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":131,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"7b404c04-7fad-48a9-ac30-c56741321065","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":131,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"ef06dbd8-36f6-4504-b618-137b6906fcb0","block_type":"box","text":"that operate in certain industries (","page_number":131,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"935fe0ac-209d-4d19-b696-05897bddc3a3","block_type":"box","text":"e.g.","page_number":131,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"e454ba9c-cbdf-48d3-b6a9-be5b8ed652fd","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":131,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"d1b1db07-6695-43d0-b8b6-2bb738c9c21f","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":131,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"f772d39c-3104-43a4-be0b-c0d20859ca87","block_type":"box","text":"e.g.","page_number":131,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"be4d03a3-2ec1-4289-9cae-3ad07a35bc86","block_type":"box","text":", with mechanisms such as poison pills","page_number":131,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"4dfaac1d-0dc9-4df9-b038-891244f046cd","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in certain futures and derivatives, there may be","page_number":131,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"0a5d98b5-29ac-400d-b3d6-1f5159fa2b1f","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":131,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"66a507d8-b824-468e-ba33-9f184b40d41e","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":131,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"9be8d52d-00c7-4e3f-af92-0fc1f3d95f46","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":131,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"4cc15bb7-2fe3-406c-aedb-df5f57fb3e55","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":131,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"425368e2-cb62-41fe-b2a0-5bf671d97aa2","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":131,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"f90ab0ed-6cd6-4d0f-a08d-93a10953cea3","block_type":"box","text":"seek to make indirect investments (","page_number":131,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"5bc45555-6bc6-40bd-8184-ed8ac8495c74","block_type":"box","text":"e.g.","page_number":131,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"84df1dca-6738-40d1-93d1-eac58df89529","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":131,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"77fadb29-c971-44f7-815f-1b120ebb4950","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":131,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"bb08ea78-d802-4d1c-8556-d035ae97c553","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":131,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"d769a744-243e-425d-b791-66f0d718b380","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":131,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"e8100e03-d292-410e-b4bc-ff373faa90f8","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":131,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"a67943ca-fbeb-4425-b27b-7fe1d4d4208a","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":131,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"e6f2646d-910d-4f3c-a947-5faa38de3e72","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":131,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"097cdc2f-33c7-41e1-912c-3b575942c2d3","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":131,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"d474276b-d185-491f-b95f-4eb969e04776","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":131,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"5cea83be-ae94-4ab7-965a-304242967002","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":131,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"ffa39203-8883-4802-8160-5507cce7779f","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":131,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"fff9f144-5f2e-4414-a115-fefdfabb1497","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":131,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"f36bc9fd-ec29-4bdd-9b69-03d4af1ad721","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":131,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"cd232863-bc40-40e5-bf5d-d8f8af96e764","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":131,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"d48930e4-846d-49d2-9930-05ab206d8278","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":131,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"65fcd282-a611-4516-8cd2-e9e4dedb0b84","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":131,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"010772da-5cbb-4648-9c74-b4d93fd2daa4","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":131,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"49de8166-795f-434d-a67b-b7a6fea024f1","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":131,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"6fa2b5fc-f153-4fa4-8c56-1cbb51527a06","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":131,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"30bd4932-6dd5-47fe-8b89-771b4de02884","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":131,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"547185cb-88a0-4714-8062-5f0383903621","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":131,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"65abc65b-f6c7-4339-b72d-750c4687af13","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":131,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"48c27f7b-892a-4981-b9b4-51da74058846","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":131,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"edfbb56f-6ca9-42f1-98a1-35a6dd986e06","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":131,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"625ae23d-f82b-4a89-b384-df9a8d4bf6cd","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":131,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"6b90064f-d888-4b86-a408-b382f0b21b5d","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":131,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"8d3ee418-8bbb-45d2-8a28-49d2156c1613","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":131,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"6036fe3c-e1db-4b17-afa3-64af1813eac6","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":131,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"b97f9725-5b22-416c-a4d4-461149a57378","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":131,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"c2e3c1a5-6e60-44e6-92de-b460f0023394","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":131,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"4d1ddc11-42dc-47df-a975-c4fb50ed8e2c","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":131,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"cade7e81-b6b3-4818-9dc9-f6f30e25cec6","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":131,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"83ab8cdb-3b36-4b33-82f1-c4c52e52e664","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":131,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"18dcf552-3cf7-42b4-bfed-89e05220fdce","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":131,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"026dbdc9-5610-4414-b540-8fca3fdd9fcb","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":131,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"839376db-d645-44b2-8e6a-b87a47164ff2","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":131,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"97cf1419-a192-4cdc-a598-252ac396c336","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":131,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"d275ba2d-944d-4cc3-a3b4-156393ec0e8a","block_type":"box","text":"II-96","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a2728e9a-2c48-4d74-aed8-207ecccf0137","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":131,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8000335c-998d-45c1-a13f-20689205f21e","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":132,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"2fa63337-53df-46c1-9e60-778408e17c8f","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":132,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"6794b422-64dd-4986-9272-8a65625c9cd8","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":132,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"8215baa6-b51f-4631-a973-653520acf328","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":132,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"2941d9ce-f103-40c5-88f9-e5ed07b18741","block_type":"box","text":"regulatory authorities, and such reports may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":132,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"173a886b-aae6-438d-b576-02e3c94348fe","block_type":"box","text":"strategy with respect to such security or asset.","page_number":132,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"2eac83d7-184f-4111-a4e7-c0bad5f0f151","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":132,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"6394e7f3-8ced-4499-9e73-33b4079703ad","block_type":"box","text":"license and use such indices as part of their investment strategy. Index based funds that seek to track the","page_number":132,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"0655b71c-3101-4f92-8bc2-6b83e44ea788","block_type":"box","text":"performance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":132,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"94d7893f-00b5-470f-8fbc-be6c4c6513c8","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":132,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"4238af36-7764-4356-b676-82eafdfa792f","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":132,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"60c54168-cdd8-4134-a775-cd4e5a732d44","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third party index. BlackRock may","page_number":132,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"0e558cc9-3e8f-40d2-b7d0-4ab2d98c2913","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":132,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"7396f3e5-45ea-4235-8b41-9114ba85fd50","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":132,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"62d0609d-add9-498f-b3f7-6398842d449c","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":132,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"ba62ac73-6e6e-4ee0-8c69-31255b638de9","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":132,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"7b053006-abb4-4557-a0ff-437eaa6a9b94","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":132,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"37c17f25-7786-4011-a736-3604f79394df","block_type":"box","text":"e.g.","page_number":132,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"a7e9651e-5013-4b19-afb5-4547bd93070e","block_type":"box","text":", custodians,","page_number":132,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"5e659f60-521b-4dc0-b04c-abc19160ddca","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":132,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"2c9c95e3-faf8-4727-8609-396cc88b57b4","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":132,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"676e35a8-20af-49da-beb4-ddb8795dc40c","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":132,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"4b98622b-eab2-4552-aa38-feeb4d03f5cc","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":132,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"7b9594a1-7899-4fa4-886e-e0c90b0aad1d","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":132,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"a2f3c191-9c73-495e-a376-d0764d41c6c5","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in part, to BlackRock, which could result","page_number":132,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"3a6a7248-34d0-4983-ab6f-329393a8f804","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":132,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"83f9a39e-6ca4-41c8-b089-5e7e9c3eefef","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":132,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"c27b3b66-4669-4b65-aae5-d8d8ff44cd8c","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":132,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"be3d8e5c-4673-48cb-b6fa-ddbcf4db5674","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":132,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"cefd55d3-0e8a-432d-9345-5db356edebf6","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":132,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"500e891d-8448-4746-b3c8-e4c926105523","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":132,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"1c012ec0-3244-4f6c-aa9b-6631b9a177e1","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":132,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"c1cb041f-62d3-4eed-b28e-a8e869476f85","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":132,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"84720099-a907-46ad-b260-04fd640b242b","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":132,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"b7de7b9d-b23e-4477-b953-b88ceb0a9ebd","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":132,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"8d0134f4-5bf0-43ef-afa8-bad9c8a22840","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":132,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"6e31d4f6-5ff5-490d-9d5a-4864805182cc","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":132,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"4b372d89-4856-42ee-9b41-ed97b2fd5a92","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":132,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"ef1bd0d4-841d-43da-9a1b-b2547f60460c","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":132,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"8f9d8444-63cf-4042-b339-e5dad84ff37f","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":132,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"ebb3059c-ae6e-4d28-8ca5-c40a0685dcb7","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":132,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"b58b125d-6167-46a7-b763-bb3cdbf806fd","block_type":"box","text":"provider.","page_number":132,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"77998649-ba75-4bf6-a5a3-23f85ea064b4","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":132,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"726405cf-de83-4377-b1b8-f9cd1fde2f87","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":132,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"b93115de-8a5c-4286-8079-bd9cf5adaad6","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":132,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"6841b452-f865-4a57-935d-3d0d6753ce76","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":132,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"045a151e-4b75-4fd6-8b26-3b9470a78d2a","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":132,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"ac90a992-71ba-4959-b6e6-eee695ad4a76","block_type":"box","text":"PURCHASE OF SHARES","page_number":132,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"b291d2ea-ad80-487e-aa96-39b2603580cf","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":132,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"39ade2a3-5322-4cc9-bfa0-e826e9286c87","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":132,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"5a61cfb1-ef7a-4928-8539-846e0c6eccc4","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":132,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"6270931e-7b6d-4731-a0d7-fa6fcd6b36ac","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":132,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"7910fd6c-b349-4692-800d-797e1084a922","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":132,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"d5b16457-ecc2-4588-bc66-dac1a1b1addc","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":132,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"c5ae988b-d11b-4647-8ebb-f92858ded3fc","block_type":"box","text":"II-97","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e6f9fb18-46f6-49fa-aa55-61292e1b5feb","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":132,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"74bb1305-9053-4410-9518-ca3723b6661f","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":133,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"e8b8cb22-40ed-49e9-9aaf-480a278b9a0d","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":133,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"a908bffd-76b1-4691-b6be-c2095602d777","block_type":"box","text":"sold without a sales charge. Certain Funds offer Class G Shares, which are available only to investors on eligible","page_number":133,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"2db3a75b-b657-41ab-85d9-5b67f627b59e","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":133,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"ba40f814-9126-413c-8ad5-fbae887fd3eb","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":133,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"cc9d346a-9a52-4a99-bc2a-8037c7095e9a","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to certain eligible investors. Please see the","page_number":133,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"1174cada-9709-4acd-9c8c-826e71dfc66e","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":133,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"b14f8a45-ad9f-4342-b2d8-c67da9155494","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":133,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"b0951027-4d89-4b32-a569-63ae66af0d60","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":133,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"8d62e35e-2c10-49b3-9510-9f5ef708d02e","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":133,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"c7d1be0f-47f3-4520-ac4e-731045f47d95","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":133,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"84e211c7-b179-41c0-9d2d-291cf6b89f4d","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":133,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"f2c7d739-60b4-463a-bca7-0411e2219ae4","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":133,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"a56ff412-b170-4955-bcf4-552356d26311","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":133,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"a7689db5-0f1b-4abe-b2a4-82712116ab7b","block_type":"box","text":"Target Date Funds that allocate a portion of such purchase order to such affiliated underlying fund. As to purchase","page_number":133,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"0b1c246f-0921-4cbe-bb47-5e5ee7330c61","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":133,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"7d0cf351-e363-479f-a1c1-af1ce871f31f","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":133,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"59f58c8a-9406-4757-9054-47260120d604","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":133,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"524c778c-565e-4d93-a63b-2b885f26e706","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":133,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"73d45fde-cb42-416d-b09f-1b509f5cdbea","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":133,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"7c9ea14b-6085-420d-b1f8-b8c512a405d3","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":133,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"0d5f49cd-e6f9-4b37-b1c9-b0085ea0c276","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":133,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"bd21d61d-0e1c-4a12-befa-252064b8e98b","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":133,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"78c8479a-a385-4cc1-9a9b-37133376112b","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":133,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"cef24665-f8a0-4885-9d61-47fc8ad67092","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund. The","page_number":133,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"68781ac5-cf32-4ebc-89ee-31259cfbfb50","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":133,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"a7ff0b77-aff3-42d4-985b-4ed6d03b98dd","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":133,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"50f2f3f7-12d4-4025-981a-3f1e2067d549","block_type":"box","text":"investment is $25.","page_number":133,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"aab023dc-78a4-423d-a10e-061355f451bb","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":133,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"e741a1f8-b3a0-4586-bd1f-bfc50f526200","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":133,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"1f9d0353-9776-447e-a2e3-8dece47bf168","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":133,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"e0aec904-cba4-4d52-bb4a-158b482e069f","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":133,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"42c83aeb-bec4-4d11-8721-f6464ebfaa54","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":133,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"12faa33e-10a0-4621-a783-0404f72a4925","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":133,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"da311098-f13f-4c7c-a97f-ad67970df1ac","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":133,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"a51c3867-d84f-4e32-94e9-79f1bc86ab02","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":133,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"cf6190bb-6a08-4947-beee-33f49db50ffb","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":133,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"eb151146-5943-46ae-bc0a-537d86b00bfe","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":133,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"d22cb509-0a0e-46c9-9adf-659ad8f272f7","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":133,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"2f8fce51-30cd-4c9d-8d86-1b03215d78a0","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":133,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"cccf6b17-6d17-4825-8cfe-3160bf5d64bd","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":133,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"3bed9b98-31b1-455b-a376-cb3add2d4ded","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":133,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"e23f32c4-8d20-4744-abb1-72b1174946b9","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":133,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"5181286d-534d-4057-a136-b549a65df037","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":133,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"0e66c7b3-5bd4-443f-93f8-f4f21b9ca136","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":133,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"3a080c01-9b05-43bf-9df7-1d2f7be57a44","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":133,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"8549d11d-36e7-4a81-b73a-9a610e61b95a","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":133,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"1a5209f8-e971-42bd-9466-8e2ffe883d76","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":133,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"3d7c91db-73bd-43c2-9889-f38158e46dc0","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":133,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"7c63885b-6a72-4d10-968d-ac3918eb13b6","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":133,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"e6640ef2-fee4-4e7d-9d10-8d1881174262","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":133,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"dd8a6137-39cf-49ec-8db2-f3a03a659a69","block_type":"box","text":"adviser.","page_number":133,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"56490834-5ea2-48b0-ba1c-eafb5535b190","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":133,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"9283aee1-3b05-4032-8e5c-f8785106d47c","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":133,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"b8d67c24-121d-4696-83ba-0426cde4a5da","block_type":"box","text":"II-98","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"794f2292-fca7-4a07-a703-6a11686302a1","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"93fca1fc-a979-4acf-8338-a90f4f244961","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":134,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"bcb9bf67-15a6-4d23-867f-8974c24cf022","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":134,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"d05cb9a5-25d5-447a-8eae-a736009e6f90","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":134,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"9a6764a9-3216-4f8c-9213-df8be4d785ad","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":134,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"59da34d0-cce0-4dd2-823f-fea4c67fa262","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":134,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"3bb826f7-ddcd-4ed6-b832-34ca599ec735","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":134,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"febdaf80-96f0-4d2f-a405-1ceeedf40b48","block_type":"box","text":"also be restricted from making additional investments.","page_number":134,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"53365f00-0d52-4c82-add7-9c660c1cc9d7","block_type":"box","text":"In-Kind Purchases","page_number":134,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"529693dd-b2f8-4f4e-ad20-06183f08c16f","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":134,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"a2210465-1570-48f8-b0f4-b0350906cad1","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":134,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"a6c75c00-819a-4db5-a030-050dc066c061","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":134,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"9b37b5ab-5c91-462f-b0eb-bc5d3d1eab20","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":134,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"2248ee7e-55c0-47a6-a70a-4984db84b694","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":134,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"fb0a3573-4e3c-491e-9f13-52b5138c33d6","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":134,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"2cf3ac54-27aa-49cf-9449-070269d78558","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":134,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"2206dd70-2d22-4f1c-b85e-412a96171d81","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":134,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"a57b9547-9635-4fe6-b7b7-c5f822d0f40d","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":134,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"487312c5-95ae-42b0-a9e9-08afccf82dce","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":134,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"5f68ae30-2d7b-4770-a2a0-bb90eb3d23ab","block_type":"box","text":"has settled.","page_number":134,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"59920045-944d-4105-81f8-f44afd9cf0f1","block_type":"box","text":"Institutional Shares","page_number":134,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"5ed857d0-206e-436e-af7b-8cb87c225972","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":134,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"b0492213-7760-418f-86d6-703d7ba1708c","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":134,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"ff5559a5-1531-45a1-b1b0-6c9e4ea80dd6","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":134,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"fa627f7b-5938-4263-938a-142a81913a00","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":134,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"797f5aa4-27e4-4758-bf20-906b30b9c6f2","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":134,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"07fbd7e6-d619-4bf6-8bf9-d4affe68fa92","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":134,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"67d16e10-b3b3-4224-9e14-f39b6a224e62","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":134,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"993a7bf6-1078-49c2-b95d-2db2304fe121","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":134,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"4dbbd8aa-e08a-401c-972a-35808b04eac8","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":134,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"29ed7b72-08ec-4de4-bdb1-73180aba406d","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":134,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"06560c14-32a9-4465-945f-072bd148c2e7","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":134,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"dfd491d3-d308-4e9f-8078-2613a7efabad","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":134,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"d6b5d642-083b-4f4d-8cb0-03d806414f52","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":134,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"220851a6-d7bb-46fc-b7ec-7e19b4392e85","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":134,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"5a6c4c28-4014-44a5-81ff-def462b3cc6b","block_type":"box","text":"these fees and conditions.","page_number":134,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"0727a95f-dffd-4807-bab7-88f7f10466b5","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":134,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"05956b83-d84c-4c4e-82fe-e96edd97b719","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":134,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"895e90d3-4c31-4165-bd88-d1bff6c4f592","block_type":"box","text":"certain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":134,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"15eed88b-decc-4d43-92e1-04806bc3f65b","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":134,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"4886c05f-fe2b-4f2f-80e0-256c7b21e138","block_type":"box","text":"incurred by the Fund.","page_number":134,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"4cc0a0f7-762e-4fa5-8903-271e8fd707fb","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":134,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"75440c4b-05f6-461a-9bda-f0440a43a35e","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":134,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"093a46ed-a626-424e-966b-7e1e7ef7c08f","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":134,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"8a6ae9e0-02e9-4ca3-9c9d-fa935f042f70","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":134,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"664b2592-8bcd-4a50-8166-dad89aa9a1bf","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":134,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"6beb9c14-4145-4ec0-b66b-3154720252b4","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":134,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"310e04fc-31ff-4e54-aa90-a978abe649db","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":134,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"b221dc32-44f8-4cee-bac4-8b6506e3e88b","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":134,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"d4993c36-8574-4e94-b42a-e3f3e79a7454","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":134,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"9794986a-de1d-4997-a04f-d166ebf99ca1","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":134,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"2b0543b8-bf5b-4469-8c47-9d54eb1b06a0","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":134,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"75ab6e61-e603-4fc3-a8d4-22c301c6a137","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":134,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"08b3fb95-b68e-454c-950a-3cf1b95fac53","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":134,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"688f3921-afc2-47cd-9b72-a86186f26a52","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":134,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"426cff8e-bfb8-4169-b9a0-5a16758f2cf2","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":134,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"9649ea5b-2839-451b-8e41-a8a8d27ffc7a","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":134,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"6ea32a7e-056f-48a3-8c00-428ccc0a9391","block_type":"box","text":"II-99","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"075e0686-c965-418d-b944-1dcbdd4d9f66","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"41a69223-5b80-46b2-8fd9-cd763b6243b9","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":135,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"422707ec-7b26-4f9b-b3cb-35afe530d9bd","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":135,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"9f4b9e69-795b-4beb-992e-dce76c32761c","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":135,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"5d6fc429-01c6-4900-9134-ba0dca3569fc","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":135,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"a9106f34-15f3-4c3f-b2d7-b77f0b27972b","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":135,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"6f5f8aff-1319-4d4d-a008-dc13d0493abc","block_type":"box","text":"minimum initial investment of $1,000; trust department clients of Bank of America, N.A. and its affiliates for whom","page_number":135,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"497cb444-f169-47b9-88c0-d0a47ca944a7","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":135,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"334f680b-9664-4ea2-a5b6-ee6ed56e6b33","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of certain BofA Corp.","page_number":135,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"50bccc6c-2f58-4cb6-a6f3-efeba2b47df0","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":135,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"4a4aa136-f529-4f98-b2f3-1bd9180f0fd7","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":135,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"048b3b31-cd78-4e9f-ac78-5fb3682db922","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":135,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"32b4b3c0-8509-4741-9748-84787f55a2ed","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":135,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"c1e2d054-800b-478c-a13c-c2158ff18031","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":135,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"5530fc61-a7a4-4e93-9afe-59090395307a","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by virtue of the familiarity of these persons","page_number":135,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"887cc89c-fd71-4e9a-9cb5-88da1494a555","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":135,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"5d26e06a-e171-4a9e-954c-be8639bbf324","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":135,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"19c96f2a-6185-4664-83e5-7740e7c19dc9","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":135,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"2c8cffd0-55a7-4810-9f96-fdad94e6b22c","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":135,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"80322340-6b61-4d08-babe-bf4a0c40da5c","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":135,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"e2d8734b-faf2-4fdf-a0ef-3bcf7d557130","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":135,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"2d8f7a95-3089-4802-ab10-5973c0260f3d","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":135,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"06f3c02f-4700-4fd8-9af6-ed2fb620023a","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":135,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"b11f3e65-32b8-4357-a679-53dc0700cba1","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":135,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"c32acdb3-a476-4388-b429-b6cbb0de7248","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":135,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"9cd3fa95-a0dd-4208-991d-910f87b9e828","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":135,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"fee62487-4018-43a2-aab0-056c97d8b5e3","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":135,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"e0821fb1-2057-411f-86f9-c35edc740865","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":135,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"05116f57-ec4c-4b5c-9810-2354eddb708a","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":135,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"7c867820-6e85-4e73-abbe-d3692f90284a","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":135,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"3e7ef92f-7e78-4923-8c08-e6f83f7b16e4","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":135,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"0e1072f4-ec74-4ce8-9b6a-533d807db92a","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":135,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"ec0a8e1c-b031-4e28-b17a-0c3440d97719","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":135,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"11d7ff9c-f1dd-4502-920a-06a6404cd59d","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":135,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"b9716d5d-1608-4493-9baa-2c7ee3ad66c3","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":135,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"a7040cf4-981b-4b34-9fbd-c32d36544f58","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":135,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"1f33a289-352a-4d2a-b953-ffd72de2f23b","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":135,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"c482866d-4cb7-4c9f-b25c-d5d8a0507ca8","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":135,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"4205bf8b-ef5a-490d-8e45-a2d0c8313778","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":135,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"fe728f1c-8c6a-49aa-9e3a-8d36e67f4fbd","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":135,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"d9d4849a-c296-48c1-8656-ecd5b5c38ff5","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":135,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"0ed5e197-8f78-4640-9b90-272f215b49b4","block_type":"box","text":"periods indicated.","page_number":135,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"b44f28e5-c254-4b2f-bbc9-a9653d3ab6aa","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":135,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"1a5df29d-6248-4b8e-b895-78a1559f8abe","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":135,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"2ba7ccba-58f9-4f79-942f-4acf5308a3c7","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":135,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"7e7b5795-8e58-482a-b7ab-5c3629668c35","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":135,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"af92c14d-5d2d-41ef-b9d1-dc85a9820e8a","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":135,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"cafd6c34-3753-45eb-86d5-230c05bdb7e8","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":135,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"a1d65a34-e7bb-4b72-b25b-7e4efa2d0a51","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":135,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"0b333edc-c778-4bbf-a4b8-8e1179dd7ea6","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":135,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"175af932-910c-44e3-91ed-4f944f56ef4d","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":135,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"99ea0d9f-bc88-428c-98f0-486f4bef5497","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":135,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"8003a018-a427-46b0-b197-a35866ce7efa","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":135,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"b5928235-d7d8-4c0d-91bc-39244daadf8f","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":135,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"8a7c78d5-8509-48cf-bc7c-67d6505146f3","block_type":"box","text":"II-100","page_number":135,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8dfbee45-574f-4b3f-b102-3f1b5b7f2311","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"32d1d58a-3d4f-4c2c-bab7-d896fd238edd","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":136,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"4a6ca6a5-c92e-4102-8458-599117e7a440","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":136,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"1c236909-33fc-448d-be59-02b9b427d2d9","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":136,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"99b32eaa-9d77-4879-ba8c-6f9a0f072f7c","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":136,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"86cb3578-5751-4028-9402-bc90c2efaabf","block_type":"box","text":"Reduced Initial Sales Charges","page_number":136,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"d5072062-52a4-4078-90b3-d6804c92df02","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":136,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"56fb4220-7e12-41dc-9a2c-d2efd4ee2199","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":136,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"9db06176-cb58-4236-a5cb-d57d480435df","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":136,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"fa550ec6-bde5-4038-bb5f-1b13bd5b7cc3","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":136,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"5a5e28e4-c3b0-40f5-813c-f46b92fe3258","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":136,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"f93aafc3-6ecc-436f-8826-c2177ea2b8e6","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":136,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"b889cdf5-8014-4001-b1c7-382af9dfa765","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":136,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"a9c04dba-edb2-4799-b849-2e07c670fa22","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":136,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"8fbf59d5-7849-4376-b985-e9539cb9796e","block_type":"box","text":"Reinvested Dividends.","page_number":136,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"5cb08c86-2f70-42fe-8233-cde86656d8db","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":136,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"53d63755-32ad-43ca-ad3e-0cd81a1ab358","block_type":"box","text":"reinvestment of dividends.","page_number":136,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"29c033b9-cff9-4d17-9232-14a11e934b45","block_type":"box","text":"Right of Accumulation.","page_number":136,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"4340ef43-1fae-4d65-96c1-03afa9b90bc1","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":136,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"c1b387d1-454f-47e9-9155-f2d9d064eac5","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":136,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"6b87c07b-40c4-4f33-bf03-e9a0d1de5dcc","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":136,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"7b066f3b-7dd5-4861-8474-e7c48a03d152","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":136,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"41239de1-9740-43d4-938d-537a3f67f22a","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":136,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"182e5a1c-a0e5-4ec8-9e36-fed2e2412831","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":136,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"fa0e128f-c428-4601-8c43-821a5a4cf8ce","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":136,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"1b7a57a5-f950-4435-bccf-cf1b8699b2f8","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":136,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"3500172a-f25e-490c-af2b-bad1a906a85d","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":136,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"85fcaeb0-d38a-4f51-9340-ede9f4902be8","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of","page_number":136,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"863f1bd7-75b9-4948-89da-960305136d22","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":136,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"0a7ed817-5465-4039-8592-01205dc43a46","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":136,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"96d1d82d-eb1e-467c-8271-3102c65ce48a","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":136,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"8843095a-fc6a-4c1f-9f90-dfeb8ecf63b0","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":136,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"21337338-203b-47ca-82ca-c5e2a709ebd1","block_type":"box","text":"in the Index Funds and BlackRock Short Obligations Fund may be combined with the amount of an investor’s current","page_number":136,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"a84d773b-5c85-47e5-be51-800aa7bb4e3d","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":136,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"076b56ce-b5e4-48bd-8dae-5a5106e0df2a","block_type":"box","text":"Letter of Intent.","page_number":136,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"ca31573a-90c5-43ff-8f1a-623e3756f136","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":136,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"96b78115-2751-4e27-b978-b718ad763017","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":136,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"81b28498-8111-431b-bdc3-a9c395368233","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":136,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"1c876d65-447c-4b99-a533-bf551a547fbf","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":136,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"ba324b45-ee34-4284-ad82-bcd6ffeed47d","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":136,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"3465e5d6-5d8e-483b-b1eb-7e637e7d8b16","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":136,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"a5f8c694-a98c-43d6-93f0-07c4defa3300","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":136,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"b60b9d70-a4df-4cc5-8d2c-2775438cc3fd","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":136,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"98e964f2-7a10-4605-98ce-10feb76d7d67","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":136,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"038bdf0b-3959-4b71-ac3d-7c96b6ecc119","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":136,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"6e3e6a58-25e9-418a-9d84-82ab05275a4a","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":136,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"017b6aa9-1b79-472a-98ed-402af3619252","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":136,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"bcae5b11-2635-43f3-b0b3-eaa915d1d142","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":136,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"d832d62a-8c2e-4b79-84aa-9021c097e791","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":136,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"ace433fe-2c3b-463a-a2ef-774163fa8709","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":136,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"2952b998-520e-44c8-9d6c-f2378444aa10","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":136,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"9345f471-b349-4d26-8c3a-1a1e2cf66b10","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":136,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"ea1aa237-753d-4b2f-be34-83856b00cf63","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":136,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"29193142-115f-4122-b794-4176efe01f04","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":136,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"68cd32e6-8ec8-4ce9-bfff-4de2233bf517","block_type":"box","text":"Placement Fees.","page_number":136,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"b162218f-f8be-4632-857b-bf221f8258d1","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":136,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"4b293ef8-8830-4541-b42b-9c1494c6305c","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":136,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"7dd7a6f7-9802-44eb-b601-ae15f035748b","block_type":"box","text":"II-101","page_number":136,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"dc7562f6-f8e2-47dd-a4d9-5e6c95071479","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4fac1e4d-0f78-42c6-8258-e802bf86cf3e","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":137,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"073f9cf8-5f2e-44b4-8554-229dc50d74f5","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"171685ef-e723-4fc7-805d-f210f4c28729","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":137,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"9a0fda60-9b9b-44de-9b46-69855b872f5a","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"b0da2270-b399-42e5-920f-5c57ebe0f024","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":137,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"aa64f31d-34fa-4b5c-94f7-e04873b2d3f7","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"b7a13bb0-48b8-4051-af3c-7dbf6e933ce3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":137,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"a955d982-e906-4e05-bccc-48f3eb27f51f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":137,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"e4c306be-4278-4fbc-a683-cebf4f72a137","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":137,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"6618ff70-82d6-4a0b-a1e6-a98d1d08d1e9","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":137,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"d858a7d2-0142-4498-9ced-4299c041532c","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":137,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"1f5010aa-cee6-485d-a191-7bdb92dcbca3","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"46abbdf7-1e0d-4683-91da-d6ae998594c8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":137,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"d901b327-0489-43d4-bad7-85709836ca9e","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"64e056fb-4df9-4443-ab32-2419f22b24bd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":137,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"f7638135-6f75-42b8-8d43-59c0d1a9151c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"919d742a-8713-4db9-9fe9-b7e5aa6c0906","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":137,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"68143bcd-e013-4e85-be0b-dc62763cf7c2","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":137,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"de772cef-9413-4eee-9510-825a3acce15a","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":137,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"56fe3143-3f52-4dab-ba94-6ef7fb90d0aa","block_type":"box","text":"SM","page_number":137,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"33cfaedb-8190-4b5b-9625-438af2ae8bb8","block_type":"box","text":",","page_number":137,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"90d7ed1d-58fc-433d-b21a-a9a66d4da415","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":137,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"7bb22401-2c38-49e2-90e1-5740438f0543","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":137,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"d96f7b37-aca6-4fb6-9513-df9881400d11","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":137,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"3e93a356-a4a2-4504-8a81-1bc988497ab8","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"4fed644c-50b9-47da-939f-d8cb49a20067","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":137,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"7430666a-a79d-4b5c-acad-7d9164f4bc93","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"c8e9cbe0-1838-47be-ba78-f83544ec9a40","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":137,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"67df99a8-e014-4c17-ad74-ef0f9c55d8ac","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"8b6905f4-8b16-489e-898e-03810fd0c58b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":137,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"21e65b75-8ff4-46f5-b261-245e46606989","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":137,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"18641792-7c66-4f43-a541-59c8ffe3917a","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":137,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"a80c5284-b2d6-4ac4-8e69-55190bfee38c","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"31e92404-c4b5-4075-aaac-563452c58f29","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":137,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"56efcf54-8e78-4429-9d87-d7dda6e27972","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"1f12da7b-2631-4ef4-a13f-bddd1382094f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":137,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"364c7dba-afe9-43f0-9b7a-2f0f641995ca","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"50b98463-31cc-4a2b-a808-8150aca6dbf6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":137,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"b9c326ee-7717-4bfe-8c53-70fa2f36dafc","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":137,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"5c863716-256b-4b1f-8400-f2af7adb37ee","block_type":"box","text":"may be up to the following amounts:","page_number":137,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"11936697-772d-44b8-b1e6-b1ea5c6d179a","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"af7ca94a-a989-4ffe-a795-d028981652ef","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":137,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"0f9f1860-7ee5-489f-b906-ed478c7dc53b","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"65a97372-b08e-4571-bbe1-47ec25aa5dab","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":137,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"534a03c8-7f83-4362-be3b-85812762feeb","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"dc734097-817e-4e2b-9351-4b3442095431","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":137,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"2bacc772-4d72-4d01-9cbf-b3b951563873","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":137,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"09da085c-722c-47bc-8055-ab1012b7d95a","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":137,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"225ae245-d098-4ec6-8883-37c5927b5e89","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"acb4e401-0767-427f-a316-e807fa7553bd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":137,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"660d4b5b-2bd4-4417-8f77-df76cb47153d","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"3400d025-8dfa-4bc0-9c96-d1eed0c0e69e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":137,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"039587cf-965a-41c4-b596-8c235436d818","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"b14d93cc-b292-491e-bc5b-6a778873c628","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":137,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"37abbfd9-e396-4538-9af0-43b49d1d1f17","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":137,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"71d6bbd4-2bcf-4c2d-a30d-18746d540ef8","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":137,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"5c80e130-b407-4f9d-a857-3b745b3df556","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":137,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"b4a576e1-8fa6-4d37-8cd5-e05e5baf55f5","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"c65a2fed-9a8a-4c9b-93ce-96afddcfbdb8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":137,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"e33680c9-4cf1-4ebc-9f41-1758a23328f7","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"97162140-dbc5-4ab6-8f98-8712ed061c24","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":137,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"09f422ec-6684-455f-9ce7-6e47ae623905","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"0a737484-fd1b-4e43-9bf8-1a0582c94a27","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":137,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"263d2fbb-7bc8-4a09-82a3-ed4d393d8429","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":137,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"e8cdef2f-5722-4cec-ae4e-919fba20ad65","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":137,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"d9c5585e-4331-4fe1-a2e3-6c95ecd2c699","block_type":"box","text":"$250,000 and above . . . .","page_number":137,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"79b7252a-f66e-4a6e-882f-c29a45de1e71","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":137,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"1ac2aa7f-74e3-4163-8824-40ddd2891131","block_type":"box","text":"II-102","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"aa18b151-f58b-4817-8467-9140dbecc174","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4471a702-f950-4708-bca5-5897ac556869","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":138,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"97303793-674f-462b-a024-a0637fea9922","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":138,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"65949fdf-184f-4ae0-a962-feb5ace14af6","block_type":"box","text":"the following amounts:","page_number":138,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"55cd3aba-1a2e-4c03-9716-9b7ed574b347","block_type":"box","text":"$100,000 and above . . . .","page_number":138,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"ea7cb36d-6377-495c-a9bd-10e90a34c698","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"f11a214e-f2e2-46a2-9d5c-8a480fb9ecec","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":138,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"b7904f01-0ed0-4fa0-834d-603ddf459c99","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":138,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"6d6e7467-446e-4b78-a155-6aecf787e90a","block_type":"box","text":"$250,000 and above . . . .","page_number":138,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"322689af-17b8-473d-a956-7ec4f21cd603","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"5232b471-573a-4f14-98cb-db3aeee05eea","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":138,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"6ffba430-2aa6-40d8-9fef-27921dbd206f","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":138,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"67bbcfee-59c4-46ed-9595-cbaa481d07d6","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":138,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"61d026ea-6c6b-4a07-b613-b83863ab66bb","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":138,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"be45345f-28a2-4f08-9939-410abbbc5be3","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":138,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"37287271-d678-4754-84eb-739fc030e66e","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"04ce7e8d-a3fe-4421-bde9-4e216d3a3db6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":138,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"2a20a69f-be08-42a3-94ff-6a778fbd28a8","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"2562afc8-57c0-4c37-b87e-5006c32c60b7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"b66d63c8-77ca-49be-9f80-334fb3abc504","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"26f53e17-2ad2-4121-9067-476018214f17","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"0ff2a331-1eb7-4698-b97c-ea2fcccef6c5","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":138,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"81b0c792-ab87-4159-ab32-106492e85417","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares purchased on or after July 1, 2020) of","page_number":138,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"8e888f56-49ed-4917-a7e3-46a8bf6a2a54","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":138,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"f128565c-7a48-4a4f-9d1e-3c3891a58fea","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":138,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"50946f73-611e-49a4-8639-b3f065dd83ed","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"bb9a9881-0d6f-4140-8d4b-98a56cefb8b9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":138,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"aa3cdc4c-5fb2-42ed-8b7f-432eb5a4b646","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"4da1e2fd-5dc3-4a0c-8008-dc6ca806e6e3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"edea2768-b239-4049-8b5a-3f8b21f07f9d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"9ab466d6-6f16-46b1-a992-c5ffb0c3ce89","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"f46a9856-4677-4519-83a3-125e483ce8a1","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":138,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"54fdbf37-df83-4dca-ab3c-bcadfa0f56f4","block_type":"box","text":"®","page_number":138,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"c5be123b-088b-4c17-98af-eb9bffb7a609","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":138,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"5aed1d56-c830-42c8-bb0f-11e177dd14c2","block_type":"box","text":"®","page_number":138,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"82b9a360-f303-4481-86b1-0044b6456621","block_type":"box","text":"Index 2035","page_number":138,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"1b61e88e-22f8-4bef-8179-9f265fb42448","block_type":"box","text":"Fund, BlackRock LifePath","page_number":138,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"f090c564-7b03-4be4-a682-045d392e3957","block_type":"box","text":"®","page_number":138,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"0bbdd228-d6b7-4ddc-bf85-d242c5ec2902","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":138,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"fd5f7a83-f858-4ecc-b929-11b5725358f2","block_type":"box","text":"®","page_number":138,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"d0926e5d-f512-4c88-8495-89dc11e9d57c","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":138,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"e3b6a74f-41bf-48a9-b62e-c52d16e88e4d","block_type":"box","text":"®","page_number":138,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"5a4f0fa4-27dd-4ddc-86eb-946af8f74cec","block_type":"box","text":"Index 2050","page_number":138,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"1b0fe034-7797-4157-8039-9e2c2ae405a3","block_type":"box","text":"Fund, BlackRock LifePath","page_number":138,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"45e781ae-3d79-4c72-acf8-01fdb850c6f2","block_type":"box","text":"®","page_number":138,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"72b251d2-99a5-47dc-b80b-7cea6ff8f47a","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":138,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"ba909c88-5a9d-4983-bbf2-537086f8f47d","block_type":"box","text":"®","page_number":138,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"888cf327-d15a-42af-a02f-74a13afa26f7","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":138,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"3b364204-50bb-46ac-9460-411a861bcb6f","block_type":"box","text":"®","page_number":138,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"2c5195ea-9c29-41f7-9e89-0f70e8e3a770","block_type":"box","text":"Index 2065","page_number":138,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"e9ea63f5-40ce-4236-8416-989f486db502","block_type":"box","text":"Fund, BlackRock LifePath","page_number":138,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"a58fab0a-fc45-4990-a1ad-e2a22526cd7e","block_type":"box","text":"®","page_number":138,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"716005a0-2610-4751-936c-73348b62ba56","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":138,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"787a841e-e420-4843-a52a-8671211410a7","block_type":"box","text":"®","page_number":138,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"3970c64b-2058-4611-8f9e-64f6afe84f5f","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":138,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"8563c3f9-bd23-4b6a-967b-afcebcae0a7a","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":138,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"7551f4c8-3816-433f-91ef-151cf5505e89","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":138,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"43534f35-c27d-4e90-a6b3-be88a87375e8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":138,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"dd3d871f-0e60-4d90-8a5d-b605b5380c2c","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":138,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"8615ede2-9a38-402f-9aad-3cc7ae3d2ea5","block_type":"box","text":"SM","page_number":138,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"07ae6ade-1eac-45e4-bf2d-a89ce4ea3e94","block_type":"box","text":", the placement","page_number":138,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"465ddf10-d9dc-49de-a74f-ccfe56451112","block_type":"box","text":"fees may be up to the following amounts:","page_number":138,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"bc9256a2-370b-4c87-987e-fdfe580a8034","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":138,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"44251c73-5b2c-4575-a179-473357281ec8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":138,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"6319022a-f2c9-428a-97ce-d6ea66b3f0d2","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":138,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"b2167092-d83d-4126-a1be-b8a3127a788e","block_type":"box","text":"Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":138,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"fda5dbfe-3738-4eeb-9807-1fd2c5910c93","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":138,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"688ae562-cc5e-49c4-801e-5529bc4bea0e","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":138,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"8e97e1ff-90b6-4f80-b5ee-57c267664341","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of BlackRock Funds V","page_number":138,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"96728158-678f-46a3-bf9d-74632f8f0223","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million and a placement fee of 0.25% on the final","page_number":138,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"3b4e45a3-8d13-4629-b179-80c3b03747b0","block_type":"box","text":"$1 million).","page_number":138,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"9cc7122e-072b-497d-a42f-81d5f8490064","block_type":"box","text":"Other.","page_number":138,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"d03a5544-e16f-4345-9a6e-ae4cf2302952","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":138,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"940f51a1-1e3f-469f-b0d4-7aad8df9933c","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":138,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"0677c727-af0b-4605-bea3-941b9f27b7da","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":138,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"00c858cc-2230-46f9-b783-6158ed2fef67","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":138,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"813fe423-6493-4515-9f15-8389634e20cd","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":138,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"8dfa3ed4-08d1-4573-b44d-2ca8982f859f","block_type":"box","text":"proceeds are contributed to a BlackRock IRA through an account directly with the Fund; or purchases by IRA programs","page_number":138,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"ec2caf7c-f06e-4bfe-be00-f632833c369a","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":138,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"4d151680-e10d-472c-93bd-5147d0d19217","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":138,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"bfe40b10-4020-4c1d-9767-891f16d80b55","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":138,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"8f249d49-704d-4737-a286-faae2f52d1ee","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":138,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"61fe420e-c99d-475a-8ad8-d3df61e8ab3a","block_type":"box","text":"II-103","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cef99f71-0035-4e27-beba-3a4dcc6f5a11","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"de5f91d8-2306-4516-a7c0-10b26fd16aa5","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":139,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"aac106f0-401b-4cd5-bb59-f6e1880febf1","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":139,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"2628ccbe-d934-4836-8427-f82ba2a2e1ec","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":139,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"124e995e-fdf6-4ce7-b4ca-c9a1d820f50c","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":139,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"b5cb4d08-9fbe-4eff-a243-e539473c1f74","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":139,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"2ebe3e10-8a72-414b-ae91-028b80c1677f","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":139,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"f0fd3bdf-e45f-4576-a8d0-168cfdd56770","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":139,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"36337175-ed1a-42b6-af6e-cccf1192b318","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":139,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"7f60c446-05cc-4029-ae51-c371b256e6f2","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":139,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"2a26f798-6d12-4395-a3ec-8089bf129afc","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":139,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"5243ce8d-3195-4e86-a365-7501bf31b8d1","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":139,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"6d06d026-2e86-4261-8f56-2539728cc43d","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":139,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"5670fcf5-497c-43e5-814c-a04529a973fa","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":139,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"bb18fa74-7819-4e6a-8576-177774cd9cb9","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":139,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"f4bb0599-f6c1-4eb3-973d-b381fe1aef4c","block_type":"box","text":"plan for any of the persons set forth in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":139,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"f2f482c6-f271-4d34-b630-a6675d2d4c28","block_type":"box","text":"sales charge should purchase Investor A or Investor P Shares. In addition, a sales charge waiver may be available for","page_number":139,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"7e193f7c-ace8-4c3d-825e-e3f61ed8b0ec","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":139,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"511cc7ae-af0c-431d-bcc7-90b4de162250","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":139,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"0d2973b1-9e74-4cd1-b98d-1d898267074e","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":139,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"16f1355c-ac2c-429a-893a-120fe7917d49","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":139,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"10044483-2913-43eb-bde1-a0c848a6768a","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":139,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"c056615c-5cbf-4e59-a4c2-cba2a15384ef","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":139,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"08162137-54fd-4b92-b3eb-2d1cf217c6e7","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":139,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"296f08b5-8d63-4a13-8641-dcf8d9905212","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":139,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"ee008c2c-2893-4617-ad55-22cb61525c9f","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":139,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"d48e1c30-2776-403a-a1a0-e11532df3215","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":139,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"8915b6a2-df86-4a17-9b6c-ac3a340db4c4","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":139,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"c40b6833-54fe-4b1b-9606-ebffc395d71c","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":139,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"b59e2497-000a-4068-91c7-3081c6b531e5","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":139,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"cc4fe911-32bf-49f0-850d-b7b9862ad0e9","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":139,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"e6b32461-bd78-42d3-83f3-231c8abb43b8","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":139,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"7692f4e0-f0b5-4013-b28f-a271f279a575","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":139,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"7f3b58ae-c247-476a-9984-1e1217b4addd","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":139,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"ed10763d-e4b1-4fcf-8fea-1aad17595675","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":139,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"7d9b7d53-64de-4481-ab43-ac70582d9736","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the Index","page_number":139,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"73ce207a-72cd-447d-b320-23d1c60901c4","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":139,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"165cbe0d-1411-478b-95cf-f8adf203ad4f","block_type":"box","text":"portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":139,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"59504d5e-3f58-4490-b716-7745337e3b7d","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of an investment of $1,000,000 (lesser amounts may","page_number":139,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"21613a9a-3dd8-4d2a-ab12-da329e78fdad","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":139,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"98a2b8ef-15f8-4a66-a111-5b052d3df0a2","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":139,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"4db94c68-0dab-4600-801f-625e766b8db7","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":139,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"7982a0aa-9b42-4bee-9245-54d30ee8e8a1","block_type":"box","text":"on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":139,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"15746b19-c22c-4a0a-b0ba-ea64bc4f740f","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding","page_number":139,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"d9a4abf6-0b40-4cac-8edd-f02a8fe2bac1","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":139,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"055c8024-61b9-44a8-9515-c82d3e574617","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":139,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"b4bf5200-0638-4417-a747-225420fe243f","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":139,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"71253eea-2e3e-42b8-ba85-9e25b6d3f21d","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":139,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"af68f0ac-52ff-43d9-8a2f-1458f21b8531","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":139,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"f9c5401a-f78b-4915-841d-4f65a143a98e","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":139,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"add90869-cc0d-4333-9b06-0f5797e4c77c","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":139,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"d0bf2d39-ac62-46a2-b795-3dbe6b97259a","block_type":"box","text":"certain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":139,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"11239284-e46f-41b7-bae3-6d19c1c6a1b9","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":139,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"9a343b35-0c5d-4273-a296-15731e945053","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":139,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"803bd7c1-d231-4cdf-92c1-32f3fbcd4f16","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":139,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"5d58cacc-ab9f-4ba8-949d-33df90b25c23","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":139,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"5e42246f-bde0-495f-9f75-51acc4ee9cc5","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":139,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"d7300ef4-d05f-40da-9f35-fda91d8b145d","block_type":"box","text":"II-104","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f1d62dad-78c7-40ef-b96d-9eeb7b15d4ed","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a4630bef-7a1f-4024-b6d6-a7b1a997ccc5","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":140,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"690b4c62-c1eb-4bf6-a222-8879c1cad991","block_type":"box","text":"the absolute discretion of a Fund.","page_number":140,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"46d54e84-e1f6-4c05-a313-32665f0c2b84","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":140,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"1a2741fd-c4e7-47d7-bcad-9b257dfa27dd","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":140,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"7a186451-a7b7-4767-bfa6-3aa1d3a5e2ff","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":140,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"ba3a253c-bd5f-43c6-9741-58e88ebc4b8b","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":140,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"0fb7d153-c15e-46b7-be3e-23da4f92095f","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":140,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"cd19871b-4e2e-4c5b-a767-16e14ba83984","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":140,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"3ce9d88e-11aa-4168-a930-f65ed0a28674","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":140,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"5f2b19ea-642c-41ba-9bde-beb8c2b6aee1","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":140,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"ec99cf94-7d5d-4d1c-9974-e88f7b289c64","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":140,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"1e1732ad-939b-4614-b91f-974b68d382ba","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":140,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"ead16bc3-e686-4bd1-a3d1-16dd295c294e","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":140,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"108f1b58-6c23-4b68-bae3-415298b4c34e","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":140,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"1b9f9784-7796-4b54-a8b3-b0a7b213a6d5","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":140,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"4f89efbe-1f22-443b-88d6-0a59477429bc","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":140,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"ff6af01b-fae2-48ef-80bb-26d579a76a84","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":140,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"fe0e004c-9bec-4881-8eac-c9916a1b4055","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":140,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"e00e8eb4-4eeb-4517-91fd-96c6429755e5","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":140,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"4c30e700-6c8c-40b4-afd7-a77c387017ef","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":140,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"1c7f1101-55ec-43c3-84d5-0326f6100906","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":140,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"7599d914-4ac4-408d-8181-94790abb64b1","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":140,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"53890957-bad7-4853-bc10-5d78f71e57f1","block_type":"box","text":"public or private investment company.","page_number":140,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"b50c9fe5-a831-41cc-8b89-282570e681f6","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":140,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"de60744e-2ae9-4ce7-9843-272e3306132b","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":140,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"558e6acf-e63a-48cf-a7c1-95a362e58518","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":140,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"57730412-f8c6-4ed5-ba12-74f861a78473","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":140,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"4243156f-fdb7-49fd-97b7-60c09d5a1a89","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":140,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"6c10c9d2-9cc0-4b2e-85f7-c50b56d83461","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":140,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"118b2088-0ccd-4e99-b1e4-6d687dff5051","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":140,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"c90f673d-b189-4314-bf8f-973b94468074","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":140,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"a82ea0de-ed44-4f72-80a7-320d21c96b72","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":140,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"f348a530-c872-46fe-95e7-8199b0853009","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":140,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"a565902d-987f-494b-b18b-96886d0349f7","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":140,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"ac87f46d-a962-4da9-85ea-7002b8535f5b","block_type":"box","text":"intermediary associated with the account.","page_number":140,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"59c15be6-b0e1-4901-b743-aefd333995f9","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":140,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"50bf0f81-2b59-4dd8-b77e-2a46b98d6b99","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":140,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"d5667f79-68b9-47a7-a47f-5cd4e53821f6","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":140,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"49c2fcd9-0f3d-4e73-90bf-b66cd51d2f93","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":140,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"d910878f-1488-4697-8e6d-f6f7af4f769b","block_type":"box","text":"CDSC shares.","page_number":140,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"f81e14b3-1c02-4abc-9d75-59a8ced796e4","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":140,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"1970d0ae-4e75-498b-ae44-ee062a4236a4","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":140,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"f6db4397-49d6-4512-9895-2871bd8a995b","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":140,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"d0424efc-84b1-496f-8897-2553b91f5347","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":140,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"dade2634-5f6f-4728-9dcd-554886fd2e99","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":140,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"601cd809-63d8-4a21-b16c-63d08f068f2a","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":140,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"aa7c256f-f825-41e0-b7a9-d44c22fb7124","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":140,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"4f493851-ab32-43c2-bde3-1faf5e523498","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":140,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"17686c4d-d1c5-4334-830e-6e55491a9015","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":140,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"ea6062b8-7a4f-4f19-98f1-63e383885eaf","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":140,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"35002482-f125-4da7-a478-0c5abf60edbe","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":140,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"91dbd42c-dce3-4020-babc-d9095a0aaca6","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":140,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"c76c6fd9-82f8-4c85-a328-56dc874b223f","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":140,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"f72e5b38-c5cb-48bc-884c-f11f7b63329c","block_type":"box","text":"II-105","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1c423415-bf43-4d7e-bc42-e2583aa334af","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1a6b78f8-776f-41af-8147-68c68f4d9e94","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":141,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"8627ac50-c1c7-4cf4-8a27-1e0b9b598e37","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":141,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"93686aef-0ed0-49b8-867a-f7abdb3106ad","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":141,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"45c84b9d-71f8-4b33-80c2-0bd13d60822c","block_type":"box","text":"Investor C Shares held for approximately eight years will be converted into Investor A Shares, as set forth in each","page_number":141,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"485b2cf0-eb04-4dde-a721-4018dc6e0d68","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":141,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"455de8c7-c414-452c-8942-218ddce5740a","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to","page_number":141,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"cad2dc71-c867-44ba-aadd-b9f0cbad1c53","block_type":"box","text":"Investor A Shares.","page_number":141,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"0c7a62a4-ffcb-4dd5-beee-66b3282b01a1","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":141,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"720880f9-bbff-49a0-91f3-d78323694439","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":141,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"af9f8e3f-bab3-45ce-a555-0705fadfa5d3","block_type":"box","text":"of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":141,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"f656370f-e9c9-48eb-88cc-9791f4ca181a","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":141,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"dd4e4d0c-c27a-4537-b05e-681d8934252b","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":141,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"66266e70-cca4-426c-88d5-8249f7f6b4c0","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":141,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"8e3f27a6-b12e-4e0d-9f64-91fc193a145f","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":141,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"ed480c7a-e111-42f4-bfc1-2d17aa74747e","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":141,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"72c5fe1e-a5e3-46e3-80dc-90a3edd530d2","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":141,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"c2539df8-0024-43d2-9b0a-78ed1b87e38c","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":141,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"89f2d2b4-56b2-45a9-946f-7fa7f1134054","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":141,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"ba6a24bb-2c04-4468-95f6-1a1dd64922f3","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":141,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"52693d5a-eca2-4ef8-8989-a3f51bc2db8f","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":141,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"97345180-c50e-47e4-a7ba-e1174050c941","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":141,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"6e62a2ae-a631-40d5-8fd8-83339a9f7735","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":141,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"a30d9e86-6334-41b6-8d4f-1a7869c02974","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted into Investor A","page_number":141,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"9eb22665-ba90-4836-b3d4-cab0d8268146","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":141,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"dea775d4-57c1-44b1-9111-e265af940349","block_type":"box","text":"“Investor C Conversions”).","page_number":141,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"f10b6e70-f8db-4854-8017-9cab87d1ab0e","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":141,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"b758f2d0-ec30-40ed-ae29-7792520b439f","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":141,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"a2d546a6-4fe6-4044-b6fb-660c929d9c56","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":141,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"8a12c34b-daf0-4f04-bd8d-97af164d89ac","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":141,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"213c3699-b1ce-45f2-85fc-5ef69f4d26ee","block_type":"box","text":"Shares will also convert automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C","page_number":141,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"1acbf3c6-0a88-463d-85f1-f0e774f1dc97","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":141,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"4ee4c45d-39e4-40aa-9c9f-1ab4fb41d57c","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":141,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"54b56e57-bf28-4d83-afb5-3176df7e5d94","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":141,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"1cd75f18-b54c-4851-9fbe-8a33856e3bcd","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":141,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"2968afdc-9e8e-4ed9-af93-18ccbe363f50","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":141,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"a04152f6-3150-4841-b8a1-3f5293594962","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":141,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"de206d8e-2350-4256-9ccf-68c10097e339","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":141,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"3f490c53-862c-4367-85bc-d753b7b91dbf","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":141,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"0d97446d-aa08-44ce-b57c-9f99dccb9308","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":141,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"e2adfb87-a7d1-41cf-9fbe-94a343cfa2cb","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":141,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"8e4723a3-f86a-4ee5-9b6e-2741741c5890","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":141,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"7ab6adb0-3ceb-4f9c-b24f-f67b93a6cb2e","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":141,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"3cae9132-8d9e-43b0-89ff-b86a08608bef","block_type":"box","text":"redemption.","page_number":141,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"b06ee151-c536-4bc3-a3ac-9bd350b5d665","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":141,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"c5b259a0-df28-41fd-87d3-551d7428c79c","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":141,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"c1193843-383e-4dbd-be62-236ddd5e7bb2","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":141,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"13bc14be-8063-4ee4-978e-035bde12e925","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":141,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"5fecc69a-f515-4b07-ade8-25ab0be3b63b","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":141,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"0df39a5d-9696-4e14-a2b0-300224c0bdce","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":141,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"c6ed76d3-87d8-4768-951c-5981d3967aab","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":141,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"6ce8b182-4956-486f-ba25-92ed210d2336","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":141,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"fd136575-f6dc-4167-af3c-d1624add2ce3","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":141,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"94cce48f-6817-4be9-abb1-6aa898d09eec","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":141,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"c9520447-74f4-46ed-b6fc-6de8fe92a4af","block_type":"box","text":"II-106","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"07286fc8-b563-4b90-ad9f-b96b67844b52","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"986dae83-ba2d-4302-a74e-fb7dff1a77aa","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":142,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"27da85d5-3387-41aa-b6b1-47b2008790fc","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":142,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"4ecfc28c-94d5-4ecc-975e-a6cd69edd79d","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":142,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"0fd65a36-f14d-4044-8117-437bc9139bff","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":142,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"4795a3c3-0a2b-45f6-b6b7-0e612d83345d","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":142,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"9ad4641f-a7f2-4ea9-ba7f-65269aa041da","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":142,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"c5cb2efc-e973-4782-8935-a9b3bfc385c5","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":142,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"f9c5e8c0-e09b-401a-8928-a888630b528a","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":142,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"fbc4a284-eb50-40d8-8194-a071e84b03b1","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":142,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"4d710737-1cf0-4d2d-821e-5f5d43a1b8ef","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":142,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"72b53445-1506-4d69-9709-7e9d49c69cf8","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":142,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"2e6060ad-f9aa-470f-b834-0af75f754683","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":142,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"e02cc8aa-e419-4e03-86cf-9aba482295ad","block_type":"box","text":"Class R Shares","page_number":142,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"2c73688d-aee5-4c6b-978b-4177d7bd7b3d","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":142,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"fc8ebdaa-e9db-4d15-8a28-db6b7a48d1e1","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":142,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"97028cfe-0b07-41e5-adf2-66bdca45eed3","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":142,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"bab635d6-8557-4125-b188-fb454d9ad159","block_type":"box","text":"0.25% per year. Distribution fees are used to support the Fund’s marketing and distribution efforts, such as","page_number":142,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"de2f65e7-f96c-488e-aa0f-eb29e627c03a","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":142,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"7af6d92c-e822-417d-aae2-52e8305aace7","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":142,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"cf57324d-aa1d-4b52-9541-dcdd8cbcbd08","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":142,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"b45823a2-dbac-483f-b6dc-f04aa6892c49","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":142,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"d17d16fe-fe14-4629-8a71-3d81bc9a320e","block_type":"box","text":"Class K Shares","page_number":142,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"77ed4866-fc20-4316-b709-aed42f334809","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":142,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"6210a929-9467-41f3-a145-f3a36e9a387f","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":142,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"a2d8de14-4615-4eb9-b914-b1886665925f","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":142,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"f851afcb-c19c-4da9-b23a-9cdf9dd4ca07","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":142,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"95ca878e-fd74-40fa-9b13-8a0cd59dddc9","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":142,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"e6c2022d-c3a1-4449-8fef-2f21a390d71a","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":142,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"aaa9be71-3190-4337-b5aa-891de0cb4321","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":142,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"59ab9232-8f79-4252-9c4d-373f2778b68a","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":142,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"d15be7a9-4766-4df1-b866-638e9ca94637","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":142,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"af46677f-d9d4-4aec-b0a4-b3c3f8ba90c9","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":142,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"fd33aeff-cf5b-4b00-b778-e62651856755","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":142,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"06dc08c3-caa5-4e71-a2d2-b779769ebc32","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":142,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"40d116fa-7b71-49ce-8cc7-e272dcc55823","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":142,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"88a05ff0-9276-4fad-80cc-489d23b5e6ff","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":142,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"b7f94269-9571-4c29-a72a-8a7365b0e3c3","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":142,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"ed23f5d2-c504-494f-a7b6-8fa984bf2ca7","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":142,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"293e1261-b1f7-47b4-8254-c69e1abea224","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":142,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"d45764c1-6ec1-4836-b0a2-a69c7269b51d","block_type":"box","text":"distribution and marketing agreement.","page_number":142,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"66d9bcf3-8f64-40f6-8ce2-540f6fb56e3f","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":142,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"11c56694-0ce5-44d8-b274-00cfae14c7d4","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":142,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"57c06284-e02c-496b-b0e2-466c79aa5780","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":142,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"8700c7bf-2fe7-4e2a-b72e-71d86c85be88","block_type":"box","text":"Class G Shares","page_number":142,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"c0e2cdb7-dd4e-4c71-9c2f-7720c513c092","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":142,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"f61764e4-5a72-4f23-a225-cd28950fa9c1","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":142,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"4d69d36c-2d89-4907-b6b8-5bb04d608374","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":142,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"691f0382-fad5-4573-8be0-008e3a87d745","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":142,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"6c726c74-28a7-404e-b0cc-f1c2263fcd03","block_type":"box","text":"eligibility requirements.","page_number":142,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"a528f569-a38a-45e4-a9bf-2c24e1167558","block_type":"box","text":"II-107","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"dff091be-cf8e-46fc-ac3f-6543abea373f","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6c26130a-dadf-46e8-813e-b3cc9a0288bb","block_type":"box","text":"Service Shares","page_number":143,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"dbeca571-4286-4a12-9365-8976d1bcc71d","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":143,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"c7c88e2f-d549-4114-a260-614a66348f2b","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":143,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"d3eb7186-12eb-439f-9f56-6fe9f46cbcb4","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":143,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"ad037311-ac9f-4feb-a091-bca3f47b5047","block_type":"box","text":"®","page_number":143,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"62bfe059-6ee0-4a47-a51f-5d1bdea11354","block_type":"box","text":"Fund in 1996; and","page_number":143,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"37411726-f3c5-497e-be73-678b51df2623","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":143,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"a97822ef-f866-43c7-8b88-171a28af4a07","block_type":"box","text":"SM","page_number":143,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"6dc62da5-8ab2-46d6-9f49-c025a9564f9d","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":143,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"77d0d5dd-8a26-42d6-acd1-03b8baf309b0","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set forth in the applicable Fund’s Prospectus.","page_number":143,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"8662ec45-a4f9-4b1f-9d46-79e0e90aafc3","block_type":"box","text":"BlackRock Shares","page_number":143,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"3cd7bdae-5945-4589-886b-821066a6ea21","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":143,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"1d375875-0027-45a8-9c2d-3516e0f788eb","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":143,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"b2b4e99a-617e-4905-bb2b-87a2eea24f10","block_type":"box","text":"fee-based programs.","page_number":143,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"0d081015-fb5d-46b3-94bc-26ccaeab497a","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":143,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"6836fa4f-a1c7-4eae-a1be-df01b5ad711a","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":143,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"bf87fca0-5d06-4450-8e5f-29baa2516817","block_type":"box","text":"respect to certain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":143,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"18f4063f-8a3a-489a-bb6f-8c4f7c08b04d","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":143,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"72ca65a2-21e7-411b-aa8f-fb3eb90d52e9","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":143,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"649dbaec-50cd-4c1e-a9f3-8f5924a28afc","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":143,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"d1786332-ff61-4288-af96-124304290f37","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described further below, only Investor C and Class R Shares","page_number":143,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"378bb5de-c19c-472a-a93f-da20ca39d5ec","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":143,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"795fee3d-dcc3-490d-a242-b3c67720d9bc","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":143,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"9ad11f4a-3f9e-4bee-8f76-28b7aaa0e640","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is","page_number":143,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"cde5708c-b896-4742-b75e-170b07c27171","block_type":"box","text":"not obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":143,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"e7016a07-dde5-4c98-a644-16d373f89759","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":143,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"0ddbe5fe-522f-463e-8955-18eefba31e77","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":143,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"60a2e514-11b4-45c1-874d-ba90efe3642d","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":143,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"74c1a179-3e69-49dc-aef3-907e876d2583","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":143,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"be1c0237-9f9f-48cd-89c4-d0d6baea8fae","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":143,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"b5c4387f-eef5-4268-b202-5c37a7b9bde6","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":143,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"d7238c33-5c5e-446f-86eb-9e8f599c155f","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":143,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"3856439c-18a3-4a82-bb6a-66ca5cb785d2","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":143,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"394e22c1-3792-4110-9710-a75cf6fdcd6f","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":143,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"0bbb25f4-b7d0-4983-931f-63ce2bddc6b2","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":143,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"75c21559-15d8-4a6e-bc0f-b7925b524d88","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":143,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"bf36f7d6-7ac0-4a17-b4ad-6b91fe41acc0","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":143,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"5ad4a450-2a49-4266-a7a6-7dbb4f0154ee","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":143,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"89d70624-09cc-4c31-afef-882cb302046f","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":143,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"8869875a-037d-46e4-8d87-7f3d00156416","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":143,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"b4b83fee-3cea-42e1-923b-167931b31068","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":143,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"6e5d1a37-bafc-4222-9f54-6a4890fc7b1c","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":143,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"256e4d7d-8a68-463e-9eca-b428f8670bd8","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":143,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"a65a1801-dba0-44db-a5a5-98d2a50dcf5b","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":143,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"d3ec99c0-d0d3-4557-aff6-e2c8142eff62","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":143,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"6ae6530c-41ca-4611-9fd2-faf2e64d08c8","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":143,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"949d6481-b5a1-4b2f-a75c-8b2b6b30f1b7","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":143,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"ed14780a-c6ea-43f9-a896-b48752885def","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":143,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"41b225f0-762e-4cc9-9338-1a0748ddaf6d","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":143,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"5479a790-92af-4ec1-b4b3-2f6c5ba2a6f2","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":143,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"47583f2b-780f-4f46-a57f-ffa4156efeb0","block_type":"box","text":"compensation for selling different classes of shares.","page_number":143,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"32e99916-2300-4a1f-8065-5da69288584f","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":143,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"58d432e2-8616-49b4-805b-d47f8bc76d73","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":143,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"b5f580e2-d93f-4f40-9510-3d6c171ba2d7","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":143,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"94d9d93a-ea75-45e8-a743-3e9bbd1cfcd9","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":143,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"aae2d520-1ebb-47d3-b847-fe570ed5d174","block_type":"box","text":"II-108","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ebb6a9aa-a381-4528-9b01-82ac5946ebc4","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4b3b4c10-f7b0-494a-aaf5-3bfc0e6872b9","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":144,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"e4b4f595-d283-4f36-8c72-bf47cf3d5a33","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":144,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"37fbdae8-5017-4b6b-99f2-2ce249596cca","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":144,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"cbd7df29-9aba-4ac7-81ac-bd7db9b89850","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":144,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"03327c01-0977-4d23-94df-66d343cadafe","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":144,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"8a074a13-c631-406f-bf3b-63d1d843a88a","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":144,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"94d5a13e-f8f1-45c2-9f68-65cd26f18b33","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":144,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"312e71da-aa99-4be7-ac92-1864a7a64af6","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":144,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"578542ea-dbbc-4953-984b-202b83d0380e","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":144,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"a70473f5-9b1a-4232-99de-205b7880ceb1","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":144,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"8f963cef-8ab2-48e4-bcf9-f21d0b63cda1","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":144,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"682019f2-8ad2-496c-a5f8-1e68f107a18d","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":144,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"500fd86a-0afd-4910-8a9d-c74b8abe5a4d","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":144,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"916e388b-8fca-48dd-bfc7-1180c8b07ae7","block_type":"box","text":"Directors. Rule 12b-1 further requires that each Fund preserve copies of each Plan and any report made pursuant to","page_number":144,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"43d9a17a-e80e-46e9-97d2-8927c1eaa3fc","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such report, the first two years in an","page_number":144,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"7000f661-f995-4cf6-af02-0dde42e8b952","block_type":"box","text":"easily accessible place.","page_number":144,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"86c0397c-9223-413a-8dba-7644bc644484","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":144,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"2148d91a-a175-477a-9d87-38d31101741f","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":144,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"43c34a8d-d36c-4871-8637-2558784c73f5","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":144,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"89e0e514-428b-4395-bf33-ce5bb166f5c7","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":144,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"0afe4dce-6ccd-46f4-a28b-a2a4bdba142c","block_type":"box","text":"fiscal year.","page_number":144,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"a04ec815-6b36-4876-b6f3-e21deef0dc9a","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":144,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"77d56487-cdca-458e-bed9-85d30b9f5a7a","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":144,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"0b46ef5c-20e2-4dd2-b170-9da0d09e9b3a","block_type":"box","text":"imposes a limitation on certain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":144,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"fbaf631c-29f2-4aac-97bc-bb8dbb019f04","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":144,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"19ed71bc-973d-44e6-81b1-309d8ee79793","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":144,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"4362d649-1ca4-444f-81c1-72ad541fcf09","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":144,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"908c2c7e-0453-42e1-908b-aa0d1ec266e5","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":144,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"36f61825-2f4b-471a-8d13-44a364ba9638","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":144,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"c7ed40bc-fb23-465f-8410-5ab1b892e144","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":144,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"09a7066f-d054-4e8d-8cd6-f4337a1eb1d1","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI","page_number":144,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"73559ec6-cfc0-4462-b336-bf9fdd502a5a","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":144,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"e22711f1-bd07-4b89-83e4-616edf8e8b02","block_type":"box","text":"and Class R Shares of your Fund.","page_number":144,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"70be6933-cfb0-413b-8995-9208235b7ae4","block_type":"box","text":"Other Payments by the Fund","page_number":144,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"49ef9285-c5f5-4ce8-b8d7-4a88ca22ee80","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":144,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"ab416d9d-2fcc-4e7c-a83b-798d8b7a41fa","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":144,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"684e46a1-2c98-4f7c-b39f-dcb428027887","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":144,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"f1756340-c240-41ad-85ee-bc58d1d3b2e2","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":144,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"c0c91931-6f0c-4336-b44f-c32e200af660","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":144,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"3d8e5539-f56d-4194-9d35-2699ae1cddac","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":144,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"3458dd02-3168-4004-b92c-d277b964f53e","block_type":"box","text":"of these payments may be substantial.","page_number":144,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"6800c425-5646-4220-b01c-63c43ba745fe","block_type":"box","text":"Additional Payments by BlackRock","page_number":144,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"b90a2d83-f6ef-4217-8176-7ff65ec2f9da","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":144,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"c54adb05-7193-40dc-ab4a-7bf6d06596ae","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":144,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"f0a939ae-ec16-495e-ad43-ca704b219633","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":144,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"2d6501ce-3919-4ab1-9de5-de1852f3b5c3","block_type":"box","text":"obligations itself or may arrange for a third party to perform them. These payments, which are not made pursuant to","page_number":144,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"f007f88a-3f0b-4cdd-81ba-91a17f99f8dd","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":144,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"95303291-0744-4b3e-8360-d73b5f031acd","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":144,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"3b76b3cc-efeb-4c5a-8b6a-ab3110c2cf7c","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":144,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"3df56dcb-2d7f-4bae-bbdd-7565507c77a7","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":144,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"5d0c14e9-71b9-44f6-b947-1cfa01ceb5c8","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":144,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"6c0a7aa9-4561-497a-ac7b-1bf6abe11eff","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":144,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"7f8b9d11-6849-4ab0-afec-83d2d4d87398","block_type":"box","text":"II-109","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"39e4ccf7-17e2-4af2-a047-231ff8f94226","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5d16c12e-6636-444e-9b06-e39676356621","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":145,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"2127ad73-80cf-4fe2-87ac-660a8cd691df","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":145,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"c2067628-83c5-474b-bdfc-1ae06a920645","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":145,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"7605a5c1-554a-4a08-a982-be84c212e9f6","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":145,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"efd56207-ca1f-4a86-aa1e-c05f11ea6e35","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":145,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"517fac92-39b6-4214-bec4-f3cd46b858ee","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":145,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"df95462c-d773-4c0e-9517-5473966430af","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":145,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"fe77514f-5446-46a0-a497-022b0acf6e63","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":145,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"a79aef57-68a8-41c2-b999-160ff532aa62","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":145,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"3240da5e-c7ea-4400-b81d-8bc3956e8125","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":145,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"4c62b7c0-9208-4f58-b888-66fec756f049","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":145,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"12bb472f-77a6-4a48-8397-ded55306720e","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":145,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"7359c433-30b7-4a2f-839e-cac163f90589","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":145,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"6840ca41-592d-4f16-966c-e819c12b4f2d","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":145,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"15ea5308-83d1-4620-8cdd-fe061b68289e","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In certain","page_number":145,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"af401c6d-3f72-47e4-9211-71f047f762b8","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":145,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"050a938a-88e4-4a0d-80cf-9508ddd4e497","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":145,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"a4acbcda-5861-4476-bd88-ead91c0df7e5","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":145,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"6940d110-3ac3-4cb7-a521-f67a742d3112","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":145,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"c0436d85-ef14-4462-8902-dfec8d867904","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":145,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"aae970ea-d4fb-467b-bb47-c96073e9cc19","block_type":"box","text":"Funds.","page_number":145,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"36c47603-5152-443b-9d97-c0025f843824","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":145,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"ec6a1a54-36b2-4290-9c44-9abd777d19a9","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. These","page_number":145,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"77b821bb-0d80-4ed2-b3c4-0a4829787798","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":145,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"fdf8d37f-006f-45c0-a22e-957889627c9b","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":145,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"ccd1c108-a14c-4009-b429-47bf94ff2186","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":145,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"691b5b83-730f-479f-8bd9-0a2fa5f272b0","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":145,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"00d5705f-ee50-42cb-bc37-8a95a68b0d63","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":145,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"fbf835ee-4f0e-430c-8041-71059d45edc7","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in certain sales","page_number":145,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"db5e745e-607f-432a-901f-702b7babf62c","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":145,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"40466502-5a3d-4ebf-ab0b-7c2d90bdaa61","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":145,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"c945cee3-eff2-472b-8911-8d42a19a507b","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":145,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"64d0692c-cd44-47ce-b145-b7fb83888636","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure support. These payments","page_number":145,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"c07a7bed-160a-45b8-8f7f-4a025c3658d3","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":145,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"a7e10bdb-3cd1-4fd9-9111-6cf46a1ba6be","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":145,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"229a211e-b471-4084-8963-dbb575879444","block_type":"box","text":"B. Shareholder Services","page_number":145,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"0c12d4e5-dd9c-411b-b4ab-23c916d4284e","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":145,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"ca1851f5-04d1-40a1-97b1-63ec84483637","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may perform","page_number":145,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"8855663f-e16a-4eb5-b3ec-9e9d94639080","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have performed if the accounts","page_number":145,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"9667a52c-6ae9-4fdb-aea8-5d8aeb530327","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":145,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"f0e1ce74-7e1e-4bfe-afdb-426b3ce15231","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":145,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"756de9e4-aa43-4f64-a363-16a42b595534","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":145,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"c81d038a-e65a-41ad-989c-68a300abfd1e","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the performance of these or similar services. These","page_number":145,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"3ad6d016-41d0-49a5-9b10-b5f6ccc54223","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":145,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"e71c522a-2bcd-4ee7-b3e5-8840c7295704","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":145,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"63e3c230-5e0b-42f7-8b6d-16eb15e0f71f","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":145,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"45d8cac0-6376-42fb-8101-cfadd95fb8c7","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of certain analytical or other","page_number":145,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"f8239a61-68fe-4ba8-b950-415fa71acaf7","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":145,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"c583ac98-3eb0-444d-9f2d-cd795e8a2d41","block_type":"box","text":"support. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":145,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"1603e840-65dc-4f39-9185-e17abf40e0f8","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":145,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"add0a0a7-b3a3-4191-a135-94e35d1afe31","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, certain of the Service","page_number":145,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"378510b9-d246-4d18-af8c-ca3355e48989","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":145,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"041c735d-6769-4acd-a252-28cec120a8c3","block_type":"box","text":"II-110","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"13b26796-0b83-4fb8-a20b-dd90dc338f03","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"203fdc95-586b-4d54-a831-4680ac3cbd7a","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":146,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"bbc44877-1821-440c-98f2-e9cdeed7acc2","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":146,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"570b2fed-cf7c-4d1f-a6f0-b8469cf8f6a8","block_type":"box","text":"payments and to obtain further information regarding any such payments.","page_number":146,"box":{"x":70,"y":75,"width":523,"height":11}},{"id":"2cf1726a-53b8-4fb2-ae43-abe8ca6f764d","block_type":"box","text":"&Partners","page_number":146,"box":{"x":69,"y":106,"width":71,"height":9}},{"id":"578f4e93-6934-4b87-a2bd-1a79c041c7ce","block_type":"box","text":"AccuTech Systems Corporation","page_number":146,"box":{"x":68,"y":127,"width":219,"height":11}},{"id":"a855ae6f-d5c1-4c06-af71-ef3303e6dd67","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":146,"box":{"x":68,"y":147,"width":164,"height":10}},{"id":"383cdd1d-a5cd-4ce6-ae7d-44fb5a6b57ed","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":146,"box":{"x":68,"y":167,"width":207,"height":11}},{"id":"69200153-ca70-44b5-bc19-f5f4703e90b0","block_type":"box","text":"Advisor Group, Inc.","page_number":146,"box":{"x":68,"y":187,"width":133,"height":11}},{"id":"81f19a4a-cc0a-460a-ae97-f8736c26473b","block_type":"box","text":"AE Wealth Management, LLC","page_number":146,"box":{"x":68,"y":207,"width":205,"height":11}},{"id":"3491e4e4-2805-4223-857d-d2c1c7e5539a","block_type":"box","text":"Alight Solutions LLC","page_number":146,"box":{"x":68,"y":227,"width":142,"height":12}},{"id":"9914b5fd-3ca3-488f-97fc-fa707bb3d1e4","block_type":"box","text":"Allianz Life Financial Services, LLC","page_number":146,"box":{"x":68,"y":247,"width":246,"height":11}},{"id":"ac6923c8-9c52-4c2d-b160-41c42bb6621b","block_type":"box","text":"Allianz Life Insurance Company of New York","page_number":146,"box":{"x":68,"y":268,"width":310,"height":11}},{"id":"97e4ab47-823c-4e00-9469-bc53b154d098","block_type":"box","text":"Allianz Life Insurance Company of North America","page_number":146,"box":{"x":68,"y":288,"width":346,"height":11}},{"id":"a93a6647-fcf6-4abe-8e37-07cb946ea1ea","block_type":"box","text":"Altruist Financial LLC","page_number":146,"box":{"x":68,"y":308,"width":149,"height":9}},{"id":"ed8525a0-0f44-4e3b-8983-e29181b325bb","block_type":"box","text":"American Enterprise Investment Services, Inc.","page_number":146,"box":{"x":68,"y":328,"width":328,"height":11}},{"id":"856efafd-4a40-4dda-b24b-a219b88250b4","block_type":"box","text":"American General Life Insurance Company","page_number":146,"box":{"x":68,"y":348,"width":302,"height":11}},{"id":"01596bd5-f4f1-4f26-bd9b-33de22913f22","block_type":"box","text":"American United Life Insurance Company","page_number":146,"box":{"x":68,"y":368,"width":293,"height":12}},{"id":"f9516dc8-ec50-4663-ab8c-81d839bdc992","block_type":"box","text":"Annuity Investors Life Insurance Company","page_number":146,"box":{"x":68,"y":389,"width":298,"height":11}},{"id":"974040ff-5a0c-45dd-ab80-3d3fa55a017d","block_type":"box","text":"Anthem Securities LLC","page_number":146,"box":{"x":68,"y":409,"width":161,"height":9}},{"id":"f38f8b4f-9cf8-47dc-9f2f-e460b589a5d9","block_type":"box","text":"Argent Institutional Trust Company","page_number":146,"box":{"x":68,"y":429,"width":246,"height":11}},{"id":"d964cafa-395c-44a3-8024-3dc804ea2aa5","block_type":"box","text":"Ascensus Broker Dealer Services, Inc.","page_number":146,"box":{"x":68,"y":449,"width":272,"height":11}},{"id":"8aa2bffd-1482-4b8f-a21a-e848fe800f20","block_type":"box","text":"Ascensus, Inc.","page_number":146,"box":{"x":68,"y":469,"width":103,"height":11}},{"id":"3ec96737-3671-4363-a915-f2a17e3ce648","block_type":"box","text":"Atomic Brokerage LLC","page_number":146,"box":{"x":68,"y":489,"width":156,"height":12}},{"id":"9c73b68d-e73e-4912-892e-986f443b5a57","block_type":"box","text":"Avantax Investment Services, LLC","page_number":146,"box":{"x":68,"y":510,"width":241,"height":10}},{"id":"b2fad8f8-5742-433f-8fba-dfbae107f98b","block_type":"box","text":"Bancroft Capital LLC","page_number":146,"box":{"x":70,"y":530,"width":143,"height":11}},{"id":"82fb06d8-9b73-4059-a3dc-05d11022d104","block_type":"box","text":"Bank of America, N.A.","page_number":146,"box":{"x":70,"y":550,"width":153,"height":10}},{"id":"52a68a70-0400-4e50-8392-a6f76f6a0725","block_type":"box","text":"Bank of New York Mellon","page_number":146,"box":{"x":70,"y":570,"width":174,"height":9}},{"id":"c82a867a-5dfb-4b27-8b07-4bf64265951d","block_type":"box","text":"Barclays Capital Inc.","page_number":146,"box":{"x":70,"y":590,"width":142,"height":11}},{"id":"0548c5b5-50c1-4ade-90ee-4bf50b189e27","block_type":"box","text":"Benefit Plans Administrative Services, Inc.","page_number":146,"box":{"x":70,"y":610,"width":299,"height":11}},{"id":"ea510715-e55c-4c60-81a0-c801dabd6d7c","block_type":"box","text":"Benefit Trust Company","page_number":146,"box":{"x":70,"y":630,"width":160,"height":12}},{"id":"90b8d388-1cd9-4161-86ee-36b9acc6ea00","block_type":"box","text":"Beta Capital Securities LLC","page_number":146,"box":{"x":70,"y":651,"width":192,"height":11}},{"id":"b060f6c5-2d14-48be-a01f-bb789552967e","block_type":"box","text":"bfinance US Ltd.","page_number":146,"box":{"x":69,"y":671,"width":116,"height":9}},{"id":"2811d0ef-cf56-4669-914d-2d52222563bd","block_type":"box","text":"BlackRock Advisors, LLC","page_number":146,"box":{"x":70,"y":691,"width":172,"height":10}},{"id":"3352dbf2-9436-40a4-86c8-e774df014f62","block_type":"box","text":"BMO Capital Markets Corp.","page_number":146,"box":{"x":70,"y":711,"width":191,"height":11}},{"id":"22d57c04-5eb5-4543-846d-c388ec47921b","block_type":"box","text":"BNP Paribas","page_number":146,"box":{"x":70,"y":731,"width":86,"height":9}},{"id":"e1d99728-b2c1-452c-bae8-9320bc9245a8","block_type":"box","text":"BNP Paribas Investment Partners UK Limited","page_number":146,"box":{"x":70,"y":752,"width":318,"height":8}},{"id":"6e18519b-f22b-4723-af3a-ef4af07e53d5","block_type":"box","text":"BNY Mellon, N.A.","page_number":146,"box":{"x":70,"y":772,"width":119,"height":10}},{"id":"4465a358-23b5-42c1-958b-09618c27bb07","block_type":"box","text":"BofA Securities, Inc.","page_number":146,"box":{"x":70,"y":792,"width":141,"height":10}},{"id":"5b96870e-d75b-47ba-a595-bb40332d1779","block_type":"box","text":"BOKF, N.A.","page_number":146,"box":{"x":70,"y":812,"width":74,"height":10}},{"id":"b6008eb1-3ffb-4349-b703-bfb1e3c10fd8","block_type":"box","text":"Brighthouse Life Insurance Company","page_number":146,"box":{"x":70,"y":832,"width":259,"height":11}},{"id":"6713f983-41bb-452d-bc2a-b991dbe91d88","block_type":"box","text":"Brighthouse Life Insurance Company of NY","page_number":146,"box":{"x":70,"y":852,"width":302,"height":11}},{"id":"58b4d4e3-6c22-4f5f-adbb-1ce7aade2318","block_type":"box","text":"Broadridge Business Process Outsourcing, LLC","page_number":146,"box":{"x":70,"y":872,"width":333,"height":12}},{"id":"e5e5d900-eac4-42fd-93e5-7563a89050e3","block_type":"box","text":"Brown Brothers Harriman & Co.","page_number":146,"box":{"x":70,"y":893,"width":222,"height":9}},{"id":"4e156343-aab8-4241-98c7-caed986aec80","block_type":"box","text":"Cabrera Capital Markets, LLC","page_number":146,"box":{"x":69,"y":913,"width":208,"height":11}},{"id":"610c9233-a874-482e-bd73-e585cf9a106c","block_type":"box","text":"Capital One, N.A.","page_number":146,"box":{"x":509,"y":106,"width":120,"height":11}},{"id":"4b605957-9a4d-4c49-81a1-1da88e75f398","block_type":"box","text":"Cetera Advisor Networks LLC","page_number":146,"box":{"x":509,"y":127,"width":204,"height":9}},{"id":"b26906fe-2cdc-4d72-9a91-db47d3266281","block_type":"box","text":"Cetera Advisors LLC","page_number":146,"box":{"x":509,"y":147,"width":142,"height":9}},{"id":"bc48c68d-0ae0-44c2-97e8-43a82da04a13","block_type":"box","text":"Cetera Financial Group","page_number":146,"box":{"x":509,"y":167,"width":161,"height":11}},{"id":"0686bc05-6f80-4035-82b0-06bc128690df","block_type":"box","text":"Cetera Financial Specialists LLC","page_number":146,"box":{"x":509,"y":187,"width":228,"height":11}},{"id":"42c15909-ff05-4e75-94e2-0f30400346ba","block_type":"box","text":"Cetera Investment Services LLC","page_number":146,"box":{"x":509,"y":207,"width":227,"height":9}},{"id":"a8d81569-e540-474d-960c-ef7183a69d7c","block_type":"box","text":"CF Secured, LLC","page_number":146,"box":{"x":509,"y":227,"width":116,"height":11}},{"id":"dc91e870-a77f-4688-b331-08ce6dd96bbc","block_type":"box","text":"Charles Schwab & Co., Inc.","page_number":146,"box":{"x":509,"y":248,"width":192,"height":10}},{"id":"f79823bd-2c23-4971-9063-74d944d929b8","block_type":"box","text":"Charles Schwab Trust Bank","page_number":146,"box":{"x":509,"y":268,"width":195,"height":9}},{"id":"70f47cae-0489-4214-aa8d-9c96e4644866","block_type":"box","text":"Chicago Mercantile Exchange Inc.","page_number":146,"box":{"x":509,"y":288,"width":237,"height":11}},{"id":"38348380-4319-410d-b812-33fa6b04554d","block_type":"box","text":"CIM Investment Management, Inc.","page_number":146,"box":{"x":509,"y":308,"width":243,"height":11}},{"id":"cf720d98-f0b9-41bb-b9e5-8adb0c9fb9eb","block_type":"box","text":"Citco Securities, LLC","page_number":146,"box":{"x":509,"y":328,"width":147,"height":11}},{"id":"734cf307-5f21-46fe-a2b4-c5015c795b3b","block_type":"box","text":"CitiBank, National Association","page_number":146,"box":{"x":509,"y":348,"width":213,"height":11}},{"id":"6012d40c-5497-41f6-b2b7-e2d0bd62a7b0","block_type":"box","text":"Citigroup Global Markets, Inc.","page_number":146,"box":{"x":509,"y":369,"width":210,"height":11}},{"id":"177939d9-762c-4fa4-b4f8-5ae80476b96b","block_type":"box","text":"Citizens Bank","page_number":146,"box":{"x":509,"y":389,"width":96,"height":9}},{"id":"031d6f3e-cb47-43f6-b66a-7d016a0f4753","block_type":"box","text":"Citizens Business Bank","page_number":146,"box":{"x":509,"y":409,"width":167,"height":9}},{"id":"eb0646aa-38e5-472f-8f80-578e39eac6c7","block_type":"box","text":"CME Shareholder Servicing LLC","page_number":146,"box":{"x":509,"y":429,"width":224,"height":11}},{"id":"ad0456a1-e18b-4a0e-863a-dcb70f4a9343","block_type":"box","text":"CMFG Life Insurance Company","page_number":146,"box":{"x":509,"y":449,"width":217,"height":11}},{"id":"a3b64b5d-cec7-48be-a6d7-ab467458c60d","block_type":"box","text":"Comerica Bank","page_number":146,"box":{"x":509,"y":469,"width":107,"height":9}},{"id":"8f174403-f0ff-4a05-9f5a-7c5f6cb7e255","block_type":"box","text":"Commonwealth Financial Network","page_number":146,"box":{"x":509,"y":489,"width":239,"height":9}},{"id":"351f4a02-5350-4547-89a5-fb1f0e3ff0e1","block_type":"box","text":"Computershare Trust Company","page_number":146,"box":{"x":509,"y":510,"width":220,"height":11}},{"id":"1c31711b-245f-47a3-be8c-8a57c6274927","block_type":"box","text":"Conduent HR Services, LLC","page_number":146,"box":{"x":509,"y":530,"width":196,"height":10}},{"id":"2bccbf89-8c22-4488-8836-931eb99de3d3","block_type":"box","text":"Delaware Life Insurance Company","page_number":146,"box":{"x":510,"y":550,"width":240,"height":11}},{"id":"24e59dbe-6c67-490d-a2a9-2e443398821a","block_type":"box","text":"Delaware Trust Company","page_number":146,"box":{"x":510,"y":570,"width":176,"height":11}},{"id":"d6d918d9-cbb6-426f-a480-2e9d9b4430f2","block_type":"box","text":"Deutsche Bank AG","page_number":146,"box":{"x":510,"y":590,"width":131,"height":9}},{"id":"00cf9fa6-c7a8-44f2-b0f5-749f1d6b252e","block_type":"box","text":"Deutsche Bank Trust Company Americas","page_number":146,"box":{"x":510,"y":610,"width":288,"height":11}},{"id":"87aadb77-b1bf-4e36-9e51-c06433889249","block_type":"box","text":"Digital Retirement Solutions, Inc.","page_number":146,"box":{"x":510,"y":631,"width":232,"height":11}},{"id":"c306406e-d424-4ddc-bf87-f3bb1078b76b","block_type":"box","text":"Dunham & Associates Investment Counsel, Inc.","page_number":146,"box":{"x":510,"y":651,"width":337,"height":10}},{"id":"a40b0aa8-9c3e-4a12-954f-bdb8d1f114ae","block_type":"box","text":"Dynasty Financial Partners LLC","page_number":146,"box":{"x":510,"y":671,"width":218,"height":11}},{"id":"656bbeeb-b8b0-44ba-9485-9ab339ba9680","block_type":"box","text":"Edward D. Jones & Co., L.P.","page_number":146,"box":{"x":510,"y":691,"width":196,"height":10}},{"id":"70a39050-ae73-43af-83e3-c2dd92878868","block_type":"box","text":"Empire Fidelity Investments Life Insurance Company","page_number":146,"box":{"x":510,"y":711,"width":370,"height":11}},{"id":"aeaa12f9-7e8a-4768-8935-05948bbcf4a0","block_type":"box","text":"Empower Annuity Insurance Company of America","page_number":146,"box":{"x":510,"y":731,"width":345,"height":11}},{"id":"8d6241be-9d7e-4e3a-92c7-2a5af3f4e148","block_type":"box","text":"Empower Financial Services, Inc.","page_number":146,"box":{"x":510,"y":752,"width":232,"height":10}},{"id":"e61632fb-ef96-4109-b80a-ddf4029b826f","block_type":"box","text":"Empower Life & Annuity Insurance Company of New","page_number":146,"box":{"x":510,"y":772,"width":365,"height":11}},{"id":"d556d4b4-8d69-4c41-b124-b363aca7a004","block_type":"box","text":"York","page_number":146,"box":{"x":509,"y":787,"width":29,"height":9}},{"id":"64198dde-def1-4919-9333-50ef6ccf9951","block_type":"box","text":"Empower Plan Services, LLC","page_number":146,"box":{"x":510,"y":807,"width":201,"height":11}},{"id":"3d31f954-baca-4e68-9cb7-932252c1bdf5","block_type":"box","text":"Envestnet Asset Management, Inc.","page_number":146,"box":{"x":510,"y":827,"width":246,"height":11}},{"id":"c649b5aa-eb70-42a3-a3ec-2f26664d0ea5","block_type":"box","text":"Equitable Advisors, LLC","page_number":146,"box":{"x":510,"y":847,"width":165,"height":11}},{"id":"e727db2a-5215-47c3-adc6-b49efede7b49","block_type":"box","text":"Equitable Life Insurance Company","page_number":146,"box":{"x":510,"y":867,"width":240,"height":11}},{"id":"621b6cd3-f707-44f3-b0f8-49e820e44881","block_type":"box","text":"E*trade Savings Bank","page_number":146,"box":{"x":510,"y":888,"width":155,"height":11}},{"id":"b1f1153d-317c-49b1-8337-304caf6c5d7f","block_type":"box","text":"Federal Deposit Insurance Corporation","page_number":146,"box":{"x":510,"y":908,"width":271,"height":11}},{"id":"b26d724d-be28-41d2-ab5a-438b1af4d7f8","block_type":"box","text":"II-111","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"af35760e-e888-4278-a298-2178f1bc1bb5","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3f642dd-e221-4844-81a0-161a4346109a","block_type":"box","text":"Fidelity Brokerage Services LLC","page_number":147,"box":{"x":70,"y":45,"width":222,"height":11}},{"id":"9361719b-2a1e-4952-b208-ad6a07b18db2","block_type":"box","text":"Fidelity Investments Institutional Operations Company,","page_number":147,"box":{"x":70,"y":65,"width":384,"height":11}},{"id":"db5e3454-13ad-4403-ad1f-2b33e6ec5e2d","block_type":"box","text":"Inc.","page_number":147,"box":{"x":70,"y":80,"width":23,"height":9}},{"id":"161ada1b-c72d-407d-9860-c1be803ac1bc","block_type":"box","text":"Fidelity Investments Life Insurance Company","page_number":147,"box":{"x":70,"y":100,"width":316,"height":11}},{"id":"52338f5e-00e4-4c31-8783-ea723efb763b","block_type":"box","text":"Fifth Third Securities, Inc.","page_number":147,"box":{"x":70,"y":120,"width":179,"height":11}},{"id":"abce7916-85ab-4a27-baaf-456ace184e55","block_type":"box","text":"First Allied Securities, Inc.","page_number":147,"box":{"x":70,"y":140,"width":182,"height":11}},{"id":"36e0cfa9-9ff3-4e2e-9e4d-95f5177b7bc8","block_type":"box","text":"First Command Financial Planning, Inc.","page_number":147,"box":{"x":70,"y":161,"width":273,"height":11}},{"id":"f89fe929-8d66-47d3-b072-c5f956dd93d7","block_type":"box","text":"First Hawaiian Bank","page_number":147,"box":{"x":70,"y":181,"width":139,"height":9}},{"id":"c12ab67f-b766-41cf-be2a-eb86b7e41d53","block_type":"box","text":"First Republic Bank","page_number":147,"box":{"x":70,"y":201,"width":135,"height":11}},{"id":"f1bde556-e098-41cf-8e3d-30b7ca891983","block_type":"box","text":"First Security Benefit Life Insurance and Annuity","page_number":147,"box":{"x":70,"y":221,"width":339,"height":11}},{"id":"f787029e-c9b6-40f9-b49e-db1eb2aeb1da","block_type":"box","text":"Company of New York","page_number":147,"box":{"x":69,"y":236,"width":153,"height":11}},{"id":"8beb2fd7-8f2c-4fa4-9bb7-424652c92cec","block_type":"box","text":"First Symetra National Life Insurance Company of New","page_number":147,"box":{"x":70,"y":256,"width":385,"height":11}},{"id":"01ef8b6a-61cd-4089-a70d-f701c156e3ae","block_type":"box","text":"York","page_number":147,"box":{"x":68,"y":272,"width":30,"height":8}},{"id":"8b6bb810-bd36-4f0c-bb78-f2053b46f3fb","block_type":"box","text":"First-Citizens Bank & Trust Company","page_number":147,"box":{"x":70,"y":292,"width":257,"height":11}},{"id":"511a1a5f-fe63-4f82-8f18-8623b3cd5509","block_type":"box","text":"FIS Brokerage & Securities Services LLC","page_number":147,"box":{"x":70,"y":312,"width":287,"height":11}},{"id":"58fa0f1d-188e-402c-85be-982b87814eb5","block_type":"box","text":"FNEX Capital, LLC","page_number":147,"box":{"x":70,"y":332,"width":125,"height":11}},{"id":"4123ec69-a6c8-4554-9d94-a17085d3bb84","block_type":"box","text":"Forethought Life Insurance Company","page_number":147,"box":{"x":70,"y":352,"width":259,"height":11}},{"id":"57535866-e7a6-4e57-a799-0f1e0ee40cd8","block_type":"box","text":"FSC Securities Corporation","page_number":147,"box":{"x":70,"y":372,"width":189,"height":11}},{"id":"eed00f7c-42c1-450c-a028-279e5bc047cb","block_type":"box","text":"Genworth Life and Annuity Insurance Company","page_number":147,"box":{"x":69,"y":392,"width":331,"height":12}},{"id":"2e34a71d-5d52-4a35-a8a2-8bf92704748e","block_type":"box","text":"Genworth Life Insurance Company of New York","page_number":147,"box":{"x":69,"y":412,"width":332,"height":12}},{"id":"e99dbdfb-bb6a-4d43-947f-5b4898f8a6bd","block_type":"box","text":"Global Atlantic Distributors, LLC","page_number":147,"box":{"x":69,"y":433,"width":225,"height":10}},{"id":"b36e5044-a9cc-4de5-a7ef-8feee12e44df","block_type":"box","text":"Goldman Sachs & Co.","page_number":147,"box":{"x":69,"y":453,"width":155,"height":9}},{"id":"bdad19e3-bc95-41c8-acb1-2aad11867ef1","block_type":"box","text":"Great Pacific Securities, LLC","page_number":147,"box":{"x":69,"y":473,"width":201,"height":10}},{"id":"8b949d2e-2ea7-419e-9735-1aef9ed4907a","block_type":"box","text":"Guardian Insurance & Annuity Co., Inc.","page_number":147,"box":{"x":69,"y":493,"width":273,"height":11}},{"id":"68544881-4e2a-4381-8598-c8a9bd881fe8","block_type":"box","text":"Hancock Whitney Bank","page_number":147,"box":{"x":70,"y":514,"width":161,"height":10}},{"id":"7ff13399-20f0-4166-9ffd-ddd1e92873b5","block_type":"box","text":"Hartford Funds Management Company","page_number":147,"box":{"x":70,"y":533,"width":274,"height":12}},{"id":"23ef62b3-1735-4574-a5b7-69d38edd7a21","block_type":"box","text":"Hartford Securities Distribution Company, Inc.","page_number":147,"box":{"x":70,"y":554,"width":324,"height":11}},{"id":"a7c62f36-e735-46e2-b903-e4804eb315d8","block_type":"box","text":"Hazeltree Fund Services, Inc.","page_number":147,"box":{"x":70,"y":574,"width":206,"height":10}},{"id":"f4898800-5731-4164-b1a5-99d8451bacbf","block_type":"box","text":"Hightower Securities, Inc.","page_number":147,"box":{"x":70,"y":594,"width":179,"height":11}},{"id":"abac5dbb-d408-4278-bf3c-8f4249b902d3","block_type":"box","text":"Hilltop Securities Inc.","page_number":147,"box":{"x":70,"y":614,"width":149,"height":11}},{"id":"a3fe106a-861c-4c1e-b88b-e686997db204","block_type":"box","text":"HSBC Bank USA, N.A.","page_number":147,"box":{"x":70,"y":634,"width":153,"height":11}},{"id":"e581da20-9d84-4c1a-bf26-d4a5c98a3773","block_type":"box","text":"Huntington Securities, Inc.","page_number":147,"box":{"x":70,"y":655,"width":186,"height":11}},{"id":"5074bffa-1c67-4d5d-b36e-d2e369ffc1ab","block_type":"box","text":"Institutional Cash Distributors, LLC","page_number":147,"box":{"x":70,"y":675,"width":247,"height":10}},{"id":"0527c1e0-c7e7-41a0-993e-8ab30d899945","block_type":"box","text":"Integrity Life Insurance Company","page_number":147,"box":{"x":70,"y":695,"width":230,"height":11}},{"id":"04dd35e5-ec7c-4ecd-bf44-0473eaa40115","block_type":"box","text":"Interactive Brokers, LLC","page_number":147,"box":{"x":70,"y":715,"width":168,"height":10}},{"id":"91550598-eb0f-44e1-a6aa-f276cef3d3d6","block_type":"box","text":"Investment Trust of California","page_number":147,"box":{"x":70,"y":735,"width":208,"height":9}},{"id":"1c5f4be4-5106-4832-8fb2-732416039743","block_type":"box","text":"J.P. Morgan Institutional Investments Inc.","page_number":147,"box":{"x":69,"y":755,"width":292,"height":11}},{"id":"b3df8520-4db5-4051-9a3d-d9d51914bf22","block_type":"box","text":"J.P. Morgan Securities LLC","page_number":147,"box":{"x":69,"y":775,"width":188,"height":12}},{"id":"6b02104a-9a4f-4b48-837a-485a7a3fec6b","block_type":"box","text":"Jefferies LLC","page_number":147,"box":{"x":69,"y":795,"width":91,"height":9}},{"id":"448c1bed-f9d7-4339-a0f7-471ef899a589","block_type":"box","text":"Jefferson National Life Insurance Company","page_number":147,"box":{"x":69,"y":816,"width":305,"height":11}},{"id":"eb82adb1-69e3-4273-8773-8f9c05b67779","block_type":"box","text":"Jefferson National Life Insurance Company of New York","page_number":147,"box":{"x":69,"y":836,"width":394,"height":11}},{"id":"10b437bf-4e33-4ebc-ad64-80c793654fac","block_type":"box","text":"John Hancock Life Insurance Company (U.S.A.)","page_number":147,"box":{"x":69,"y":856,"width":332,"height":11}},{"id":"f39dd578-b5c7-4382-b662-1b0d30e05a0a","block_type":"box","text":"John Hancock Life Insurance Company of New York","page_number":147,"box":{"x":69,"y":876,"width":362,"height":11}},{"id":"cfe72a46-78be-4f31-8112-35f3abc68424","block_type":"box","text":"John Hancock Trust Company","page_number":147,"box":{"x":69,"y":896,"width":209,"height":11}},{"id":"30e2fb72-2937-45a0-86d4-d70df3a62007","block_type":"box","text":"JPMorgan Chase Bank, N.A.","page_number":147,"box":{"x":509,"y":45,"width":197,"height":11}},{"id":"9921681c-763d-441b-8021-3b9b7bf7925c","block_type":"box","text":"Kestra Investment Services, LLC","page_number":147,"box":{"x":510,"y":65,"width":231,"height":10}},{"id":"c42020dc-31ed-4748-b927-84817ea127d0","block_type":"box","text":"Lincoln Financial Advisors Corporation","page_number":147,"box":{"x":510,"y":85,"width":267,"height":11}},{"id":"ec704d94-7f79-4987-ab6b-1cc2425e74c3","block_type":"box","text":"Lincoln Financial Securities Corporation","page_number":147,"box":{"x":510,"y":105,"width":278,"height":11}},{"id":"7b2a5ed5-4a5b-421d-9a6e-1fd51b9430d4","block_type":"box","text":"Lincoln Life & Annuity Company of New York","page_number":147,"box":{"x":510,"y":125,"width":310,"height":11}},{"id":"0966f62e-0d48-477a-bf3b-5a2fc7c0de03","block_type":"box","text":"Lincoln National Life Insurance Company","page_number":147,"box":{"x":510,"y":145,"width":288,"height":12}},{"id":"e4b10cb2-fff7-4e03-9ba0-652c18130e49","block_type":"box","text":"Lincoln Retirement Services LLC","page_number":147,"box":{"x":510,"y":166,"width":229,"height":9}},{"id":"ca66c15b-4c29-4de6-b8cb-a2e9997e0716","block_type":"box","text":"Lombard International Life Assurance Company","page_number":147,"box":{"x":510,"y":186,"width":336,"height":11}},{"id":"8cc97567-a842-4d0d-ba4b-4530f7b9e1d3","block_type":"box","text":"LPL Financial LLC","page_number":147,"box":{"x":510,"y":206,"width":122,"height":9}},{"id":"e81374a6-76f4-4dc0-87a5-05558b88b2bd","block_type":"box","text":"M&T Securities Inc.","page_number":147,"box":{"x":510,"y":226,"width":136,"height":9}},{"id":"a1b42d2a-56cf-4a3e-a8a1-470a22423d1a","block_type":"box","text":"Manufacturers and Traders Trust Company","page_number":147,"box":{"x":510,"y":246,"width":302,"height":11}},{"id":"739a126d-ef8a-4dae-87cc-fae9f70b9f77","block_type":"box","text":"Massachusetts Mutual Life Insurance Company","page_number":147,"box":{"x":510,"y":266,"width":338,"height":12}},{"id":"d4ef53e1-39f9-4e45-a2f3-5b2777b82afb","block_type":"box","text":"Members Life Insurance Company","page_number":147,"box":{"x":510,"y":286,"width":241,"height":12}},{"id":"ee9ce802-3afe-4cb3-bb8c-1d7652283559","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith Incorporated","page_number":147,"box":{"x":510,"y":307,"width":356,"height":11}},{"id":"8896a0c0-bde9-404b-a559-4ba187a60696","block_type":"box","text":"Metavante Corporation","page_number":147,"box":{"x":510,"y":327,"width":160,"height":11}},{"id":"09dc74be-adbb-4922-9506-24b0a965548b","block_type":"box","text":"Metropolitan Life Insurance Company","page_number":147,"box":{"x":510,"y":347,"width":264,"height":11}},{"id":"f477a4f9-fad7-42c9-a4d4-ff328a11c590","block_type":"box","text":"Mid Atlantic Clearing & Settlement Corporation","page_number":147,"box":{"x":510,"y":367,"width":330,"height":11}},{"id":"9a3b444f-ab3d-4cae-baf0-d493c8cdd437","block_type":"box","text":"Midland Life Insurance Company","page_number":147,"box":{"x":510,"y":387,"width":231,"height":11}},{"id":"480436b6-e19c-4b17-b26e-72df1d40d851","block_type":"box","text":"Minnesota Life Insurance Company","page_number":147,"box":{"x":510,"y":407,"width":249,"height":12}},{"id":"1e852914-948f-409f-894b-11c76f530d8f","block_type":"box","text":"Mischler Financial Group","page_number":147,"box":{"x":510,"y":428,"width":173,"height":11}},{"id":"744de91e-c9d6-4208-b135-8aa2b5284f76","block_type":"box","text":"Mizuho Securities USA Inc.","page_number":147,"box":{"x":510,"y":448,"width":189,"height":9}},{"id":"e3070707-7e0e-4aea-b303-1f86218d2d3a","block_type":"box","text":"MML Distributors, LLC","page_number":147,"box":{"x":510,"y":468,"width":157,"height":10}},{"id":"08811815-ddc5-4d23-9652-d91d408ec333","block_type":"box","text":"MML Investors Services, LLC","page_number":147,"box":{"x":510,"y":488,"width":206,"height":11}},{"id":"82ceb699-68b9-4069-8ee5-65bcadf679ce","block_type":"box","text":"Morgan Stanley & Co. LLC","page_number":147,"box":{"x":510,"y":508,"width":185,"height":12}},{"id":"1d67c009-59fe-4a93-9463-cdcf26228e20","block_type":"box","text":"Morgan Stanley Distribution, Inc.","page_number":147,"box":{"x":510,"y":529,"width":230,"height":11}},{"id":"482d5205-ab57-4df4-84b7-90ffa726cea0","block_type":"box","text":"Morgan Stanley Smith Barney LLC","page_number":147,"box":{"x":510,"y":549,"width":240,"height":11}},{"id":"2af2e58f-1a00-40a6-a002-e463ce4e7306","block_type":"box","text":"MUFG Union Bank, National Association","page_number":147,"box":{"x":510,"y":569,"width":282,"height":10}},{"id":"34899f90-47d5-435f-b8a7-7ec262aefdc6","block_type":"box","text":"Nassau Life Insurance Company","page_number":147,"box":{"x":510,"y":589,"width":228,"height":11}},{"id":"5635f36e-2a3f-40a2-9d78-4e829b1893d4","block_type":"box","text":"National Financial Services LLC","page_number":147,"box":{"x":510,"y":609,"width":222,"height":9}},{"id":"636c8716-32a5-406d-9eff-c39dd7d10b19","block_type":"box","text":"National Integrity Life Insurance Company","page_number":147,"box":{"x":510,"y":629,"width":295,"height":11}},{"id":"79e111b5-adaa-412e-a59e-af79f7c1fa18","block_type":"box","text":"National Life Insurance Company","page_number":147,"box":{"x":510,"y":649,"width":233,"height":12}},{"id":"d2419238-7e52-462d-a165-fa866420f13c","block_type":"box","text":"Nationwide Financial Services, Inc.","page_number":147,"box":{"x":510,"y":670,"width":245,"height":10}},{"id":"b3a0d7df-5a44-4624-a2b1-8513c8d65c49","block_type":"box","text":"Nationwide Fund Distributors LLC","page_number":147,"box":{"x":510,"y":690,"width":234,"height":9}},{"id":"7c5f1097-7f8b-4c8c-9bd7-5288dcb4f505","block_type":"box","text":"Nationwide Retirement Solutions","page_number":147,"box":{"x":510,"y":710,"width":231,"height":9}},{"id":"e50d218d-b4ee-42b1-a78f-5d9c6ceb7264","block_type":"box","text":"NCB Federal Savings Bank","page_number":147,"box":{"x":510,"y":730,"width":187,"height":11}},{"id":"6574ef5a-13de-4da7-bdf7-4ac2455928c6","block_type":"box","text":"New England Pension Plan Systems, LLC","page_number":147,"box":{"x":510,"y":750,"width":289,"height":11}},{"id":"a250b62c-f75f-4ac7-9850-b4d2036b475f","block_type":"box","text":"New York Life Insurance and Annuity Corporation","page_number":147,"box":{"x":510,"y":770,"width":343,"height":11}},{"id":"6b25283d-ccf8-4eec-9d9c-17a82d8dba3e","block_type":"box","text":"Newport Retirement Services, Inc.","page_number":147,"box":{"x":510,"y":791,"width":242,"height":10}},{"id":"345652c4-1e93-4e6d-bbbf-87b1fc80b28c","block_type":"box","text":"Northbrook Bank & Trust Company","page_number":147,"box":{"x":510,"y":811,"width":247,"height":11}},{"id":"bf53570d-9ac8-4b7c-baba-0de8d60c8792","block_type":"box","text":"Northern Trust Company","page_number":147,"box":{"x":510,"y":831,"width":173,"height":11}},{"id":"5841eb97-3232-4105-bd99-e27a4205ad18","block_type":"box","text":"Northwestern Mutual Investment Services, LLC","page_number":147,"box":{"x":510,"y":851,"width":335,"height":10}},{"id":"2254489a-450a-4be9-a4ce-8068672c1eea","block_type":"box","text":"Northwestern Mutual Life Insurance Company","page_number":147,"box":{"x":510,"y":871,"width":325,"height":11}},{"id":"9cfc3639-1287-46a6-a08b-7d6a45d2d1a7","block_type":"box","text":"NYLife Distributors LLC","page_number":147,"box":{"x":510,"y":891,"width":162,"height":9}},{"id":"dd7705ca-89f1-4ecb-9a73-72ad4469d782","block_type":"box","text":"Oppenheimer & Co., Inc.","page_number":147,"box":{"x":509,"y":912,"width":173,"height":10}},{"id":"184afe9f-94f6-46d9-9c9f-a29dc065e8aa","block_type":"box","text":"II-112","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b6d2ce1b-a884-4ec4-84e9-c37b339a522e","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2478a702-d6c7-4df8-a87f-66bb95bc3024","block_type":"box","text":"Orion Advisor Services, LLC","page_number":148,"box":{"x":69,"y":45,"width":195,"height":10}},{"id":"f53badf2-eb3a-49e0-a1b8-59c75915faca","block_type":"box","text":"Osaic Wealth, Inc.","page_number":148,"box":{"x":69,"y":65,"width":127,"height":10}},{"id":"7585424c-0e8c-4418-a786-0bd65f95b904","block_type":"box","text":"Pacific Life & Annuity Company","page_number":148,"box":{"x":69,"y":85,"width":219,"height":11}},{"id":"adfbceab-27ea-4c85-a446-6844c4f4c093","block_type":"box","text":"Pacific Life Insurance Company","page_number":148,"box":{"x":69,"y":105,"width":221,"height":11}},{"id":"9ad79047-db2c-4d33-8a13-8a9f089679fc","block_type":"box","text":"Pacific Select Distributors, LLC","page_number":148,"box":{"x":69,"y":125,"width":218,"height":11}},{"id":"bedee120-b878-4230-9e3f-70c84d9734c2","block_type":"box","text":"Park Avenue Securities LLC","page_number":148,"box":{"x":69,"y":146,"width":193,"height":8}},{"id":"b2447259-69d4-4512-bf84-140c1e95ae5a","block_type":"box","text":"Penserra Securities LLC","page_number":148,"box":{"x":69,"y":166,"width":170,"height":9}},{"id":"a54b0f79-3917-4e9b-87e3-08a501c750e9","block_type":"box","text":"Pershing LLC","page_number":148,"box":{"x":69,"y":186,"width":91,"height":11}},{"id":"0ba5d39f-225c-4ae1-aefd-85912621fbb8","block_type":"box","text":"PFPC Inc.","page_number":148,"box":{"x":69,"y":206,"width":65,"height":9}},{"id":"1ca122e3-5d13-449c-b6d2-769f33644c0e","block_type":"box","text":"Piper Jaffray & Co.","page_number":148,"box":{"x":69,"y":226,"width":130,"height":11}},{"id":"631f9575-917e-49eb-b442-3ec322cf9d58","block_type":"box","text":"PNC Bank, National Association","page_number":148,"box":{"x":69,"y":246,"width":225,"height":11}},{"id":"85966615-cc53-44a8-9ab0-3bb05f20f213","block_type":"box","text":"PNC Capital Markets LLC","page_number":148,"box":{"x":69,"y":266,"width":177,"height":11}},{"id":"b18de3f2-b809-463b-8c3d-a932223c1832","block_type":"box","text":"PNC Investments LLC","page_number":148,"box":{"x":69,"y":287,"width":152,"height":9}},{"id":"7ac8e37a-79dc-49c6-a399-0057a031d357","block_type":"box","text":"Principal Bank","page_number":148,"box":{"x":69,"y":307,"width":100,"height":11}},{"id":"74b5216e-94d0-4671-8b8f-4b30a48c69c6","block_type":"box","text":"Principal Life Insurance Company","page_number":148,"box":{"x":69,"y":327,"width":235,"height":11}},{"id":"4c4f0409-c413-45ce-9a74-cf763db4c7f5","block_type":"box","text":"Protective Life and Annuity Insurance Company","page_number":148,"box":{"x":69,"y":347,"width":333,"height":11}},{"id":"48ed9b71-9401-436b-9dc0-1210a2bd7b7f","block_type":"box","text":"Protective Life Insurance Company","page_number":148,"box":{"x":69,"y":367,"width":245,"height":11}},{"id":"b43e4637-4541-4dcf-8f73-db619eed7f03","block_type":"box","text":"Pruco Life Insurance Company","page_number":148,"box":{"x":69,"y":387,"width":215,"height":11}},{"id":"c75d9014-03ea-420d-905a-f4bbcfb313c6","block_type":"box","text":"Pruco Life Insurance Company of New Jersey","page_number":148,"box":{"x":69,"y":407,"width":319,"height":12}},{"id":"d80d7410-4916-4b5d-aa2e-6db48a7d71e6","block_type":"box","text":"Prudential Annuities Distributors, Inc.","page_number":148,"box":{"x":69,"y":428,"width":264,"height":10}},{"id":"869922f1-27d6-4150-8c2e-d48b0edc3419","block_type":"box","text":"Prudential Insurance Company of America","page_number":148,"box":{"x":69,"y":448,"width":296,"height":11}},{"id":"1b1596e5-e304-4ed1-b2c8-41179c0c5c1e","block_type":"box","text":"Raymond James & Associates, Inc.","page_number":148,"box":{"x":70,"y":468,"width":248,"height":11}},{"id":"602cc56b-5ab6-43e8-85b6-b1383ec6bcb3","block_type":"box","text":"Raymond James Financial Services, Inc.","page_number":148,"box":{"x":70,"y":488,"width":283,"height":11}},{"id":"e62a8afb-2c59-4139-8584-1fd55b9312ab","block_type":"box","text":"RBC Capital Markets, LLC","page_number":148,"box":{"x":70,"y":508,"width":181,"height":11}},{"id":"e3680c48-36a5-4034-b591-26835d5ae7ee","block_type":"box","text":"Regions Bank","page_number":148,"box":{"x":70,"y":529,"width":96,"height":11}},{"id":"b6a5af88-5f67-4b79-a6ac-499f823a6072","block_type":"box","text":"Reliance Trust Company","page_number":148,"box":{"x":70,"y":549,"width":170,"height":11}},{"id":"83d89ba2-b8f4-43de-a17a-875423513504","block_type":"box","text":"Reliastar Life Insurance Company","page_number":148,"box":{"x":70,"y":569,"width":237,"height":11}},{"id":"08d84c3e-a8d0-429d-803b-8cf8e562ba94","block_type":"box","text":"Reliastar Life Insurance Company of New York","page_number":148,"box":{"x":70,"y":589,"width":325,"height":11}},{"id":"7d3b70bb-0c8d-4ff8-aa5c-b6fcc92e290e","block_type":"box","text":"RiverSource Distributors, Inc.","page_number":148,"box":{"x":70,"y":609,"width":205,"height":11}},{"id":"d9a194d8-8fd5-42c9-b963-6e079cef815b","block_type":"box","text":"RiverSource Life Insurance Co. of New York","page_number":148,"box":{"x":70,"y":629,"width":306,"height":9}},{"id":"5e3241bd-a8ff-4540-8897-37315f709f24","block_type":"box","text":"RiverSource Life Insurance Company","page_number":148,"box":{"x":70,"y":649,"width":259,"height":12}},{"id":"8eebdaf2-febb-4740-9316-e1e53592e21a","block_type":"box","text":"SagePoint Financial, Inc.","page_number":148,"box":{"x":69,"y":670,"width":173,"height":11}},{"id":"fbd6f047-71bb-40d9-b618-2b48f3eabed4","block_type":"box","text":"Sammons Retirement Solutions, Inc.","page_number":148,"box":{"x":69,"y":690,"width":260,"height":10}},{"id":"478ca2cb-7cee-4fdf-af32-bd09fdde49fb","block_type":"box","text":"Sanctuary Wealth Group, LLC","page_number":148,"box":{"x":69,"y":710,"width":208,"height":11}},{"id":"9b42d314-fa77-4437-bf55-7fe201795a4e","block_type":"box","text":"Santander Bank, N.A.","page_number":148,"box":{"x":69,"y":730,"width":151,"height":10}},{"id":"0e3ef16f-66ba-4933-999c-958670a31b36","block_type":"box","text":"Saturna Trust Company","page_number":148,"box":{"x":69,"y":750,"width":167,"height":11}},{"id":"7bdfae10-4fae-455b-975a-ec51cf61ff52","block_type":"box","text":"Securities America, Inc.","page_number":148,"box":{"x":69,"y":770,"width":166,"height":11}},{"id":"bb7fde2f-a086-4744-b26a-b25bf811108b","block_type":"box","text":"Securities Finance Trust Company","page_number":148,"box":{"x":69,"y":791,"width":241,"height":11}},{"id":"b3bdeb2c-3833-44dd-bcf1-31cfb8c48491","block_type":"box","text":"Security Benefit Life Insurance Company","page_number":148,"box":{"x":69,"y":811,"width":287,"height":11}},{"id":"fec693e5-6e59-4678-a034-2addf0c7c1e6","block_type":"box","text":"Security Financial Resources, Inc.","page_number":148,"box":{"x":69,"y":831,"width":238,"height":11}},{"id":"fec064ef-1076-4eae-9c52-89199d2a92fe","block_type":"box","text":"Security Life of Denver Insurance Company","page_number":148,"box":{"x":69,"y":851,"width":305,"height":11}},{"id":"f6bb7f08-90fd-458d-aaad-5271608c5cd2","block_type":"box","text":"SEI Private Trust Company","page_number":148,"box":{"x":69,"y":871,"width":187,"height":11}},{"id":"78921b35-ee87-49dc-a7aa-2c289f09bc07","block_type":"box","text":"SG Americas Securities, LLC","page_number":148,"box":{"x":69,"y":891,"width":202,"height":11}},{"id":"3b0706d9-4065-4d29-8d35-1bc695e5ff1d","block_type":"box","text":"Silicon Valley Bank","page_number":148,"box":{"x":69,"y":912,"width":132,"height":11}},{"id":"e2fa88d8-2c95-494b-9425-6fb03ac2f9d8","block_type":"box","text":"Standard Insurance Company","page_number":148,"box":{"x":509,"y":45,"width":209,"height":11}},{"id":"0c77ae59-3b4f-40a2-abcd-f1b190db641d","block_type":"box","text":"State Farm Life and Accident Assurance Company","page_number":148,"box":{"x":509,"y":65,"width":355,"height":11}},{"id":"5c25e42f-3421-45f2-8238-26a81af3dcc1","block_type":"box","text":"State Farm Life Insurance Company","page_number":148,"box":{"x":509,"y":85,"width":254,"height":11}},{"id":"943d192a-d65d-4534-81cd-62bc5a250a0b","block_type":"box","text":"State Farm VP Management Corp.","page_number":148,"box":{"x":509,"y":105,"width":240,"height":11}},{"id":"6612b96c-d4be-4504-a3bf-3e9fc0168cf1","block_type":"box","text":"State Street Bank and Trust Company","page_number":148,"box":{"x":509,"y":125,"width":269,"height":11}},{"id":"795e56db-b78f-437b-81de-0d3a334e54e1","block_type":"box","text":"State Street Global Markets, LLC","page_number":148,"box":{"x":509,"y":146,"width":234,"height":10}},{"id":"518ce275-b889-4197-a799-6141d361579c","block_type":"box","text":"Stern Brothers & Co.","page_number":148,"box":{"x":509,"y":166,"width":147,"height":9}},{"id":"d3f3402c-4f8b-43e8-abb7-ac95eb86f5f2","block_type":"box","text":"Stifel, Nicolaus & Company, Incorporated","page_number":148,"box":{"x":509,"y":186,"width":291,"height":11}},{"id":"6ea4d2f3-c6fb-4685-b983-23b2cd6ced96","block_type":"box","text":"Summit Brokerage Services, Inc.","page_number":148,"box":{"x":509,"y":206,"width":232,"height":11}},{"id":"5fc43b90-b647-4885-9642-a44076c42dce","block_type":"box","text":"SVB Asset Management","page_number":148,"box":{"x":509,"y":226,"width":171,"height":11}},{"id":"44df8a1d-f939-421b-a108-a3d5197ecc72","block_type":"box","text":"Symetra Life Insurance Company","page_number":148,"box":{"x":509,"y":246,"width":234,"height":11}},{"id":"deda5c33-2671-4317-a932-5e46f5622c83","block_type":"box","text":"Syntal Capital Partners, LLC","page_number":148,"box":{"x":509,"y":266,"width":199,"height":12}},{"id":"0949ae7f-e5ba-4387-9435-781e655615b0","block_type":"box","text":"T. Rowe Price Retirement Plan Services, Inc.","page_number":148,"box":{"x":509,"y":287,"width":314,"height":10}},{"id":"d24fcb56-bbf4-41b0-aa96-ad288a1bbe50","block_type":"box","text":"Talcott Resolution Life and Annuity Insurance Company","page_number":148,"box":{"x":509,"y":307,"width":390,"height":11}},{"id":"18cc2057-5e39-476b-b03c-4cdac6f4675c","block_type":"box","text":"Talcott Resolution Life Insurance Company","page_number":148,"box":{"x":509,"y":327,"width":302,"height":11}},{"id":"cb12644d-6a39-46b5-993b-056be0426cc2","block_type":"box","text":"TD Ameritrade Clearing, Inc.","page_number":148,"box":{"x":509,"y":347,"width":197,"height":11}},{"id":"2518a704-5692-4a8a-b9b0-89561fa91363","block_type":"box","text":"TD Ameritrade, Inc.","page_number":148,"box":{"x":509,"y":367,"width":135,"height":11}},{"id":"136a3ea1-18d5-4a81-bd69-464cbedfdc2c","block_type":"box","text":"TD Prime Services (US) LLC","page_number":148,"box":{"x":509,"y":387,"width":196,"height":11}},{"id":"e8554dcb-86f0-409b-a3e8-96b4b908df18","block_type":"box","text":"Teachers Insurance and Annuity Association of America","page_number":148,"box":{"x":509,"y":407,"width":392,"height":12}},{"id":"f1ee2a57-4696-4dd6-91d5-8ce6080f3b19","block_type":"box","text":"Tigress Financial Partners, LLC","page_number":148,"box":{"x":509,"y":428,"width":220,"height":11}},{"id":"fd5e35ad-902b-40bd-9999-34ad553f3896","block_type":"box","text":"Transamerica Financial Life Insurance Company","page_number":148,"box":{"x":509,"y":448,"width":338,"height":11}},{"id":"9dc5c129-c714-4fae-bff0-245684161215","block_type":"box","text":"Transamerica Life Insurance Company","page_number":148,"box":{"x":509,"y":468,"width":271,"height":11}},{"id":"6dc3327c-e2ce-4041-8c08-92dad72b1689","block_type":"box","text":"Treasury Brokerage","page_number":148,"box":{"x":509,"y":488,"width":137,"height":11}},{"id":"0d97db56-45c2-49e7-b8a0-1fed3eb5aa37","block_type":"box","text":"Triad Advisors, LLC","page_number":148,"box":{"x":509,"y":508,"width":134,"height":11}},{"id":"a0cadc86-cc72-4f53-b0f4-e97e75b4edc2","block_type":"box","text":"Truist Bank","page_number":148,"box":{"x":509,"y":529,"width":80,"height":8}},{"id":"9579377f-9480-4683-a1fd-514cdb467821","block_type":"box","text":"U.S. Bancorp Investments, Inc.","page_number":148,"box":{"x":510,"y":549,"width":218,"height":11}},{"id":"75f3b955-d56f-4e13-a092-db320e703c56","block_type":"box","text":"U.S. Bank, National Association","page_number":148,"box":{"x":510,"y":569,"width":224,"height":10}},{"id":"186c63c0-b688-484b-9251-4f4be986d1c4","block_type":"box","text":"UBATCO & Co.","page_number":148,"box":{"x":510,"y":589,"width":99,"height":9}},{"id":"7bdc497c-cd90-4c1e-ba86-5127c50ddc7a","block_type":"box","text":"UBS Financial Services, Inc.","page_number":148,"box":{"x":510,"y":609,"width":197,"height":11}},{"id":"e2573cb8-68c5-407c-b765-c4c08dca759f","block_type":"box","text":"UBS Securities LLC","page_number":148,"box":{"x":510,"y":629,"width":136,"height":9}},{"id":"cd5ac864-031e-4f95-8a7a-4f652ea5f8ee","block_type":"box","text":"Ultimus Fund Solutions, LLC","page_number":148,"box":{"x":510,"y":649,"width":199,"height":11}},{"id":"b40b9850-9d5d-434f-a4fb-222d330146ec","block_type":"box","text":"UMB Bank, National Association","page_number":148,"box":{"x":510,"y":670,"width":228,"height":10}},{"id":"a067fb3c-b4ed-440a-90bd-d57c12ddcfbe","block_type":"box","text":"United States Life Insurance Company in the City of","page_number":148,"box":{"x":510,"y":690,"width":367,"height":11}},{"id":"d4da0d8d-eb5a-47e4-a056-d1dbd0fa657d","block_type":"box","text":"New York","page_number":148,"box":{"x":510,"y":705,"width":63,"height":9}},{"id":"852d20cd-e7c0-4039-b1f9-1120988d4c40","block_type":"box","text":"VALIC Retirement Services Company","page_number":148,"box":{"x":509,"y":725,"width":260,"height":11}},{"id":"7f843a91-9e31-44dd-aff1-bba968226525","block_type":"box","text":"Vanguard Group, Inc.","page_number":148,"box":{"x":509,"y":745,"width":147,"height":11}},{"id":"16255379-c6f7-454b-9025-6766ae737657","block_type":"box","text":"Vanguard Marketing Corporation","page_number":148,"box":{"x":509,"y":765,"width":227,"height":12}},{"id":"c8f1e0fb-ffff-4c55-8b36-6efd21e8911f","block_type":"box","text":"Voya Financial Advisors, Inc.","page_number":148,"box":{"x":509,"y":786,"width":198,"height":11}},{"id":"21730e4e-dd91-4905-bac0-24d0859b4a4b","block_type":"box","text":"Voya Financial Partners, LLC","page_number":148,"box":{"x":509,"y":806,"width":201,"height":11}},{"id":"3feba140-d838-42cf-acfe-0b2eab8b414e","block_type":"box","text":"Voya Institutional Plan Services, LLC","page_number":148,"box":{"x":509,"y":826,"width":259,"height":11}},{"id":"74e65e95-4f9b-42a9-ae84-29d9550a37e5","block_type":"box","text":"Voya Insurance and Annuity Company","page_number":148,"box":{"x":509,"y":846,"width":265,"height":11}},{"id":"acf9998f-de25-4b4a-88f7-10572f4700a3","block_type":"box","text":"Voya Investments Distributor, LLC","page_number":148,"box":{"x":509,"y":866,"width":238,"height":11}},{"id":"712855a4-58b8-4bd8-b934-cf01733ae4d6","block_type":"box","text":"Voya Retirement Insurance and Annuity Company","page_number":148,"box":{"x":509,"y":886,"width":348,"height":11}},{"id":"921dcb00-02b8-46b8-ba6b-8922e7ab6360","block_type":"box","text":"Waddell & Reed, Inc.","page_number":148,"box":{"x":509,"y":906,"width":147,"height":11}},{"id":"6deec537-5d80-4216-a766-bf57e48592c0","block_type":"box","text":"II-113","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"db1b066e-31e5-4ee7-8551-71d83f17448d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8149bf23-b892-4a22-8e81-1e4a3fead622","block_type":"box","text":"Wells Fargo Advisors, LLC","page_number":149,"box":{"x":68,"y":45,"width":183,"height":11}},{"id":"fa459a61-dc30-42b0-89c1-ce1c8acec6e5","block_type":"box","text":"Wells Fargo Advisors Financial Network, LLC","page_number":149,"box":{"x":68,"y":65,"width":313,"height":11}},{"id":"b487b755-4c46-4045-9abb-7426d3ce83a8","block_type":"box","text":"Wells Fargo Bank, N.A.","page_number":149,"box":{"x":68,"y":85,"width":161,"height":11}},{"id":"d34259ee-6770-4789-93f3-1f58207aca56","block_type":"box","text":"Wells Fargo Clearing Services, LLC","page_number":149,"box":{"x":68,"y":105,"width":247,"height":11}},{"id":"da44e807-6ed8-443d-be3d-95a3d479432d","block_type":"box","text":"Wells Fargo Investments, LLC","page_number":149,"box":{"x":68,"y":125,"width":210,"height":12}},{"id":"7aaf3350-e039-470c-b8e3-5c63dcf843ae","block_type":"box","text":"Wells Fargo Securities, LLC","page_number":149,"box":{"x":509,"y":45,"width":193,"height":11}},{"id":"8d55d5ed-e117-449e-aa16-b707c089f9c3","block_type":"box","text":"Wilmington Trust, National Association","page_number":149,"box":{"x":509,"y":65,"width":273,"height":11}},{"id":"98ac576c-f346-4532-a700-07952d6215dd","block_type":"box","text":"Woodbury Financial Services, Inc.","page_number":149,"box":{"x":509,"y":85,"width":238,"height":11}},{"id":"91ddbe60-73af-4c4b-bafa-9d4410da468a","block_type":"box","text":"ZB, National Association","page_number":149,"box":{"x":509,"y":105,"width":173,"height":11}},{"id":"b565d6da-a4ff-4970-b61c-341ec6932898","block_type":"box","text":"E. Sponsorship and Other Incentive Payments and Services","page_number":149,"box":{"x":102,"y":164,"width":423,"height":11}},{"id":"80eabd68-7cb0-45da-9087-4b46d1f7ad4f","block_type":"box","text":"In addition to the Additional Payments described above, BlackRock may contribute to various other incentive","page_number":149,"box":{"x":102,"y":187,"width":769,"height":11}},{"id":"fa056d3f-54b2-4788-94f6-6b6bc0141377","block_type":"box","text":"arrangements to promote the sale of shares, including hosting proprietary and financially sponsoring Service","page_number":149,"box":{"x":69,"y":202,"width":776,"height":11}},{"id":"ab901ff9-7d00-4d9d-9c38-6e3eb349e8f3","block_type":"box","text":"Organizations’ training and educational seminars, conferences, meetings or events. BlackRock may also pay for the","page_number":149,"box":{"x":69,"y":217,"width":824,"height":12}},{"id":"d3f452f1-86a2-4329-aa97-2fca3715032e","block_type":"box","text":"travel, meal, lodging and other expenses of Service Organizations and their salespersons or other personnel in","page_number":149,"box":{"x":68,"y":232,"width":791,"height":12}},{"id":"0d000092-137e-418b-a6cd-a73bdc8ce76b","block_type":"box","text":"connection with educational and sales promotional programs. This compensation is not included in, and is made in","page_number":149,"box":{"x":69,"y":248,"width":820,"height":11}},{"id":"4af63ee9-ceab-43a8-8a97-cee86981f49c","block_type":"box","text":"addition to, the Additional Payments described above. These payments may be made directly to the Service","page_number":149,"box":{"x":69,"y":263,"width":767,"height":11}},{"id":"57ca1865-92cb-4238-9f42-8b3806ce7e7d","block_type":"box","text":"Organizations or their affiliates, or to a third party vendor, and may vary depending upon the nature of the event or","page_number":149,"box":{"x":69,"y":278,"width":817,"height":11}},{"id":"7a87267a-0683-40a4-92fe-b33f736560d4","block_type":"box","text":"the relationship and are subject to applicable laws and regulations, including the rules of applicable self-regulatory","page_number":149,"box":{"x":68,"y":293,"width":819,"height":11}},{"id":"a5798204-36fc-48bc-bc36-43eea0d772f0","block_type":"box","text":"organizations, such as FINRA. BlackRock may pay Service Organizations additional types of incentive compensation","page_number":149,"box":{"x":69,"y":308,"width":823,"height":11}},{"id":"446c4a8f-bb8a-41eb-8471-e709f671c257","block_type":"box","text":"in the future to the extent not prohibited by applicable laws or regulations.","page_number":149,"box":{"x":70,"y":323,"width":526,"height":11}},{"id":"01da5fca-09c2-4aea-b3b6-70b9666dad06","block_type":"box","text":"Separately, BlackRock has developed proprietary tools, calculators and related interactive or digital content that","page_number":149,"box":{"x":102,"y":346,"width":797,"height":11}},{"id":"e9a2a98b-b98e-4574-8380-42593eb33fa5","block_type":"box","text":"is made available through the www.BlackRock.com website at no additional cost to Service Organizations. BlackRock","page_number":149,"box":{"x":70,"y":361,"width":833,"height":11}},{"id":"cbd23328-7e1b-40a3-9216-45301e28402c","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":149,"box":{"x":69,"y":376,"width":817,"height":11}},{"id":"0710f122-f35a-4c15-b6fd-325b4bc376db","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":149,"box":{"x":69,"y":391,"width":815,"height":11}},{"id":"26dcd898-a5be-455f-99c6-a5f81987b8cc","block_type":"box","text":"traded products.","page_number":149,"box":{"x":68,"y":406,"width":116,"height":11}},{"id":"1bb6a527-ea16-4032-886f-08606d476f32","block_type":"box","text":"F. Conflicts","page_number":149,"box":{"x":102,"y":429,"width":78,"height":9}},{"id":"93a84484-132d-49cc-a2aa-26c6ca3ae46c","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":149,"box":{"x":101,"y":452,"width":710,"height":11}},{"id":"34374aae-12a3-4ce2-928d-40e9d8669249","block_type":"box","text":"arrangements may be an important factor in the Service Organization’s willingness to support the sale of a Fund","page_number":149,"box":{"x":69,"y":467,"width":803,"height":11}},{"id":"6addcb6a-1a2b-4a3a-a22c-f76dd6bdc93b","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":149,"box":{"x":69,"y":482,"width":788,"height":11}},{"id":"07c5fa56-367b-4840-8a9f-b8ca3c16cb4f","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":149,"box":{"x":68,"y":497,"width":819,"height":11}},{"id":"f4092925-b21f-45e8-878d-1b18d74a5ef1","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":149,"box":{"x":68,"y":512,"width":473,"height":11}},{"id":"d8ca944e-f465-44f8-81a3-33478dec2a3a","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":149,"box":{"x":102,"y":535,"width":793,"height":11}},{"id":"98695bc4-fa3f-4e0c-9f56-ccbd55ae5568","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":149,"box":{"x":69,"y":550,"width":835,"height":11}},{"id":"ae8df2c0-5de6-4136-8f4c-073a0a131988","block_type":"box","text":"the extent Service Organizations sell more shares of a Fund or retain shares of a Fund in their Customers’ accounts,","page_number":149,"box":{"x":68,"y":565,"width":833,"height":11}},{"id":"c5869912-c5b7-4d8e-8ab1-5064935bbf84","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":149,"box":{"x":70,"y":580,"width":830,"height":11}},{"id":"33aa6826-6817-4b9e-83db-e66ba7e851db","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":149,"box":{"x":102,"y":603,"width":774,"height":11}},{"id":"b7425a3c-2994-4d53-97c4-10cdb844d45d","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":149,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"401e0000-f251-49a7-bf75-9db9b9eccaea","block_type":"box","text":"purchase or redemption of Fund shares or for account-related services which are in addition to the sales and other","page_number":149,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"84d2a727-acce-4140-a2ca-bc37f7997435","block_type":"box","text":"charges described in the Fund’s Prospectus and this SAI. Such charges may vary among Service Organizations but in","page_number":149,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"3e652328-be35-4a5f-abc2-ccba8fbeaf56","block_type":"box","text":"all cases will be retained by the Service Organization and will not be remitted to a Fund or BlackRock.","page_number":149,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"900d16fc-58d4-462a-8857-4040518ad122","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":149,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"8c9f4f84-55e2-43b7-9810-cd7d8be644f8","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":149,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"ea50a4cc-9d25-43f6-a58c-2236d5183d46","block_type":"box","text":"appropriate.","page_number":149,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"4beaa5b2-e023-42f6-b6ff-7c31bcb2967b","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":149,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"b342f90a-116c-40fe-b22c-707da6d4f22d","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":149,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"26e8160d-8c4b-49ae-a7b9-6b87dc4e2784","block_type":"box","text":"described above.","page_number":149,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"146ca5bc-a85b-474d-a966-3898821e93a9","block_type":"box","text":"REDEMPTION OF SHARES","page_number":149,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"dccd28bf-056d-4bd4-a75a-5b706d55f0dd","block_type":"box","text":"Shares normally will be redeemed for cash upon receipt of a request in proper form, although each Fund retains","page_number":149,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"4bb72e60-42eb-425c-84f6-54c5bcf5fe14","block_type":"box","text":"the right to redeem some or all of its shares in kind (valued in the same way as they would be valued for purposes of","page_number":149,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"4638ec6e-4113-49a8-abb7-72c14cdd4456","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s portfolio holdings at the","page_number":149,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"8d4d3d90-5513-4325-83fc-c3860dbb47b7","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":149,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"df2b47c3-ae0b-4b74-8d9d-d9e54c0406df","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":149,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"3f97a712-81a9-4634-97c7-7986c0ab8a34","block_type":"box","text":"able to accept securities in kind, and may also be used in stressed market conditions. If this occurs, the redeeming","page_number":149,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"3088fcb8-f1cc-47ef-b4a2-e573b92a2118","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":149,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"00f0f5b7-c918-41da-8f0a-bb729f89ed02","block_type":"box","text":"Fund has elected, however, to be governed by Rule 18f-1 under the Investment Company Act so that the Fund is","page_number":149,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"1761f2c4-10de-4a4c-8c75-179b63cf0160","block_type":"box","text":"II-114","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6c28c7e4-fe55-4438-a793-9cc30e672a04","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":149,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"40e36a41-a45b-4d9f-bf58-fd12a74a8d3f","block_type":"box","text":"obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period","page_number":150,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"a52307e3-09c1-4f25-961b-eb2fb928b8bb","block_type":"box","text":"for any shareholder of the Fund.","page_number":150,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"07adb21a-425e-4be5-a0d9-17549b8eb805","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":150,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"987b9b69-4782-4f3e-b2c8-a14e473975ef","block_type":"box","text":"redemption. The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":150,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"77a265ce-2527-4bc1-98e3-85f56883db04","block_type":"box","text":"time of purchase, depending in part on the market value of the securities held by the Fund at such time. Except for","page_number":150,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"47815665-ea38-451e-8ec8-98a1bf5560c1","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":150,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"3010e5e5-e77d-4599-9036-623f8986836f","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":150,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"44144efb-e91b-4378-9828-3897bfc8327f","block_type":"box","text":"redemption.","page_number":150,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"dd54b642-b926-4a1a-9aff-8fb1bf1075a7","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":150,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"d99dbf0c-b7f5-459f-9c36-1c3f1f77d1bb","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":150,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"f9dcc030-e34e-47ce-8f5e-e7ce5b387a29","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":150,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"bd341e57-3a32-41a5-9f1e-88d99a60de30","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":150,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"6dd0d00b-d03f-485a-8f0b-2802525e049d","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":150,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"e4dce059-35ca-48b4-a55d-b3de54630513","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":150,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"08276437-d1be-4a41-ac10-dba691b9a993","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":150,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"fd79cb87-4cad-40ac-9091-95cc3f85cbef","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":150,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"9f9f6b26-2e7c-42c0-aa2d-0775b8fbb795","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":150,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"e3d62f3c-0019-46b2-ae7a-29a8c83106d5","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":150,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"c3c898f4-8b3c-46e7-9c83-466aeed3a1bb","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":150,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"25b4ccf6-b28d-476f-b7a3-0496ad561e2b","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":150,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"aa625ef6-b133-42d6-a692-f9eabe3e2f11","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":150,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"673f82cd-65cc-437b-aa45-3d12a91250b5","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":150,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"73e194ee-ca54-4a44-b7aa-83e39c33e51b","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":150,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"e51f68eb-0220-428a-8869-bb65e5f1be74","block_type":"box","text":"so redeemed shall have no further right with respect thereto other than to receive payment of the redemption price.","page_number":150,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"0a6d7297-80e7-4d5e-a22d-4ded6671a8c7","block_type":"box","text":"Redemption","page_number":150,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"98a97165-c842-4243-b209-3def8f7fd48b","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":150,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"5801b339-cad9-4798-8a0d-3f64bca01f48","block_type":"box","text":"Redeem by Telephone:","page_number":150,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"f36d8610-2e99-4d27-b145-a47211f0e051","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":150,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"3f64b536-e5eb-4d79-87fe-1030121a1562","block_type":"box","text":"telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":150,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"573efb36-d2d1-4cc5-80ab-1bcca1d33d77","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":150,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"2da9d12f-e713-46a1-9615-512c338f5888","block_type":"box","text":"Certain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":150,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"9b6fdd84-79bf-4c55-bd43-8e07406f3b68","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":150,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"9e423d12-9fd5-4de1-8b47-4edea28dc34f","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":150,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"c999ceb8-4b6d-4dc7-92ef-51ca1c47a3de","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":150,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"833b89bd-8545-405c-9220-15eebc0f304b","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":150,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"4a6b0a61-1aaa-4097-8f89-7ddc7d68cf76","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":150,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"d06c4cbc-0217-4155-883f-73dfee77c899","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":150,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"2a1ce822-b13d-4811-ac92-5574569cdf57","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":150,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"10ff26b2-6a57-439d-a829-51272cb02ef6","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":150,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"8f07a256-ac54-4a01-80e3-0af8b82567bf","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":150,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"59ab9bb1-f78a-4614-9a42-7bf9c59762e3","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":150,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"b5cbd9ed-2c2d-44c5-84bb-cb95ce1705a4","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":150,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"c563ed2a-073b-4b80-aad1-c1df2e4c6a26","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":150,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"1f336a3c-b644-405d-bbde-2e4067fe68b6","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":150,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"d49a91dd-3ec3-4293-82ea-e9d88760fb06","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":150,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"baa0fd38-4c3d-4bc6-905c-3e2614beb848","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":150,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"3bfb95d8-be43-48bf-8e89-c91b59b05c9b","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":150,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"196fbf6f-0d60-4c2b-ae0e-367a541a7f00","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":150,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"1d13375c-472a-4b1b-aa33-b53f2dc1a133","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":150,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"1ce0f558-a9ae-42b6-846c-8da6ffe9bf50","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":150,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"d9565991-b41c-4ad4-85b1-7264255a1e0f","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share certificates have been issued","page_number":150,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"c473dbf8-f545-4b89-ad28-3188decbdd9c","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":150,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"3e19f50d-e914-4914-ab6d-4b63bc7d4d34","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":150,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"d78078f8-919c-4a45-8f7b-b27a4fe879cf","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":150,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"aa9363cb-5320-4310-8751-bf6f5428aad2","block_type":"box","text":"II-115","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b822c736-69d2-4d01-8678-c1cb8241ff8d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7d91890-815b-40ce-b2fb-4975244918ff","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":151,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"a85d281c-4f86-45bc-b484-42f7c4150e98","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":151,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"575c0b88-2d9d-41e3-8244-3d5494d87824","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":151,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"8a2e6692-372e-4e02-8044-6d4e186e16f9","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":151,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"c97a9db5-fcdc-47ea-909d-be2d706b6f8f","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":151,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"e6d7af91-fc0c-4f73-9667-84fba43f319b","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":151,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"5b4f3096-d4e0-482b-a30b-949ded7478f5","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":151,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"cbd11af4-9637-4aec-ae36-90c8aa8ca23a","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":151,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"7bf8917c-be94-4bc1-8bf1-46d91f654fcb","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":151,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"c8e88ebd-b66e-4727-8309-3cd553e154c4","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":151,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"e91a2bf7-8e99-4e85-8eda-a6f6022befca","block_type":"box","text":"Redeem by VRU:","page_number":151,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"b1fddcee-9de8-4770-a7e0-ccbf8140ac08","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":151,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"e13a2965-8c31-441a-b25d-eb1d59f46e93","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":151,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"0c091287-9e31-46ea-b346-5eb0bd514323","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":151,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"2910ab4c-dd2a-4368-a468-4bba0545ae1e","block_type":"box","text":"Redeem by Internet:","page_number":151,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"e33ddeb9-3877-4a8a-b8cd-4d1d33e5cd4c","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":151,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"5075501d-c33b-40bc-b519-b19e45152833","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":151,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"abbf2202-3efb-4723-b5cd-be5353185ac8","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":151,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"5576b6ac-4660-4784-a5e3-ffea5d12df14","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to certain","page_number":151,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"1f69175c-5bc6-478d-a497-2e26d05364fe","block_type":"box","text":"institutional investors.","page_number":151,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"4eee2f01-a39a-4599-b929-cc78c79b0d4e","block_type":"box","text":"Redeem in Writing:","page_number":151,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"0a918f28-90ff-4bec-acec-8173f4fac1fe","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":151,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"b298b8b5-1441-4519-bbb0-7bb21e5e0713","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":151,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"a4d522ec-a59f-49a8-95ea-30c1eb5a97c7","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":151,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"dc4f9c47-bdc0-46f7-b6cd-6781994b118e","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":151,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"0df4d6f1-b14f-478a-b25e-8f8a11fe9c01","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":151,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"d8e2b25f-de74-45aa-b97d-c0cba0986485","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":151,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"d85fbe46-8085-48e9-b098-6c2b23383f4e","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":151,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"4d20395b-e52b-421e-81f2-a39c297ac7f5","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":151,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"4ca300a1-a487-4dac-8423-5b3a133d5c13","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":151,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"da82eb3c-4eb8-4fda-aa00-a2fa6a521426","block_type":"box","text":"or wire to the bank account of record.","page_number":151,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"a967c2aa-f629-4494-96a8-6d2ad20ea72e","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":151,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"02148ca9-ba5a-4e29-8f46-2dc7bca806dd","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":151,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"f7425fae-2476-46e9-be8d-b3490b7d4dc8","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":151,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"4a3616fe-771d-4241-a7eb-b22684804d2a","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":151,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"6832e8f2-5213-4d3a-8f32-c97ee49d211b","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":151,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"bbffb7bb-aec0-40c7-b951-6007fc1b8e04","block_type":"box","text":"(that is, cash, Federal funds or certified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":151,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"d861aaba-2131-4338-9de2-26f595434fd6","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":151,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"6d1a731a-9036-4af9-8cbb-60ba79f05150","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":151,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"606304f6-e762-4125-a349-6bc0e5fb1a90","block_type":"box","text":"redeemed by the Fund.","page_number":151,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"b3712fb2-3fdb-4507-b914-4646e301de39","block_type":"box","text":"Note on Low Balance Accounts.","page_number":151,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"173f4166-3b4c-4664-874a-6673460b4f17","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":151,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"b4f1df5d-c67c-415b-afab-d6386dd6bd26","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":151,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"6749305b-c7fd-485e-8186-7a4e4c8103c4","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":151,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"3f37218b-3b49-47c7-b4ca-4d8d17cc2c0f","block_type":"box","text":"for any reason, including market fluctuation.","page_number":151,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"058ce502-77ba-45a7-af79-b4d9bee0a10d","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":151,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"95c0e0f5-3ca3-4713-9e42-63bd0158d445","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":151,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"4822bbf2-c872-4b80-8ef4-adb630898c49","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":151,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"3be76655-40c5-4b4d-aed8-0ebbbeb2d903","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":151,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"19fa4a12-40b1-4317-8b2d-bc2acb856665","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":151,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"acdd6afd-40d3-4b12-a226-b65281978c25","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":151,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"764ac6c4-ffad-428e-a15d-0f56afc00495","block_type":"box","text":"Redemptions in Kind:","page_number":151,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"203996ea-96d3-4eda-ac0d-100246c48644","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":151,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"60f8ae02-41dd-4cbd-909f-31307c16b4a6","block_type":"box","text":"whole or in part by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":151,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"7619089b-c6ba-46fd-a489-a49285b2413a","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":151,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"8c35dc85-114e-4945-b0aa-0e9c4203c7fe","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":151,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"6e8748eb-503b-4d70-959c-43e3f8fe5d74","block_type":"box","text":"normally be paid in cash but may be paid wholly or partly by a distribution in kind of securities.","page_number":151,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"1868e8ad-6dc7-407b-9b0b-04b96ff8a141","block_type":"box","text":"II-116","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"97f11e54-207f-4dd1-afa4-01002a3c476d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a1e4d571-f589-483f-a2cd-c2dfb1a86c7f","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":152,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"375a5c66-81e8-432b-8174-a5b274012e00","block_type":"box","text":"rata representation of the Fund’s portfolio or a non-pro-rata representation of the Fund’s portfolio depending upon","page_number":152,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"d95252f8-903e-4371-b570-d7667624e16d","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":152,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"729587bb-35be-4d2c-a186-d068a951865a","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":152,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"854b41fa-1611-4860-a128-c798fd78b71a","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":152,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"309d5dc5-4ce2-4ac3-8b54-fcd7d4c34251","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":152,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"7bf555b6-a199-48c5-a9ec-f716d4bc4742","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":152,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"d42e0db2-0a77-4434-b222-78b78d05d45e","block_type":"box","text":"retain those securities that will perform the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":152,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"19f4279e-bac2-492b-92cb-7e40cb6a7fa5","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of portfolio holdings","page_number":152,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"5e33b49a-f348-4792-a4bf-9f4f5befd6ed","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":152,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"67022200-c32d-4963-bbec-b2c2fedea595","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":152,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"a903eb01-ca26-454b-8bf4-d193b66c0793","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":152,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"4bc0ab76-506a-4bf8-8227-a59c9e435fb7","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":152,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"4e6e3bd7-1f05-4064-9a67-8570d5eb2f71","block_type":"box","text":"reduce the need for the Fund to maintain short-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":152,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"ec2e2578-6973-4d44-9202-9b6b46f58a41","block_type":"box","text":"for the Fund to sell its investments at inopportune times, and lower Fund capital gain recognition, all of which may be","page_number":152,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"87bb4457-a3ca-466e-a73f-aaccd5268774","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":152,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"39ae75d1-f2e1-4ff8-aa93-98a015c1a822","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":152,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"1056e6f4-6135-4f9a-9eba-234bd6887a4b","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":152,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"c605e79f-45f8-473d-90e2-8b5b800c8a5a","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":152,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"e65f74e7-345b-4e4f-9720-308e4619713e","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s portfolio, or a","page_number":152,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"2d88e0d8-4a4e-40b7-8382-627576784349","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":152,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"215da982-42cd-42c1-8f24-2ca7123456b7","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":152,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"a7a39d7b-7bc9-4426-baae-1d869905c5ab","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":152,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"71c9ebe4-5a7a-4a76-b864-663ce0f6a5ad","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":152,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"9ee8773c-16e0-4d0f-83ce-507f8bebb674","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":152,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"21af9d26-9e94-4147-8ee6-78375684f310","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":152,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"9d362b9b-6e64-40e9-b474-3540712cefbe","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":152,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"0891806b-3491-40b8-a1f1-046c10ad1c9e","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":152,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"4ba5709c-342c-48b4-aee9-faf25cbb988e","block_type":"box","text":"institutions that participate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":152,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"a012971b-f391-44af-bb31-746a23c6c913","block_type":"box","text":"doing so. The Funds’ short-term trading policy shall not apply to the transactions described in this sub-section.","page_number":152,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"71d6f4f6-0b21-44ed-a843-d830d2522493","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to convert them to cash, you may pay taxes","page_number":152,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"5ada0884-8623-47ba-a32a-8dff4d1c3a30","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":152,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"20fa3dc2-b440-4d08-b870-147307e7f1b0","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":152,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"302647ab-850e-45b8-96a9-5fe47e96ad8c","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":152,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"17c26a01-5130-4746-aad0-d7cbc999c0cd","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":152,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"51453415-dab3-41d7-9718-a388279b8b18","block_type":"box","text":"Repurchase","page_number":152,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"9ee15aac-6ae5-41ac-ade4-55320a7f9685","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":152,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"a1e70fe6-f6c9-45e5-a4c1-07a25d50eb2b","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":152,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"5f800d46-4c63-4590-ba1b-51d0f49d7c5f","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":152,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"0b30023b-c924-407a-ad3b-8f09a6b17f27","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":152,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"61de21fc-5733-4b21-be5c-c96bedd5b60b","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":152,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"745cead0-57a1-4803-ae42-e298cde55ef5","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":152,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"7c376388-73df-4d12-92b0-a219702d4520","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":152,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"8a7ea3b5-b6a3-4ddc-8332-ff92994407d6","block_type":"box","text":"next business day.","page_number":152,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"f9b686ad-97a0-4c93-b09d-0d5ab2e47dca","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":152,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"ccfecfd7-ff2f-4644-b927-ccdef01de14c","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":152,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"6696c4c3-19d3-46e1-a25a-47a310c6b6cb","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":152,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"811608c0-cd2c-419f-876e-9bc23d6e500d","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":152,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"9eb2995c-f85e-45b6-9e22-c1c8aaf5f19a","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":152,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"c15fff54-b305-4345-88b5-142cd55d396c","block_type":"box","text":"redeem shares as set out above.","page_number":152,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"eea6d064-2e3f-4cc9-bf43-f8ba4c0b3c6d","block_type":"box","text":"II-117","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6b49ba94-07cb-4be9-bdfa-051e70b1249b","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"15eda8a5-8ccf-40b0-b8bf-0b773804460a","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":153,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"ac25f293-91f5-4e29-b896-f56945bea8aa","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":153,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"1b283c95-9f23-475d-85e1-f8b77a32dd3b","block_type":"box","text":"reinvest all or a portion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":153,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"df6d9576-a659-4ad1-83df-cbaa982d2f64","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":153,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"41d4aacf-7870-456d-b7d3-3c13639d1ebd","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":153,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"d905ac3d-3016-4d31-8096-5511d6bdaaa6","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":153,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"19fc323f-5110-4f45-add7-8b8791d7fc25","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":153,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"fa6339a6-6074-4e65-8376-dd4f2f76c8be","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":153,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"3e74842e-a809-4f00-b46f-b5e5dcc8a9c4","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":153,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"b620bf2d-afb5-4b13-9cb2-ddc9a36b5072","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":153,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"1d768840-38ca-405d-97cb-8c52ee428cd2","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":153,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"16d796e0-8d7a-4014-a09c-83dcf18adbf4","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":153,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"8d72ee81-113f-49d3-9c73-8a69ee4c5e87","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":153,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"0e078660-3c9d-4bee-aa33-6b3746b33179","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":153,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"811019dd-4fef-4d43-b50b-58f4c1b1fab4","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":153,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"6d6b0ee6-8437-49a9-aa77-4e949c547d2e","block_type":"box","text":"Investment Account","page_number":153,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"91c4ff2e-6435-47af-853d-4332547ea142","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":153,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"2517cfe3-64f8-404e-9c6c-86c045f26577","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":153,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"139b9cd9-2aa7-4faa-b8a1-6fb2c49a9533","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":153,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"37c67700-bf18-4987-912a-4eb926d5773d","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":153,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"2ac46299-1cd7-4d5c-baa9-2e57923d7c1d","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":153,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"d0822a13-32b6-4cb5-aed4-9ed25a1a88cb","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":153,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"8ab379a0-e2cd-4cfb-b7e4-a3b1cbd78d9d","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":153,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"bc1f1c51-52d1-4a76-8f7c-a600651b9431","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":153,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"2adfd700-592d-4f25-9b67-d6a92364ef66","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":153,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"3ce2ef05-ab88-4ae6-b546-5a4eb3bac20c","block_type":"box","text":"automatically at the Transfer Agent.","page_number":153,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"a43a1bbc-f5f9-4df1-89da-f94a43b75ce4","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":153,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"88998dee-cf7e-4897-83a4-53ec8934b66c","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":153,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"6dad2214-054b-41f8-bb1b-db23b4f0c35c","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":153,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"96c4e156-16d2-4fa5-b6d8-e86aa6fbba1e","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":153,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"48363fc8-55ee-4c03-aa5e-2a85904a0d1a","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":153,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"cf49c196-2e9d-4c12-ad89-8d2b1e1989fd","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":153,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"dd3b1c62-cd10-4fd7-b371-4cfb4f92182d","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":153,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"90c7f7da-ee1c-42e7-8182-0aa5b08bb067","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":153,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"bf92f150-7b3e-4dde-bcc1-26487937d940","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":153,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"6efe4b4d-dac9-4a97-b0db-58df03771af7","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":153,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"015e14e3-fa2a-486e-9e31-ee6c66d2d6d6","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":153,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"ed33c963-c792-4044-b881-eca29dd129eb","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if certificates had been","page_number":153,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"daadae6a-36e8-470c-8a99-f3bc2db60333","block_type":"box","text":"issued.","page_number":153,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"77068cf3-3a7c-44f4-9827-c39af76078be","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":153,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"cb9bf666-7705-4599-bb7a-dbf88b39328f","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":153,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"6333d810-8e5b-4196-b505-89a7d0de96fd","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":153,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"ac193556-97ce-41e3-b4f1-2c4827097a44","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":153,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"fbf3e94c-5230-4d63-95fc-d79238777efd","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":153,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"48701a01-82b9-457e-b58a-d906aa7c4c57","block_type":"box","text":"Exchange Privilege","page_number":153,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"c50cff74-d9d2-4f6d-b5e7-710bf7094125","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":153,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"2cb60422-5c9f-4cb7-bd19-b936bb261f84","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":153,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"fe281538-55c3-4a43-bcdc-5099446fb560","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":153,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"6f8e0004-5986-4aac-9dc6-380acd225a10","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":153,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"59557506-fe96-456f-9fee-611572ca0d95","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":153,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"3b3a23a8-6290-45b3-b986-781d4394271c","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":153,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"4a75de0e-22a8-452f-9a6b-7f922f9731bc","block_type":"box","text":"II-118","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7e154248-67e5-4d2a-8b17-1f6ad76cbd33","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"85e4e8e6-0d5c-4e7f-99e0-4a8ac7ba683b","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":154,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"549bf551-2777-4259-9cc9-c09555ffd5a7","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":154,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"7aa4d3cd-a02c-4fe5-9aec-235425a83356","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":154,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"35b0f6d9-195b-4074-9b5d-6adaf25e84b9","block_type":"box","text":"Institutional Shares","page_number":154,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"e50bf656-9308-475d-9101-1640d7d3fd56","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":154,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"2e5a5e2a-53cb-4371-8547-2df99052ef2a","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":154,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"b2fddf6b-b6b5-4d33-9830-78a05c36fede","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":154,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"d3eade28-0558-4365-8238-e2ce657d1f82","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":154,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"0767beda-8de5-4a44-bebb-8d05e4e8b995","block_type":"box","text":"for Class G Shares of other Funds.","page_number":154,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"8064471f-2ca6-4941-8c6b-f5c8cf076c02","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":154,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"2c9a2880-4a95-4704-a60e-0f8c720abbc0","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":154,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"33229b4c-f61f-45ae-9bc3-418642b0ac94","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":154,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"95c0bfec-d03c-447e-8454-c2632ede2c31","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":154,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"994b160e-3e86-43ae-aa04-3f91db100e8d","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":154,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"7efd0b6d-5d31-4059-b79c-7eef00347af1","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":154,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"e5d05f45-15cd-4ee6-b68d-667b1e1d5e1e","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":154,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"92f95585-ae80-437f-b811-d7894d27cfb6","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":154,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"a98a5cd5-da27-448b-b485-bc9223dc44a7","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":154,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"1568bc6f-ca17-41fc-88f7-fc877ed15e7c","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":154,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"d62efceb-2b44-4e8d-9f9b-1b992cf02df0","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":154,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"45be0fbe-10cc-4cbb-be55-63e109a2b0bb","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":154,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"fcde470a-e238-44f4-9a0c-190f9dcb2702","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":154,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"54d24712-5059-4602-81f5-aa1076f92775","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":154,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"33ebdba9-956e-4e36-aae5-974c7c44d18a","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":154,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"a510c143-368a-4f17-9538-c0d7b64410f0","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":154,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"459a0075-fc58-4eb3-9cc9-4f44e348e404","block_type":"box","text":"Exchanges of Service Shares.","page_number":154,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"4036f765-50d6-48dc-914c-0683625a4acb","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":154,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"e997fbf7-d37b-46cf-b853-dbaa54541487","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":154,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"5030a105-dc61-4508-bd64-9d2656ebb1c5","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":154,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"bab80543-ccf0-4a20-bb48-368cc1ba24ba","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":154,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"bd94352e-870a-45ae-b901-a59aaa7c0685","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":154,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"505e993e-3e6e-46e7-87aa-f1a67b5c3130","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":154,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"c9bcd706-ff6d-4d2e-857d-1e39d338c00a","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":154,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"991f390b-8ca9-46c8-9b6a-c42e73dab2af","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":154,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"51849de0-c0c5-4982-bb4c-631d066bab89","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":154,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"38c0bf6e-c6a1-421b-a9a7-454e479469cd","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":154,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"1570715d-baac-4489-bd0a-b549749873f3","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":154,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"0df144a6-31f7-46be-92c8-783a8d7684f0","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":154,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"49558257-f5c4-442e-b415-19e83e1b2e23","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":154,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"22c065f6-02d8-41c4-8471-e376b3250707","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":154,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"92926aff-0e9b-4871-a024-b8d92e4dfccb","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":154,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"71cc152f-b0c3-43b6-9451-d4f58d2b3445","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":154,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"2ae0edf1-3627-443d-987d-a12c83cc50b4","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":154,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"93ec3863-4591-4732-96ff-e734669e2bed","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":154,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"2cf770d9-d5ce-4144-80a9-eabae58202c0","block_type":"box","text":"exchange.","page_number":154,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"59db3087-b72b-46a4-9c25-73e9df248207","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":154,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"0fdb2220-54f4-4395-90e2-158ff670d2f1","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":154,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"374e4a26-8055-4cd7-abe8-ab9527b4e802","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":154,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"96669748-ef78-4c29-82c9-2e1620c74119","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":154,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"56256eb6-acbf-47ec-a18d-de40d34da8fb","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":154,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"9fa67d52-d91e-4821-8a37-d47287e6d43f","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":154,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"9a53c9b2-6c22-4eae-b66a-697773e426bb","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":154,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"a756e415-1342-4965-a3f7-e0f806edeef5","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share certificates, you may","page_number":154,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"43c8adb8-39a8-437c-9e50-b9cdb41bff67","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":154,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"df45e2a4-3be9-4a7a-8589-ddd3eb84d6aa","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":154,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"f8ae7b47-5c61-4674-91a5-575a68f9fdeb","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":154,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"6b5fa300-e7db-4bf0-a4de-5907d6baa4b6","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":154,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"31db2983-1bcd-4a8d-88d7-368e0f4cb696","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":154,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"b70c7585-04c9-4f7f-a847-59afe810ecde","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":154,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"21305896-c4f6-4e18-826f-16f20c268e0f","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":154,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"2a37ea4e-1ff9-417d-95e2-48db77e635c0","block_type":"box","text":"II-119","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f7b1ddd6-c8d6-48cd-8ce7-497fc3cba378","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ace0ac9b-464a-4501-9ac0-d6cf065ca1a2","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":155,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"833f899c-62fb-4da0-bde3-c74edb9d422a","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":155,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"b1454dc9-e0de-4ab0-93f2-d27aa542bc41","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":155,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"4fc209a4-d5d7-4102-904f-0819dbc18d3a","block_type":"box","text":"Transfer Agent in writing.","page_number":155,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"2959ec5f-e43e-4928-9b17-caddbe182f59","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":155,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"e65efb50-0595-4c2f-97b6-597919fb0a76","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":155,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"edf2c9b7-b07f-4d68-a389-119f6c762d16","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":155,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"2a82c639-8353-4b18-9764-9b0706c773c0","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":155,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"a8f571bb-be23-4d0e-ad53-7f7d984193da","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":155,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"88576ae5-988f-406c-a2f2-2e3286578148","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":155,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"2920abd8-dcb0-4fc6-9322-dc08e86be854","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":155,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"7f9724be-a008-4bea-9f5e-d1800b4b70e2","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":155,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"e0aaf47f-25a0-4124-ad42-976a15408097","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":155,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"6dc70e8e-7e9a-4fa0-bcdc-14bf95db9da2","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":155,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"57b9b369-b2be-41a8-940c-7e09e2907cf0","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":155,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"170227fa-3acd-422c-8140-811a1a46c511","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":155,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"48287511-82c0-462c-950a-d5863a9fded3","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":155,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"bcd70c52-dace-40cf-82eb-d61ce05efc9f","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":155,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"e0dd5d5c-0166-47f9-ae13-c72e08f526bf","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":155,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"e79266d3-7af8-4f8f-bad0-b1bfedc29e39","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":155,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"491cd474-d0df-4586-b534-42d652b796e5","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":155,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"fc7c7409-9e88-477e-8215-b83da2be8aa3","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":155,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"a1feb5d6-d4fb-4a5e-9646-8cc238ab3463","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":155,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"b49a046b-b376-4ca7-984d-093e8ccd3976","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":155,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"bd098d44-1620-47eb-a56b-f6233b66c599","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":155,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"88ad59d1-a193-40d5-af7f-4e0d9e8028a8","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":155,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"b95d0be0-76be-44f9-b6d5-f47b59685fc2","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent pertaining to such instructions are","page_number":155,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"b8ae3fef-5f4d-4714-9624-98912d5031e0","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":155,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"afb7083a-a8b8-4cc5-8da6-8c5ac8ba6b6a","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":155,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"deadc77b-be1d-4be2-9980-7c2156dc98a3","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":155,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"a0dbc15e-1021-4de5-ab44-4bbbbcded4d9","block_type":"box","text":"Certain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":155,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"3bd3b9fa-f70d-4c9b-9b4c-ed271620460f","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":155,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"cef7ed11-330e-445e-be5c-6253aef58e73","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":155,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"bf2349ae-4ac8-42c8-8258-57f4ac588c8a","block_type":"box","text":"may be distributed by the Distributor.","page_number":155,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"d9434ae5-0ccd-49fe-825a-5651c863d5d5","block_type":"box","text":"Participation in Fee-Based Programs","page_number":155,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"b669eac2-5cb8-482d-8474-381c5662729c","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":155,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"f227836d-5807-42d7-a5b4-a123c53326b4","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":155,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"7e65f8d5-8055-4e9a-897b-fe0a4f2c3f04","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":155,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"f702e989-8fef-4f7c-b87d-ba744dcc7923","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":155,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"7feb32c0-0447-4bc0-8b55-b00ffa94223e","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":155,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"f6136a06-c827-47c3-815d-6c79fe7030ad","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":155,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"58ac6280-cf4d-4b53-85f1-1703ed9b2dd7","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":155,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"7fa0e8f4-d47f-44bc-9b98-f1eb6c662101","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":155,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"0fba3de8-6e97-42f2-a00a-d4e2b46f6763","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":155,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"d4f86e97-cf4f-43fd-a33b-a92183a778bf","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":155,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"11228582-0291-4c4e-a5be-5250d9a6fe63","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":155,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"162a1cc8-e582-443f-9d5b-8e625b9e618d","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":155,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"9bb3b947-1baf-4650-b5bd-f7bfed816dca","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":155,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"58dabd0b-2447-4a46-970f-7ec59c295de9","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":155,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"04e1ed93-87f8-494a-80cc-0d6c26a02706","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":155,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"9c6cbdcd-52dd-4155-be87-7f97696369a4","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":155,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"a5c98985-e6ac-4e9d-9918-74dca48f36b9","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":155,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"876c2f6f-9418-408e-9eaa-6093aedd2444","block_type":"box","text":"II-120","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7cf6bb97-30ff-48af-a450-f80d96996619","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"81281dbe-3cf6-4bff-8170-113f0ea8fdd3","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":156,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"d9dad115-61d7-4eb4-bd60-708cac488b91","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":156,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"e0844964-b9da-4766-a9c9-3187e2761c96","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":156,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"0d27c3de-337b-43d0-9fc8-cccbb58fc106","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":156,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"5e2321ae-966a-493e-8a5e-17a393268793","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":156,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"7f37f6d9-224d-424c-96f2-aba5b823f944","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":156,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"d47b9a9a-3743-40d4-95e7-1e8854226d98","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":156,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"fde34f3d-24e8-4fd0-b2a8-7cfd0ea8f7f5","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":156,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"9cc3095c-2dfa-4538-a539-c9606d733fe6","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":156,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"bed7e4b3-a3aa-4185-86cc-518084feddd0","block_type":"box","text":"information.","page_number":156,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"95159557-e380-4203-8c51-8a5aa01eb782","block_type":"box","text":"Retirement and Education Savings Plans","page_number":156,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"13b66312-6f0f-4900-b215-91ea8ec7b6bc","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":156,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"260f5624-050e-4b72-a524-14cca18e95df","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and certain of","page_number":156,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"8a0c18b2-3b9c-4ba7-b6a0-960a5e92ad48","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":156,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"8761a855-e174-40d2-ab01-c02695efc182","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":156,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"8e03f002-c505-4394-b9ca-0fb6f395ed27","block_type":"box","text":"your financial intermediary.","page_number":156,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"87ff2ea5-9c11-4225-8f3c-37707ebb1786","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":156,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"763d3fd1-978b-4833-917d-15953519c572","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":156,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"82a17a86-d4a4-40e5-90d2-d2840de4d1ed","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":156,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"0bcadb54-e8ae-4216-93d4-39c80609e5c0","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":156,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"f3fc7a08-8fa0-4388-a19b-d865731f60db","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":156,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"26ebf6f5-4c9f-40e0-a7a1-99a4d44b95bb","block_type":"box","text":"Automatic Investment Plans","page_number":156,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"e5f92424-2b06-4bd8-a342-1a15b7f11b8b","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":156,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"d395ce07-0b0c-4eca-bc51-1f006a73a3b1","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":156,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"59302733-a66c-4f51-8c19-49feae9e7388","block_type":"box","text":"®","page_number":156,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"dd6a94f0-e78e-44f0-80d0-391821a3eda0","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":156,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"c937660d-0311-4c9d-9cd8-a34ebd2da917","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":156,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"eb1109d0-4e04-4a04-8c96-4ed50b400c20","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through certain accounts, no minimum charge to","page_number":156,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"125d007b-d23f-4f3f-ad92-809131449ef8","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":156,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"f836bac6-c8a6-44fb-b95b-03f5318a0c4b","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":156,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"58ab3af3-86d3-4936-bceb-db87cd9658f7","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":156,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"1c6ce9c8-f56f-4700-8bd6-511ffbef4955","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":156,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"fac9aa3a-77d2-478f-aa5c-8c1b4748c2cb","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set forth in a","page_number":156,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"efca1592-944d-4097-9e08-b5c58239dc43","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":156,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"a23465c9-7b25-4002-8caa-9a909de15bc2","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":156,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"10259cd1-98b4-4ae1-8a82-bc591e41ca50","block_type":"box","text":"Systematic Withdrawal Plans","page_number":156,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"8ce6bb17-756a-43d5-b48a-891a4a77f4a5","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":156,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"ab243ee8-a53a-4942-8baf-33e7addd09f7","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":156,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"fe22dbd1-0e54-44e8-aec0-a3718fa737a5","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":156,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"44d4d599-3142-4dff-a373-9fd24e4df70b","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":156,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"53b63d5d-86e3-4576-aa9a-94230aa8ce95","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":156,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"40eea0cc-1561-4f5d-8cf9-59db47f6d034","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":156,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"1055687f-6d61-493c-bb94-913b6bd9f25d","block_type":"box","text":"www.blackrock.com.","page_number":156,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"90712c98-d9fa-4a52-a6c7-f61075f3e079","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":156,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"c04cdc42-d773-4895-b043-3b09c6efe07d","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":156,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"bb339793-29bb-4da5-86ab-208a5723706b","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":156,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"243362e9-be45-43a0-928f-7df934242230","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":156,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"3e2422bc-8749-458f-959e-bdbea1bcf881","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":156,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"89d30a77-b435-41aa-863b-ec58ba5bb1fd","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":156,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"989b4ca4-f2bb-43c8-b2f5-3e91a6ef8326","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":156,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"a95409fc-6557-4132-b556-9050abdbc6cf","block_type":"box","text":"II-121","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"be8a4b54-52d3-40e6-8dee-e7889337d49b","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"321e860a-f61b-46fd-be8b-05142e4f8edc","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quarterly) and 6% (semi","page_number":157,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"015d4a80-b92c-435b-8fca-7a16edcb8438","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":157,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"8d52b5a9-74f9-4005-931f-e7b01bfdc1fb","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":157,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"2f3b800c-87ed-4f5a-ae8a-0f8dc0a8bfde","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":157,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"f99a5ffc-f3e5-4524-ab7a-8f953bc02124","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":157,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"6c5b7626-9c42-4833-8be2-8c6203c2d5b5","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":157,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"891b1dc8-8ebb-454f-ac30-b729b4a5f09d","block_type":"box","text":"Dividend Allocation Plan","page_number":157,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"96aa673a-53ef-4d7e-93aa-1000a4eb16c5","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":157,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"35b8914b-e86b-4e4c-a4a8-219707a45f54","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":157,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"6a12b2b1-5ebc-497d-9a7b-2008fe855ec5","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":157,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"242c5941-0c1f-4448-930c-2c79ebe14a81","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":157,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"d82c3461-8897-4579-a159-de1f839119e8","block_type":"box","text":"PRICING OF SHARES","page_number":157,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"5d872470-ca6d-42d2-aeda-e82f466ed1bd","block_type":"box","text":"Determination of Net Asset Value","page_number":157,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"d81aff52-d1c6-41db-b2ce-8c029e195e4e","block_type":"box","text":"Valuation of Shares.","page_number":157,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"07bfe9e0-c987-4ab9-a781-78274bec1e59","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":157,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"d08c39f1-c20a-41c9-8657-766d657528b0","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":157,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"6d4af640-8808-4d3c-95d3-b3b11319a218","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":157,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"bc832f4e-f4b5-41bd-acb7-7395e466d72f","block_type":"box","text":"Equity Investments.","page_number":157,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"97a96deb-1f34-43d4-90a5-50194d82891b","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":157,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"ad3d7940-ec46-4b65-bcb6-d11444bf9a4a","block_type":"box","text":"e.g.","page_number":157,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"b02838e1-f3dc-4599-8e0b-7af3b21b27ef","block_type":"box","text":", NYSE), on separate","page_number":157,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"b2c55b15-7813-4b80-9aa9-4f2cf7686401","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":157,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"cd3cf5ac-0fc3-4e79-a52d-247e02a12eaf","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":157,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"54bda768-9165-4853-aef1-7158bd6079ad","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":157,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"88e9b77a-3114-45f1-9586-7af0adf47063","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":157,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"4f899560-7b83-4051-93c4-b585c61eb13a","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":157,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"ad9e942b-a34c-4d29-844f-0f380e5c4ec1","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":157,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"decb5402-e520-401a-9820-b3abdb4e3750","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":157,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"3e9b5159-8339-40f3-b0dc-02981e1ceb27","block_type":"box","text":"last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If a Fund","page_number":157,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"acdfad72-54ce-4db9-b364-9ea5fc243bb7","block_type":"box","text":"holds both long and short positions in the same security, the last bid price will be applied to securities held long and","page_number":157,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"9544955f-f5cb-4486-936a-6737055260fe","block_type":"box","text":"the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which a Fund","page_number":157,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"93785c18-4ec4-4240-a503-d174a6385fa4","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":157,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"aa843c0f-d9f3-4ca9-9b1e-c30ee7eabffd","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":157,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"2d57d08d-da62-49de-af69-90c69b3c7f2a","block_type":"box","text":"defined below).","page_number":157,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"5a5bc55d-00bd-4d2d-85bf-3ce79eb577c3","block_type":"box","text":"Fixed-Income Investments.","page_number":157,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"2bf56dd5-61c0-4ad2-8620-d866d5553504","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":157,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"c3b396d8-1e47-4af5-9b65-0e0cc987115d","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":157,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"150b4c0c-91bd-430a-99bf-c02919f0b9a1","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":157,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"8ee94097-dad1-42f7-90d1-ebfdb4ce2940","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":157,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"bfcd0303-a729-4153-a09e-acebd0fb6427","block_type":"box","text":"e.g.","page_number":157,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"52f0787d-af0b-4f0a-a4ae-d4b97f31ec0f","block_type":"box","text":", recent representative bids and offers), credit","page_number":157,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"cc8cbf17-9461-4a1c-83f9-c085d1683278","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":157,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"8d461d3a-0a1e-4110-8b4e-ccdffa1e801b","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":157,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"753bf489-1a0d-4644-90a9-7549af6ee46b","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":157,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"fd061288-042d-4092-a1c8-e266204ad2de","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":157,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"99725fcc-d530-441d-b8c0-c9e997a8d69b","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset","page_number":157,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"d1123028-a691-4550-b4f1-841fc7d38a91","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":157,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"752c4764-2fff-4222-aba2-bd2533b50cde","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amortized cost method of valuation may be used with","page_number":157,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"1388591e-0ed4-47f4-90d4-3e8b2dd6b410","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":157,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"d0d6c8ee-a323-424b-9363-5658284dfeb2","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":157,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"e4f23c8d-7e45-496c-80b8-baea7e3a3e15","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":157,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"faf73bbe-d5ab-491f-8847-0ccee2d0c31a","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":157,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"ae05602a-f7c6-4c1a-aff0-f03ece03327b","block_type":"box","text":"attributes of the tranche.","page_number":157,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"6f0fe787-be2e-49fd-9393-be9e473d94be","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":157,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"483a6afc-b24c-445e-aeba-5b19aa409016","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":157,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"4e135108-5c99-4d94-87d4-e7ac5d9cf32e","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":157,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"7d5758c7-3ff3-492f-84a8-d2568f7a7c35","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":157,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"a75ffe04-2571-493b-8eaa-447646f94346","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":157,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"bf449144-a257-4e61-bedd-735e079c5674","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as","page_number":157,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"545a649d-594b-4fe7-a031-0cc3989601a2","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":157,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"eacd29cd-9986-47e1-8095-21b9669b6668","block_type":"box","text":"II-122","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ad70d705-090b-4b30-887d-a47da88b7161","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"007ea049-e5cf-40da-9027-c0937111bcbb","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":158,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"d8388f78-4e79-499c-9cea-540e2ed3a474","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":158,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"49196533-ab8f-4daf-ab89-a762d9a83790","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":158,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"8c9eacad-68c7-4533-b9c8-ecaf5d9466e8","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":158,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"b2d555d7-e04e-460e-b61b-9151d97869af","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":158,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"bf017e97-2bc8-47bc-95a2-1d3968eef8fc","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":158,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"ec57c333-71ef-41d8-9823-ba8992aa081a","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":158,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"60000779-00c5-42ee-b210-34bd9d325bfe","block_type":"box","text":"Underlying Funds.","page_number":158,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"1b9d619e-088b-4a40-b4ce-31ad27bb4ace","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":158,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"5b2cfedb-ca08-43d7-a550-45dcc11c8527","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":158,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"cc2ca19e-e255-43e0-b67f-3c96bf31753a","block_type":"box","text":"at their most recent closing price.","page_number":158,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"8c034eba-4fb1-43ba-b15c-6414d652598c","block_type":"box","text":"General Valuation Information.","page_number":158,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"0843329e-386f-4f08-b0d8-183b4dcad18a","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":158,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"c0134eba-3efd-491f-a78e-284496cbc1fc","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":158,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"2a538f13-1e5f-4687-92c4-874e88bd14ac","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":158,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"48ba6352-3c11-4b78-9bee-7f2531de3950","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":158,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"01509664-4a66-4413-b228-e7213985bea3","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":158,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"0bb181d1-9be2-459a-a6c9-13e9ddf092d8","block_type":"box","text":"the revision.","page_number":158,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"c6756948-6eb8-4d09-8de1-ca5d0f6934fb","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":158,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"dc0c9c5f-0527-4d06-8aae-d848eb74915d","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":158,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"c11b9b7c-1bd3-47a6-9b2c-81cfafcc5717","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":158,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"6f4c90c4-667c-4524-8e45-d0e54d97cea8","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":158,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"9fe3a824-0be0-431c-a4e9-b5d85281cb5b","block_type":"box","text":"price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation","page_number":158,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"f2985cd7-3c6f-4bab-b287-01e0ea999563","block_type":"box","text":"of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":158,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"9f7ac124-b33b-4835-8430-57add2135c1a","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":158,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"9b16ff44-9673-41fc-a450-1096893933eb","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":158,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"240989f6-8d1b-45b3-8c21-c84873422066","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":158,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"e47a80b0-b29e-45ee-ae57-917241866513","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":158,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"dd883f3d-0d32-4270-9205-46128f5d687a","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":158,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"30a31f28-d0b0-4a14-9234-fc34a7103231","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":158,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"94f643e1-638a-42b6-a0fc-07c4187b4533","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":158,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"c32a7ddf-0319-4f5c-9d5c-09a8ae912695","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":158,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"f7469e37-95c5-45c9-b855-f325d0bfeaaf","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":158,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"d6145c18-cb59-4bc4-b52b-44fbc8d4ac97","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":158,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"03abcfdb-4216-485d-acf9-b7c89f977745","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":158,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"4524a81b-ea84-4763-a8d6-84e40694c937","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":158,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"169a80c9-3c60-4049-847b-e1569973db18","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":158,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"5b32a2bc-99fb-42ad-9429-3151eddca7b8","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":158,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"ab7dd5f3-0882-4e73-92eb-d027c04d1f35","block_type":"box","text":"Fair Value.","page_number":158,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"7e51a11c-1657-499f-85a7-2a680eb86d91","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":158,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"95165a7f-f960-4161-98c7-955e0efe05da","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":158,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"cdce08c8-a0e1-4415-a6b1-6bad2b11d907","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":158,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"c82d83c8-fb00-4ab3-98f0-81d3d76d3edc","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":158,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"6fcfecbc-7f27-4b7d-836f-f54eccf347b0","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":158,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"0c0d368b-8973-4923-ae96-36395fe2104a","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":158,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"fdfcda25-53dc-4d78-837e-3861d7236166","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":158,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"75cbfdb2-9a07-4fea-bbf2-a67fb4acf6a4","block_type":"box","text":"(","page_number":158,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"9ddfba4a-1530-4f53-944e-3ece282cc391","block_type":"box","text":"e.g.","page_number":158,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"7987b9ad-e73b-4e18-8d69-7688dfc0f3f2","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":158,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"41b618b2-cdc2-43f7-9249-0c154399ce2d","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":158,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"ced7df16-16cd-40e1-8957-f4e17e09708b","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":158,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"64b9cae3-28ca-468e-a909-328445fb8ef2","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":158,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"af3e401b-179b-4391-ac90-88c2935c463a","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":158,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"ac122051-c2e0-4221-9a50-015b96e259f1","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":158,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"a2aaeb72-f3a5-42a6-bc4d-3892bd26dc8c","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":158,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"80e1d8d4-b142-4e28-934a-4daf30283a40","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":158,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"b4320de6-6b56-41d4-9b6c-8804db30a4fe","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":158,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"faf0f7c9-24a2-4459-97e6-55bb4d4a5750","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":158,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"e01196a3-3c9c-4f51-90cf-682adf4cf57e","block_type":"box","text":"be treated as a Fair Value Asset. For certain foreign assets, a third-party vendor supplies evaluated, systematic fair","page_number":158,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"1f6e7b98-3ffc-400c-a15f-3958bf89d424","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":158,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"be15a10d-b10e-47ba-a298-f79134d77a5e","block_type":"box","text":"II-123","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0bb786d7-02ae-432e-8efb-b8bc138927f2","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7bb3aa1b-0b96-414b-a44d-1643937879b2","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":159,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"4333aacb-0241-46eb-9bb5-2579cb7aef78","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":159,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"c5446a70-c3f4-45c8-bf83-cb8e38a8082b","block_type":"box","text":"pricing time.","page_number":159,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"7996e10f-623d-4eee-9d24-3569e1e6a1b2","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":159,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"f4b45a4f-2971-4ec5-a1d4-693ec5068bc8","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":159,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"afe8b193-f727-46b4-b6ce-5e46191f2777","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":159,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"f18aebc0-1b7f-4515-aad2-0509ebb545e0","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":159,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"f2e2df10-aac4-4756-825a-fad490edc6c1","block_type":"box","text":"assets and liabilities of the Funds.","page_number":159,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"ed356da5-20f7-41d0-b113-7933943b7212","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":159,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"92a406d1-b805-4a6e-8c89-2415b6d869d0","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":159,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"f662c537-3760-47dd-b603-f30e43c8a62d","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":159,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"7996c383-3072-42a6-97e1-59820d1ad919","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":159,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"82ff753d-aceb-475f-bbff-142488228216","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":159,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"0f5be044-04fd-49e0-b695-e12bb9d9f54a","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":159,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"f46e221a-0b05-4aa2-8bd6-9dd8d960915a","block_type":"box","text":"valuation models.","page_number":159,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"506534cf-bbf7-4875-b801-b3db9607f77b","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":159,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"2a6b59bf-863c-4c3a-af8b-edd82395f034","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":159,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"c84b045c-1acf-466f-b6e9-63207fd03c2f","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":159,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"e9a75357-8e20-42fe-a494-ee494ed138bd","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":159,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"83260da8-a95a-468c-8f2d-69d2b6baa52e","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":159,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"a816aafd-945f-4783-a409-7fba3e5c137f","block_type":"box","text":"appropriate, an appraisal by a third-party experienced in the valuation of similar instruments, may also be used as a","page_number":159,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"720e291f-8b33-48e7-a556-fe5b9ab237f7","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":159,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"fe04ba32-617f-4793-8817-5c46b351e703","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":159,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"ab7af511-8261-4e25-90a6-f96e8b2c7620","block_type":"box","text":"liabilities could have been sold during the period in which the particular fair values were used in determining a Fund’s","page_number":159,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"44e8ad9f-6efc-4e9f-bbfd-58139303470c","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":159,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"3a77a389-a42f-486d-9b9b-783d1c9698ef","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":159,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"8973920e-630e-4366-b9db-f3f718e1beea","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":159,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"7c3cfeed-856f-4028-ac1f-26f558601c47","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":159,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"e76ba186-9347-4d7f-a0c8-880e09794740","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":159,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"abdfd457-d74e-4446-97b5-e3e3c299fe9e","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":159,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"986c7514-2002-4918-b3c4-daee48d75df4","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":159,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"a12584cd-a793-455d-95ca-09f1f565d48c","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":159,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"d7de104c-5068-4b79-91ae-ca99f336b7df","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":159,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"33cb28bc-d415-4429-95c6-1581dc402646","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":159,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"5ab2bf06-d975-41f2-b8bf-1538b7b6bcd6","block_type":"box","text":"increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn","page_number":159,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"a29c44c0-0278-4346-9409-b993d713d653","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":159,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"6a11d1d4-b965-47aa-9b93-4f0bb836cee9","block_type":"box","text":"party determination of fair market value.","page_number":159,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"7059d659-07da-454a-82a2-25a59db2fe5b","block_type":"box","text":"Computation of Offering Price Per Share","page_number":159,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"026e23d0-f012-404a-b7b7-7d4f2ff9e26d","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the computation of","page_number":159,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"5f3f6bb3-2624-4894-bcc5-b2170472f1f0","block_type":"box","text":"the offering price for shares of your Fund.","page_number":159,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"c31b24c7-09a5-4915-940b-54459eb11736","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":159,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"420843dd-4dd6-4ae1-b313-ba8eab60a9ce","block_type":"box","text":"Transactions in Portfolio Securities","page_number":159,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"797c79e2-5e22-4dc8-905a-a473558829bc","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":159,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"9ba9e5ed-4931-473d-8e24-1fc16820e10d","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":159,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"60454085-a929-448d-96b4-0b0106704f07","block_type":"box","text":"particular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account certain factors","page_number":159,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"07464acf-f6a1-4308-9b8e-221db174bd7c","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":159,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"6ce14cee-eb2d-4b01-a8e2-7a9b5e74f14d","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":159,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"de0c86a2-22ce-40b5-904e-9465ec781337","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":159,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"ffa54bdd-91e4-4100-b237-1b7cd74ad4cf","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":159,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"df4ad73a-41f2-41fa-a6b8-09116fb3de75","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":159,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"b98f8008-6170-4e62-a1a4-63c4604173a2","block_type":"box","text":"II-124","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8a90a74b-af7a-4383-8b6b-ecdbddbd2adb","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e1bad488-0cab-4771-82c4-a1d1c360daff","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":160,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"9fd2497a-ab6a-4413-9689-5958046d4fc2","block_type":"box","text":"reasonable in relation to the services provided.","page_number":160,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"dff14614-d4dd-4a08-b339-d8dd63585b05","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":160,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"ae619c18-1e78-441d-86fc-dd31561e36d1","block_type":"box","text":"Master Portfolio, it is expected that all transactions in portfolio securities will be entered into by the Master Portfolio.","page_number":160,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"e65e79af-5a24-4555-864e-b832a681516a","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":160,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"111d14e0-aa48-47c4-8d3c-5e0b644ed74f","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":160,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"2ac60d94-73e3-4a57-9e0a-745b6818675b","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":160,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"9d86d473-0ae5-49e8-a203-7ca72df3675d","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":160,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"765d9b3f-bb5e-4395-86a3-224bdde99003","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":160,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"1552fe71-def0-41f4-bec2-efbf1e801a29","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":160,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"536b53a6-ae3e-42ab-835d-401d8c692f7d","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":160,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"a16c6586-31bf-49ea-8baf-64b4faf1b7d3","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":160,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"b4a87a27-3811-42ef-af36-ab8758cbc440","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":160,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"c5975856-f5ab-4110-af1b-d5b5e9fe53d3","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":160,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"ab477220-11d9-4797-b805-56adaa88b038","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":160,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"2d53bd5f-9bd3-4f36-89d5-8cbef88a9b24","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":160,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"e19d0c57-1e3f-4c69-a2d2-82d7781692ed","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":160,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"56aa3b0d-e308-47f2-90e5-3fd348cfb3ae","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":160,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"805301ab-b19b-4f10-bc7f-968e894fe25f","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":160,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"ce7b2d24-6f5d-4a7f-b58d-84e88b9350f5","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":160,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"522f7210-4575-49da-b680-4334be3296c9","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":160,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"b0170e8c-e025-443d-815b-cce76c81179d","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":160,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"3d807874-9bf1-4ea5-adc4-9447859aacc4","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":160,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"cc9b02af-27d2-4f11-b5fb-59da48af8802","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":160,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"2cd15e6b-cd2e-48aa-aa6c-29b85819d539","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":160,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"980d75ee-c7c4-4c0e-a5a8-a9803e23b27b","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":160,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"5d9ace47-61a2-4817-98fb-aa187e1b8c43","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":160,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"db979303-04ed-4cd3-afb3-5489507cca10","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":160,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"812b655b-804c-4e2f-988e-8feddd5d044e","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":160,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"a094ba70-c05d-460f-9e73-3f40166d2b1a","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":160,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"64a410ea-d0d6-4cba-b318-5e7dd7239731","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":160,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"3a9e9cb7-b6bc-4b4b-ab8d-41e5dcc7261d","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":160,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"fed8610f-86c3-4a55-9281-8e0d45487661","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":160,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"b668f0b1-cde1-4145-b154-cb5740a49b4f","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":160,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"49d8aa08-b2f0-45b4-895f-2aac8c6b1f08","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":160,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"7ce66d47-9249-4851-a0bd-2587acb67f80","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":160,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"48c79b9d-0af0-4144-beee-9534bf5f04cb","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":160,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"6225ea80-1236-4cb9-b64f-2179a737e08c","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":160,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"95883c15-c920-4659-bce0-eecf9b7ab0b8","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-party and provided to BlackRock by the broker-dealer)","page_number":160,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"dcc93c1e-90cb-4999-8bfc-ca34459df2a2","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":160,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"9bb5d9a0-d48d-4a86-ba34-458e7e44cfdd","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":160,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"e0e3988e-6fa1-4440-b7e8-0848ad1030f2","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":160,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"becea701-2ec8-4ef5-b617-48a9e22a14ff","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":160,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"73e8ef94-d91a-4071-9184-dd1b0c21d093","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":160,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"d0fcb92f-4ed2-4559-acc3-23f76f3642b0","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":160,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"953d1dfd-77df-482c-962b-9a8d369080b4","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":160,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"3ca46183-f83d-4f28-826d-8072c9183af5","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":160,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"326bf5eb-5669-4012-b499-e7c90ea57087","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":160,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"00fdbeca-f342-46d1-bf4f-ccc9ef7b548c","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":160,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"5ace86ed-98dc-4994-baf6-290da7cc9c2c","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":160,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"edba10e0-8363-4593-ba9f-4f9528571da7","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":160,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"d680ed7d-fe03-441f-8ab3-65ee8d4c8371","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":160,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"57ce60ce-eff6-4e4e-bf80-5a9bcc70f1a1","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":160,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"822c160e-9fb1-4d13-b785-f914458d0a69","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":160,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"85067665-07c3-46f7-88b1-e33e17ed0c70","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":160,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"33908636-c0b2-4834-b804-02c398feb7c2","block_type":"box","text":"II-125","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fa3e8a8e-23d3-4df3-8a46-5c2a0f6a9538","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c588f1c6-ce2f-4de7-90c5-c685b5de36a1","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":161,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"0932d792-f02a-40d1-90a5-076ff71821e3","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":161,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"317c15f3-7119-47a9-9e9f-033f3371e136","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":161,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"33d036fe-a9c1-46c8-b015-884b7dd51f5b","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":161,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"dae624fe-8887-43da-b0b7-fc8c91c9ba6e","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":161,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"befef13d-86cc-4b19-a820-dd5064046e79","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":161,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"2113d899-4997-425b-8807-1579cc8272f9","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":161,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"e115f645-9ee9-421f-afd2-2ff5852e852e","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":161,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"d0d99911-ed87-4ba5-9d75-a221ba8c2320","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":161,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"a856b91b-7dc0-4331-a203-98d6bdbf6434","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":161,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"55fa8251-8b11-415d-bfb9-1cb7db378605","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":161,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"7b17bbad-5e9c-475e-8a57-35445b3c61b8","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":161,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"e51e9475-4cdf-43c0-9758-f00dc2682ec5","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":161,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"9ffc6f7c-8f66-4806-85e2-2fe8cb1a858b","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":161,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"583d31a0-d7fb-461b-bc9a-47ef1ec970af","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":161,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"ecf16e55-1de5-4c4e-b335-57033a53e1ed","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":161,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"dd4bfcd7-66ac-4651-8a05-28441c790c4f","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":161,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"302a3d3a-8a95-4146-a622-2c372f3d720f","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":161,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"685b2c01-6c77-4e2a-821e-484a1620b448","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":161,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"62392bd6-1a56-4324-baee-12b470ecf77e","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":161,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"7b240d16-78ce-4eb3-aa4b-222e1daeeb01","block_type":"box","text":"brokerage.","page_number":161,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"c1374970-5452-4b51-9356-45cfa84b8d14","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":161,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"2dae6df7-0130-4213-b29f-49a2df79bda4","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":161,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"f99579f8-ff61-427f-9bb4-31784ac88fdc","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":161,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"ab5447a7-d3cd-4abf-92ce-49919ea49b80","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":161,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"4e7dce81-8183-4566-a405-9fd6777930f6","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":161,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"9c8631c5-6edc-4353-94af-49036e85aef6","block_type":"box","text":"Section 28(e).","page_number":161,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"da78d140-870a-42c7-98b2-792b927ed75d","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":161,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"ef7655f3-943c-4064-a186-906b0593ca5c","block_type":"box","text":"brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer","page_number":161,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"5ac7eef4-daab-4ae4-a3e7-79245ec2a4e8","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":161,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"9ee69f62-1bfe-48b1-ab1e-10fb634c52fc","block_type":"box","text":"execute transactions for those mutual funds.","page_number":161,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"e1ac8cf3-40e9-4688-b130-f3f28da778fd","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":161,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"bab95d27-9b7d-40a4-b2e6-d4717a3c6ec2","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":161,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"5652cf2f-af29-4e5d-9ac3-f9b34f5395f7","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":161,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"0f8f2bf4-50cc-4ea1-aada-b948128b4e82","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":161,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"46c7d635-ca03-47d2-b0b2-6245cb119490","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":161,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"69aaae06-a84e-470f-bfb3-22aa70d5bd3b","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":161,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"67f78559-416b-4088-98a6-4cee6c2da267","block_type":"box","text":"intends to manage its portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":161,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"39a5b606-bfdf-4dbe-8e9b-28ba6ba94b07","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":161,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"56bcca8b-3502-4000-bf13-d02792ba6f7c","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":161,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"15838027-10a9-4969-be78-50dc425b4a08","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":161,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"7d1e1c39-8dbe-4356-b6a2-47dd6daddb9d","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":161,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"b80ccfff-bcb3-4f63-adbd-01b92632defd","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with the dealers","page_number":161,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"9e283b78-46bf-46ab-a4f9-45f4323e776f","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":161,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"d0998b8d-e5a4-42bb-b62d-cea55c7b776d","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":161,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"2463d742-52e3-42b5-9930-a3a5a9201144","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":161,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"9a88ee28-a850-4ca7-9225-88c75028205a","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":161,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"c379629e-0d4d-4070-8008-fa8993f1139d","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":161,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"a77f753c-2148-4a61-a6f6-f26e4e28c0f7","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":161,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"251cb3b8-9687-4def-857f-bfd2e4231ae6","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":161,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"d18b16e9-7993-452f-887f-f92ac2e4adb5","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":161,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"05dc9616-4a02-4494-9ee9-3296a2e2231a","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":161,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"55b18d2e-c823-4c58-a05e-1ec9ae1a2347","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":161,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"6676b561-8dce-4266-88ea-f04f54d0aa42","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":161,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"464fbd05-b789-4373-b68e-40b5391bdcad","block_type":"box","text":"II-126","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4c98519e-9db7-443c-981b-93747e08cffb","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aeda324a-a09c-46bc-84de-7d19876662e3","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":162,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"3d4ba6bb-c276-4d1c-abae-2e76ecf3696a","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":162,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"ef14ccfb-9425-4fcb-88c9-bafbcb3a323c","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":162,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"a155d8ff-292b-4d04-ba07-daaafef57838","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":162,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"b94a37bb-5472-43ca-82fd-62d4d5703837","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":162,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"aa9f85fb-3f84-44ef-ae1f-4661812cd192","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":162,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"0f161a86-aa1b-428c-b161-58c698c94b4f","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":162,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"99e49167-9301-4489-9e50-b710314b3a5b","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":162,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"756725ed-a489-4385-9cad-19a2780c882b","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":162,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"85d3c52d-2202-4e24-8793-9b464e076798","block_type":"box","text":"with the rules of the Commission. As a result, the portfolio turnover rates of a money market fund will be relatively","page_number":162,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"1b72dda2-c23a-4c45-959c-e68a278af5b6","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":162,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"abff0147-ecd8-400e-b72c-7b64010f0ea9","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":162,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"fb285678-afb8-4190-aa85-41617f250dca","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":162,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"9fb0f642-c3fd-47fb-96e8-d2e48fa05eab","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":162,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"f7c10932-1764-4cc8-9a5f-a206cd1e5dae","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":162,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"77648273-7747-4797-8b05-e0d7cc658159","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":162,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"0c7cfab3-04a0-4c82-9f70-ebcc05b2a287","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":162,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"ff8974f6-56c0-46e3-9b9b-c1d81ec9c2db","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":162,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"319e6a28-756f-48c7-9e89-4bb84f85b3b4","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":162,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"d6f3704c-4168-4ca0-a296-4640784d4e14","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":162,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"d63f8a6a-c93b-424c-96f8-0fe9bc1ab4a8","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":162,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"53fd0041-30b2-4f01-8b05-0640d9d771a1","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":162,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"e793252a-fc76-41e1-b93e-9bf9290aeeec","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":162,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"93d62647-3116-46c6-9a1e-ced288d8d563","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":162,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"65b5fac3-0fec-4de4-a5c2-6a6ac510d918","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":162,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"f3cf936e-6e03-4e1f-b113-01a5bb1a90ca","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":162,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"ee8feb24-9061-4cfa-99e2-620a8fd321e5","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":162,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"d5958053-05a0-4836-9643-6de1280b47cb","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":162,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"d20d1432-2ebd-458b-8296-eb002fc17b47","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":162,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"0841e19b-4d8a-4a77-9527-c8c0a3f07ca3","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":162,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"413dfae7-9d58-4057-80a8-08dde025071a","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":162,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"14388e98-913b-4b68-8306-e619d2282c6a","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":162,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"d383713c-35e0-4794-ad25-47ee4feaf939","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":162,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"fc75df2a-f376-40b9-90e6-655f197ba7d8","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":162,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"2ea512ba-c082-41f9-ba44-4b8da2eef5a0","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":162,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"1851ff39-f81e-4929-8eda-19b1ec5ca4df","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":162,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"ef97dcc2-2e94-4706-90d4-501a3b9a3771","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":162,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"12a174e6-ef8c-4bce-8a1d-e00b1b988579","block_type":"box","text":"accounts and compliance constraints.","page_number":162,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"dcc84e87-8684-4e93-a5c5-30beb449f7d1","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":162,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"8c68e199-fcfd-4bbf-9497-565910105039","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":162,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"f1adce51-160e-44bf-a642-026f0f6babf0","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":162,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"efd176c6-0d5d-477d-a8f1-290c96830163","block_type":"box","text":"among client accounts over time, each portfolio manager or a member of his or her respective investment team will","page_number":162,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"ae847f79-0ff3-41f7-8293-bab9c1cfba1c","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a particular offering with respect to eligible client","page_number":162,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"7de91160-2b14-4360-bf2c-87ec303d7adb","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":162,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"578d580f-4f60-4ffa-aaf5-4a81d5fb6930","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":162,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"f08cd1da-b75f-457b-99f4-d571743c5197","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":162,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"725d09fc-8eee-413f-bb13-b43f3ae36c26","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":162,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"91d687ec-c9b8-43c6-b076-fcd17da60884","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":162,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"d6771b16-f041-43e1-a686-1bb98b61d974","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":162,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"c91418be-93d6-48c6-bd8a-2d4376f1d97d","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":162,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"74b7f36e-e22d-4a02-a029-b6adef5f4670","block_type":"box","text":"opportunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":162,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"ad2963b2-a35c-4993-8649-9f95a24b9005","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":162,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"15f3e976-2cff-4e1e-a305-bfb5c063637f","block_type":"box","text":"clients may be used as well.","page_number":162,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"5fdeee46-fcc1-4298-b9bd-f65c76087ece","block_type":"box","text":"II-127","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"959b9b20-7267-4c82-a091-62ea6e6052cb","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8addc382-df7f-42d5-b86a-ed9a5c17a032","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":163,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"16f79368-c12d-4e43-9ac4-6ecc895a403c","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":163,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"19bcf4ad-ac80-4de4-9f8e-a17a55500019","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":163,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"698189aa-fcd2-41e9-940a-0650f43cb5d4","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":163,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"c05a5c38-7d74-44d0-8c17-933d59bcc7aa","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":163,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"eaf8bede-969b-4f3e-8f65-e79357fcf155","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":163,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"95f49d12-35d7-4f16-aba3-586d2d3fd140","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":163,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"29485aec-a346-423c-beb6-e7823f8c0f27","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":163,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"19f4ea64-65dd-43de-95b2-bb07049fba17","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":163,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"5bb86f32-2012-4908-be5e-cbbb51ff297b","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":163,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"bd8e82ce-f043-480d-8f85-666e4fcc5c0c","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":163,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"16aeb95b-a813-4db3-a536-68f48f13327a","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":163,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"81fc181e-6bdd-4280-b91f-41ec0bdae984","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":163,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"e65e002d-2e4d-47f6-a0ea-e8a535e64d87","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":163,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"5f495522-05c3-4b3f-8245-99de01590118","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":163,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"23e2aa9a-2a78-45e5-b731-1c6694796f47","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":163,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"5b4eba47-6f30-4d50-8ca1-a709201d3485","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":163,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"ea12ac4f-f72f-4d05-925d-9db6ad8757dc","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":163,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"e4172634-2020-4b58-a46b-454df77e4b0b","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":163,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"4d0e691f-5ac6-440b-927a-cefee6c345cd","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":163,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"7b17d9c1-ea35-442a-857f-57f35268369a","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":163,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"ac42b60c-488f-4f63-9f96-2decc7325dc3","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":163,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"34b9ff81-568b-40e8-802b-1a3c824eb180","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":163,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"c200e4c7-2b97-49c2-8ab4-87f2c755d1e2","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":163,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"abee693f-7978-446d-ad5f-c133e3abc4cd","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":163,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"7aa90ad8-824b-4ede-95dd-7586d3ac39ae","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":163,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"8851ee7b-e6ac-4e4b-8350-fb5e4a14f3fb","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":163,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"72048a70-16d5-478b-867b-bb7c753a655d","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":163,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"8ecb6c60-4e08-41f9-a313-ba7cd3f67a86","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":163,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"239f8375-e768-4ca6-819e-6841a1152c60","block_type":"box","text":"Investment Company Act. In no instance will portfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":163,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"22536f6c-c760-4af7-bc26-9853995f7a1f","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":163,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"c311f8f0-eed8-4f60-984f-af039c5c2c60","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":163,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"bbee8dc2-309f-4cc0-9339-96b1acb24b68","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio securities of a Fund and","page_number":163,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"a39870c0-45c7-4099-8efc-d2affdfb3acf","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":163,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"e37805cc-b854-4ef6-a673-6bb63531fce7","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":163,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"6c3a2531-9063-45bb-bf87-f2487a7fc2a8","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":163,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"aed97fb2-d6fd-49dd-a23f-71bf57e6528b","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to participate in volume","page_number":163,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"490045cd-3dab-4d7e-a530-877863d56ef6","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":163,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"0a4b2766-a3e0-4278-9c67-aea5d5e4577b","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":163,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"5a05d6d0-ac3b-48a5-9319-731f4873bfbe","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":163,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"e40ca43c-13be-4889-80e0-ef43bc1a0e5a","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":163,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"2172f0ac-31da-443b-a018-da530961b618","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":163,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"c16eaf78-c537-4ce3-883b-80a8dd2fae5e","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":163,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"0c306e15-76b6-4983-8ddd-a88396871d77","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":163,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"7debc59f-a8fe-4588-a7fc-8c0c659b1acd","block_type":"box","text":"Portfolio Turnover","page_number":163,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"bd6be561-c84d-4d94-8e53-62dac587ec87","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of portfolio","page_number":163,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"ddbaa4a1-6a6c-4084-805e-9233e4a5d013","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":163,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"8cb31cb2-3502-4a6f-b1d5-d589e6d6e2f3","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the portfolio during","page_number":163,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"a680c8a4-9c0b-4957-83a1-a54229e84229","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":163,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"0e0e1553-2b7b-4b74-9299-3d4b222f66d9","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":163,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"d6cde98a-17c9-4115-a5c7-9b8c1a18fbd2","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":163,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"14383971-8932-4e6e-bff3-6dfb95f945cd","block_type":"box","text":"II-128","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d64aec75-4a39-40df-8c18-38b0297b62b4","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"860338b8-adab-494b-9a0f-a5f96f8e6603","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":164,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"97082112-81b4-4623-97ef-8e7765f088e4","block_type":"box","text":"Dividends","page_number":164,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"d091268e-41ff-418c-a242-5d80ba7e8c77","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":164,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"6138e364-6701-4280-acab-375a109c3884","block_type":"box","text":"investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":164,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"5b8d66bf-4ea6-4603-b512-a367549c2e00","block_type":"box","text":"realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":164,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"df75018e-4564-48fd-8a8f-23ea33a05166","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that certain","page_number":164,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"61815123-3c19-4d0e-aebb-01082e9045fd","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":164,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"1854493e-cd82-4bae-8ba4-16ef529ef6f6","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":164,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"c1cd6d93-0a0b-4604-99b0-bc61d43c5769","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":164,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"be7b39f8-5a0c-4fe8-b7ff-e1a6f9ea912c","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":164,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"74f01241-0feb-402e-a4f4-e66b6dfb6ced","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":164,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"088f34ce-8870-4e44-b759-7a964adeb764","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":164,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"299b5bda-5ebe-418f-8218-1b6b1dad7b96","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":164,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"ce36b1e9-05e6-4f46-b43e-69d4a92dfb02","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":164,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"9621ead5-b40c-424c-b122-6e8e25ef78c6","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":164,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"07c50d09-2c85-4442-9798-cfb29ee5ef21","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":164,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"b35f3706-def0-4037-8468-be7c8ebea9ad","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":164,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"9990a52e-9d13-419e-b1f4-cf0c7b6a6097","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":164,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"b19d4f77-9ac8-45a6-afa4-ab32e17869ee","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":164,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"e44333b1-00af-484d-b2fd-e7d863ddad95","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":164,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"e50652c4-c0aa-4375-82c9-58f8d2cbf3fc","block_type":"box","text":"Taxes","page_number":164,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"e32d231e-a3f4-4b13-9826-70ecc629b54a","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":164,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"b1ff35db-2cf7-40b5-9687-9f48594639c6","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":164,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"f33547d9-18af-45d8-95bb-0d4979c6db6c","block_type":"box","text":"U.S. federal income tax on the part of its investment company taxable income and net realized capital gains that it","page_number":164,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"0a95272b-47ab-42b1-bbca-b60d46d62831","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":164,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"353d3b2d-b555-4c07-ad6e-4d6f2ad28c02","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":164,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"134d8479-a83f-4c4e-9f0f-1fca67a02ba6","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":164,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"9503e8b3-aa4c-4923-ad1a-b3dd519d778e","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":164,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"4ff45cb9-4737-4543-814a-b4745aae727b","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":164,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"2760bf26-a762-425d-8137-4ff68bffd6ee","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":164,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"54d97da5-8d71-4a10-846d-c219d13e1d66","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":164,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"f75db8f9-af59-4dec-8675-f63a04ba93a9","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":164,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"ee34213f-9fcc-4626-8644-3cb467a6b1bc","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of certain assets, or by","page_number":164,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"71457343-1cbc-4abb-a1f4-86a12ed44a7b","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":164,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"f96bd0ad-6eba-44b5-b3f4-e6db014341f0","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":164,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"59778c01-325b-4ba4-8aa4-0efd2b12ef1b","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":164,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"846ee5aa-b379-4568-8e82-6fdf4d43afeb","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":164,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"27ea63ca-ad78-484c-b4f2-55f1c5bec03b","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":164,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"b860f42a-3bab-4cc5-86fd-8578dbbbd2cc","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":164,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"104e115c-82b6-4d69-8302-aff0f9dcf485","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":164,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"f0f6ccfd-8264-4f25-afeb-63e8d8ac91a6","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":164,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"ca440eb8-1968-443c-b01d-21f5aa71dc81","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":164,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"df0f5d4d-a305-4812-8918-f3f370f212cd","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":164,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"0aa19e98-a503-40ea-aa90-011f325cca34","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":164,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"b474d774-4231-4881-ae4f-7037c65e02f7","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":164,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"4b68ca4f-3853-4d9c-945e-af8070490b00","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":164,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"f7386406-f388-4ae2-88d0-416ed86d86e2","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":164,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"3e55bce1-f890-4180-abc2-0826b5a79d84","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":164,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"6829cb13-ba8d-4066-bafa-c24ea96ffd50","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":164,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"0b0b6673-fdc8-4fe9-aede-2135f37b61b5","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":164,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"cd02073f-f144-438a-95d8-9bd3a9fde4be","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":164,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"6c1cca46-3f92-4f64-b8e7-7445b423d1b0","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":164,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"fdf659fe-0e83-47a0-920f-4b67a5d67f54","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":164,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"df9cf99c-f450-44b8-a22d-324d1b846d6f","block_type":"box","text":"II-129","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"11a53dda-05e4-4278-855a-ea612dda0916","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cc505854-76e3-4017-a1fe-49c7eb011c00","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":165,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"aafc9f9f-7ad1-4b58-84ee-4ce891b9406f","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":165,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"b097c21c-3f84-41f7-be88-a805a9eccdcf","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":165,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"8404a571-3f71-4046-b63b-95edfd93d54e","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":165,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"583a73d9-fdc7-42ba-a930-9b90a42748e4","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":165,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"72ae4e07-4a3e-45ec-9d5b-b26f2d2767b6","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":165,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"599a7870-cea7-4ab5-a2d0-64facc12684f","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":165,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"e76ee1db-176a-4f54-aed8-dee88fc0bda7","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":165,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"ad55c2a3-c519-46a7-9a35-90045c448842","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":165,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"90c6ec20-527c-4423-9f58-b7d5359c1582","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":165,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"4fc86862-53bc-490a-856c-3458c5c304f7","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":165,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"6a90cdc3-f7fa-4958-91e9-4a51a2159299","block_type":"box","text":"limitation.","page_number":165,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"49d263e5-680a-4a81-8e9a-43df95e55000","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long","page_number":165,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"7a87af6d-494a-404c-aba5-ed87fd1a785b","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":165,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"f3f420ec-41f7-46b4-a84d-f6521a75c57d","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net short-term capital loss (including","page_number":165,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"57145a03-d1a1-4397-9ef5-bd6d2b160fd5","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":165,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"8d212c94-2c4a-4396-8ef4-d0ef26cb61d4","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":165,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"a25864fa-b0ba-4261-aca8-3a7883db7b51","block_type":"box","text":"Distributions paid by a Fund that are reported as exempt-interest dividends will not be subject to regular U.S. federal","page_number":165,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"a0e93aa7-b65a-406f-b27a-9b9577570a19","block_type":"box","text":"income tax. Certain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":165,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"8b2bc840-bd1c-4011-ae5c-c8aec2025825","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":165,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"e8468402-f7a8-4751-82a3-d065a57d1697","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":165,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"24fe25e1-baca-4d50-80ed-7b413f5ede07","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":165,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"44e1bbe5-19ed-4a2a-b669-f77b23f96ce2","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":165,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"0fa9c546-6d80-42ae-a35e-ef07fc4e751d","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of certain","page_number":165,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"912faa73-42ca-421e-a653-44579a5d3fd1","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":165,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"e0ca77e7-9d7b-4191-9a31-98d29d6fd78a","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":165,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"51a7e62b-3c36-4865-9a06-da192b891a0b","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":165,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"87752edd-5d35-4255-b9b5-d3d2ccd217ad","block_type":"box","text":"are derived from income on debt securities, certain types of preferred stock treated as debt for U.S. federal income","page_number":165,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"01891055-737f-4c99-903d-fd6a79f34bbc","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":165,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"d5cbd501-412e-446d-8ea2-250e7f0ece2d","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":165,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"8153aa8b-7f9c-4e0f-b9d3-7686826801b4","block_type":"box","text":"constitute “qualified dividend income.”","page_number":165,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"ef563f95-08ca-42f3-8074-8854a3d1d3bf","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":165,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"30bbfce3-d538-40fe-a304-0018f35c3a7b","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":165,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"5ad80aae-b45c-4a34-97c6-7cb36bec7d00","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses) is not","page_number":165,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"9d475421-a178-4850-892b-858d9557efa6","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":165,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"dba68010-5240-4dbd-ae0b-485190e0d9b2","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":165,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"b2cb32e1-f51a-4481-9fbb-bca98c33303c","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":165,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"17c9965c-bf16-4a94-9a3a-2792320e82dc","block_type":"box","text":"income, as long-term capital gain, their proportionate shares of such undistributed net capital gain, will be deemed to","page_number":165,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"992b9287-003f-4465-98a3-e9db89a42551","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":165,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"588d0a4a-092b-4ddb-be7e-14a37e46c5d1","block_type":"box","text":"exceeds that liability) their proportionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":165,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"8aed34eb-a4fb-4ff6-92ca-abb67ebccac7","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":165,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"03b4301d-b3a3-471a-a9b5-c0f3944d6afc","block_type":"box","text":"against their taxes.","page_number":165,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"d3f04d02-4f80-4dd6-9990-055a93d31b37","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":165,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"67ffbdd0-850b-431a-8749-db791bd992dc","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":165,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"3c169244-6a50-44cb-8e35-83c0d58bce52","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":165,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"d8944b8a-d20d-49eb-be8d-50a21341140e","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":165,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"b1b6f545-13a1-4da7-a631-3d4719cdb24e","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":165,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"115e45ed-2a65-4d24-b29f-56e4cb218815","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":165,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"b0cc10f1-1ef6-4fbb-82d9-fa5dd712953e","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":165,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"a8f93169-88fd-41c6-bc2b-091e2336f04f","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":165,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"0647a0c9-4e7a-41b1-a9fb-bc7af1ea52af","block_type":"box","text":"dividends received by the shareholder.","page_number":165,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"2494a9d5-f026-4693-85d1-136ad009e8c6","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":165,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"2a413bbe-97c5-4a7a-9f8e-a34315b073bb","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":165,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"4a0bbfa7-9508-40f4-bb3e-76627bbe79cd","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":165,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"33be01bf-af8a-49b6-b1a2-9868c87e17f3","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":165,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"e8a97183-147a-45b4-97bf-a0378342ab1a","block_type":"box","text":"II-130","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"59247e69-2ee6-4987-afc2-8b58939a3534","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1c0bb2dc-9be4-42ef-82b9-25ca779590e3","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":166,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"41505f3a-484e-4e33-9595-83b49ec6d375","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":166,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"6d7782d2-9c8c-46e3-9ab0-135ab42b8f5b","block_type":"box","text":"calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable year, then the","page_number":166,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"0cbb09a4-546b-4672-9eba-ed89151b0ed6","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":166,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"b31d2567-be2b-462c-a8d2-3bc2bbea15be","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":166,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"24a2f032-2d36-4085-a8c4-c9a497119b02","block_type":"box","text":"taxable year, certain net capital losses arising after October 31 of the current taxable year, and certain net ordinary","page_number":166,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"5881cce4-9b44-4aeb-9187-d3abc2fb2585","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":166,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"ec29e49b-b462-4002-94ae-ed01defd6b24","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":166,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"287e3a5c-54bc-42e4-bacf-bde0b177861f","block_type":"box","text":"taxable year.","page_number":166,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"efbc2d04-376e-4d29-be52-7198ff1723b9","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":166,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"9d23705d-d6d2-4959-9377-ac11b2538ced","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":166,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"f29971d3-4f0e-416e-ab41-e3b5f7f680d4","block_type":"box","text":"basis in the converted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":166,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"a3672aa4-79fa-4c34-98c0-5ae67f793fcd","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":166,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"491ed40a-0727-405a-879b-df345dea2ae4","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":166,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"62f982a0-3377-4f97-a582-bfac900196b4","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":166,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"1616b3cd-bd98-4ffc-aa4c-fed13a6b75f0","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":166,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"e835bbe6-7edb-4070-a7a5-090a7687d6c3","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":166,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"15174ef0-26de-4ced-a32e-15bcf958c530","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":166,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"bb92ca42-2a9f-4cc1-8d27-89ed12debdeb","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":166,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"c0465fdb-bd0c-4629-b1a5-a7d3c4e17e97","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":166,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"44f22376-c702-4e1d-9f8b-5d6f32b54a12","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":166,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"83e14942-127a-4d4b-b63b-0408c8fc85a3","block_type":"box","text":"generally be treated as short-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":166,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"1f297686-4a4b-4597-b0c3-8464baa0d01c","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than short-term capital loss, to the extent of any","page_number":166,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"efe56a96-c48b-44e3-be6e-2f3988632002","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":166,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"96fecce4-4e05-4dc7-b377-affa908b3dc6","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":166,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"143d0442-4b17-486b-a812-a16b2a53b06b","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":166,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"9eed289a-baa9-445e-8dc7-a85591762d66","block_type":"box","text":"special tax rules that apply to their investments.","page_number":166,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"03199c72-ff00-40be-b9f4-6c01f8e980d5","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":166,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"1bcde32f-3bf6-4806-8118-65c8c49c20a7","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":166,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"38922b89-0d33-4e6b-bd3e-ca4c9fd1476d","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":166,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"82f55f61-4d51-4b4c-bd19-eb7b6ac6cef2","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":166,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"ca3cd936-3ebc-4d29-813a-2d7ca3940c68","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis information for","page_number":166,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"8f0aaf30-8210-46ce-a206-746832239375","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":166,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"1a0f8557-a2f7-45df-bce5-b9ecfeb52ed0","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":166,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"7e2e3059-072d-4df0-a1f6-93e579211700","block_type":"box","text":"long-term or short-term. The adjusted cost basis of shares will be based on the default cost basis reporting method","page_number":166,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"0a62fa26-c30d-4b94-b8fa-48783ee9c066","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":166,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"b7807809-79bd-4306-9472-959971c440e2","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":166,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"f50d7579-f25a-4ddc-9371-a05838f85a35","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":166,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"77390814-f447-4a95-8bf3-5b370968c9ff","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":166,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"b952b95c-3db3-4185-92a0-04c6574ba760","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":166,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"a5429194-dce1-4deb-97ce-e573a5a029f8","block_type":"box","text":"apply, but the Fund will continue to report to the IRS the gross proceeds received by a shareholder from the sale or","page_number":166,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"f4fe4c3b-dc71-4cad-8b5d-c2bd92448474","block_type":"box","text":"redemption of such shares.","page_number":166,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"170c1658-be25-411b-9c89-1e63363b3f2b","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute portfolio securities in kind for the","page_number":166,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"753e5650-0c22-451a-a8ac-e63273c907d2","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":166,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"49bf9836-1517-4cf8-828c-d2a6138eccf0","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":166,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"ed1d6433-bd56-4dcc-b3a3-6d1076be14e0","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":166,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"77682077-6c9a-4963-8306-16e143bfb4e0","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":166,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"488e5018-4aa7-437e-bf73-7c04a8015779","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":166,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"8c0fa300-7a0c-4251-a271-939b81e0e143","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":166,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"2fb205e5-56be-41c6-bfa0-6c05b2451aaa","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":166,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"c1ca0b00-9f92-4c89-9ac1-48d9d74ba35b","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":166,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"1910a357-9744-41f6-a50c-a603b4f66930","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":166,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"dd338357-a62c-41fd-afdd-fa4a915bb79f","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":166,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"6788511b-85b0-4c67-ba4b-1df1fce17096","block_type":"box","text":"realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary","page_number":166,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"a6a6d572-4000-4e12-848c-426e21e25aea","block_type":"box","text":"II-131","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0c46e924-83de-4589-9155-fad60a93f8c3","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"07a8192c-e7b7-40e3-80d5-ff9633b908f3","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":167,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"e95676b9-9d25-4ec3-8316-1eea8a3efad3","block_type":"box","text":"(and, for purposes of the 4% excise tax, certain other dates as prescribed under the Code) are generally “marked-to","page_number":167,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"12894699-9633-448c-bd8f-ee1a9ba99fcf","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":167,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"4c181300-8cba-4d7e-bc69-9c0157147ac8","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount that must be","page_number":167,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"45f9487e-55aa-485b-84cf-2a5cffd39114","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":167,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"2528bce1-dbc7-42cb-87f8-11bb63f36b91","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":167,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"b31b079b-4024-4314-bb9e-c81da11b22a6","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":167,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"a1c3f575-6f2a-44f9-9276-bd01e6d3560d","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":167,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"80d91e2b-d17f-4949-af63-1c0f94f02884","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":167,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"fe0060a5-433c-4602-8b4c-e7882ffc049e","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":167,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"8336eae7-bb9b-4b45-befe-fad848afc01b","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":167,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"80a705c7-579a-4b44-b15e-ea5ee24e879f","block_type":"box","text":"on a section 1256 contract is treated as short-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":167,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"54d455d3-5cd9-4d38-a934-003f5b29c2a3","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":167,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"ed2489f1-ac40-4ea4-8a6b-2380bed89387","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":167,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"a578c696-7fc4-4f31-8f92-4beb4cd86be1","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":167,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"618f163e-4ddc-4e6a-bae8-380dc305e3e9","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":167,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"8695f42f-5e05-42f1-a4c0-2989b53924ab","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":167,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"cbde189d-90f3-4d58-9178-568a0e540f8b","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":167,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"fa230c8e-50a1-4ef2-9c04-2aff6a56e931","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":167,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"44fa9d74-77bf-4ae8-9ffb-c8d83d8fc487","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a portion of the excess of the stated redemption","page_number":167,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"9eafe275-278d-40a3-804b-0b4ace715b3b","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":167,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"92da0429-384d-465f-b395-94a846f17f6a","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":167,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"4365f00e-ac60-412f-8dd3-5098c8ebe441","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":167,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"f1979da4-c913-4453-99ca-dd0f8ead6c7e","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":167,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"d61a4ab7-fb4f-4d56-bafc-b30de3c41429","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":167,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"3ffd67b6-980f-44e8-a921-8436ae9fabc2","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":167,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"eef60a34-078c-4046-892d-271a050c4515","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":167,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"7d9f6ee4-2c2c-4378-ac76-dcc8e5638a5e","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":167,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"9a11f0c5-c289-4053-8a8b-87bf2f28f728","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":167,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"2777bbc5-2067-429f-819b-39113cd5dae3","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":167,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"1f744bf4-c912-400e-b323-4a325006e374","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":167,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"8941f7fa-e124-494e-865f-182a8507b533","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":167,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"db40b565-5611-4cba-9555-317d994921c1","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":167,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"435c29de-1b22-433c-8e4e-c88f41f81c9a","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":167,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"710d7564-3b60-4d47-b16e-40e12dd7e917","block_type":"box","text":"in subsequent taxable years.","page_number":167,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"f0b8ea4f-6e4b-45a4-8b3e-ba8985b8664b","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":167,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"bd738819-96fc-4631-bb65-4602f4f05637","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":167,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"dc6a1148-f26f-4f6d-96b4-7db9d900e2cf","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":167,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"befe1a33-6cf6-40d2-b4c7-881199e3d094","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":167,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"8d34af60-eb06-45a0-a9de-74a809762486","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":167,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"a539efda-99fb-476e-bbe9-7b715e9c2f43","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":167,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"d0d361dd-26e9-4e46-8537-5bb36c498f95","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":167,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"effd8a6b-4347-4ffd-9ac1-7e91778fbd67","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":167,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"6d46b154-c143-4650-bf92-a7bb1cccd1d5","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":167,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"654e70a1-b0b9-491d-9f02-e02aab1a60ad","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to report such dividends as interest","page_number":167,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"8ff86f49-c95b-4283-a22a-6e862dd4ac2f","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":167,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"c269360c-f007-4ba5-916b-66ae6b7ca516","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as short-term capital gain dividends, and/","page_number":167,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"7186771f-df2b-4c67-b8af-47f3e0eaa78c","block_type":"box","text":"or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":167,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"7590aa0e-da50-4144-9c1f-2109ddadf93d","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":167,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"c1bc72bd-e682-4a49-8f1b-e6eb1ab3b4e1","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":167,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"a27d0f36-8b3e-4291-b941-8001fd5ac18d","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the","page_number":167,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"3b1c5829-0e59-45b5-a203-072e85afe88b","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":167,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"a7f6d5c1-ddf2-4ac1-bbed-6e83b8524a20","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":167,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"aad8ad70-2d0f-443b-81df-39b5e3e15217","block_type":"box","text":"portion, if any, of a Fund’s distributions will be reported as interest-related dividends or short-term capital gain","page_number":167,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"94a9810c-f15c-45ee-9ca4-04b1ebd79480","block_type":"box","text":"dividends under these rules.","page_number":167,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"f4ce89e8-f387-44f6-b866-3cf58d96558e","block_type":"box","text":"II-132","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"dbf04520-b1a0-41b1-8397-eb892201d538","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a81a41c8-c090-4d40-b563-382004f8cf6d","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":168,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"09381fa1-e80f-4950-95b8-82abde5c6e9a","block_type":"box","text":"property interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":168,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"b1f6d9f7-2b2c-47e1-b4fa-affd36b16159","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":168,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"8438a9f6-5c87-4da8-aa87-78b550732f7d","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":168,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"f514be17-8e2d-4f9e-b0f0-95241e9b1d0e","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":168,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"5ea852b3-92a2-4a9c-9ded-1dc98a4e183e","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":168,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"76f78a4c-0433-4118-bac0-46b1ac87a290","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":168,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"d6395204-9b3e-4ccc-8206-52c1164d8c92","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":168,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"f9316886-1372-4ed4-83f8-c4e83358c4ec","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":168,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"e64f0104-0363-4f45-9c42-690da5864585","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":168,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"ac6c215d-5adb-4402-ba98-6f571c27f75c","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":168,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"33964495-70f7-47af-bba4-3cb5249a0972","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":168,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"629c9afa-4cd4-420f-9a0e-a6c546dd7c71","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":168,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"f2523212-f59b-44fd-bb0a-5e545a311937","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":168,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"582ab15b-2de9-4563-8fd4-418dcb29a407","block_type":"box","text":"sales or redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":168,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"7886d8d7-af8b-45dd-b2f3-10fcc33d2245","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":168,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"8e1e8ef8-d643-4f7a-a46e-3bc390fec650","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":168,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"42125783-0137-4136-ad10-94a55a72b480","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":168,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"46f101cd-afb3-4f8b-b60c-4f5928778d1b","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":168,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"327639d9-ac87-4133-9e28-b7a59edb7ad2","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":168,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"b0c19173-d69d-4051-b57d-e6202462423d","block_type":"box","text":"distributions made in the form of U.S. real property interests (including shares in certain “U.S. real property holding","page_number":168,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"36496e9c-be3d-4760-a78d-4af34b72986d","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":168,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"74d472f0-eecb-4ab8-9a05-1be0b86025e3","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":168,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"63d13efc-7b90-4b2b-853e-a9c14e141ea8","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a portion of any","page_number":168,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"b8d540c9-5c51-4c38-86dd-700cf9a09744","block_type":"box","text":"unrecognized gain in the U.S. real property interests equal to the product of (i) the excess of fair market value of","page_number":168,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"3b73ea31-72cb-483a-8ebf-cd1907985a3f","block_type":"box","text":"such U.S. real property interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":168,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"f8e778ee-254e-443b-8230-b1188ed31932","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":168,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"7aac5d19-2503-4272-a20c-2bebad50b7ba","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the tax filing","page_number":168,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"2ec16f3e-50d2-416c-bd3c-8d666f7949e5","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":168,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"b565385b-fa09-4900-9cde-0ab52ac991f5","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":168,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"807a4287-5585-44f5-b093-7a3c7191a3c0","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":168,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"4b33533c-bfc1-4db7-ace8-224da830136f","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":168,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"8be7557d-8d8c-4d09-9922-f964349b2cf6","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":168,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"b6a23218-770f-4f5b-bf6e-0c0a05022f25","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":168,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"6f4025af-179e-4082-82ce-4cd45e907505","block_type":"box","text":"report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":168,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"a6a92627-051e-4e0f-a850-278f929d00be","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":168,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"d0ae7baf-0886-429f-a78a-ec327fcf9ffb","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":168,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"fe242988-a333-4dc7-b576-fc53c19b7e22","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":168,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"096ccbcf-88ab-43ac-b370-8476042d7cbb","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":168,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"302dc9a5-cc29-490b-91fd-53662975503c","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":168,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"e3d675bd-d18a-429e-b699-8617f4c108b8","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":168,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"73aeef0a-9bc8-43c4-9097-741f47d9c78c","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":168,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"c3cb06c3-865f-4342-8571-07b2955ac3e1","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":168,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"532f89a5-8f71-408f-93d9-75a613b1be99","block_type":"box","text":"account, an investor must certify under penalty of perjury that such number is correct and that such investor is not","page_number":168,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"79a3cb57-c42f-4d7e-9f68-9ca722d3f47d","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":168,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"fb1e18f8-d7a4-4615-a897-66ae62f06ce2","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":168,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"d24cd440-cae3-497a-bb94-07761116731b","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":168,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"9a7df0ab-0f8c-4f9b-aa5d-1ce1c46b85f6","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":168,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"a65e9ef3-090b-490a-bcfe-402290ec7bb3","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":168,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"73120c55-e3d9-4221-be61-2b85aa9b8e3f","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":168,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"abc0d54d-cf2a-4b48-88f1-4f5c7dd2b15c","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":168,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"f1038f23-bc86-4b80-9d9f-f638247bec45","block_type":"box","text":"securities are in many cases exempted. That a loss is reportable under these regulations does not affect the legal","page_number":168,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"89ba6be1-f254-4cf9-bed3-9b8a89a3d572","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":168,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"52aebd43-8435-4767-8d58-4d7dfc9161bc","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":168,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"a5acad26-1cef-47f8-9833-8d2fa5cdbc81","block_type":"box","text":"II-133","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cd2619dc-9bff-4922-abff-c833ba45944a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a0a72484-91db-4bf4-9ded-bc20811ab7d1","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":169,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"eac03f2d-877d-4624-9d0b-f793d176cb3b","block_type":"box","text":"mortgage pools or other investments may cause the Fund to report some or all of its distributions as “excess","page_number":169,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"d8f92cab-c906-49bb-a2d3-8368a390a620","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":169,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"799c3592-c5fd-4b8a-8e4f-d00d3cb7d9de","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":169,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"9bbdb85c-7fc9-40ea-87f8-98327adb3316","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":169,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"0b5b1cda-9881-4a13-a652-d43d79fe0270","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":169,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"081ad39a-4277-4a58-8429-b305a44694e6","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified","page_number":169,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"4c1b1c52-a1cf-428c-a932-f044e9e292fd","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":169,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"00daf8d0-044f-4bbf-ab77-c3f3ab1b01ad","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":169,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"a4d0b4b5-428b-47d5-bfa7-7318ba587af4","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":169,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"febb1e08-c5b8-47e8-ab6f-823936e6728d","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":169,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"3e3a2799-3ccd-4aa8-bbd1-f91d0aeb7eb2","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":169,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"31d48b7a-d765-405d-94f7-684881d9bee1","block_type":"box","text":"investment opportunities.","page_number":169,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"c5a78363-5371-426e-9b5e-ac557ac24190","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":169,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"d16fce0a-7c92-421e-a3ed-6b60a737159c","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":169,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"fa69abba-f2ae-4e01-9736-dc2042e9fbaa","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":169,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"d686c7ba-f8d9-4baf-9602-bbf3c62bc239","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":169,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"44f25e61-4f3e-4391-8f0a-6e7248265ae1","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":169,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"b23da1d5-a0d8-4342-9d2a-a318756d46f8","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":169,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"0060f97a-f9b4-41fe-be99-17d1d8b46e97","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":169,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"c2b4eae6-df27-457f-8090-ce1c73a30755","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":169,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"3cf9c45a-65b4-47ac-bd5f-dc4277f597a8","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":169,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"a137cffd-c1f5-4a35-b153-b065dc4d24b6","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":169,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"6f5dcb8b-fa22-4d9e-9612-4d8c47ae6309","block_type":"box","text":"the Fund. Further, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":169,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"82f8b071-013d-4064-b2c9-c7fec7751f1a","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":169,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"a5ec5e87-eb23-4de9-b780-63a1ef69be12","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":169,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"7bf26cb9-19fc-4619-b8c9-a58d7aa0b5e4","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their proportionate shares of such foreign","page_number":169,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"a1cf3156-105f-4a2d-b589-4832519222bc","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":169,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"7bd63010-ab14-4dad-8262-1acdfbe535fd","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":169,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"82dd65a4-0f97-468a-94d6-c4e849fbdfc4","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":169,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"580cc448-d3d8-44f6-97cc-b42316de1ea7","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":169,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"ccc59b05-1f5e-42a2-bc61-8398ba3ea003","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":169,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"6e2aa19d-3a0c-4e13-bc4e-a9c941cadba7","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":169,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"b17d804f-7198-4975-96ff-0f23f667065a","block_type":"box","text":"having been paid by such shareholder. A Fund will report annually to its shareholders the amount per share of such","page_number":169,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"cbb3e139-f2bb-4add-80f2-fa8c34e6c319","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":169,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"8636e3ed-cce4-4819-8471-47a721249b2e","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":169,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"5cadf704-de68-4c1a-82cf-ebef438bca04","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":169,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"af249b64-ff9b-4305-888e-94f27c22cb17","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":169,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"0a8e0d13-778b-44be-9ff8-c7ed1f95e433","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":169,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"e7606c14-2bc3-484a-b87f-71c9c2f560c4","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":169,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"6acf2269-d180-48ea-81ea-463acd7ac696","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market certain types of","page_number":169,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"40dfd2a6-055e-4c3f-8c86-5f3c9dc904f3","block_type":"box","text":"positions in its portfolio (","page_number":169,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"9387c548-3f64-483c-9c3f-eb6675a92821","block_type":"box","text":"i.e.","page_number":169,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"92116832-8f38-4840-b7ef-6d15d0facb07","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":169,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"95472ede-e1a4-4542-a0fd-9f8dad9cf34a","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":169,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"474a1aff-c3be-497f-9b44-a19c85b44dba","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":169,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"c01931b9-4b3c-48e7-96c2-1fb2d82dd579","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":169,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"a343c463-d581-4f91-b689-cbac832ed14a","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":169,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"7dc62fba-c790-4a88-b6f8-93dbdec20eb6","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":169,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"98df9db5-99b1-4d6c-ae61-633f8f7c96bb","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":169,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"84609079-a19b-4ba3-9107-800f33866a68","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":169,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"80122b10-589a-4641-b292-b7801d0b1513","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":169,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"bd90024c-55fe-4f4d-b78d-86c0ea56fd8d","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":169,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"92a83256-6d9b-4273-8e0a-84e0e23bc4b6","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":169,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"6e913b17-c002-456d-9825-3b3018509be6","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":169,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"3305ed3d-05b7-4aaf-a175-8aaa46b8f85e","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":169,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"e8f514ec-195c-4c5f-bf3f-af5f5218daa4","block_type":"box","text":"II-134","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3f2cd490-3a89-4d79-a7f6-763a4bd1f32a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"97bc4a8a-92d7-4fc8-a2d3-874a1db6b6c2","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":170,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"6486cba8-2b62-42dd-8412-66f0ed3cd55e","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":170,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"f668a7f2-1a65-4508-910e-0bd6bcbe27eb","block_type":"box","text":"capital asset.","page_number":170,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"1f90bdde-3eb6-48c8-aefb-a5dca4907103","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":170,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"08ec719c-ba3f-4203-8459-b90b475d456c","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":170,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"33a7c8e0-5dcb-43e2-8fd3-78e89dd4427c","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":170,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"3eba4b8f-6b97-4561-b7c2-86c3af9b7d49","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":170,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"4bce9182-8c54-4bec-a80e-cf0f372a7828","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":170,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"88da67a5-ea64-4d08-8b4d-ffe7d8d36d99","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":170,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"9ffa2ed3-9007-4e78-865c-78558c5f91c5","block_type":"box","text":"Fund were to invest otherwise.","page_number":170,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"716589ed-2582-4546-ae13-18aca437c298","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":170,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"feb00dad-ea2a-4f05-a785-dce5451f1b9c","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":170,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"b868d070-4ffb-4cd3-b8b4-5982873e1245","block_type":"box","text":"income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":170,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"d4652293-5dc8-47f9-bab6-de758f14b4c5","block_type":"box","text":"to report all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":170,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"6d0a7fd6-9cf6-491f-84b2-570ee73f8f2a","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":170,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"a3dfb2d1-1655-44a8-ae73-79299db92519","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":170,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"4be39ad5-5bde-44d6-ba19-93afee946c70","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":170,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"bcf470dd-1885-43db-a377-48b44fa83fc0","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":170,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"9d679c2b-8634-4794-a00e-e3173301fca5","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":170,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"8229d105-d3c6-45fa-a7b8-1756ae54dea0","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":170,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"1f093d45-9949-47cf-b62f-22256c4e5f70","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":170,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"d8ed0e14-0f7b-4c4e-8969-22494f017dd7","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":170,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"2a7fb071-dc7a-42ed-9cee-001283149442","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":170,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"4d97a913-133d-41f5-b01d-e52887594868","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":170,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"85c234a2-d663-40ed-b553-916ee23c47f0","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":170,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"5f62859d-1b13-41b0-b774-3b9ea5051e2c","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":170,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"35be65e4-a066-4a4e-a78e-ba62e3915766","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":170,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"72edaa0a-fd2d-45a2-b1f2-d5f097990509","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":170,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"61bd422c-bce1-44eb-ad60-e3dfa76f56b1","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":170,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"7e172cbc-158b-43c5-85b9-4d55f5e9be36","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":170,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"47c8d011-8ce9-4d9d-9339-ba028ff51478","block_type":"box","text":"PFICs, but in any particular year might be required to recognize income in excess of the distributions it received from","page_number":170,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"6379d6bc-764d-4be8-90e0-d0e98a8cc326","block_type":"box","text":"PFICs.","page_number":170,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"d4f6882b-9e43-4e32-8af6-4fdc0c56430a","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":170,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"ced8f960-aad8-4314-8496-6105525d99ae","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a portion of the ordinary","page_number":170,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"a104c254-64fe-4118-a9d4-44293d9d5698","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":170,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"2ef92871-6b0c-492d-a143-cd1b81b31f12","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":170,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"15ecbcf2-ffa8-4d90-9008-9def36c880a2","block_type":"box","text":"the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be","page_number":170,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"2c31fbff-368a-4ec4-884f-7faf0ffaa5e0","block_type":"box","text":"difficult or impossible to obtain.","page_number":170,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"0f9dc2bb-6a52-4f7c-ac9d-e9c5ffaff55a","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer all or a portion of its net capital loss (or if there is no","page_number":170,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"7726b227-a26d-4200-a6d1-aeaeae715543","block_type":"box","text":"net capital loss, any net long-term or short-term capital loss) realized after October and its late-year ordinary loss","page_number":170,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"2e043b6f-2b6f-4271-a60b-01d0c1ebe04f","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":170,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"ef7be136-dd0f-4cfe-94ed-837c558f286a","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":170,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"a6c77653-58ad-40d1-b2af-bb906b673932","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":170,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"7915b6fb-0480-4e65-9067-4ef5682d4e9f","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":170,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"a6a1c003-fcad-4272-a6eb-f1136d3c8ba4","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":170,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"dc4c9eef-fb30-461d-acd3-8e4e5e159c42","block_type":"box","text":"Municipal Funds","page_number":170,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"79f7df6e-c118-4c05-93f6-88f87323c9c6","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":170,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"b5b52ae5-8a55-49d3-9001-06a8384ca980","block_type":"box","text":"Code. Under such section if, at the close of each quarter of a Fund’s taxable year, at least 50% of the value of the","page_number":170,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"b3fb96c3-6b60-40d1-b2a9-c4fd35869282","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":170,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"31d62c43-cc30-47f4-bb94-357e8315e7c3","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":170,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"a9baf254-d673-46b7-9792-38034e0b997c","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":170,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"e662f46d-3818-45df-8e37-1b28a8c026b1","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":170,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"b45eba77-83c8-4026-ac63-73e35c7ffe5a","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":170,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"bbd7790e-7bce-4349-bf2d-99f5516041a9","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":170,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"ac928708-39fa-4d56-9dba-ec601dce549e","block_type":"box","text":"II-135","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"98eb3aed-e05d-4b7a-ab5b-cdc711d89214","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a6be3249-7df0-4f38-a002-f95dc730f354","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":171,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"459e1684-cc43-46ae-80b9-8d83f8b2ee38","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":171,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"3da70777-6310-40ca-8909-d070d8964779","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":171,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"8ed730eb-6f53-497b-9857-d6914ea5d7c6","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":171,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"c9d56e05-e6ff-45fc-8dd3-9c86838e2673","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":171,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"f736537d-d0eb-40b4-aceb-20a94bf48220","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":171,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"f50e551f-eb12-4879-a240-ef6e7b2aa90d","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":171,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"1efc60cf-3e4b-4120-9a7c-0ce89b18399d","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":171,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"623a8890-ecca-4fc1-bb76-a2072c17e7d5","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":171,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"e173c0f8-9d7e-4134-8889-f33675f54c0b","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":171,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"ff9d470e-c465-447f-9f79-f0684fc47634","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to property financed with the proceeds of an issue","page_number":171,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"0d0166f2-f83c-46f5-aa7b-30b23574dd1a","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":171,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"879c108b-b528-4dff-8739-42e9ce80b498","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":171,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"ac090e89-2069-47cb-99c6-b12b27011879","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":171,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"253d5d9d-50d3-409b-9451-4e57b244ba17","block_type":"box","text":"constitute exempt-interest dividends.","page_number":171,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"43409085-a5bb-40df-b9b2-0ce638ec0370","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":171,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"7c68c187-9aaf-4970-80a9-27913b5a78a5","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":171,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"dea7d7b1-bda2-4c56-9682-484dff1bf91e","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":171,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"30380189-d987-4b37-9cac-ca587a7d2a2b","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":171,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"89c40123-e607-4c1c-8e9c-96728ea9975a","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":171,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"fb9d65a2-e52a-4c9b-8018-da1488bcbb92","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":171,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"264d1644-9361-4a26-86c0-8599bd4901ff","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":171,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"b12a03d9-d007-4dc0-b123-0951ecf27296","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":171,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"a5948122-d51a-4a91-8aa3-c227c1232d3a","block_type":"box","text":"income dividends received by shareholders.","page_number":171,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"7752688f-45e1-429e-8ed2-6f4a9bb04fe7","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":171,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"d90678f5-14f8-424a-afe5-81db8eca023a","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":171,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"24771836-ca08-47ec-b6e9-8395532afaa6","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":171,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"332b8c4b-3038-4474-b1cb-8521323b71d5","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":171,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"5de76cf7-6691-4abc-a828-ffadb5c9c639","block_type":"box","text":"the accrued market discount.","page_number":171,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"c3f5a8bc-026d-492f-b807-976841333851","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":171,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"8394c1f7-24d8-4b0e-b619-33471739e0d4","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":171,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"bcf0c302-4ed9-4967-b0ab-bd24a59a3e23","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":171,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"59d5ba5c-85bc-417a-a5ea-9cb02722ec55","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":171,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"5fa2895d-932a-4a32-8516-2e93f469fa55","block_type":"box","text":"e.g.","page_number":171,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"f1833edf-8a38-415c-8600-70390063fe2d","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":171,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"b83ec7ca-64d6-4c4d-9e3d-997097d976fa","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject certain investors in","page_number":171,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"9858a91f-993c-4bf5-8890-5d44ad4834e0","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":171,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"46fc904f-f1cd-4879-a7ba-ffd4cfd251b6","block_type":"box","text":"“PABs” and will report to shareholders after the close of the calendar year the portion of the Fund’s dividends","page_number":171,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"d7f40516-7dfb-415a-801c-c1bb2a88fd20","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":171,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"3830bb05-27d6-4326-9eb3-bbcf1dfc5d2b","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":171,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"f1026328-d9b0-46bb-a5fd-a54bc8335fc6","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":171,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"2e8a8c2a-99f0-4eb3-b3c8-eec771c96f2f","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":171,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"fb2678ee-b8c7-4d88-9786-4ef6322338e9","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":171,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"66bcecf0-94b8-4239-912e-e1303574f871","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":171,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"4520f36c-d873-44f6-abb2-1493bb615784","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":171,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"5a9757e0-6869-46c5-864b-cc350ebd29d1","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in BlackRock","page_number":171,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"45fdb6b2-c144-499f-99d1-c65300de453f","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":171,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"6ceca8cc-e145-4411-a6fb-0b8634b1f364","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":171,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"39f2616d-f616-4cdd-aec2-308ce753e060","block_type":"box","text":"within each applicable state.","page_number":171,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"6a8bacee-8688-42b8-bb41-f84e776f6cf2","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Portfolio in","page_number":171,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"40e3e5a1-371a-4df5-b38b-5adeef80dd94","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":171,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"845ae0a3-c16b-41e6-8760-d149c7ccbee8","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":171,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"a95fe827-6bc7-443c-82cb-8b37639b42be","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":171,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"c293a8c9-45b8-48d7-a67a-3e14ed095c6b","block_type":"box","text":"to change the classification of a Master Portfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":171,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"956d1649-6322-49d6-a2db-fb09a409c832","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":171,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"889d8556-068f-4a7c-90ab-49e2a30f08d0","block_type":"box","text":"II-136","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3c6fa5fc-1bb8-4b85-ae6b-6d851f7269ab","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b0681853-49f8-4116-a430-bb3c66a985d1","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":172,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"2206f805-a2a1-4d41-a4aa-c3bb4c3bcb87","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":172,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"faa928b3-189f-48c5-8abf-179f4807fde9","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":172,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"ff9509ab-1b27-497d-8e2b-75b3ed8aeedb","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":172,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"afe9f810-c6f3-4ba7-bd56-7319dbbd8e2b","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":172,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"e724b172-4caa-4407-8475-bdfca283be1a","block_type":"box","text":"exempt from state income tax.","page_number":172,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"ba7179d0-c594-4f1c-9132-397b82e0585c","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":172,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"920b65e6-da82-4b7c-bb4a-41c7075a2f16","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":172,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"c858b8c4-7ecd-4b21-bae6-5e99aa5efe4c","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":172,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"aa1a21b1-362f-454e-be1f-93a64a6dde4d","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":172,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"514e49c3-711d-49f1-84ea-b154b7f1d919","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":172,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"05d055da-27c7-44cd-a9a6-408d0803d01d","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":172,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"9507b216-bc63-49a2-aa50-9197bf6d5a87","block_type":"box","text":"decisions may have a retroactive effect.","page_number":172,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"e13d337a-de30-424c-8396-5af18f8cee23","block_type":"box","text":"PERFORMANCE DATA","page_number":172,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"be04bfbe-a5af-4868-9d3a-aea3f63d1f47","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":172,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"0a1dc297-c06b-4150-acc1-919f608a3cdf","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":172,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"d6cb72a6-ad09-406c-aa3d-6ce47946ba8d","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical performance and is not","page_number":172,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"cb56707c-e138-4ea0-8d52-72fe35a20b21","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":172,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"e2a00e99-ab6e-4e01-b4d9-b92fb8ba97ba","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":172,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"9db591e0-1491-4ca8-9736-f4e05a747344","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":172,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"3222409e-74af-464e-a794-e53955eed728","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":172,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"5ebbdc00-8b10-469d-a4a5-7b71e1a9ad97","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":172,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"797b250c-c312-4a26-a507-54b7fdf81245","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":172,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"5b054817-624d-4313-aa9d-6bb99fd72206","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":172,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"444ee5a5-0504-480e-8804-5146a6b7c862","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":172,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"c3891695-1d45-4862-bdd2-a37ecba48a48","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":172,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"f5262731-11b2-4c61-b4f5-e92331f5af02","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":172,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"4eb1d799-5066-459b-a3a6-575242a52ec9","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":172,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"e2ea3569-6d59-4511-8355-f9ff43c22c61","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":172,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"2ed9e3ee-d29d-410a-a3c2-fc14fb7b5cfd","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":172,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"d2c78909-5f18-46fd-a512-0a2ae87e493b","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":172,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"48287a10-b403-4beb-82eb-bfeb1384a5f4","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":172,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"85595c86-4654-482c-9b49-894628fd0945","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":172,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"d5d11fed-c3f4-4115-af5b-9b225373b8d8","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":172,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"29ba1eb9-f888-4e00-80a1-94f3371264b1","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":172,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"27529f12-a5e8-4fb9-b857-c8004673f70e","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":172,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"e10db57a-4c40-41e8-905c-ffd0696f530a","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":172,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"f4ab9c33-a061-4576-8e6d-ed1f42c210d1","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":172,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"d69b3171-e4ff-421e-92a9-b7be52726de3","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":172,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"08e99058-1392-42ce-9d38-388fea03bd70","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":172,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"005f2654-3d87-4f04-bc30-1313a8e27d19","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":172,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"046a07b2-9cc3-47ba-8435-1c1f23ea0a66","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":172,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"0d19968c-4762-46c4-adbb-2fd2e2e26f35","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":172,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"5be28d8a-7de1-4e41-b8d8-2cf29358bd3c","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":172,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"f94c4a50-dd50-4edd-a807-c1a36e4b972d","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":172,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"a6cd2a0b-fd30-4157-a9ab-1730eb5becd2","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":172,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"b618a301-5877-4020-8acd-0d07eeaaab4e","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":172,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"331fa64e-4647-446a-a590-9cf6ef681239","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":172,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"7bd9acb5-1679-4306-823c-8ad95c90b517","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":172,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"f0f98a4f-8fa0-4c63-85fd-ece7021c1542","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":172,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"f6877d2e-01ce-4398-b5c1-e9a41b1b15fc","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":172,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"1deaed6d-1486-4b2c-b26f-54f4bb840b95","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":172,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"99b2e829-a468-4049-a8ce-ef29999a8918","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":172,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"db29af6e-0de3-4884-8e64-782dbfcf6b06","block_type":"box","text":"II-137","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bc524621-2f92-47c5-abaa-0126a9cd44ea","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c3bc3e0b-d781-451d-a992-9fbfc6354ac3","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":173,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"1ec537b2-e863-4e69-9002-d7177308e511","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":173,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"2e8a0b10-9dd7-428a-a39a-26bcb61e19e4","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":173,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"1527971f-5f81-4f18-baa2-e05e721287a4","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":173,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"38459086-3e16-4c39-a751-d3669d7c523e","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":173,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"d3ac57b1-34e3-41ad-944a-77899e14d0a5","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":173,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"247b9353-4c07-4651-afd8-43481054343a","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":173,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"bc8109db-0c21-44c9-bb48-18e35e2c43f6","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":173,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"d992d949-f8a8-4ba6-9850-c8a572ba08c3","block_type":"box","text":"some other amount, for various periods other than those noted in Part I of each Fund’s SAI. Such data will be","page_number":173,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"bf532e95-daa9-4c06-96aa-98684baccd97","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":173,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"921d3c9b-d7a0-46a5-87f5-730c4fa829fb","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":173,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"aa3158a4-fffd-45c2-8252-78205cec5499","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":173,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"06b4c21d-2720-4691-894e-e9fd0c32fbb8","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":173,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"04585c8e-31ae-49bf-b007-8bf132355402","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":173,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"8f54d363-7d26-4f10-bc04-7d48ecb32f8f","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":173,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"f75cfb39-2ad0-4ee5-9309-53dc3df40190","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":173,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"0186c252-e5e8-4fcc-82a9-c4826a242c1d","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":173,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"66c4d56b-cadb-4409-be7c-fa52b2ee5421","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":173,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"aa8474f3-0e18-4ef4-8ecf-140b4e881393","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":173,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"940534f3-86cd-4aa1-bea7-e465131894b4","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one","page_number":173,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"e7e13164-2d5f-485e-80da-040823e7d5b3","block_type":"box","text":"minus a stated tax rate and adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":173,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"df57182d-9c37-483b-9e6c-45740d5e4ff9","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s portfolio, a","page_number":173,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"75b23a6f-4ad5-4fb9-8607-3e540bf9fc58","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":173,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"f5d151ca-5eda-49f7-a01a-12f3656bffc1","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be worth more or","page_number":173,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"75034f2f-9181-40f3-b1f9-34e645e53659","block_type":"box","text":"less than their original cost.","page_number":173,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"c5e488bc-7ea1-4891-9b8f-7eba264896c1","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":173,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"180776cf-9fd4-4da5-b653-6365c8982af9","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":173,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"4db2ebd6-e48a-4317-875d-ad8e4b1eebf5","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":173,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"6c57611f-ae61-4a57-a5dc-c730e42d787d","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":173,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"42ac3544-1a31-47eb-a31a-d2473ca65088","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":173,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"6fbac93e-c028-4716-8039-7efefb7b5abd","block_type":"box","text":"lower amount of expenses is deducted.","page_number":173,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"084b7389-1cc3-437f-aa43-e147c7b87587","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":173,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"1b2d4bdd-64f4-4686-8b8f-3592973246e4","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":173,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"9b8889cd-f22e-435c-93b5-b0f00b5e13a2","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":173,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"5bbe0259-8d4b-4aeb-87c7-dd7b8a8d6950","block_type":"box","text":"Money Magazine, U.S.","page_number":173,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"738f78cd-9db7-4e0d-a26f-5bf292f12456","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":173,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"81b5d65b-11d2-45d8-9af4-afa6fd30978a","block_type":"box","text":"or other industry publications. When","page_number":173,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"a237bd4f-266d-44cf-93d3-3523d7ad6e38","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":173,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"68150229-103d-4ebc-b521-6818797aacb5","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":173,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"8e9db632-1192-44e8-821d-5b0f32f69d57","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":173,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"6c347785-c314-40b1-b3ea-0695c11d85db","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted performance ratings","page_number":173,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"1e67e402-6b8c-4c8c-ab37-a8db00c968ec","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":173,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"d561588f-f2ac-4cd1-8e15-786d3065ee61","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":173,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"340fdcc8-5dac-4050-b88e-12454042fe37","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":173,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"1715ee72-0014-457f-98c3-0b61570b47bb","block_type":"box","text":"developed by Fund management.","page_number":173,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"0a7db95e-fe3e-4c31-a3da-9659bcc63e15","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":173,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"e12cfc60-b4dc-405a-9e47-218ca8187a00","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":173,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"e5b94bac-f2eb-4155-b2b9-b4a3ff682741","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":173,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"b18a47b2-ec47-43e8-b6c0-f2dcd7c93b85","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":173,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"a45c19ad-b4bc-4a5b-914f-490d822bd4d4","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":173,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"ae1622e3-ab7a-4115-8fe8-f45635e81ccb","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model portfolio. A Fund may also","page_number":173,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"71947917-8206-477a-850a-ff613d03ebdf","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":173,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"3d920e2e-d89d-4ed1-bc13-af5f7d7daed8","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":173,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"743dc9a2-eeb7-4ae7-8d6a-957298fee33e","block_type":"box","text":"II-138","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"69efe731-20ef-440f-a530-3fd5e74b319a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"22c5e57a-6b7a-45cb-8086-5daf46099bd0","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":174,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"cdd8ceb6-b87a-401d-929f-eccde56d58aa","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":174,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"ffeab459-5229-4068-9fd4-0667284e888c","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":174,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"3ed91633-d4e4-4cbe-8bf8-c89959ce3106","block_type":"box","text":"Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to certain other","page_number":174,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"4c8cd10e-01af-45d5-90b8-52287e26e871","block_type":"box","text":"Funds, as applicable. Please refer to Part I of this SAI, which discloses the policy applicable to each Fund.","page_number":174,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"b12b5dd9-0612-4ac0-9078-6875fbbd55a6","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":174,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"fcc11d0c-8378-4e1b-9fc6-fd0420185ddb","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":174,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"f7afd56e-7d5b-469b-99b0-11fed80bd55e","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental","page_number":174,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"167f0e66-938a-41b8-a16b-d84d15a45d89","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":174,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"f6f594a5-3c4f-4c1e-8d41-9849712b7c38","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":174,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"4100bb1c-8108-4dc1-a05c-f9a22fbc1fce","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":174,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"5dda036b-a7f9-4ed5-a2a9-9b3d0f91377b","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":174,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"0cb1faf2-632b-4ab5-a930-49baa6fc00f1","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":174,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"d68e98a1-2f77-4b1d-813b-72aac5a2729b","block_type":"box","text":"addition, certain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Part I of","page_number":174,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"29c50c6a-984a-4bb3-81b8-78199d068bba","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":174,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"02f4ad4f-53d1-4764-8a7d-48c2f6349f5b","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":174,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"37a65e96-b7e4-4703-b5cd-5158604ec0d1","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":174,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"a5f9912e-2b2c-4644-8630-a3ee2bca03f1","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":174,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"bc22855f-1ade-42a0-a831-d8302b9fa097","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":174,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"e564ac0d-98cc-421c-abec-fcf1eaf001bb","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":174,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"ea228343-e11f-4ea8-a7d9-07c2873b2ced","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":174,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"da8f6e39-22e2-40f4-906b-affbf2c9f999","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":174,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"c872239e-5e48-4ba8-9f5b-d8f264e5704e","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a particular Fund pursuant to the","page_number":174,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"fe546260-578f-4d03-9711-8636a1bb9eb2","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a part of the","page_number":174,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"230fcde9-79cb-4c6e-a3f8-5abc7f2762d8","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to portfolio securities during the most recent 12-","page_number":174,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"41ab001f-cb4c-4008-af71-3d473ae3631b","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":174,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"ca7f5e9e-43ff-4488-823c-5d9d97ba5f69","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":174,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"bd806ba2-3f79-4037-b77e-b2b233e54476","block_type":"box","text":"GENERAL INFORMATION","page_number":174,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"706bb3a8-7346-4752-9ada-38398a3de52f","block_type":"box","text":"Description of Shares","page_number":174,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"b275f470-f123-476a-a700-af6fd8afe2e5","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":174,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"5fad8050-bb2d-4fae-a06b-2569ef84c663","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":174,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"77f20f77-9651-4d65-b658-bfb435e5a570","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":174,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"9c3bb887-d855-4515-8718-191fc88583c9","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":174,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"d5e25927-8bce-4208-9935-9d65dbb58428","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":174,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"2c62c53b-1b41-4ba9-9a49-41e2b33b2253","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":174,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"5fcc591b-142b-468c-92f7-42f9f62a374c","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":174,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"2dc0862e-d1d3-4c0a-96b2-8ff54c8e3a6c","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":174,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"e74bd4c8-9df6-414f-abc4-3e63421aa263","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":174,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"7741f499-6965-4f95-b5be-470ff6f1d9fb","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":174,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"dad768d0-38a3-40cc-8455-d21d99836521","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":174,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"3d48f603-a179-4d31-9ff7-4f67f622d32b","block_type":"box","text":"Common Stock is entitled to participate equally in dividends and distributions declared by a Fund and in the net","page_number":174,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"c40b8486-8c51-4288-9824-21d176b579bc","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":174,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"46639f5f-dad9-4cb4-9973-323a6e12de4f","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":174,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"31e12bcf-f2c0-43c5-8cfc-49393d60babf","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":174,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"69af9a18-e922-43d6-bf86-c64aa242cd3c","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":174,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"84e935b1-a34a-41ba-8836-41d0798c3536","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":174,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"5472c492-ab5c-41d8-9641-7b8ee286df72","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":174,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"5f8156a6-9d31-467a-bf9c-92524155ef7a","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":174,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"f97b5c42-8b14-40f2-b2c4-58376d2c47da","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":174,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"59f01074-90d2-4804-86f9-fd12158cd8b7","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":174,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"00581f7a-5f4e-49f6-8427-1b4c04a724d4","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":174,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"b87b6a50-83be-49f4-90d6-83c774a94c60","block_type":"box","text":"II-139","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e7d60ee9-5a75-4014-8180-186772839396","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad47c87b-e9a5-4953-8ab9-92d75ea86a8d","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":175,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"30756906-de4e-42db-86f5-30b6157ee0e8","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":175,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"7d24cdc0-7c0f-47f6-aacd-903777e7974a","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":175,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"65bcaf6a-91fb-4c46-a7bd-f5a8df6bac86","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":175,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"a9c5e8ef-867b-49e1-a075-b6b001201dd3","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":175,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"58fedad3-7ecb-4e47-a860-0a0bdd97c02f","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":175,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"cf3c4244-72d5-43cc-b5a3-b103e6a1f88f","block_type":"box","text":"Additional Information","page_number":175,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"7552eb6a-7539-4ecf-8199-c5edd878737e","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":175,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"86c01062-4dfd-44a3-94b7-57804ed0973b","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":175,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"ebf3c0fd-0d91-4de3-8b01-58f696e6e927","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":175,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"0eec79c8-f33c-41d8-ace9-85c92acee5ad","block_type":"box","text":"such name to any other company.","page_number":175,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"69878c0e-5063-4139-8360-b8bf926597d9","block_type":"box","text":"II-140","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ae686968-86ca-405a-a76c-0c20f886f1e0","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"84610bb7-c063-4e0d-8574-99c6e7458576","block_type":"box","text":"APPENDIX A","page_number":176,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"ddf173c6-ab12-4ce4-bcb7-24fc3f015e2d","block_type":"box","text":"Description of Bond Ratings","page_number":176,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"2254b878-6439-42d9-aee4-0004a68c5759","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":176,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"40cbcd8a-4d99-4f43-9b46-ef8c5e8c68af","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":176,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"cc429e42-fa6a-434a-89a6-3654a3aec3cb","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":176,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"010d7ac6-2330-43c3-ae3c-10958ddd20f0","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":176,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"8a96a8fb-b220-43c3-96dc-178a6dd5b7a3","block_type":"box","text":"securities on a particular subsequent date.","page_number":176,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"676235a6-f391-4554-a762-2c0282ed21b1","block_type":"box","text":"NRSROs may rate specific investments (","page_number":176,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"2e65c656-7bae-46ca-a4fe-004d53b2f8bb","block_type":"box","text":"e.g.","page_number":176,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"57f573cf-dfaa-4112-9a67-3a93118bb010","block_type":"box","text":", bonds), issuers (","page_number":176,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"268cad05-85e5-45a1-baec-9e7860612138","block_type":"box","text":"e.g.","page_number":176,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"90e54aca-ea34-458c-a1ca-c3b5be040c26","block_type":"box","text":", corporations, governments and financial","page_number":176,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"ce724164-6f4e-4bd6-a487-56f664f4a1d5","block_type":"box","text":"institutions) and/or programs (","page_number":176,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"dd0ec6b3-4062-4813-af21-b1cb6c28d9e8","block_type":"box","text":"e.g.","page_number":176,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"88b8ba8f-12ec-4e76-aeac-797e408155dd","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":176,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"29247533-50e3-4c76-8747-9a78fb0e0f63","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":176,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"b3c6205a-67fc-47a4-a070-ee32b67c40d9","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":176,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"06ef986d-36f0-4b52-ad4e-b007651769ac","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":176,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"9b04a05c-86cf-427b-a6d7-20abf86ffaf3","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":176,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"b547c6c8-1942-41c2-99da-5853df876d9f","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":176,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"879715a5-50bd-4c5c-bbb3-0acc1877fc60","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":176,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"4a74f878-5d8f-4ed5-8308-dffafc04d8c1","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":176,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"7d61d548-d17e-4f45-8676-a83f235d4bf0","block_type":"box","text":"security (","page_number":176,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"d672c1f8-720c-41ba-b085-94949f4bb3ab","block_type":"box","text":"e.g.","page_number":176,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"d5dfcf0c-aaa0-4eb7-a821-b753c6a3a533","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":176,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"e6f60fdb-64c9-492a-93fc-c37301f7aef2","block_type":"box","text":"highest of the multiple ratings.","page_number":176,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"c72533f5-297d-4250-8455-3cfd02c4cdc2","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":176,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"e0a83779-f39d-4f87-bcf4-dfe0d7f8fe98","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":176,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"179ecae8-6efb-47c0-b070-a854f701fc93","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":176,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"d286e6a1-9f3f-42b2-b32c-26c3c3343a30","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":176,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"8cba8390-80e9-47f4-ba87-fd946ecaa97d","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set forth in the","page_number":176,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"7ba16219-3422-4b6c-b237-b287049b5339","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set forth in","page_number":176,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"ed523541-475b-4c27-9c43-5f3adcc549fa","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":176,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"0697ccb0-7d40-460f-92c6-8ab83b95eee6","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":176,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"c4e088b8-03cc-406d-adff-af1531b9ea2b","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings","page_number":176,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"f61713e5-07a8-4140-8718-dcfb3b5cc7af","block_type":"box","text":"eligibility criteria as part of its index methodology, the fund may purchase any security within the index, such security","page_number":176,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"db06c472-eca0-49e7-9127-fd9f8ab50f48","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":176,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"c997357b-ad5e-4222-80e5-a19c8f462d24","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":176,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"99a79664-5703-4d35-8a82-ee994b2629d9","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":176,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"e3f64f93-7264-475d-b6e0-14f3cf140255","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":176,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"e338451e-b691-4396-a4f6-e5a33566d317","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":176,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"e62a1e1d-bb23-4744-a05e-12a576e954e6","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":176,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"26521307-3773-47b8-9f91-6d738f957e44","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":176,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"05b04fe3-8ac4-4c92-98ba-a525cc853c45","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":176,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"63224e55-54cc-41d8-82e3-8d48aac55cbb","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":176,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"f9e497da-8830-40dc-b666-39481d2a0c30","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":176,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"a56c4ab3-a1be-4594-8435-86bf082f8bb1","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":176,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"481cbb41-357b-40cd-a838-dd050712c57a","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":176,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"5168fc4a-305f-4b86-ac72-7c169d333fb4","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":176,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"cb04bf05-c918-410e-9fc3-f4800352b870","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":176,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"7fccd3fe-3879-40d4-809d-5ea304a82444","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":176,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"56fe0134-22c9-4422-b80b-c00afee2902d","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":176,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"5880baa8-32f3-4830-a10f-89b5618dd026","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":176,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"f0e26ec2-f4ca-487b-90d5-b4696be3a870","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and short-term rating scales and are forward-looking","page_number":176,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"319a93cb-a667-472a-bbbc-d20c67d58d38","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":176,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"f2f0556c-7532-4b03-8570-36bfd29cff1b","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":176,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"e4e03b5f-46e8-4c4a-a15a-e60f946db19b","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":176,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"147ac461-9fa6-4171-8499-28ab6571e3ac","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":176,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"1a19b213-3b81-44ef-b471-19967fe2c3a2","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":176,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"1326ff6d-25cd-489d-aa0c-234d79210c1e","block_type":"box","text":"upon standard sources of variation (","page_number":176,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"10beb935-28fb-4ba8-b433-f4ce9ffa2fc4","block_type":"box","text":"e.g.","page_number":176,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"693b9e35-33f5-425e-8aa3-527d0455013a","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":176,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"fa1090f8-0e56-42c2-8c1c-0980f61d682e","block_type":"box","text":"A-1","page_number":176,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"3a3d5afc-4bdc-4bff-8391-683404d48f7e","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"65c281c7-06a5-473e-b2e0-c6762bd20e4a","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":177,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"853cd8a3-24d2-42ee-96f2-4ec70082ebb3","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":177,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"c5cf22f1-a820-43a4-9b0b-316f2dfd2c70","block_type":"box","text":"e.g.","page_number":177,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"372a7bc8-bbf3-4c9b-a29c-7d4a61734a57","block_type":"box","text":", equity indexed), absent","page_number":177,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"4af81371-69f9-4c94-9109-a3d87e55ba7d","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":177,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"cebca79f-9692-4509-8154-e6d1d43c6158","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":177,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"534b1faf-bf80-4b32-8f95-7eb9910a8a25","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":177,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"3e394905-2c38-4c34-9762-8ea605f94877","block_type":"box","text":"the event of default or impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen","page_number":177,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"961b93ee-8c60-4bdf-8792-7553f9e7ba27","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":177,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"a4817308-3971-470d-953b-8684a393c4b5","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":177,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"281edf10-b1b9-49e9-8153-222198131d60","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly","page_number":177,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"f9628e85-0fae-4496-b564-2ddc8b73e857","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":177,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"7c075841-f4c1-4187-a4c4-96a8e01837d3","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":177,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"ad93adbc-7f36-457a-ab5e-4ab8161a92f8","block_type":"box","text":"i.e.","page_number":177,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"fc615f99-d06e-4469-9a20-b5b4ced82947","block_type":"box","text":", ratings on nonfinancial","page_number":177,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"1967e9fa-7b79-4a2c-a5af-c489d930f444","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":177,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"794e2f3c-2cea-43aa-9369-1506701c64ed","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":177,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"6af6a904-e733-42cb-9d9f-e6124ef828a0","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":177,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"adf40aa5-5356-467f-a2c0-85911d2880b0","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":177,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"f254ae5e-f3c5-4045-a010-95cb92c52350","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":177,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"751e396b-7ed3-48c6-9192-3dd2cf9d5077","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":177,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"b77d6fe8-fae7-4f15-a0d8-586ecd4a6091","block_type":"box","text":"of time.","page_number":177,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"b2619d27-8a41-4c07-8ccb-5e033f956013","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":177,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"e30ab702-c15d-4fcf-b401-b4ba6ac7f609","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":177,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"aebfbe5d-d4b1-493d-a0f7-7c235f06a088","block_type":"box","text":"risk.","page_number":177,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"705255a1-077f-4964-9594-6baccb743f2a","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":177,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"ec9b0bfc-9f9a-44ce-94d2-7216704160f3","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":177,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"66bc7804-c3a5-4b93-ba6e-e0a727463ec3","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":177,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"ac7b95a6-0658-4741-8a65-54ce9c3b46fe","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":177,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"3c58de12-8418-4f5d-b982-50d97dcff79f","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":177,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"f8fc48b0-6957-47bc-ba67-9e3fe6657eb9","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":177,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"e2f711ff-d7b4-4d17-b723-6040403082d5","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":177,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"88994974-9a61-4093-930a-fe0f0496ad7e","block_type":"box","text":"credit risk.","page_number":177,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"7830f791-8141-43c2-bb04-9593e364b7c2","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":177,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"b191cbbe-ce32-4568-a569-49a48ed993b2","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":177,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"4e687565-a7ec-4c94-9fae-99e66e1b2737","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":177,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"ee2f0e96-8611-4af2-8ab1-eba7d418f6ec","block_type":"box","text":"of principal or interest.","page_number":177,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"770f5da8-ad6e-423e-a5a2-a1dfcc724209","block_type":"box","text":"Note:","page_number":177,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"6c19d12a-573c-43da-8642-1b2967e671da","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":177,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"4ee80214-19f4-4308-a704-6da3d1f29ead","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":177,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"b5bd30cc-d2cf-4fe5-8b22-6b24aa4b8a07","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":177,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"ac71341a-f154-4356-b64a-92692bbea919","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":177,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"ea7141fc-c6bb-4fd8-b592-9ebf638c23f0","block_type":"box","text":"companies, and securities firms.","page_number":177,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"db5f87b7-27cb-4f83-9fbb-0624b91e4d0a","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":177,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"01db04f9-5460-4df2-91be-34f93b449c16","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":177,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"5e277fc2-d151-428f-80bf-dfe11ecec4b1","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":177,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"3890a76f-1c33-4be4-a708-312d2dc50d0f","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":177,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"b1f35c24-0833-438e-8f90-83a860eb5c2e","block_type":"box","text":"that security.","page_number":177,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"97d6daca-7d0d-4f77-9fe2-c4fd62f251cd","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":177,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"348e016a-3f99-42fb-9471-4c519e169e88","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":177,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"9390ae75-346a-46dc-8c2d-1ee7a5047aa0","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":177,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"1008821a-f12a-4e15-974d-2ba4b358b1e2","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":177,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"f0f40163-7d18-4932-9773-e9687d12864f","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":177,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"d17f3e1e-eb72-4405-b2c5-f7da2a82faff","block_type":"box","text":"categories.","page_number":177,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"fecf8f1a-a642-4090-bbf5-a5b86e29d821","block_type":"box","text":"A-2","page_number":177,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"adb33cb0-2eeb-45f4-8202-0cfe14181a0c","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3809c96b-f4f0-41bb-8a54-da0f2dad2396","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":178,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"d398d431-b460-4ea7-84e2-abcf4b464b7d","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":178,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"68d7fe0b-cdb2-45d1-bd72-8ef450d59d2e","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":178,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"c28c3047-fd2f-4bbf-a544-5b62136dc87f","block_type":"box","text":"an issuer’s self-liquidity.","page_number":178,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"98c16b17-99e7-4a96-b291-e190dd298098","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":178,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"cbfe7c4a-328c-4e6c-b111-90524d84a58b","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":178,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"d5de1291-fc16-4968-aaa8-dfbde88c986a","block_type":"box","text":"MIG Ratings","page_number":178,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"be64ab34-757d-4136-8981-f9fc0de8e9d0","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short","page_number":178,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"02a6957f-ee10-417c-93a9-2c802e27e22c","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":178,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"6ed1b228-39b5-4a1c-8930-89d468390e9e","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":178,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"68bf90e3-5d0f-425a-b1b7-8d4e9964395f","block_type":"box","text":"MIG Scale","page_number":178,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"14610c82-7f5d-4bc9-8949-c7cd9579faae","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":178,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"a0d4f390-6907-4b33-8f68-8d6cc90ed52b","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":178,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"c66e2284-3cf8-4202-8254-9bfbeada6cde","block_type":"box","text":"refinancing.","page_number":178,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"b730fbc4-d3d0-487d-afbc-2acd2b51c92d","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":178,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"e11efee8-e5d6-4922-a8d4-aea0166cf330","block_type":"box","text":"large as in the preceding group.","page_number":178,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"b71cf755-5f10-4583-b716-72f71e61f37f","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":178,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"640a8755-b838-47db-b1f6-47d904dd54ad","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":178,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"2ca86cc3-1f7f-445d-bccb-fe6eec97bca2","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":178,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"db37f18c-7e36-4c90-98fc-4385cd4eb253","block_type":"box","text":"lack sufficient margins of protection.","page_number":178,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"b7592838-8ba6-4cb7-8604-26836893c54c","block_type":"box","text":"VMIG Ratings","page_number":178,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"82f12fe7-0aeb-4002-852a-280189acd094","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":178,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"e699dadb-9b9d-4f21-a8f4-9501856b347f","block_type":"box","text":"are a long-term rating and a short-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":178,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"fc6c9492-c755-4092-92d7-d9c9467a1dab","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":178,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"8eacb938-c64c-4b49-bdf3-0e706653c2b0","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":178,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"0cfee4b5-3901-47fe-a491-2a09d96f0502","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":178,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"c9d86ce5-a3dc-49b0-8b42-42affc9f1aa2","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":178,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"a87d97a0-ec6d-481a-b644-18f2a098f498","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third party liquidity support. Transitions of","page_number":178,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"ac4ccf9c-f049-4d60-a6a7-e11e5ef9599f","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":178,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"d4573ce9-dc27-4209-a3d0-7f04334f32d8","block_type":"box","text":"reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":178,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"56469b19-10e3-4dba-95cf-1de9c2a9d500","block_type":"box","text":"grade.","page_number":178,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"ef493a6c-815c-44ba-8bfd-ec4a36994789","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is","page_number":178,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"8c5f2829-e6b5-49bb-973c-e7d7da2fe50b","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":178,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"0ed0f401-06ae-46c1-abd1-47357d9a61c2","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":178,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"9a90d89e-8802-4db0-b489-0125ab550d73","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":178,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"848b0785-d5e0-4ab9-9a98-41ebe00a018d","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":178,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"d4d00799-7b46-46d2-b86a-4a2079ca65b1","block_type":"box","text":"liquidity of the corporate obligor.","page_number":178,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"9645c069-35d8-4204-9f13-72670109bd09","block_type":"box","text":"VMIG Scale","page_number":178,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"e1593072-3fb5-4de5-bd76-6bd832256233","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":178,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"73b4a7dc-3899-4773-8d9d-0521f615d15b","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":178,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"f77f852f-37fc-4819-9e2d-411dc2b1e4e4","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":178,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"1f121ca3-8e31-4543-995e-2ab26ad6c056","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":178,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"c9f85656-824f-4b62-84c6-f3c57dd95bdc","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":178,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"ac66a1e0-4054-4fd3-ba58-668fa6afce48","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":178,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"e2eaa8cd-6e88-49b2-929a-82bc5cc8ccca","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":178,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"68b3f2e0-c9cc-4425-b83b-973f99550e8b","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":178,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"97036585-8044-48a4-9c52-a1a8ff448c5d","block_type":"box","text":"may lack the structural or legal protections.","page_number":178,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"8ac73ed5-fa79-49e6-89a1-6c72d335d958","block_type":"box","text":"A-3","page_number":178,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"f96014b4-9138-4883-9f5e-b1527a6e63f4","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77e851d5-a238-4dba-9615-b49b54e406cc","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":179,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"5bde23ae-cfae-4b7a-808a-bbc973b5051d","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a","page_number":179,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"95797af5-2afa-4997-b149-ba3ef9bbd112","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":179,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"d90e8f89-cd39-4286-9366-30a4fd0e7d6a","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":179,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"ea93f555-f69a-4450-a0b0-e3ec22e0aae7","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":179,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"259815f1-6af3-4244-9932-d96eb8dae6f9","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":179,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"2ce485c9-bf9b-4b4d-ad5b-88b48731f1de","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":179,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"acc16e79-8309-445d-89b0-2fe7a7f78197","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":179,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"55d00eef-4df1-459f-be11-ee8f74f5a59e","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned","page_number":179,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"f4837c7f-d507-4f0d-8f88-71c860c81577","block_type":"box","text":"to those obligations considered short-term in the relevant market, typically with an original maturity of no more than","page_number":179,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"163e029e-b342-4528-aee6-de2f43c9400b","block_type":"box","text":"365 days. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to","page_number":179,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"75c94991-44b3-4adf-8fdd-469ced847cf4","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":179,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"b65e96ab-9190-4361-8261-cd4a1c57d1a9","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to certain instruments may diverge","page_number":179,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"6d5c3dd2-983d-4aa7-ad06-f620a0fe313c","block_type":"box","text":"from these guidelines based on market practices.","page_number":179,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"1024612c-6094-431b-bd46-06a3cb5fbee8","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":179,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"6b6c5645-82d0-4622-aeda-e3a16ab1e40e","block_type":"box","text":"•","page_number":179,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"403638d4-a56c-491f-a6a5-5e39e4756403","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":179,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"221dd3e2-ad51-4c9a-a7d3-24544bd780b6","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":179,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"b04267c4-9ad5-4338-a036-2e994e56bf9e","block_type":"box","text":"•","page_number":179,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"2879d16f-7ddb-44c1-ad4f-d3ce6b1504c7","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":179,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"8501b639-92b0-4982-84c1-c437f84fd54b","block_type":"box","text":"•","page_number":179,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"20f26d70-0c34-4720-a949-be0833b85d82","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":179,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"5161f513-e92a-4bc5-b812-4bd7f7a06f9b","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":179,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"4c2b957d-92d9-491e-84a5-2245753f9999","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":179,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"34a11bc8-52a8-4e3d-aac4-4fa14ede5284","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":179,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"6b271267-61f1-4953-b291-8b92dcae3749","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":179,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"35a9b888-1013-4653-8b70-dfa96cd21f1a","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":179,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"5cab8058-49df-4076-bab0-92835df10f56","block_type":"box","text":"obligations.)","page_number":179,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"993cb216-19b1-4229-8672-3081f4ae4956","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":179,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"a0556b7c-f8f7-413d-a50c-b37c7db9af8d","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":179,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"c99c0e5a-9051-4437-babb-f75d84c788af","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":179,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"e994307b-6858-4d7b-9df9-a4103843c398","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":179,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"bb92c979-18c3-48c3-a0f8-2737a3e21910","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":179,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"e6d6640a-6a50-424f-a4de-60a5928a4fc1","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":179,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"1004682e-57f0-4b4f-90ea-80b777fddeb5","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":179,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"4c95df39-989d-4dfb-84de-3909f8a27f0d","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":179,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"5123c8ea-2d96-4bd9-a458-e4a7af94d08e","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":179,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"aacb776c-186b-4e86-ae21-1e979be44f93","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":179,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"42bf6e9c-35fa-45c2-a8bc-23f18cc5e9e9","block_type":"box","text":"financial commitments on the obligation.","page_number":179,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"aefb06d2-bec3-416d-973b-027bf5b479df","block_type":"box","text":"BB,","page_number":179,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"87445d99-2285-4f99-af6e-591795419500","block_type":"box","text":"B,","page_number":179,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"df671535-ff75-418a-96c7-bf5a79b8200e","block_type":"box","text":"CCC,","page_number":179,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"b12460f4-ad09-49c5-9cc6-d058ea37167a","block_type":"box","text":"CC,","page_number":179,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"c4c797bc-ece3-429b-85e7-d067d6704424","block_type":"box","text":"and C","page_number":179,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"e34f42f8-e078-44f1-999f-09553dffd8f6","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":179,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"d31e5e88-d59e-4a2a-9942-bff9525df5da","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":179,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"bad2c7c9-362e-477e-9885-2c7c1aa85b94","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":179,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"8214bfc3-7df3-414c-b517-3a5a429b57bc","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":179,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"aa52c67c-1be5-4967-b2e8-7efc353eec17","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":179,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"ba4b6722-8d5d-46a3-8edb-cb4fa2a1097c","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":179,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"97df884f-7523-445d-9b4c-c647d6252c9a","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":179,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"5bd9d898-2bde-4257-b1f2-feaa7a818626","block_type":"box","text":"on the obligation.","page_number":179,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"05acbe7a-d132-4430-91d1-39d08c425e63","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":179,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"04bd2f68-1ff3-4676-b5e6-90129f87fa5b","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":179,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"81e72958-179f-4715-a83e-f5b39a284871","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":179,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"e9c8d28e-15f9-4cba-94ee-0e359054f3a7","block_type":"box","text":"financial commitments on the obligation.","page_number":179,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"685b909c-48e8-4821-b212-3902da42c92b","block_type":"box","text":"A-4","page_number":179,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"20acc694-9038-453f-b9e4-2c4538f6b521","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"be2532ef-aece-4c89-b01f-ad84440d5975","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":180,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"5aeca5eb-ea57-4bf7-9f5d-de16bea4a692","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":180,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"08a35f85-fa56-436e-aea2-83f4ec93fb7e","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":180,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"c10d633d-72be-4547-9d52-102a0212a56b","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":180,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"f9c3ec71-edb8-4aa9-aacc-0f1c58c98bcf","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":180,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"5d299f4c-7824-41cb-b637-b7a5ee2d1326","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":180,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"89ce3053-45a8-4059-9e7b-ccd7cc595211","block_type":"box","text":"anticipated time to default.","page_number":180,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"2355aae0-9cf5-48fc-81da-497a33af5ec0","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":180,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"e89f6bb0-cb76-4fc6-9592-474d69f67f4a","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":180,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"56b3dbea-ca57-4348-88fb-ff865794458c","block_type":"box","text":"higher.","page_number":180,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"d343af06-3031-400a-b1c4-a033d3bb5b44","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":180,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"87bd15bb-7a33-400a-876b-dc26d98c3cbe","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":180,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"0087f760-47f2-4daf-942f-fe0a26c94cf2","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":180,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"330bde1a-da1b-4a28-9ab8-c4ba29c8763f","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":180,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"c4e0b70c-c96d-475b-b93c-1bba6d30122e","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":180,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"a318e42f-3ad0-4497-869a-ec380b4f2226","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":180,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"655d0248-1fb9-4075-b683-287fae41900a","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":180,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"09f93bce-20f2-4a7f-9818-2f13e2728146","block_type":"box","text":"restructuring.","page_number":180,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"b1fbddf4-df84-42b4-ae93-13cf31d3f2f7","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":180,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"295f0295-7bdc-406c-aa28-2ea8d79f6b0b","block_type":"box","text":"standing within the rating categories.","page_number":180,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"4af67c40-24a0-4b6e-a05a-466849d38f99","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":180,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"c33b8e5b-c07b-4010-ac70-b41e17f3e152","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":180,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"b424c20a-7a80-4e31-bc52-d76dc4758e5f","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":180,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"8d5e481b-b170-4002-b331-4b15eb6cba46","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":180,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"4bbc0466-5387-457e-be74-5c7095867def","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":180,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"8aa5e385-c94f-4876-9f1c-fd74a8ad36e6","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":180,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"fa53f25c-fa0d-4bf1-9655-06f5ad5bec06","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":180,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"0b13579f-5030-43e8-a740-11f49db3524e","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":180,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"9b396509-c30a-4483-84c3-5db435b130e8","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":180,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"d29673c0-dfa3-427b-a89f-14c55e618320","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":180,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"a215a5a6-5f00-46a6-a36d-7b613009b555","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":180,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"245ed31d-3d3a-40e3-ab2c-f2b830b565c6","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":180,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"e7008dd5-1e11-4dbc-bc09-8813791130f3","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":180,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"6a537ff1-e0d8-4e05-b908-bc263a95803c","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":180,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"713b4321-1fc4-4fbf-8c0b-31c869bfeec0","block_type":"box","text":"financial commitments.","page_number":180,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"79586f72-b2fd-4c7f-9dbd-8b2d1fb13fbf","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":180,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"78bc1d82-186a-4a70-86da-f1eb87383671","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":180,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"86595443-b260-4d2b-8c94-aa3d94ba6159","block_type":"box","text":"commitments on the obligation.","page_number":180,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"1b766b4d-b838-4c53-a5a7-3ee2e3c80a88","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":180,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"a1a141ce-0f3a-4b03-a21b-b06bf2b51977","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":180,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"ac87463e-cb05-463b-9c14-be40b94c6165","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":180,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"ae2fa47f-e042-4b2b-b669-7fb66eb529ac","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":180,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"23e48990-cc08-47e4-8887-ab7b2da6858b","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":180,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"c7b012e8-9a81-43f7-8877-b9b25aff5ac6","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":180,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"72b4992b-3c2f-48d7-8d31-87d02593d0aa","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":180,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"75d6381f-f3be-469c-b951-8a0cc44aeda7","block_type":"box","text":"debt restructuring.","page_number":180,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"c711772b-4f25-444f-a5fb-53404ce635d5","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":180,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"4b604869-72f5-42c9-bff1-09410b7f7e9f","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":180,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"4659e897-dd2d-4200-8536-51aebfe02d96","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":180,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"f2e4c07e-4224-4aa4-9d2a-725d48c033f2","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":180,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"58d11873-e5c3-4fd2-a0e2-34de1df5e372","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":180,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"42baa996-98a6-40a5-920b-89b0639f0051","block_type":"box","text":"A-5","page_number":180,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"5df38667-6d0c-445b-a8c4-cc69ce26a8ae","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae4773b8-7580-4c66-a62c-f07006cdd757","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"8ad92016-98c4-4cc0-8f8b-38ca4d2058d3","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":181,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"22132e71-9c7c-4fc2-95e7-6299f23eefeb","block_type":"box","text":"as a note; and","page_number":181,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"fd780ec0-f452-4b17-8e93-d933b5020f07","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"640cc5e9-f77d-4f08-b33e-62ede82573fb","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":181,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"0f42747b-0e41-434d-a30d-e2350fd4c60e","block_type":"box","text":"treated as a note.","page_number":181,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"f8946eb6-b747-461e-b3bd-073f86dcd23b","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":181,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"b9e83b3d-7d5b-401f-997a-aa50902f97a8","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":181,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"1899456e-15fd-4844-91fe-3ea8f918942b","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":181,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"0ae394bf-782b-4f74-8b34-51172e0c7bc6","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":181,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"0494e7d9-f84b-4d30-9361-5a7a4deea8bb","block_type":"box","text":"economic changes over the term of the notes.","page_number":181,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"217427f2-9313-4db7-a445-b76dc1d0a134","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":181,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"9e1cbc6a-4f56-4ee8-a765-e7b57492c21f","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":181,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"67c9e72c-43c5-4cb2-86f3-3909a4d79e57","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":181,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"292b9e07-1f32-400a-9cef-2027699e1d06","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":181,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"0b09618f-6cad-4c2b-bbb3-e680145d37f4","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":181,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"80055cae-b31b-4423-981d-ffbac6766221","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":181,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"c61645d5-79e4-4b60-926f-0eee23cd9487","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":181,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"04f9f48d-f40f-47d1-b3e3-c34105aad53a","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":181,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"b1ada1fe-74de-42f5-83be-d4735c2c9d2b","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":181,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"c44104c3-90e8-4a11-b910-0f3e5d868c8f","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":181,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"93c25190-5573-401f-a30f-4191b4f75548","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":181,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"ccf6d7d1-b29a-4148-a765-00a64e9fa1c0","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":181,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"ebf01632-22f0-4c9a-85b7-1e230854653b","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":181,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"129e9330-4531-4726-88e7-3892cfa374f1","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":181,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"50fae9d8-1cb8-4e4a-905a-51baeffa6cc6","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":181,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"8b0da57d-96e9-4cda-89ed-4147b1585805","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":181,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"8854f257-af20-4253-a3f0-a69da4e18ee5","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":181,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"28c77361-05cb-4947-9e9e-64a96d48da64","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":181,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"3902cf08-312f-4a48-9f6e-e32185849ae5","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":181,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"af19becc-4e9e-43b9-a011-7b2614a2e912","block_type":"box","text":"receivables or other financial assets.","page_number":181,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"8e522f88-a1dd-454a-8583-91fb3736b7ac","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":181,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"65ad73b6-0e33-40ab-8dc1-38e1a97f7b22","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":181,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"00afc959-5443-4149-94ab-20441c1582bb","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":181,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"f9da5d61-5e8c-4fdd-aaa2-152393d41fd8","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":181,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"942a1872-6833-41b6-85a9-be551c744f92","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":181,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"317b68fb-383f-4584-9b47-676ce1190177","block_type":"box","text":"occurred.","page_number":181,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"db8af45c-e22a-46a3-aaf3-57e03bdaee10","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":181,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"6b393812-d441-4068-aeec-95762ec07662","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":181,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"ba309e87-6e3f-4d09-8718-9ee714f6f911","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":181,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"3315bc65-62c7-4eb5-a7f4-cac5690fa506","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":181,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"04297463-0c5b-4d24-9bfc-71f6aa8d24f3","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with","page_number":181,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"f58df00b-e556-4d56-829d-b7a7cd94e0ae","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":181,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"159f981d-73c2-469c-a51d-ef13aa2c5d04","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":181,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"4457b438-3ffc-4d7f-8339-ccfb0652d403","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":181,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"47e97127-0b4f-4242-925e-2729935a9311","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":181,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"0bcc86d4-6aea-4d96-a180-b5e39b4a034d","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":181,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"2210f927-b1a7-40ab-b27c-0e2989a90f89","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":181,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"415bca31-afe7-44f2-99d7-67103d5c6395","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":181,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"af26e5ee-55a5-4955-b7c9-020e776c6d00","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":181,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"9b1ffb57-f99b-4524-9bdf-3f6677b94fbe","block_type":"box","text":"i.e.","page_number":181,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"50f0b869-0ce9-44e2-981b-75ab0205d2b4","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":181,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"b65e0592-07db-4e3d-8a55-51da83a193c0","block_type":"box","text":"the obligation’s documentation).","page_number":181,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"1aae09c8-3991-40db-8030-bbdbfb4f42c7","block_type":"box","text":"A-6","page_number":181,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"c94adee2-1890-4bbe-be4e-3793fb066de5","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f075783-eae0-467c-934b-b79b4ccbbf12","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note","page_number":182,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"a73042e8-ed94-43e8-a11a-5aa87a249d0a","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":182,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"cbe8db08-882e-482d-8aa4-2c6b5a63db52","block_type":"box","text":"agents in the form of a rating letter.","page_number":182,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"b1ac7ead-5e94-43b6-bbff-9d0bd133a50e","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":182,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"43d7bf77-00ca-4555-91cd-e9514ccc85ef","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":182,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"7cdfa53a-6332-41e1-a12b-4ccd735e1471","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":182,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"4685668e-4d31-4e63-9bda-44a70f43b1db","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":182,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"10207dc4-4d55-4ac8-8fb7-c0654c1bd0e4","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":182,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"89b968c6-0b9a-471a-9dcf-ac012905041d","block_type":"box","text":"e.g.","page_number":182,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"37b65c1b-e9fe-4dff-ba76-c689a2e5169f","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":182,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"b9069e30-0b92-4c27-a2ac-832052b02eae","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":182,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"f3f67554-5433-42c0-838a-893e3f13d5ea","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":182,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"d018ac93-e09a-47b7-8c82-39f7e5dd302d","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":182,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"b2fad721-2d4a-4e05-b7c6-07eb689e8776","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":182,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"4a592346-d763-4b7e-b730-a7b49d7e0224","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":182,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"b260d166-dffc-4843-b4b3-7deda9bd9ab5","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":182,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"0999f190-e28a-4a01-8a3d-d36c87c01d51","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":182,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"8db47764-629d-4765-87da-d2e2c7d40f3c","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":182,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"4d319419-6a4f-4405-9a8b-df9f46557318","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":182,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"7533280b-773e-4de9-9c46-a8c563816092","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":182,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"f8d7db16-b61c-4234-998b-61123047244c","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":182,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"294d029a-6fe0-4c22-a49d-726abe22c1c8","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":182,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"a93d4fcf-efeb-42ee-833f-f95389136e30","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":182,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"05e6e1c3-0915-4d5f-932b-309620afa180","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":182,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"2b2cba90-4612-4774-976a-6cb462188fb6","block_type":"box","text":"Ratings.","page_number":182,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"943d87e8-90b5-4c5f-8eeb-cebcae871517","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":182,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"c24bdf4e-4408-4564-ad97-be4c302618c8","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":182,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"1a5abfc5-daab-4a23-a6e7-d4410776b6d0","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":182,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"13d61f03-970a-4f49-94c0-591fc24f338f","block_type":"box","text":"obligation ratings.","page_number":182,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"c7154bfd-014a-412a-a3fd-163f35f23411","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":182,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"b7265681-0ed4-4113-a9e5-4ac6b12c3456","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":182,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"62d43ef2-1101-4583-b475-8e9669fcc101","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":182,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"c3945127-99e1-4aa9-8464-f46a3bea1aa9","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":182,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"a5584ab4-5cc7-4aa8-8046-cbae11081a3a","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":182,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"0122636c-fa89-45ff-b7fa-54b6016d0f5c","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":182,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"14a4ae26-e84e-4136-9233-29a0a6165c0d","block_type":"box","text":"to foreseeable events.","page_number":182,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"90cff363-4101-4458-a9cd-179fde64c210","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":182,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"c4a17c2b-46d1-42aa-9b82-44d963530856","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":182,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"bebab593-cd4a-4ee5-a3bd-85dcb8ae803d","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":182,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"a478ac66-8707-4555-96b7-2e52a654ed70","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":182,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"f96a0025-f67d-4c5b-acd3-3ae71aaf7fe4","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":182,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"58c9f050-e891-470b-a14e-0d2084dcf145","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":182,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"95d45eeb-e9cd-4f2b-9464-bec0299207c1","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":182,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"c6a3adff-8505-4d90-9ec9-0ca850eacc1b","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":182,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"debb83f9-7ef2-42bd-823e-d874ba106736","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":182,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"2b5c540c-77a6-4130-a2ff-dc532dcfb7b3","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":182,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"3c2e8e02-8936-48d0-8478-c4e3a83775f6","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":182,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"24a9d574-3bc1-4322-9a32-4f801081f65c","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":182,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"ecb0d941-9aae-4df9-af0b-67194ab0779b","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":182,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"e3f45353-1f8d-449f-81d2-52887649ce3e","block_type":"box","text":"possibility.","page_number":182,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"e5321b63-792f-4e7f-8b87-d980299cd6dc","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":182,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"7f62cbb1-f017-4ce4-80d1-34fbfc43174d","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":182,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"6270a6cd-9ad2-4335-be49-8e7904d7d138","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":182,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"a0e44162-0ecb-4dcc-babb-ab9a3ac85922","block_type":"box","text":"A-7","page_number":182,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"b00ef4ad-aa29-4df4-b505-8a01cd159c9d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ff6f1505-0b65-4b30-8f8c-550d447ee64e","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":183,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"ca40ba5f-0d7f-40aa-b712-0b52a707b51d","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":183,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"ad535a0b-9b01-4383-b024-d46ab820be31","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":183,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"436bcea1-9fb0-4788-8736-b30313464198","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":183,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"4a19ad26-dc67-40e0-a2e7-61b19947fdb8","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":183,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"5517a08b-bcaa-4311-886c-39e032f33dd5","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":183,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"ae79193b-2edb-4bf3-9cf9-c1dd7a10e4ae","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":183,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"4657415b-4e1d-4d10-9a16-eb343066d36b","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":183,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"cfc966c1-fc51-40d2-b6c1-e6f93e28978b","block_type":"box","text":"relative status within major rating categories.","page_number":183,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"cb9ffd4b-8533-478f-ab60-9af2efb93346","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":183,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"9511133e-c710-4a52-804c-8693419d2f59","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating","page_number":183,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"0b4d2fa0-1103-4796-a990-02f1e2863175","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":183,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"08ae92f3-2aaa-4a28-8c0e-52d696941428","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":183,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"972cd591-7633-4964-8e5d-c78e9fca582d","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated","page_number":183,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"8d3e229d-31bf-489f-ba6d-bd93231bc030","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":183,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"a7c0d3f2-0340-45dc-ae2f-687c10390622","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":183,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"74a089e3-852a-463b-ac4c-371a8fde608d","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":183,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"46194a91-3d02-46b1-84c5-3938d1f3c8ab","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":183,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"67e2729f-916d-4f22-bb09-a4234f2b7e89","block_type":"box","text":"finance markets.","page_number":183,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"f8d6dd78-e6dd-4034-b0f6-f0e576d93451","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":183,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"913148e1-91bb-4a15-841a-7e3821724e09","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":183,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"a57595cb-7c74-4eff-8679-64fa0273b34e","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":183,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"9ce5c0e5-6ddd-4787-96c7-8892093c8711","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":183,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"c9010839-a38d-4038-ac15-de8fdd55eca9","block_type":"box","text":"commitments.","page_number":183,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"6fa47618-752b-40a3-b79e-ac3d4af00b07","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":183,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"2832556b-ca79-4580-a76d-1acc085e4b14","block_type":"box","text":"adequate.","page_number":183,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"f7de5759-d3f3-4e01-8819-f29598a46e49","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":183,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"0bc5f0cf-047f-4946-ae7d-032147ce8b8f","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":183,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"bd17d0b9-b9d5-4398-b63c-9e44e4bd42aa","block_type":"box","text":"economic conditions.","page_number":183,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"82f75b36-baf7-4d16-b006-3bfa3e969d0b","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":183,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"f3220f57-bf14-43ff-8086-2e248025148b","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":183,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"ea98aefd-2864-4411-9ab4-71df223ca9b0","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":183,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"ef0ab980-0d40-42d2-a72a-9071d6c9b7bd","block_type":"box","text":"ratings only.","page_number":183,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"63525ad6-cb0a-4fe6-bf82-0224b46e2d97","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":183,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"15dce7ea-160f-416a-b365-365c96d00c9c","block_type":"box","text":"obligation.","page_number":183,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"c3f2e8bf-d064-4fae-954b-e5f6f205ea83","block_type":"box","text":"A-8","page_number":183,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"1702c211-6b2f-4c6f-8e34-c0132948157d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d65848c0-58de-4738-b8c5-511b4de50861","block_type":"box","text":"APPENDIX B","page_number":184,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"28a605ba-10fc-4c08-8e9e-27e647a06134","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":184,"box":{"x":247,"y":106,"width":484,"height":11}},{"id":"ae5ad6da-d524-48ab-82c3-7912a82624c1","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":184,"box":{"x":247,"y":121,"width":486,"height":11}},{"id":"778d8b98-fb9c-432e-b931-cb319252e7f6","block_type":"box","text":"Effective Date: January 1, 2025","page_number":184,"box":{"x":376,"y":136,"width":227,"height":11}},{"id":"41602117-bc1b-4911-a140-30142320c555","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":184,"box":{"x":231,"y":159,"width":515,"height":11}},{"id":"713f308b-bad7-4abe-bca3-834d768c6044","block_type":"box","text":"□","page_number":184,"box":{"x":284,"y":181,"width":15,"height":12}},{"id":"fd3433dd-314d-46d0-9cb9-a4fdf0194b73","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":184,"box":{"x":306,"y":182,"width":388,"height":11}},{"id":"353fa98e-89f3-4c34-8c4c-ccb273a96984","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":184,"box":{"x":205,"y":204,"width":589,"height":11}},{"id":"4cde583d-d113-43fd-8877-6a3230c5380d","block_type":"box","text":"□","page_number":184,"box":{"x":405,"y":227,"width":14,"height":11}},{"id":"eb4c9cfa-8be2-43bd-a085-0396176739db","block_type":"box","text":"Money Market Funds","page_number":184,"box":{"x":426,"y":227,"width":147,"height":11}},{"id":"b5e9f3c9-4c8f-4016-ae1f-2151e36c1ccc","block_type":"box","text":"□","page_number":184,"box":{"x":416,"y":249,"width":14,"height":12}},{"id":"7c242a39-61dc-41e0-bb5f-30ecd20771bb","block_type":"box","text":"Closed-End Funds","page_number":184,"box":{"x":437,"y":249,"width":125,"height":9}},{"id":"8eb81652-c824-40f9-baa6-c685d2d29e9b","block_type":"box","text":"□","page_number":184,"box":{"x":460,"y":272,"width":14,"height":11}},{"id":"1d37ec20-658a-4e96-ad49-bde6108e2304","block_type":"box","text":"Other","page_number":184,"box":{"x":481,"y":272,"width":38,"height":9}},{"id":"3e27adcc-7b1d-40ce-9e98-e2645e21c1ac","block_type":"box","text":"Objective and Scope","page_number":184,"box":{"x":101,"y":295,"width":149,"height":11}},{"id":"0c4af78e-78da-4846-b57e-9523c9d539b9","block_type":"box","text":"Set forth below is the Open-End Active and Fixed Income Index Fund Proxy Voting Policy.","page_number":184,"box":{"x":134,"y":317,"width":622,"height":12}},{"id":"c7d078ee-c94e-4a2f-9576-b0601fe9d186","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":184,"box":{"x":102,"y":340,"width":354,"height":11}},{"id":"a8359214-087b-4d67-82fd-0a380e2c3087","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":184,"box":{"x":134,"y":363,"width":702,"height":11}},{"id":"9cb5a48b-e8c4-46e9-9d01-29a2fbd6605f","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":184,"box":{"x":102,"y":378,"width":789,"height":11}},{"id":"5dcf90ef-f0ae-49a6-8fa4-a4700360e5d2","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":184,"box":{"x":101,"y":393,"width":801,"height":11}},{"id":"a34a2411-3b72-40ac-b6d0-dbabf39e7413","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":184,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"c67a06df-0315-44c4-8001-f13354abc5c5","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":184,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"bf505a8e-564a-4fa0-a79e-c9a0f10cf8cc","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":184,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"7dfc7f7a-a233-4eb0-a59f-7374bc6167f0","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":184,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"23e0abb8-9996-4c50-be93-bd131ab22548","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed income","page_number":184,"box":{"x":102,"y":476,"width":788,"height":11}},{"id":"2187c233-af85-4b5c-ac92-923028afb278","block_type":"box","text":"index Funds managed by BlackRock. The Guidelines include “climate and decarbonization” guidelines which","page_number":184,"box":{"x":102,"y":491,"width":766,"height":12}},{"id":"dacde899-0b7b-4ed0-a6db-2569b79808bc","block_type":"box","text":"apply to the Funds listed in Appendix A, if any.","page_number":184,"box":{"x":102,"y":506,"width":325,"height":12}},{"id":"b13baef8-79ce-4d1a-a17f-19a6a7a17079","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":184,"box":{"x":135,"y":529,"width":751,"height":11}},{"id":"8f3b9561-a828-43e0-8ea2-5460aeac0745","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines.","page_number":184,"box":{"x":102,"y":544,"width":765,"height":11}},{"id":"4c749787-fd24-4edd-8731-ca52257f9433","block_type":"box","text":"Conflicts Management","page_number":184,"box":{"x":101,"y":567,"width":165,"height":11}},{"id":"56e7f8f4-a3e4-45f8-abd4-77b344053bad","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to prevent","page_number":184,"box":{"x":135,"y":590,"width":758,"height":11}},{"id":"516c7f9b-b721-461e-93c8-bea3a1c846b0","block_type":"box","text":"undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise","page_number":184,"box":{"x":102,"y":605,"width":797,"height":11}},{"id":"f9cfb48e-05de-4017-bf53-66b696650fff","block_type":"box","text":"of proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":184,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"0ebdab1b-e3e4-4b4c-9cdc-fbac5a4b7d03","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":184,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"d3ec9ab9-e3c1-48ed-9a03-b1be43d6fc78","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":184,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"78d89106-544f-4239-a7ec-278fec3cbf5c","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":184,"box":{"x":101,"y":665,"width":800,"height":11}},{"id":"7ba4c7de-8b58-4ce0-bd49-2af4b627f09f","block_type":"box","text":"BAIS will adhere to the Guidelines.","page_number":184,"box":{"x":102,"y":680,"width":244,"height":9}},{"id":"7b835f95-9b17-4eb3-bdb0-8c01741d92bb","block_type":"box","text":"In certain instances, BAIS will engage an independent third-party voting service provider to make proxy","page_number":184,"box":{"x":135,"y":703,"width":731,"height":11}},{"id":"a9aec8e2-18ea-40b3-ab90-722946c0a679","block_type":"box","text":"voting recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory","page_number":184,"box":{"x":101,"y":718,"width":763,"height":11}},{"id":"a18e54f1-e51b-42ec-98ef-ef8b67a4e288","block_type":"box","text":"compliance requirements, or as may be otherwise required by applicable law.","page_number":184,"box":{"x":101,"y":733,"width":550,"height":11}},{"id":"eed0b2f7-238b-4bad-89cf-682ed89c28b3","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":184,"box":{"x":134,"y":756,"width":774,"height":11}},{"id":"39d6c8eb-5fbb-4fd0-baae-0dd969c4b7ce","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":184,"box":{"x":102,"y":771,"width":791,"height":11}},{"id":"17ead7e8-b1d2-4a54-af83-51c8bc775934","block_type":"box","text":"in clients’ financial interests. The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":184,"box":{"x":102,"y":786,"width":778,"height":11}},{"id":"410f49a8-796e-48fd-ae7c-008b8053e4e7","block_type":"box","text":"connection with proxy voting.","page_number":184,"box":{"x":101,"y":801,"width":203,"height":11}},{"id":"3fb898aa-8adf-466c-adf9-b62ef0f26cfe","block_type":"box","text":"Reports to the Board","page_number":184,"box":{"x":102,"y":824,"width":153,"height":11}},{"id":"3b41ffc4-c0f8-4c9e-9294-7b5a6c05d5d7","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":184,"box":{"x":135,"y":846,"width":755,"height":12}},{"id":"796936ab-07d8-47ab-b591-0827de2a1c02","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":184,"box":{"x":102,"y":862,"width":794,"height":11}},{"id":"098c2c8d-d2f2-4999-99de-9ce9d232bcd8","block_type":"box","text":"were in accordance with the Guidelines and (2) any material changes to the Guidelines, including material","page_number":184,"box":{"x":101,"y":877,"width":753,"height":11}},{"id":"5ec24099-2900-4c50-bb6a-0ebc6a8b91ae","block_type":"box","text":"changes to conflicts management practices, that have not previously been reported.","page_number":184,"box":{"x":101,"y":892,"width":600,"height":11}},{"id":"c0711467-3907-42eb-9ad9-06cb05c53c76","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":184,"box":{"x":449,"y":45,"width":461,"height":11}},{"id":"446a2dc5-c60f-47a3-a88b-b943ce02e586","block_type":"box","text":"BlackRock","page_number":184,"box":{"x":69,"y":943,"width":78,"height":9}},{"id":"b63f9806-eb8c-4d94-97e3-a6bd644fb2b3","block_type":"box","text":"Public Page 1 of 2","page_number":184,"box":{"x":469,"y":943,"width":440,"height":11}},{"id":"7a55cd55-ee45-47c3-b968-f1e530f93dad","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a30e2199-af19-4725-bf5f-956229c701d7","block_type":"box","text":"Appendix A","page_number":185,"box":{"x":101,"y":75,"width":82,"height":11}},{"id":"b484a81d-ff45-400e-84ff-d5eeb1d283cb","block_type":"box","text":"BlackRock U.S. Carbon Transition Readiness ETF","page_number":185,"box":{"x":135,"y":98,"width":347,"height":9}},{"id":"98daa37e-fb07-4ae9-a935-c047a2e086f0","block_type":"box","text":"BlackRock World ex U.S. Carbon Transition Readiness ETF","page_number":185,"box":{"x":135,"y":120,"width":413,"height":9}},{"id":"1d5f554c-9bad-4da8-aa17-5bb870b5be96","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":185,"box":{"x":449,"y":45,"width":461,"height":11}},{"id":"dd2bde0f-80c6-4f58-af0d-d6174d020e44","block_type":"box","text":"BlackRock","page_number":185,"box":{"x":69,"y":943,"width":78,"height":9}},{"id":"e61c8590-34bf-47ab-a631-585ecafb9a8d","block_type":"box","text":"Public Page 2 of 2","page_number":185,"box":{"x":469,"y":943,"width":440,"height":11}},{"id":"aaa7661a-8e6d-4c79-a2b7-98db95088744","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"97c88eb2-769e-42ef-a37c-7de6fe9d8655","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":186,"box":{"x":334,"y":45,"width":311,"height":11}},{"id":"3e337cea-b688-4ac4-92c1-3bf50cc149bb","block_type":"box","text":"Global Engagement and Voting Guidelines","page_number":186,"box":{"x":337,"y":67,"width":304,"height":11}},{"id":"2e9095a2-7702-4cf4-9297-9e90eb8c5e30","block_type":"box","text":"Effective as of January 2026","page_number":186,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"4e0ae785-b4fb-42cf-ac94-68cdcaf76d1a","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"562a2aae-e06b-4e4d-80ed-f796914caba1","block_type":"box","text":"TABLE OF CONTENTS","page_number":187,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"2fc579a7-2575-4d82-9c29-cfc3a203c809","block_type":"box","text":"Page","page_number":187,"box":{"x":876,"y":65,"width":28,"height":9}},{"id":"c4e86c4a-cf34-432f-8c02-d939d80bafb6","block_type":"box","text":"OVERVIEW","page_number":187,"box":{"x":74,"y":84,"width":79,"height":9}},{"id":"322cf187-41f0-4038-8b81-7436507e8304","block_type":"box","text":"....................................................................................... 3","page_number":187,"box":{"x":161,"y":84,"width":743,"height":9}},{"id":"25059775-9e19-4289-a172-7a5b5a89f59d","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":187,"box":{"x":74,"y":101,"width":235,"height":9}},{"id":"56de3642-d6c6-4f5f-9af2-e935d402b3c6","block_type":"box","text":".................................................................... 4","page_number":187,"box":{"x":316,"y":101,"width":588,"height":9}},{"id":"42401aea-d230-4b2f-9115-7c0e8db2d88e","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":187,"box":{"x":73,"y":117,"width":424,"height":9}},{"id":"c4300415-22a9-4042-a899-c43210080abb","block_type":"box","text":"............................................. 4","page_number":187,"box":{"x":504,"y":117,"width":400,"height":9}},{"id":"7af82a09-04e1-4a9f-ad6d-f65704353839","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":187,"box":{"x":74,"y":134,"width":451,"height":10}},{"id":"c953f67f-cabe-4901-b5f8-54f560973ddc","block_type":"box","text":".......................................... 4","page_number":187,"box":{"x":528,"y":134,"width":376,"height":8}},{"id":"4e62f082-101f-400a-a042-4d9b9298fad5","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":187,"box":{"x":74,"y":150,"width":433,"height":9}},{"id":"41d7b5dd-e4bc-4509-b3aa-186b09e67e45","block_type":"box","text":"............................................ 5","page_number":187,"box":{"x":512,"y":150,"width":392,"height":9}},{"id":"cb222926-28b4-4096-89c2-3382d9f60dcb","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":187,"box":{"x":74,"y":166,"width":178,"height":9}},{"id":"4d2d8797-8968-4438-baae-cf025bb099af","block_type":"box","text":"........................................................................... 6","page_number":187,"box":{"x":259,"y":166,"width":645,"height":9}},{"id":"5be99202-6a4e-46e1-8230-2514159d9659","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":187,"box":{"x":74,"y":183,"width":207,"height":9}},{"id":"e7dabe63-2d8e-4efa-8947-df6b1c635f5e","block_type":"box","text":"....................................................................... 8","page_number":187,"box":{"x":292,"y":183,"width":612,"height":9}},{"id":"c509d22c-d08b-4a4f-8226-fb1d2eaba00a","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":187,"box":{"x":74,"y":199,"width":325,"height":9}},{"id":"117d04aa-3916-4693-aa79-b71246dab87c","block_type":"box","text":"......................................................... 9","page_number":187,"box":{"x":406,"y":199,"width":498,"height":9}},{"id":"eccc8237-dd49-4ca9-b58e-4e575edaa998","block_type":"box","text":"CAPITAL STRUCTURE","page_number":187,"box":{"x":74,"y":215,"width":156,"height":9}},{"id":"c743fc47-f6d1-499d-8da5-cea4f2480e8b","block_type":"box","text":".............................................................................. 9","page_number":187,"box":{"x":234,"y":215,"width":670,"height":9}},{"id":"e0893a5b-df87-48ae-b156-9df229bf8c79","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":187,"box":{"x":73,"y":232,"width":315,"height":9}},{"id":"267013d0-401b-4b79-929e-17e12231a49f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10","page_number":187,"box":{"x":398,"y":232,"width":506,"height":9}},{"id":"42a2af94-2128-46ea-aee5-e8ddbabd65e6","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":187,"box":{"x":74,"y":248,"width":430,"height":11}},{"id":"56e5e480-1e0f-4600-b267-ecc933c59f92","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10","page_number":187,"box":{"x":512,"y":248,"width":392,"height":9}},{"id":"fa3b0a22-8466-4e94-b492-a48551df66fa","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":187,"box":{"x":73,"y":265,"width":319,"height":8}},{"id":"c5683948-fdd8-4924-8a3c-fd8d5344432c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11","page_number":187,"box":{"x":398,"y":265,"width":506,"height":8}},{"id":"d37a88b3-d24d-4b48-a123-417c62231926","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":187,"box":{"x":73,"y":281,"width":207,"height":9}},{"id":"3db111f8-57c5-4613-b892-bcd7b5e67c39","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12","page_number":187,"box":{"x":283,"y":281,"width":621,"height":9}},{"id":"cbc24deb-0e95-4d81-8293-9738e647c2c2","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":187,"box":{"x":74,"y":297,"width":259,"height":9}},{"id":"8d343452-10fe-4611-8095-18c9302e23a8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12","page_number":187,"box":{"x":340,"y":297,"width":564,"height":9}},{"id":"9630316d-12b5-4804-9433-7a605c21832b","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":187,"box":{"x":74,"y":314,"width":489,"height":9}},{"id":"1697159f-3e87-425d-8ea8-d4b7f81560e7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14","page_number":187,"box":{"x":569,"y":314,"width":335,"height":8}},{"id":"555965d1-0be6-43f3-b9e1-2e61247f8fd3","block_type":"box","text":"KEY STAKEHOLDERS","page_number":187,"box":{"x":74,"y":330,"width":151,"height":9}},{"id":"201ec3ce-4fd5-45ce-adaa-b8436aaa3810","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14","page_number":187,"box":{"x":234,"y":330,"width":670,"height":9}},{"id":"9dfa98b5-c196-4f0d-b693-f5fadb79c188","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":187,"box":{"x":74,"y":346,"width":448,"height":9}},{"id":"7212c2ff-535a-4778-846c-f3ac21cb8a3c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14","page_number":187,"box":{"x":528,"y":347,"width":376,"height":8}},{"id":"e5bb30af-c5e7-4f3d-af2e-aa9979380244","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR","page_number":187,"box":{"x":73,"y":363,"width":771,"height":9}},{"id":"5020f166-ea4b-4dba-a1e4-f3b037d4f8b6","block_type":"box","text":"NON-INDEX EQUITY INVESTMENT STRATEGIES","page_number":187,"box":{"x":74,"y":378,"width":339,"height":11}},{"id":"8112f071-3c34-4566-94f1-486f83196110","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16","page_number":187,"box":{"x":422,"y":378,"width":482,"height":9}},{"id":"769eceac-fcb2-4cfb-8cb1-0ba58a59f6b6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":187,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fb7f5c72-195d-4c14-8840-28c6dea490eb","block_type":"box","text":"Global Engagement and Voting Guidelines | 2","page_number":187,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"8e63df02-9fd4-4bbb-b8c9-fead13104102","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fb2d7750-867d-4453-ad9e-c147cd0833cb","block_type":"box","text":"OVERVIEW","page_number":188,"box":{"x":450,"y":45,"width":79,"height":9}},{"id":"45683dbe-6fb9-4f3f-bf9a-5b16cb6b44a3","block_type":"box","text":"This document provides high level guidance on how BlackRock Active Investment Stewardship (BAIS) views","page_number":188,"box":{"x":101,"y":67,"width":760,"height":12}},{"id":"0ea7a5ee-d979-4183-beb8-6936dfb55a17","block_type":"box","text":"corporate governance matters that are commonly put to a shareholder vote, or on which investors engage with","page_number":188,"box":{"x":69,"y":83,"width":785,"height":11}},{"id":"2b00c3ab-05fd-4034-a929-94f8cb66f8aa","block_type":"box","text":"issuers.","page_number":188,"box":{"x":70,"y":98,"width":54,"height":9}},{"id":"b37fba5c-d65f-48ab-8e40-3fce205538b3","block_type":"box","text":"1","page_number":188,"box":{"x":131,"y":94,"width":4,"height":4}},{"id":"c59d8ebe-aa21-4b9c-bb98-144104dad2d4","block_type":"box","text":"BAIS works in partnership with BlackRock’s investment teams, excluding index equity","page_number":188,"box":{"x":141,"y":98,"width":606,"height":11}},{"id":"eb89ae9e-7742-45e8-a521-6aaab566e67b","block_type":"box","text":"2","page_number":188,"box":{"x":747,"y":98,"width":4,"height":4}},{"id":"ebf786a3-c53e-483d-a4ce-608de9c959a6","block_type":"box","text":", providing expertise","page_number":188,"box":{"x":753,"y":98,"width":143,"height":11}},{"id":"ddd342e6-a65d-44d4-9fe1-12c4890c821c","block_type":"box","text":"on investment stewardship and engaging with companies alongside and on behalf of those teams when appropriate.","page_number":188,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"6f1d5a1f-3a5f-435e-8616-7e058b0e4317","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":188,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"3f3f026c-ce4a-4767-8595-893144739fb3","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":188,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"277dac70-f271-4e7f-9bc1-22d430c98ec1","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":188,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"888d513a-4f5f-4c4d-9553-19ebe59355e7","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":188,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"33e359dc-82e8-49fa-9e53-d06080f3a0f5","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":188,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"599b392a-7364-4c14-a9bc-49fb6b67ded6","block_type":"box","text":"The guidelines are not prescriptive as active portfolio managers have discretion as to how they integrate these","page_number":188,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"7f6dd6b9-617d-4bf0-96d5-200b036279c1","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":188,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"99644a2a-eb4a-4d2d-87b3-4a06adbe126e","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":188,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"3e373194-3a63-4fb1-beff-0dd7235cf317","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":188,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"6fbb0c1f-9629-43b9-b37e-445274c3cd5e","block_type":"box","text":"1","page_number":188,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"e61245a9-a33f-424d-bc72-7eb4e2bcc9a7","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":188,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"1e770bbd-bb22-473a-801d-b5c1d6b4f461","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":188,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"bb7b0937-c5c2-46b1-b754-71460c976d4d","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":188,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"6d80db84-63ec-436f-bbbd-8b31ff93a29b","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":188,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"d5a2b1c6-b560-4218-9efd-279b1eb7f3a0","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":188,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"18955b8e-1bfe-4ade-af98-b08ea2a66a8b","block_type":"box","text":"2","page_number":188,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"03da0ef0-4d4b-4645-927b-9e0fb90e0473","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":188,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"ce1a05f5-716e-4134-ba08-02f1d2a6a50a","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a","page_number":188,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"823e09f7-4b80-490e-8502-311e5367642c","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":188,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"aa5741aa-cebc-42da-9308-eac6fbdcf267","block_type":"box","text":"policies.","page_number":188,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"198c2a8d-02ae-49dd-b0a4-72d1fb10c2ba","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":188,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ad710921-0c99-4884-bfe5-1c6c82b71bb7","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":188,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"7a7471fa-1488-492f-82fc-5ce0eb942551","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b69db17e-d502-444e-9a33-46ede117124b","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":189,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"15b37974-f04b-40ba-8643-d8c6ccb532f4","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its own — it","page_number":189,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"b96fe2b2-9e4d-4cb4-9ccc-b8d7b05e36c8","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":189,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"08306ede-f444-45d5-8ffa-de37e0f83400","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":189,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"c9a4534f-c9b3-459d-aa6f-34b1aa39fc24","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":189,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"dde62262-cd1e-49f6-a051-b64038908271","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":189,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"58c3977b-5c1e-4d92-9ed2-835dea57ccc6","block_type":"box","text":"this work with research, data and analytics.","page_number":189,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"ff64cd0a-fd4e-4940-9dcf-52ec99498105","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":189,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"e653b81c-5da6-486c-8cd1-8119e25cfe05","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":189,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"1549c062-0a55-4a28-b2b7-2ff903da6c0d","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":189,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"4c2aa0fd-acb2-4b76-81ff-e403eafb0d87","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":189,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"fd35cc8e-d7c6-44f8-9088-508fb5590d7b","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":189,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"40c30baa-7447-4910-830a-f1fc074780c8","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":189,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"601e39e9-5d81-4c51-8a58-11d8ce3ccb9a","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":189,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"321470d3-eb9f-49c8-9b8b-48b7ae61d381","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":189,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"25b938b4-dde9-4eab-b8f9-13d64c2e3d80","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":189,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"4f1beee8-4a8f-4118-895c-2c4ef28c3ddc","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":189,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"ecbf6f1b-cb32-4d04-a474-19a9a68db7a9","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":189,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"e50f764a-606b-4bc7-aea1-bb22af08b308","block_type":"box","text":"shareholder meetings.","page_number":189,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"cc0218b0-032b-4b69-92ad-d05796b48a7a","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":189,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"b2702490-3a69-46ff-bca9-31a1c14c6576","block_type":"box","text":"investing.","page_number":189,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"ae062950-9146-4729-a3a0-504d9fe37c98","block_type":"box","text":"3","page_number":189,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"d93377d5-8c54-4ef1-9646-24397f57f62b","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":189,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"693b0efb-bd08-4b23-9874-d8c19a036d2d","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":189,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"10b356cd-330f-46fa-8883-d1323381b739","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":189,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"48ae68d1-ab87-4840-b083-b1a9e9b4ca32","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":189,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"e8bee48c-29f2-40da-b950-62a8e764b1a9","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":189,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"4d749983-bf89-4c3b-9f0f-1c28cab77acc","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":189,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"fe777d81-e61f-47dc-a82a-ebaf70ccfdfa","block_type":"box","text":"supportive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":189,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"66f146ee-64f8-4675-856c-f4cefa17122d","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":189,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"b2d2e11e-3d08-4f14-bc12-68b6c00ba6be","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":189,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"5d1448a5-3d48-4bf5-a3a8-d9d6b3e9dc51","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":189,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"2bb4f09f-5d0e-440d-aa48-59755546806c","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":189,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"6bc21e17-1223-400b-b73f-5afc304870ea","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":189,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"1935d055-c60e-4f81-b19f-b9550672a620","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":189,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"fb2ba77f-61ae-42ab-91d8-62ef00742cc4","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":189,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"5cf338a6-ecaf-4d0b-adb8-9fdcb66c5b5e","block_type":"box","text":"management teams and board directors","page_number":189,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"226e020c-9354-48cd-a346-814e52667fa6","block_type":"box","text":"4","page_number":189,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"94599816-4d22-441b-91f9-644538adbe1d","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":189,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"a6974ff1-2c42-48eb-8916-783ce03bb814","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":189,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"fc7e7c3d-ea10-4317-9378-1bc5038f6a49","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":189,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"9317bac0-4e33-45c7-b675-b9c4676eef72","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":189,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"4d014bf3-f0c0-4920-92f1-9d8e3b0b92c3","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":189,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"321ced76-4590-45b5-81a9-9f5785d8142c","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":189,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"4ba8d64f-5a1d-43b1-8ecd-63585a0af104","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":189,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"a3206137-2f40-4576-9ede-a26f910e5eb4","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":189,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"cb1b6c25-3b20-4030-ba4e-70be490fecf8","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":189,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"a14fd83d-ef75-4258-8aa4-9e23a50dd076","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":189,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"fb8ee74a-2a6a-49f1-8cc1-a7e4a07b279f","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":189,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"4a986355-ebc0-4651-bbba-c50585eec2e1","block_type":"box","text":"support for, or concern about, a company’s performance. As a fiduciary, BlackRock is legally required to make proxy","page_number":189,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"8277a2d5-71e6-4f12-b9c2-b2f3b561d9af","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":189,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"9e04798c-fe44-46af-80f5-4004aa7bc3c1","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":189,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"1bc9db48-77e1-4821-b99c-599532de6b36","block_type":"box","text":"3","page_number":189,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"d25e9423-7a4c-4a33-9b3b-54ae245aad11","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":189,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"b25912b0-b709-4e0c-9f7f-c3ecc717a90a","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":189,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"5c8b9f40-8b7f-43f3-8fcd-9b5a34746adb","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":189,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"76a6c7a1-e324-4834-8e67-07b5e3411e71","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":189,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"8602c0f9-c1cd-47e3-b8aa-4c1888c8f37e","block_type":"box","text":"4","page_number":189,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"9a9bde14-40bf-439f-8c37-32911cb001e6","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":189,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"265ed5c1-5da3-404e-8b94-5b3990c0204d","block_type":"box","text":"boards and their members, where relevant.","page_number":189,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"7f9c1d0d-6cb9-43fe-af3b-f3ca117407f5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":189,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9fc22cb1-b42f-4691-b3f4-a3de4aa9e3c0","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":189,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"25b4cabc-b9c4-4a13-bd75-e7bf8b0f162d","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"af0b2d27-7313-4cd9-a17a-7fe10881e105","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":190,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"3ef99c9d-36ff-47a5-afb2-69ee0c806658","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":190,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"c2c87593-d4c0-4c94-b460-7e2f9e93bf97","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":190,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"acaedd6d-84fc-4289-92ed-83ab965a3d32","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":190,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"18657f93-d504-470a-acc8-2dbb5753897f","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":190,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"a1f763f1-bc2b-4d77-8e3b-313b2654d710","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":190,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"47137bcf-1b1c-48ee-9bfb-ebc5f07efbb5","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":190,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"46771e17-ec36-4901-89fe-4e2760de0ee1","block_type":"box","text":"5","page_number":190,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"ebb7fa47-6c26-498a-a818-c6978b3669c4","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":190,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"2a6a0c4e-9838-4ab1-b9ff-106eabce3e23","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":190,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"c7ff9cd4-c7a8-4b26-b790-960eb11e8ce9","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":190,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"bce929d0-99a0-4209-8820-1e3da4932121","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":190,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"3bd0da37-1947-4271-b0bb-e8c846c251b6","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":190,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"156a78f5-8cc7-4e31-940b-114aff8204c8","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":190,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"80c0f05c-0d75-4af2-9b3b-2e6c1ff9859e","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":190,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"4df2f461-87f3-43d9-8fd4-1f670c70d4c7","block_type":"box","text":"5","page_number":190,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"c4639f85-f806-4a98-ad3b-e75cbb028fb8","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":190,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"903fa0f8-c03f-407d-963c-cd736b154492","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":190,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"c081d46a-cadf-4838-a1eb-139050ac579b","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":190,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"51fcd4f0-5b2a-4adc-9285-7624033d4b83","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"039c01bd-839d-49f8-845f-91a9b8e71ebc","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":190,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"632d614d-1f2f-447d-ac3d-ee325882dcfa","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"354a9114-3d53-4dfb-add0-0f850fc200fd","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":191,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"c258a06e-00ad-4d89-aa68-cf958eacb4ff","block_type":"box","text":"Roles and responsibilities","page_number":191,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"40187c2d-c86d-4409-9e84-9160a311cb8b","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":191,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"bed17508-a00c-4b9a-9757-aa65b51c9144","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":191,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"462f6180-d2d9-4e4a-a1bc-600bb4d585d2","block_type":"box","text":"6","page_number":191,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"7f92f83f-e2d0-4723-be20-5897385a7472","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":191,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"3224ff6f-1e16-4bf9-bb13-4fac15b2747c","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":191,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"b1067970-d2f5-40da-9746-5d1a8ce40586","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":191,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"ba28b351-4a63-44e9-b900-7140835770f2","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":191,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"729ee383-a20d-4725-bbb2-13de244fa04e","block_type":"box","text":"performance over time.","page_number":191,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"cc90137f-0de8-435f-b8df-ecc756abb5cc","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":191,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"110393b0-c3b7-43dc-aff9-4fb7b11234b1","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":191,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"26fc7ed7-0f0c-4060-a98d-f8e8dbae18c5","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":191,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"bc988b2f-675e-40ba-81cc-976c25eac002","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":191,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"65b01560-2cd5-42bd-a3c6-fc1b18d0e015","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":191,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"9d4e0972-17e4-4a5d-9a03-dc4d2c45441c","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":191,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"6f3c1ee8-51d3-4d01-b428-17d29501dec9","block_type":"box","text":"Composition and effectiveness","page_number":191,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"307d885b-ea2d-438e-a2b7-4c074a41e506","block_type":"box","text":"Appointment process","page_number":191,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"6b460423-a01d-481c-86b3-b6b8e691556e","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":191,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"d9ada734-e669-4b85-958b-e4da8a3a2685","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":191,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"84e19c1a-c07f-4985-ad60-2e380af02c66","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":191,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"47be876b-98d2-4f75-8f26-2fd32483eebf","block_type":"box","text":"e.g.","page_number":191,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"591c9505-2c7f-405f-b199-620b10361312","block_type":"box","text":", sector, maturity, geographic","page_number":191,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"c0e1e2d1-51f2-40c6-895d-dc6a5298a276","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":191,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"ee64d02e-0e02-49bc-af83-566a67bc1899","block_type":"box","text":"e.g.","page_number":191,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"bb662db4-797f-4200-af78-a6a9689247cb","block_type":"box","text":", financial expertise, industry track record). To","page_number":191,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"0547ad20-af95-4da5-90b3-4e46505f1dd4","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":191,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"0d1e2eac-e2c1-4c5f-a9b0-9a8ec7ae7f98","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":191,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"c2a04a14-c91f-4e64-b17c-7ded0a8559fc","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":191,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"d7d87ca1-3b3d-446f-98d3-f551b8ab409e","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":191,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"c134f914-b194-4371-850d-488c7e14af29","block_type":"box","text":"and local market requirements.","page_number":191,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"5dbc39a0-4763-4a72-b83d-51f14c5fc197","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":191,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"6a8d143b-5d93-4c61-940b-1d7527824b67","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":191,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"14043b90-3f13-4dda-b451-6bc9653fb3cc","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":191,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"1610cb16-2969-431a-bfa6-5beed96ec537","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":191,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"95c295f2-0164-41c4-a992-29514b73a7dd","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":191,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"f255c93f-0ab7-4f22-b647-b5a532a464ee","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":191,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"e5633837-eb85-4e7d-a9e2-d3b6a32b2952","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":191,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"e7b5c769-8558-410b-9164-e986f85921e9","block_type":"box","text":"Independence","page_number":191,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"162a3ee3-f1eb-40dd-b755-c11aca8d0263","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":191,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"7d984d15-6695-4ec7-b3fe-4ba1b018df18","block_type":"box","text":"e.g.","page_number":191,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"377250df-096b-4b85-b7ba-12395cf5edc3","block_type":"box","text":", government or","page_number":191,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"a358369a-65fa-4a0a-8d21-411e052e5eb9","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":191,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"a35f7ab8-5f55-4d89-8eb5-9e1ffd8694db","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":191,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"c7fe7710-1880-4af8-91e1-e091f4b635fd","block_type":"box","text":"conflicts of interest or undue influence.","page_number":191,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"c851ba5e-2c0f-4db0-a352-19307ba41d0d","block_type":"box","text":"7","page_number":191,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"69bf4024-f978-42ae-b30a-1d4590b04863","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":191,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"1a4c7c0d-745e-4047-885c-3b1d97c3a0bb","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":191,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"a0711073-08af-4a4c-b816-5b56c2b5af24","block_type":"box","text":"independence should meet those local requirements.","page_number":191,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"48f99d64-fcae-4024-8838-0d63dbb25bee","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":191,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"754f8e7f-8486-4e8b-8b26-38195bb4b3b0","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":191,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"81b9d9ea-99b8-45ae-b2c7-8cd254d0c118","block_type":"box","text":"composition if this is a perennial issue.","page_number":191,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"5cbbf9a9-2aea-4cc6-8d23-94e9b4a100e5","block_type":"box","text":"6","page_number":191,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"55542bbc-8342-4dd2-ab9c-72a441832df0","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":191,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"6fc85d30-65a1-4114-9b08-48bcf2bc9493","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":191,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"74199bb7-5f1a-4fd2-af8c-858203f181b2","block_type":"box","text":"7","page_number":191,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"85e58bdb-5c41-46f6-b772-ab5a48280520","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":191,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"b53f5ee3-315a-4a0d-9f2b-7b3a9dbb98ea","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":191,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"9661d7c0-cb40-4d6b-8c1c-7a96789df8f1","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":191,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"77253ce5-bbc3-41d4-95d8-0b4f30594178","block_type":"box","text":"could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests","page_number":191,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"c78ce787-ec5f-4a84-8c2d-a9676f61969b","block_type":"box","text":"of the company and shareholders.","page_number":191,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"bc976d37-6452-4218-bed2-cb47601da752","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c999741b-82d2-40f1-a649-da7259caf36a","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":191,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"54415127-acb3-45d0-859f-9f8c5f1d8996","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"40488ca9-5e81-4f40-b80f-a54786ea8d58","block_type":"box","text":"Independent board leadership","page_number":192,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"1e5c2279-24ff-425a-a439-44075ec941fd","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":192,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"1876f663-19c7-4f16-a769-7b0046b99081","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":192,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"8b1c977c-ef29-4dc3-88ea-1b610b693f70","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":192,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"dd6d7473-4b00-4a65-b14c-8d0304b3ea31","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":192,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"607007a2-9708-436b-92c6-da4d6f42e5c5","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":192,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"80e5ae65-d92e-46c8-864f-231ac48152ae","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":192,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"c08250f6-543c-4d28-abb2-bf6015a69a84","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":192,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"e81dcbfe-0d34-488b-916f-f6f9a652cea1","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":192,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"dd843b04-014f-4ebf-9750-17d86f6a38d1","block_type":"box","text":"how it serves the interests of shareholders.","page_number":192,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"89edb0f0-41ae-47e4-a632-80f7651cabd3","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":192,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"6b07ab68-16d1-4222-ba39-e9629ad97d35","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":192,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"dc380053-8aa5-4bb4-b16b-6917fa89635e","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":192,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"9534bb93-3a50-4ce1-a8f0-684e3db5c32b","block_type":"box","text":"Tenure and succession","page_number":192,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"f35c2546-7c6e-4ecb-9767-8aa2df62ed4b","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":192,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"096302e8-0bae-4ab4-96a7-0dc6be6c366f","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":192,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"4be90fe5-6582-47b4-87c1-045dbc7007bd","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":192,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"55519a15-b17a-480d-9d17-273967ad9164","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":192,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"3b817588-f0a0-4001-bacd-a664d72f8296","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":192,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"bd753897-11da-4a02-877e-1fd96cd31a6f","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":192,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"cdaf7b1b-3a7f-45a6-814c-881f24aa1b87","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":192,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"621d878b-6638-4917-8934-733df4ed1846","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":192,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"8756ced2-fd39-42ff-a384-cae6379bd668","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":192,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"d2043d86-2987-496c-9bc4-0bdd8204cf89","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":192,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"84ae85bd-3ec5-445c-96c0-442edbfe6b1a","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":192,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"9a63db29-273e-496d-946e-15c4320c31ca","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":192,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"d4867162-6b78-40dc-bf83-4e99c1b6c635","block_type":"box","text":"for their continued service is not evident.","page_number":192,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"7c480520-220c-4075-b26a-09b633fc8d34","block_type":"box","text":"Capacity","page_number":192,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"8bcb0832-6c39-40da-bf93-3e73d8348bd2","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":192,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"cb72f013-2415-45b4-ab73-99df64a6d325","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":192,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"6018cb1d-6a51-4406-bb20-a52e95213b8c","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":192,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"4acbdddf-e4b4-49e9-9af6-9b439f655719","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":192,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"92eda821-a06c-4200-ab73-8051cab8a72d","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":192,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"8e155275-cba0-43ce-8d3b-e155c8242812","block_type":"box","text":"determinations across markets.","page_number":192,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"2456915a-092b-4721-9c5c-5a11b1bb819e","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":192,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"4e706280-7b0e-4d76-9bc1-ef6a055b6a81","block_type":"box","text":"their duties to the board and company.","page_number":192,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"258b500e-c061-4345-a794-e7b5d3bbf404","block_type":"box","text":"Director elections","page_number":192,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"39d67d39-f718-460a-89dc-463c2cbc5616","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":192,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"4c3c995a-3caa-4878-a544-923b96702cda","block_type":"box","text":"structure","page_number":192,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"91c982a3-5768-4250-962c-44cf89fdeea9","block_type":"box","text":"8","page_number":192,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"199b1d5e-2139-4e8e-91ed-adc6d583597e","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":192,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"ef487ee8-bb50-4b8f-9d7b-7f4c0ba1c00b","block_type":"box","text":"basis of its business model (","page_number":192,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"d275c9df-2718-4311-baf4-4ebe3bcb508f","block_type":"box","text":"e.g.","page_number":192,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"f2e2f0f3-d448-4289-9c9a-3a8ab44e4367","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":192,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"65e6b69c-e188-4557-8706-5663600d32f6","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":192,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"4baf65fd-7560-4d87-849f-eefd0c48f1f7","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":192,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"9c3f2703-b395-447d-9a68-9a3331ebc6e4","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":192,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"cc36ebaf-1f68-46d9-8e3a-9847335c768c","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":192,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"421cb212-01c6-4d3d-b636-61732266470b","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":192,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"e428a977-0e61-43c5-9ef8-c607d72f4a75","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":192,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"177ef281-244e-4422-8857-a19703e2004b","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":192,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"93450bdb-2f07-45c8-b519-b35b68a8649e","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":192,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"bb0c7cd5-4bf6-47af-a025-cacda185ab1a","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":192,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"2112af9b-9219-4566-94db-d4effc2f2561","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":192,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"101c6525-7a27-4a3d-a7b9-d8b328a20bc3","block_type":"box","text":"8","page_number":192,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"6c03cf27-05f3-42e0-a858-a97d61c97c32","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":192,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"fe35a4a5-f9ca-415c-9819-d6c534896f0b","block_type":"box","text":"directors stands for election in any one year.","page_number":192,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"419abbe9-765f-441c-a6e3-6a5c76430335","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"42ff8d6f-be4e-4045-a999-df2dea079426","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"18c9d84c-0927-4c34-b29e-a18d1fe081a9","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fb03fbeb-97b7-4a8f-bbee-41b2d679039b","block_type":"box","text":"Committees","page_number":193,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"7fc493dc-e8fd-4a00-a469-adbd84f886d5","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":193,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"1e6e57ec-a987-4288-954b-a023b8412f46","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":193,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"2483aa91-927e-40ae-8aca-e92f676ac497","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":193,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"0114e63d-99f7-4c97-b1c9-94f01114261a","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":193,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"b1530d36-f602-4239-ae57-c680f25c1f78","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":193,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"8b7d49b5-029d-44a0-ad06-ff8a187e86dd","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":193,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"ef2e3e8d-dac4-47aa-a6d2-e961d496998f","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":193,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"4563d5bc-2e4b-4a2f-adb9-5e6fff7e3651","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":193,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"959c01b4-451a-44e9-9e5f-2f5debd85d34","block_type":"box","text":"•","page_number":193,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"24840b30-1e06-4d1f-9615-5b52b74cddcf","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":193,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"7ebf3d98-fa12-4464-83ec-39ee61fd495e","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":193,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"47fd2e4a-4d16-4674-9ba1-1ae3eed15a28","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":193,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"b7904531-effc-4fc5-9412-d5ffce05fa60","block_type":"box","text":"•","page_number":193,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"4fa4da43-3001-4e1c-b92a-2b97f0fa1e08","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":193,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"24088e90-abc3-4007-9f7f-6052a1a6835b","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":193,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"e580a406-8596-4868-8ba3-3a76b80e7ec5","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":193,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"a0fa780c-bb4f-4702-9faa-bfbbc2375e11","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":193,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"e58d19e4-9cce-4ab4-9be6-db2854d65037","block_type":"box","text":"•","page_number":193,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"0df66346-51f5-49f8-8f53-4506ad2cb18d","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":193,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"2a53cedc-3e10-4347-98b7-b989693d2ff0","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":193,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"bba37994-1abb-4a5e-b1a3-73a72d713005","block_type":"box","text":"firm-wide compensation policies.","page_number":193,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"aec2130c-7a25-410d-a5b2-ae1763aa87b8","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":193,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"02471242-9628-4626-a499-95bb5fc81377","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":193,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"b5b57331-c498-4faa-8c8b-73e511b601bc","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":193,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"08b3c87e-e39f-4094-ae86-25fdfd1f2888","block_type":"box","text":"Board and director evaluation","page_number":193,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"7dfc6764-277d-4530-ae85-167baecd70f3","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the board, the","page_number":193,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"59b6f1af-884f-43ce-9299-1b8e9249a4ee","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":193,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"a67386de-cae2-4b5b-a198-2f1fab67af39","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":193,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"3cfa2c93-1bef-4759-83a9-90d529167d36","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":193,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"8cc4a470-49a8-4436-bbef-6c6d98adc612","block_type":"box","text":"a result.","page_number":193,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"c9d9c8f2-9599-4acc-81fa-7b5a2b818ead","block_type":"box","text":"Access to independent advice","page_number":193,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"8a53b0ce-6ac3-4628-9ddd-837bd99a4172","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":193,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"7699ba09-ca37-4a90-8bce-ce130d37c6a7","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":193,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"67d9576e-400c-4724-96fd-4f6acfd3643f","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":193,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"ee962a16-3a1a-428f-83b4-14b880f71a63","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":193,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"d7747146-dca1-4b76-9664-00e351b67eaa","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":193,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"f7c77aea-211f-4062-91ff-67d3802c05f2","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":193,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"900f17a6-ca6c-4854-9425-b67edad30a53","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":193,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"50799099-5f40-4fb5-ae16-1633313f5d7c","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":193,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"cf58fe09-f6be-4b7c-9362-26f848e5df45","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":193,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"2bc5ffb3-5d03-403f-beb2-ffa07fef4e6b","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":193,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"5db48628-738a-45ad-9cae-770ea047884a","block_type":"box","text":"performance.","page_number":193,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"c834b6b6-a89d-4c05-b394-890bb50f3593","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":193,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"81e1ab0d-b328-462b-b053-69e1457be6e8","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":193,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"0d68d443-efca-4b14-a868-50179d72ed24","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":193,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"0d4150a0-3e05-41ef-a976-b4d7b3945d74","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":193,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"7747fefd-6fab-40b6-a391-5ae60bd96c7c","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":193,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"75c53d81-6b7b-4f23-80fd-89097f0f82e2","block_type":"box","text":"recruit and motivate.","page_number":193,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"249434a7-e9df-44a5-96f3-042b5ec326b0","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":193,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"24a78a40-8500-4a95-a3af-41bfb412bedb","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":193,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"5a26245c-661b-4be8-acb1-5b6a752f2c63","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":193,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"b64ae86a-6b4e-459c-9dc9-2552b797c23d","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":193,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"76ebb1fc-1ed8-477d-b16b-0d6422eef813","block_type":"box","text":"arrangements include:","page_number":193,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"8762ed3c-3876-4af8-be06-1e1c53e58876","block_type":"box","text":"•","page_number":193,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"cc6350bf-a3ef-4be9-aa07-854c1f1566b4","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":193,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"94571d1c-dd1e-47f7-a93b-52ddc5acc634","block_type":"box","text":"the company’s size, sector and market.","page_number":193,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"ecf89161-bb26-4654-bf16-14ee142d3c1c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9411d9d9-3685-4046-a53d-4028c12cb33e","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"8a95b41b-a206-41b6-863b-22719ca08a98","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"676a6299-c615-4f2c-aa9b-4918bf91e03f","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"13a536ef-4777-4981-9fd2-8e48602e162d","block_type":"box","text":"Variable pay subject to performance metrics that are closely linked to the company’s short- and long-term","page_number":194,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"2dbc7859-a546-4d57-9905-c613126956c9","block_type":"box","text":"strategic objectives.","page_number":194,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"771fe370-afaf-4da5-847f-ca6631641cb8","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"a40850f7-10ab-459e-bce9-5649743a37db","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":194,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"98277a14-e8fe-4462-9a98-ada1e96064a2","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"7e2e1176-c4f4-4477-bf09-5ea5a78d62ec","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":194,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"a2dfe175-3bfd-47bd-af46-74bdb5dda555","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":194,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"8fa11b29-84fd-4a31-b928-2c4f4e13f209","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"11337d79-d6f4-4517-ae33-291d1c6aba21","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":194,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"92eae778-3b2b-4815-9da3-be7f20b0ca42","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"e9c4f3da-f77f-4a58-9960-8d8929a23ecc","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":194,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"4775a10f-ce6a-4110-a2aa-4b230a698a7e","block_type":"box","text":"transparently.","page_number":194,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"1b00e257-608b-4e86-987f-154301926999","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"cc72109a-69b7-4b9f-8a8c-3ac8828b1f8d","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":194,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"b539d90f-9573-4346-a347-e0656adb3153","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":194,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"799c31c0-623b-4475-b198-dd2a44b17e60","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"5fecf065-0055-4daa-96dd-f5c360ace2e7","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":194,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"aa52deb1-7839-4232-b703-8ef073087ca6","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"5282f1c3-7b77-485d-b4c5-a4eeb5a3d991","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":194,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"70e56ce8-d123-446c-b211-e987705cf3ef","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":194,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"a1463c59-1d14-4ccd-ba3c-8f94a2f7b3cc","block_type":"box","text":"misconduct.","page_number":194,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"8cbdb80c-8516-4cf3-8e54-4bad1332ac77","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"162b8823-fe1e-4cac-b761-62d21bc20039","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":194,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"31e4eed9-f7c9-45f6-8332-aefdab9ab11f","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":194,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"50a127b4-7885-44b0-aae4-1db085a176e2","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":194,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"26eda0f3-2f82-444b-9cb8-1fb92c0dbbf0","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":194,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"2365b6df-2d00-41c9-979b-ce128ff410f9","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":194,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"7fc857e4-7e8f-489f-9893-5493bf82a167","block_type":"box","text":"committee, or the most senior independent director.","page_number":194,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"79b7b762-d89c-4a6d-805f-acc2795c6070","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":194,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"28879791-2cd8-4c41-ac70-9354c3849c7e","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":194,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"0f6335ed-9215-4088-8406-eeac581a3d99","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":194,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"ae1d17df-c804-4ccb-b46f-534ceef9ee76","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":194,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"104374ed-97d5-4f71-9580-0d9837be9e98","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":194,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"03d781cb-0b63-4597-aa54-3d0326f296d3","block_type":"box","text":"CAPITAL STRUCTURE","page_number":194,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"67ff4fc3-a06e-4b86-95aa-2ba80251915d","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":194,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"88629943-3c01-4921-8465-8eb49ab11dc2","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":194,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"8d05b804-808a-4839-8595-3d945f2df120","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":194,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"2788b90c-72cb-4adb-b744-23c7f7513f87","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":194,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"05a99727-3b08-459d-962e-647ce4f18935","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":194,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"cc091c12-5d0c-454c-bec9-d8c5928de3d5","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":194,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"da3045f6-493d-408c-942f-cf05433e0fb1","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":194,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"200b9d50-e51d-4ed2-8c5e-0a747fbd4266","block_type":"box","text":"Share issuance","page_number":194,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"5df83015-c650-4e1a-8e32-936b484e91cf","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":194,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"d3200848-ed37-490d-802c-d5fc096fc56c","block_type":"box","text":"support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":194,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"8de24d48-b15f-439f-b607-05a5a9c34923","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":194,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"236460a6-e819-4ee8-b403-1ad33d6284cb","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":194,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"b473738b-ccb9-4771-b3a9-31175a8d7208","block_type":"box","text":"market environment.","page_number":194,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"1d7c1e57-6e6d-4e94-b78a-871b5f7f3280","block_type":"box","text":"Share buybacks","page_number":194,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"d6ef9d16-e1d6-4c02-8703-f1f43f2ef833","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":194,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"0e364815-793f-49a3-887c-2d30eb0c884a","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":194,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"1fe08ba9-e736-4250-8aa1-d522659f0c58","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":194,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"b43d2a99-84e1-4eb2-b3bb-6ac117f071e5","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":194,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"d1789946-f08e-47dc-bd82-a900be10c642","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":194,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"ca5383c5-0cdd-4d02-8702-b560c37be87c","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":194,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"04807e1f-3007-4173-9cc9-2662810e67a2","block_type":"box","text":"of the company and the market environment.","page_number":194,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"6de6101b-4ae3-4fb9-88f6-f1560ef96ae1","block_type":"box","text":"Dividends","page_number":194,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"d46c5be2-2170-42f6-88dd-03c7e9ab25ab","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":194,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"aecf9553-315f-480a-83e7-bff1843db2b4","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":194,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"953dca19-e08c-4799-b248-8db94b43f55a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"38366c9d-eee3-4e96-b620-7ab061a12417","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"9dc8c230-7083-4713-97e3-a983017563c8","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"80c9d677-82f7-4bbc-858d-796a731f2147","block_type":"box","text":"Differentiated voting rights","page_number":195,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"9fa123cc-74ed-466c-96c3-c58718c81d95","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":195,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"44b0dae7-f666-4a6a-814c-d8142f2c9d03","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":195,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"962528c3-d704-45a9-a630-b40499f0f037","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":195,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"2845f2b6-1f12-4427-b408-9e649dedbbe0","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":195,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"abd791b2-0260-4dbd-b327-9f396efed67c","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":195,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"3fd897fe-e7de-474e-ab0d-48b586a85c77","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":195,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"4503eb21-864a-4b23-a265-060e34f7dfed","block_type":"box","text":"analyses of proposals.","page_number":195,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"91b3ebe5-64ec-4899-adb4-3f12933e878c","block_type":"box","text":"Mergers and acquisitions","page_number":195,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"0b843206-3c47-4bcb-aa23-11300f3fb468","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":195,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"e7231b8b-0b41-4774-b4eb-e2f381923609","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":195,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"4f2c32a1-9896-410a-a829-79625eb2f337","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":195,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"1709b706-a3f2-4858-8321-ce8b7ce7c7bf","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":195,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"de2a5c9a-5634-49b5-97a7-2002acd7d437","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":195,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"1f9654b0-3eb0-4ff9-a3ec-cb323e2430c2","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":195,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"3ac005ff-d18d-417e-b7a2-d0d3461c7727","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":195,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"ca8a868d-0a20-4a3f-9206-28fb2492eb4f","block_type":"box","text":"Anti-takeover defenses","page_number":195,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"0c6fef20-e5e8-4d65-be57-2567e4308e06","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":195,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"65b98e4d-ee57-4a26-9b90-9e9d98a010f1","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":195,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"2cefaa35-052e-4891-934b-aadecdd72ab7","block_type":"box","text":"shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is","page_number":195,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"ca80c788-a576-4011-8b86-8bb479859200","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":195,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"634d13a4-c529-46da-85e7-a64a68af82fc","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":195,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"3f729141-1a04-4743-85e8-458e7fd0a14c","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":195,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"d768a8e7-012d-49df-9d61-462212bb95a8","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":195,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"97678ea4-9f6c-418e-8c64-a45d1763c7c2","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":195,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"a880a1f3-1885-463a-9977-5880bf44d64b","block_type":"box","text":"Shareholder activism","page_number":195,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"9585c0cc-1549-4d80-89bb-ff4a7049cbf3","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":195,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"2c5d3a04-7d65-4734-94d6-76d11a5a130d","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":195,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"60b6b4a4-061e-4fd1-a96a-c25814caac1b","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":195,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"252ebd1d-ccf9-4c1f-a375-6e48e131f47c","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":195,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"267374b8-948c-4d45-b0bd-23299d072806","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each party’s candidates. We evaluate","page_number":195,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"1941bf26-65b2-4b10-b09b-07ec0df28b17","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":195,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"c2558eab-c61d-4ad3-82f7-26f36856dde4","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":195,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"a8929c94-b9da-4725-bba5-082a3298c80b","block_type":"box","text":"the relevant portfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":195,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"cce05521-b158-4590-8e14-f35b9a2dbcbd","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":195,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"b7b24438-51bc-4ebf-93e4-a35800627ff1","block_type":"box","text":"protecting shareholders’ interests.","page_number":195,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"cc63d889-878c-44b0-9bda-87237c49650a","block_type":"box","text":"Significant shareholders and related party transactions","page_number":195,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"a5bac7e5-65fd-499f-ae54-c41a41432f60","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":195,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"86427c6e-0632-4dd6-a38b-d6bd945227ec","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":195,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"c8785cd1-5a7f-4fe6-8508-6b8a14ace1d1","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":195,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"6bd7906e-98a6-4dd8-91ee-6aa4434b67f7","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":195,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"45ee3942-d270-4d39-a407-fe8bd10a7eb3","block_type":"box","text":"have been agreed with a non-related party. In our view, such transactions should be reviewed and approved by the","page_number":195,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"51286533-405a-4c7e-93cb-b1c168f52347","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":195,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"9a3e9eac-3b7b-4391-b88f-30230b0cae4f","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":195,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"23e8e02d-0170-4d48-b19b-089cf6e667b6","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":195,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"21fd2e3f-bba0-4334-95ac-183832dfc674","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":195,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"b585f96d-4edc-4683-97b3-a08fdf22e5f7","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":195,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"b604da3d-375d-4fc5-aa7a-a690e5cb6eaa","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":195,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"7da375a7-85ae-426a-a5ce-ff4e883c0614","block_type":"box","text":"audit.","page_number":195,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"40db489e-b348-4e6a-907a-497b255c3d88","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":195,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"cf356d60-b72f-4871-82dc-3b4798b6fdda","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":195,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"fbabdb88-3ef0-41fd-b266-d7c08e073571","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":195,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"d144cbd2-9264-4f88-a034-435398a9b199","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c5a5a440-e8da-448c-87fc-cda4cd2ba5de","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":195,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"2bf28018-2158-46d5-a506-c628dcd6e9fe","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5c834743-05c6-4631-a994-5920d43450c5","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":196,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"2f443879-2927-4c57-9ffd-8c9e1f85acb4","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":196,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"707c45b1-0957-4f96-8865-3dda945d7861","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":196,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"93cd6bd4-82cf-4fa6-a6ce-fdbd86ecf844","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":196,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"32317dea-347b-4ef3-8b31-596519e28ae7","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":196,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"bbf9e7c2-dfd4-49bf-ac26-98eb2b6a0b72","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":196,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"2077e9dd-de5f-41fc-9ebc-5ea500cfaed6","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":196,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"ac257d7c-aee9-49d7-8394-b1be2b0bb985","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":196,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"c90665cf-3624-4c6a-96fa-c0cbf6b0ded1","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":196,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"2895bb59-e7c8-4117-b2bb-f262b3872b2e","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":196,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"813f40e8-f389-4155-9eab-d0e54e800de5","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":196,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"e2b26bb6-70f9-4a86-a902-2098d63a25bc","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":196,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"a2e3e89a-5ba9-4771-84b0-4098733d0227","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":196,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"74d14eac-b7c4-4cc9-96b0-66d642f23158","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":196,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"a022d7fd-db3a-4984-816b-8f2810a92ef1","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":196,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"68ce7d4a-9493-4161-8e07-03733721513c","block_type":"box","text":"9","page_number":196,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"58e95a69-3658-4244-9fff-aac13fe3bb10","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":196,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"d80104f7-92d5-44f5-9a0b-089e5122aa77","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":196,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"abba6462-f2bb-4b83-8965-90a99565cca6","block_type":"box","text":"standards specified by policy makers.","page_number":196,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"058571e6-1b2c-4f5b-8cda-3045395c85d8","block_type":"box","text":"10","page_number":196,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"5498bd45-1bc9-4d0e-9d35-388a71d59a55","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":196,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"131d86a6-15a8-4e58-ab44-e6219d675a1d","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":196,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"084f1f3b-daf4-469c-899b-9bf03b19aefd","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":196,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"8bf06a33-d8ba-4a7f-8a10-de7fc02ce63d","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":196,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"a2e7e6b3-30a0-479b-93d7-c7ada240447f","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":196,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"04271fe2-6103-4041-9a11-767253183ebe","block_type":"box","text":"of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as","page_number":196,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"4afe7be9-b61a-4dc4-aa31-05bec22480c3","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":196,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"3c8e9ccc-04ab-48c6-b450-1d6a78f2ecf4","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":196,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"7009eebc-b8bf-48e2-805d-5cabdd452ec0","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":196,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"69bc33df-992d-47f9-ae51-dc5d22986704","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":196,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"7b468207-b543-4617-ac6b-ec679106cd00","block_type":"box","text":"remained independent.","page_number":196,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"beec0314-ef2c-489a-ae60-40469421e501","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":196,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"7458de83-7e79-42f6-b6bc-1ca09db64d6e","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":196,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"3b16a638-4584-491a-bc16-4d6c9f1d4af7","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":196,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"823fa806-2894-4af3-8b23-6a5d349830fa","block_type":"box","text":"reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the","page_number":196,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"785d443c-215e-47dc-a4be-461a60cd39fe","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":196,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"50309f4b-4a1e-4ceb-bd17-87e2329b8c30","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":196,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"1b5c7c94-bebc-44c5-86dc-d506c4712da2","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":196,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"e6986055-2714-4dd7-9baa-a160e0ddbfb2","block_type":"box","text":"General shareholder meetings","page_number":196,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"512b39e4-7907-4857-a7c6-3e1abec3e211","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":196,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"5c3b946c-4507-4466-93d0-7f841077a1c7","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":196,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"61322129-5ab1-4616-91a0-8da434a1dc04","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":196,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"a03b5b49-707b-403b-9825-2c35208202c2","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":196,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"ac048797-458d-4964-aa49-1ea9b828b211","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":196,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"40fb8bb0-09bc-4518-8a93-87621547ef95","block_type":"box","text":"an in-person meeting.","page_number":196,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"c7bb1c47-c25a-47f1-8cbb-3deffa505fce","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":196,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"c098b42d-8817-4ead-8165-9582b6eb4bf4","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":196,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"0de9f910-7886-4c60-87c7-35ee461706ba","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":196,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"a5e16dd4-8dda-4e0c-8bf6-cf5ef95e3ca8","block_type":"box","text":"participation.","page_number":196,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"e5b25348-4808-4234-9987-1c86d192cb26","block_type":"box","text":"9","page_number":196,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"f1114bcf-b380-407b-bfb7-02ee4d13e019","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":196,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"b8762a27-b26c-4219-866b-d3725cbceb89","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":196,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"74f20770-f974-47e0-b46a-d178bd9eded0","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":196,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"f99c0625-42d2-47a1-9b32-b88d0b02f8a5","block_type":"box","text":"Disclosures.”","page_number":196,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"338aec1b-5142-4db7-a7e9-0fb3b6bc7346","block_type":"box","text":"10","page_number":196,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"83ce6261-71f7-4cc6-9d88-386cb2244c9e","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":196,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"97188a30-28a9-4454-8e22-f34882befba2","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyreporting\r\nandaditing/companreporting/corporatesstainabilitreportingen","page_number":196,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"868a3aad-546b-4fd0-a24b-05d6cd09c0be","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":196,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"0c2365c2-e187-4747-b22d-e1ef091b2eb6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"11e62030-872e-4bd2-b0c8-b684c54485ba","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":196,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"6bf2c235-d2e5-499a-a676-7ca2de576d4e","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d57b6417-61c2-46de-a8d1-47e4eb344d36","block_type":"box","text":"Bylaw amendments","page_number":197,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"2cee7e45-6374-49e0-aa50-59cd275468e2","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":197,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"dbf19fc0-763c-4af3-84a8-dde60a8ef96e","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":197,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"a7061800-34b3-4222-bd81-1609c056194d","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":197,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"18b30e01-118b-435f-8b06-ceb53a174af2","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":197,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"f2be6a30-8af5-48b0-90da-02e6849b9864","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":197,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"90c4d8a9-0cfd-4b43-b31b-b681e547821e","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":197,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"3666e44e-83b4-43df-b7cc-d8c8ddb3c989","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":197,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"86b5f8b0-da0a-4e0a-a558-2a575520d703","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":197,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"cfb0b441-ac07-4c3c-a1e8-de74cbefa223","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":197,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"2265a551-e59b-4ddc-8774-7917b6f19fb7","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":197,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"40607009-e3d2-4565-8d16-ce679c43c62f","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":197,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"fa5f3194-6b37-4732-a8e5-cac3c9e25cc9","block_type":"box","text":"nomination process.","page_number":197,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"cae5d83c-4101-487a-b7f9-bcefaf708909","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":197,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"56d096aa-c722-4f08-8ab9-92653bf3a78e","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":197,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"3b82a070-3288-47da-9840-0e3858024611","block_type":"box","text":"Change of domicile","page_number":197,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"d51966fc-5b90-4e30-a4e2-05aab54c3b59","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":197,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"e9c41b1a-71f3-4eb9-8796-8de651663d1d","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":197,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"43ac474a-8a2c-46de-a3c5-ee282a3e0962","block_type":"box","text":"immaterial.","page_number":197,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"b147537a-a974-4857-bf41-985cf09e15f1","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":197,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"e1ea6cec-873d-41a8-970c-458dda705f8e","block_type":"box","text":"with our clients’ financial interests.","page_number":197,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"10c5f111-b799-476e-a437-788f88426405","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":197,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"cca540fa-6671-4faa-bec7-09a8c7aceb8c","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":197,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"aa3a2918-1f1e-43c4-a4e4-6ecab065d391","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":197,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"0a5f445a-84a9-4a18-8107-2951cfbe825a","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":197,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"3f5a914a-2ff8-4694-97c3-0508fc7e1106","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":197,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"927b23cc-6bb2-43a1-929b-353ad8728d53","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":197,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"c25bf710-40c4-452e-90d0-ccf4422b5870","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":197,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"226c0ffc-3b60-4fb9-89f9-cd0efef3e41e","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":197,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"e3ab4826-ff95-44d5-b5fd-1f2ef036e9e3","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":197,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"f95529ac-387a-49a2-89aa-f2b92a773a1b","block_type":"box","text":"supported by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":197,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"db0ed185-828c-4ad6-ab58-d9cb9c041cf1","block_type":"box","text":"relevant to a company’s business.","page_number":197,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"e5a5bdf7-47c9-4416-88af-d87488c7168f","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":197,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"1c939a7c-a27f-418b-b83b-a2b721041b99","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":197,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"fdecd21e-ecff-4e73-9671-ea4fb74cfb50","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":197,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"3327b817-b998-40d5-9fa1-374eff83f836","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":197,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"db134d3f-18f5-4794-a0ab-bb496f9961de","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":197,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"8dda02ef-12c1-4f6f-a978-a286e3ed1370","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":197,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"2662b660-d77f-44ac-b7bc-d04100fa259c","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":197,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"7bd648c3-8dec-46c6-86c6-65c3f2f11714","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":197,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"afa16561-9cc6-4873-a470-4d7d2f152e8f","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":197,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"350b38e6-5be8-498a-9772-fbc1f847eb29","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":197,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"e9266fe7-f8a4-4156-86a5-5cb0a75da686","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":197,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"ca73404c-18e4-4337-b087-b943e5a924d8","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":197,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"3b1c180d-05e6-43a0-9be5-0c9194de0a64","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":197,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"c5ba2297-557b-40c4-8f52-fdc5b5e9dcb1","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":197,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"d9f95a6c-9178-43a8-a017-e3f3926499eb","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":197,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"3de7e35e-c633-4f51-bdfa-52ddc301e1b1","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":197,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"68fdeb57-a12d-440c-b72a-70883ae17165","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":197,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"a6fa9297-d734-41f2-8cf8-4fc87e71675e","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":197,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"99312d60-d5b3-4baf-868b-508947f568da","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":197,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"ba60f7c7-d21c-447b-a2ee-f53ddb75cd33","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":197,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"e7b1ea63-5c70-414f-9a15-6735c2faa6ff","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"86210182-1c1b-4fc2-be82-d6502f366cfd","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":197,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"8c187b34-73c0-4947-ae76-cb04bdacbde8","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4644b6d3-6031-4f07-948e-4a6f055708ef","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":198,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"6c882844-859b-41aa-8bbe-7cb28ab2141a","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":198,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"5b88f7a1-4ef3-41d6-874a-879e4807d72c","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":198,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"c0a1647f-0f56-4b5e-aad3-820c128546af","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":198,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"72e46f89-14a9-4a53-b42e-2726a391b4e0","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":198,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"bf11459a-baf0-49d2-89c1-38f52b5d117b","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":198,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"97ce2ee3-d192-4fde-8a5e-da27023bbad4","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":198,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"fff8ed76-88f4-4e94-9fe7-a312424be979","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":198,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"087efc48-01e1-4d33-9c45-d6a8641dbf36","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"d8cc810f-3e70-4c25-9f4d-98bcdc842562","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"36600fa8-8b65-4d9e-a84e-6ed9cc603bb6","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"70fe4922-228a-4be8-9e40-9d135cc707c0","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":199,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"966c0ee5-7bcc-4fed-90fd-b5ad9cc83085","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":199,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"4e48afd3-43ae-49bb-a73e-9a027bdede1e","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":199,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"f62b2e3b-09f7-4951-b075-264800cabc1c","block_type":"box","text":"11","page_number":199,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"64d0e40c-0367-41a7-8f9f-4e51e7f642a0","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":199,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"0afaad38-fa08-4b00-947f-cc5531e160f5","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":199,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"b69f341d-fc9b-460f-889c-01bc54c07e48","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":199,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"f3a3a023-ac57-4b54-b050-4dd9c3433fa5","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":199,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"b34ec643-c958-484b-bfa2-15e4a9294ae4","block_type":"box","text":"regulatory requirements.","page_number":199,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"13470e62-5c82-40b2-b949-a0b2ba400ff0","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":199,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"2fcc8d11-45c7-4188-9634-45c29dba68cc","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":199,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"f7cc6c07-e6ba-4b3a-8861-1844f35d6806","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":199,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"0d6aa4fd-eb8e-493c-9630-58737ecbf305","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":199,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"1129563f-1a38-4a5a-8085-009bd06c4217","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":199,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"41be2d42-6155-4aee-b309-c3e3734d7ebd","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":199,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"c848b74e-c649-48fc-b41c-38eafc50a0a7","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":199,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"717b9ff4-9375-40d3-b7b0-a357e269f4bd","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":199,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"f367cb8c-d992-457a-ac94-4950cfeb0789","block_type":"box","text":"returns.","page_number":199,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"6a845859-b540-4741-956d-c73e52716110","block_type":"box","text":"KEY STAKEHOLDERS","page_number":199,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"1a234b9f-9d70-453d-ba96-1a9c9eedeeb8","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":199,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"76dc16cd-563f-4681-9cf6-7be11e39c3b0","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":199,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"5ee96fc7-baac-4123-9c07-363156160ead","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":199,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"02b87abb-ed06-4fd5-8161-494b5f3c04c0","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":199,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"62a14a4a-8a23-4ed9-8380-f3876f407bbf","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":199,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"990e9aaf-cca3-4049-8b15-8577bf6ffe44","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":199,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"61a73279-c0f6-4c24-8495-26b9890a8f7d","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":199,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"be4e78e9-80c9-483e-b81b-fa72d3bc60fe","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":199,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"038d91bf-a71b-403c-8bc3-3fbcd6f0785a","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":199,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"5476ec01-7089-49e9-9e82-542c1e2e677a","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":199,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"95ee6637-9322-44f8-b805-a4b2cccea305","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":199,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"7a82b467-c26a-4347-a84e-ab8b68937ba1","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":199,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"5742f357-82f0-45aa-9ee0-5ae8ef190e24","block_type":"box","text":"i.e.","page_number":199,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"0936d702-de1c-45bd-adb0-ce4cde0c0b64","block_type":"box","text":", one in which global","page_number":199,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"94939755-898c-42c8-aece-3396b6e93f2a","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":199,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"d51c21c5-e827-4c35-b626-cf44da2a3500","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":199,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"b3d18182-31b9-48f3-8cae-10229de37d01","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":199,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"83f30e41-d868-42da-a968-8e04495356bd","block_type":"box","text":"client.","page_number":199,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"15e88ec7-d112-4080-a660-686e98015bc9","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":199,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"bb3aecf1-9ec6-454b-84fa-fd7373c64337","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":199,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"dec132a8-519a-4c3f-a916-50c352d9532b","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":199,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"35e749cf-ca8a-4a6f-9178-042f2fbdcd38","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":199,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"b65852e2-3f76-42e0-98f8-a8ecfbcfc6f6","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":199,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"f25502f1-d056-48d7-b75c-744739265356","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":199,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"afc49046-97af-4802-84e8-1552f0e39a75","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":199,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"2ce69d4d-1696-4499-bf7d-abf9ddfea859","block_type":"box","text":"1 and 2 emissions.","page_number":199,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"07e8dda9-89c2-41f8-9f84-e2b11c0658c8","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":199,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"7313c70d-b108-4bf9-996a-06191b74053a","block_type":"box","text":"support for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":199,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"0fb5c327-32bc-4ae6-9779-c6e7db97946d","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":199,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"7427e90d-6159-450b-b1d3-9c5f85b46edf","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":199,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"4d03d0cd-1b12-478c-a160-9cdf0aff87e4","block_type":"box","text":"11","page_number":199,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"ec818ebc-ffc6-4b56-8331-ecc6cd522c4b","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":199,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"195efc50-c653-4836-b42b-05e82b0f4e41","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":199,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"c64f7f2a-7ca6-4877-b943-a1d78cf9d341","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":199,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"7855daec-05e6-4e04-9cdd-896a02e78e2f","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":199,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"0576871c-39e5-496a-903b-5c4a4379db00","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":199,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"696d4b99-2cd0-46d8-b64c-00dd5b157480","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":199,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"5344f978-91bf-4af9-89cf-f9e20dbd9930","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":199,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"ef431ac3-5209-4806-af36-a10c35df2ef0","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":199,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"de3f219c-36f4-420c-97c2-cf905ae1521c","block_type":"box","text":"sound governance framework.","page_number":199,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"bba5d7a9-170f-4964-ba2a-7402a04390da","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"55377584-0e09-4688-a947-02c9b60a4a74","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"cd9dafb7-1e3f-44e4-bf0d-91e78800d453","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ce6b6a88-cb16-49fc-8aeb-e65f120ce11d","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":200,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"1b1bffe6-4d97-46fd-9b9d-45699e5c08ca","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":200,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"3ce5f4d7-34c9-466f-91d5-70ae6d3af45a","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":200,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"58b47b50-7864-4818-bcae-9cfeda664882","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":200,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"a8a25829-166b-4f3f-9b6a-a65727a80ddd","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":200,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"0881eafc-af95-423e-a5df-26461932b4db","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":200,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"219d3e1c-2587-428b-8653-57f912f38396","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a8f7c5c4-9892-40ef-b839-574421642bb9","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"9b101c82-63ba-415f-b7fb-4c0b0a547e18","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"baf75049-c87c-4b03-9f62-90c250e175e4","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":201,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"90abc8f4-f3be-4664-883f-e438828b59d4","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":201,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"cc58e12d-e511-4ad1-bad0-00b568f46ab5","block_type":"box","text":"Oversight","page_number":201,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"78ad3d18-5ad8-406b-adf1-d35d770dd26a","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":201,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"7f78b347-f2c9-4176-bfa0-2c052d2a03f5","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":201,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"f53d8f80-3c3e-4307-b7c9-3dc4c54d418f","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":201,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"af1a278a-3aca-47de-86cc-07b3521bdfc9","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":201,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"1c12cf79-a9a2-464e-8495-c8015159e778","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":201,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"647fb8a8-2abb-4c91-81dd-fb2a3fd555ce","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":201,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"c598b331-a40d-4b10-a4a3-2bf9564bcbbf","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":201,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"cc7c40ff-e1d4-4e7c-bfe8-d6b8f1344449","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":201,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"d8522da1-0f3d-4315-8e6d-27c7d9f2892a","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":201,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"eedbb95d-34c9-4e5b-983c-3f576ac5465d","block_type":"box","text":"relevant active equity investors.","page_number":201,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"bad9cbb4-2411-4892-a905-a89e13246929","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":201,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"20d08c8f-6339-4219-9ba3-39ae4602a1dd","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":201,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"8a6eb319-9fcc-4844-b8cb-3aa37294f6fb","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":201,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"8acbf3fd-1cc1-44d4-b087-05bb6a9ea429","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":201,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"33cb5c39-9c52-4c30-9894-956818a475c7","block_type":"box","text":"parties for certain of the foregoing activities and performs oversight of those third parties (see “Use and oversight of","page_number":201,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"4d889ac2-c889-4595-b410-b3c587c18b46","block_type":"box","text":"third-party vote services providers” below).","page_number":201,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"9fcd9979-6a3a-465f-b87e-d727d8d9df2c","block_type":"box","text":"Voting guidelines and vote execution","page_number":201,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"fb437059-5570-4500-96aa-d603cda8a3df","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":201,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"89cf19ca-8a11-45ed-b5cb-e87a3199c8d4","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":201,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"7881652b-18c0-4ab4-ba25-8e7317baf0cf","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":201,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"3d1e6bce-9df4-47ca-b360-701f86b5b2ac","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":201,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"3e1282af-7cac-4f27-bd81-54639d347b7a","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":201,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"dd30fb9e-cb9d-4c02-8aa5-8a4d0b428b4c","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":201,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"d09ce87d-ec61-423e-8952-4e55bbd0a3ab","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":201,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"455b4a03-80e6-47aa-aa31-0e2867299986","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":201,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"ab94c255-ec7b-4fa7-bb74-a43f9387353a","block_type":"box","text":"although portfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":201,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"d6afb601-a7ca-4571-8c6f-3b670fa7c1c8","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":201,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"f7a44ce6-262e-4aac-9ec5-1b491ae67ce4","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":201,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"88de5a49-4cee-4f4d-98de-a98f1e650e64","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":201,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"bed4da14-d177-47b8-acb8-3cd3db375551","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":201,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"8636fdba-5a6c-4eaf-9583-0350f7c36b1e","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":201,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"126536f5-5986-4bfb-abdc-5d89182aa20a","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":201,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"55bcf222-5e3c-4e59-ba0a-914cca67801d","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":201,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"272c1f85-bd5c-43b6-ba25-f308cbb6f6f8","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":201,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"dcb9f3a0-d439-45e3-8a5b-d67b78acabf7","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":201,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"4b2414dc-c903-4368-80df-56637d0ac624","block_type":"box","text":"well as the desirability of voting such proxies. These issues include, but are not limited to: i) untimely notice of","page_number":201,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"bb47ef3f-785b-43ce-99b4-8a775f82a269","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":201,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"a913d6ba-f266-49ea-97c3-14589bb235a9","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":201,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"9bded4c9-479c-4b60-8cca-e3c948872ef8","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":201,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"c0ceb070-c234-4901-a2a1-0564a211f22b","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":201,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"6da3cfc6-f131-400f-8cc5-5f9011dd484d","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":201,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"174b49bd-0e02-4eeb-8f07-3be5e089e9d7","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":201,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"ad982ea2-f935-445b-8ad5-a96089ce8275","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine that it is","page_number":201,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"5eb8894f-e7af-4122-b43a-f0c58891fde2","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs","page_number":201,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"6c5fa9b5-cb2b-4515-b9d3-d47ceacd4dde","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":201,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"ac340205-bbc7-4544-82ab-fd74230394eb","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":201,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"025d6a3e-23b0-4ea6-a01b-d07124e8604b","block_type":"box","text":"Voting Choice","page_number":201,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"271d1183-992d-4643-a4d5-2f71febcd422","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":201,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"b41bd7d6-3178-410a-be79-ca41a34a1ba6","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":201,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"75327855-1426-400b-b33f-881a84269dcf","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e31c49bb-bb0d-427e-9d84-0300df0dad62","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"7f7b19c3-2eda-41cc-8e59-fdc747ec49c4","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3382cb8d-5436-47c2-a962-9b5cf24f9e70","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":202,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"3f9409ad-e9ed-462f-b7c2-37ad2a5a1ad1","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":202,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"df757408-3035-4822-b630-b5932fa485c0","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":202,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"b0ac010a-35c5-4190-adb1-1f4412b5f6a9","block_type":"box","text":"strategies.","page_number":202,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"bd57fc5f-a63e-4a9b-bbaf-b39fa442ce77","block_type":"box","text":"12","page_number":202,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"aab876a8-8f6a-4355-ba53-a273a7544453","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":202,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"2d8b88bc-9de6-4adf-9aac-8b037a005c0c","block_type":"box","text":"on whether our clients have authorized BAIS to vote on their behalf, have authorized BlackRock to vote in accordance","page_number":202,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"12f036a5-816c-4660-b37c-5e79c14e8bb2","block_type":"box","text":"with a third-party policy, or have elected to vote shares in accordance with their own policy. Our clients have greater","page_number":202,"box":{"x":68,"y":138,"width":823,"height":11}},{"id":"7cb15ed5-04d2-42fb-9b4b-d42aa382dc7e","block_type":"box","text":"control over proxy voting because of Voting Choice.","page_number":202,"box":{"x":69,"y":152,"width":360,"height":12}},{"id":"71946fa9-204d-478f-90e4-350e7a600c36","block_type":"box","text":"13","page_number":202,"box":{"x":431,"y":153,"width":9,"height":4}},{"id":"d8be454e-4e8b-40a8-ae43-3348fe48f54b","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":202,"box":{"x":69,"y":175,"width":403,"height":11}},{"id":"7aedab9b-a759-42d6-886d-fdf94cd2e992","block_type":"box","text":"Third-party vote services providers – or proxy research firms – provide research and recommendations on proxy","page_number":202,"box":{"x":101,"y":193,"width":794,"height":12}},{"id":"aac48acf-460f-4ffa-8abe-311a2ea7afad","block_type":"box","text":"votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services provider ISS and","page_number":202,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"f185fcdc-714e-4b99-9da9-a7250b1664eb","block_type":"box","text":"leverages its online platform to supply research and support voting, record keeping, and reporting processes. We","page_number":202,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"65af19d2-60b8-49f7-a17c-bb81c61ae995","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is important to note that, although","page_number":202,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"b8ad89e2-22e9-4723-9615-504e10a48262","block_type":"box","text":"proxy research firms provide important data and analysis, BAIS does not rely solely on their information or follow their","page_number":202,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"f2adca27-f264-4a6d-8e54-ec86b5e16b2c","block_type":"box","text":"voting recommendations. A company’s disclosures, our engagements and voting, investment colleagues’ insights and","page_number":202,"box":{"x":68,"y":268,"width":840,"height":11}},{"id":"527ce238-c8d7-46d0-9ed3-e9f386778ed4","block_type":"box","text":"our Guidelines are important inputs into our voting decisions on behalf of clients.","page_number":202,"box":{"x":69,"y":283,"width":578,"height":11}},{"id":"eb1fbd5a-4cb7-426a-b27a-7b1b5f1f2054","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the","page_number":202,"box":{"x":102,"y":301,"width":795,"height":12}},{"id":"5d844fce-36ab-4acb-8d41-aa71ead869dd","block_type":"box","text":"voting process by making voting recommendations based on BAIS’ Guidelines when the items on a shareholder","page_number":202,"box":{"x":68,"y":316,"width":795,"height":12}},{"id":"cdf3ef03-3a9b-4697-bbe7-eae5431e180b","block_type":"box","text":"meeting agenda are routine. Agenda items that are not routine are referred back to BAIS to assess, escalate as","page_number":202,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"ac4d9e5c-b78f-4919-b748-1ef5534980bb","block_type":"box","text":"necessary to the relevant portfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":202,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"aa39d8e1-d5e9-4d74-9c09-4f39fad4b48e","block_type":"box","text":"vote services provider at any time prior to the vote deadline. Both BAIS and the vote services provider actively","page_number":202,"box":{"x":68,"y":361,"width":785,"height":11}},{"id":"5576c932-ed1b-4d57-a4be-b5d3b5c315f5","block_type":"box","text":"monitor securities filings, research reports, company announcements, and direct communications from companies to","page_number":202,"box":{"x":69,"y":376,"width":837,"height":11}},{"id":"844445e4-20f9-4dd4-99c9-2d36b8739375","block_type":"box","text":"ensure awareness of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":202,"box":{"x":69,"y":390,"width":775,"height":12}},{"id":"985a06b2-5784-4339-be90-cf56322ab10e","block_type":"box","text":"BAIS closely monitors the third-party vote services providers we contract with to ensure that they are meeting our","page_number":202,"box":{"x":102,"y":409,"width":807,"height":11}},{"id":"6f703143-f092-4bc1-863e-cb0af7096357","block_type":"box","text":"service level expectations and have effective policies and procedures in place to manage potential conflicts of","page_number":202,"box":{"x":69,"y":424,"width":788,"height":11}},{"id":"7842e7f4-e7ec-45e7-81bd-45d95d1beb88","block_type":"box","text":"interest. Our oversight of service providers includes regular meetings with client service teams, systematic","page_number":202,"box":{"x":70,"y":439,"width":760,"height":11}},{"id":"bc668006-0b2c-4fb6-97e0-ea40001ff287","block_type":"box","text":"monitoring of vendor operations, as well as annual due diligence meetings in accordance with BlackRock’s firmwide","page_number":202,"box":{"x":69,"y":454,"width":824,"height":11}},{"id":"afe83c98-57cd-4546-a6e7-fcd0ebff11c7","block_type":"box","text":"policies.","page_number":202,"box":{"x":70,"y":469,"width":56,"height":11}},{"id":"69848592-b4e1-44c0-8895-50f52f0d9058","block_type":"box","text":"Conflicts management policies and procedures","page_number":202,"box":{"x":69,"y":491,"width":342,"height":11}},{"id":"0698e8d5-087c-46d5-ac29-ef4299a240fc","block_type":"box","text":"BlackRock maintains policies and procedures that seek to prevent undue influence on BAIS’ proxy voting activity.","page_number":202,"box":{"x":102,"y":510,"width":801,"height":11}},{"id":"34584c9d-3e66-4cbc-a9fb-60b94214c911","block_type":"box","text":"Such influence might stem from any relationship between the investee company (or any shareholder proponent or","page_number":202,"box":{"x":69,"y":525,"width":809,"height":11}},{"id":"f2e14a38-2c42-4bcd-92de-0c3c5070a75e","block_type":"box","text":"dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or BlackRock employees.","page_number":202,"box":{"x":69,"y":539,"width":831,"height":12}},{"id":"1dab790f-3435-4d25-b6c1-820a9c9c5e01","block_type":"box","text":"The following are examples of sources of perceived or potential conflicts of interest:","page_number":202,"box":{"x":68,"y":554,"width":598,"height":12}},{"id":"7d7b2c30-f7d3-4230-b2dd-ef7dce18ecec","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":575,"width":6,"height":4}},{"id":"c700aef7-97ae-40ac-81d3-a72757d89bda","block_type":"box","text":"BlackRock clients who may be issuers of securities or proponents of shareholder resolutions","page_number":202,"box":{"x":102,"y":572,"width":660,"height":11}},{"id":"bff984d3-77d6-4a0c-b3a4-f50df0ed2986","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":592,"width":6,"height":5}},{"id":"56a99a41-307f-4304-b6ed-bfd9ca5cfae9","block_type":"box","text":"BlackRock business partners or third parties who may be issuers of securities or proponents of shareholder","page_number":202,"box":{"x":102,"y":589,"width":772,"height":11}},{"id":"2aaf95ba-cb4f-44d4-aff2-24c17c5030b4","block_type":"box","text":"resolutions","page_number":202,"box":{"x":102,"y":604,"width":78,"height":9}},{"id":"ed52fb36-a068-438b-8359-425528dae251","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":624,"width":6,"height":5}},{"id":"6dc1a5c8-8628-4aa0-a995-a0cfb3c04294","block_type":"box","text":"BlackRock employees who may sit on the boards of public companies held in Funds managed by BlackRock","page_number":202,"box":{"x":102,"y":621,"width":766,"height":12}},{"id":"dbfdc60f-28b0-4adc-bf45-250042aef53f","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":642,"width":6,"height":4}},{"id":"f7ea4680-4c7a-4300-b9e1-9251d4029fa1","block_type":"box","text":"Significant BlackRock, Inc. investors who may be issuers of securities held in Funds managed by BlackRock","page_number":202,"box":{"x":102,"y":639,"width":767,"height":11}},{"id":"7bfb0ab1-311e-4501-afe6-cf41e93fa79d","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":659,"width":6,"height":5}},{"id":"e8853796-2fe8-41be-bd0e-331c9c70e4d8","block_type":"box","text":"Securities of BlackRock, Inc. or BlackRock investment funds held in Funds managed by BlackRock","page_number":202,"box":{"x":102,"y":656,"width":698,"height":11}},{"id":"857744f0-a78d-421e-a4b9-03fd6488dbca","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":676,"width":6,"height":5}},{"id":"85396002-fd26-4269-a354-d5e9fd4b6318","block_type":"box","text":"BlackRock, Inc. board members who serve as senior executives or directors of public companies held in Funds","page_number":202,"box":{"x":102,"y":673,"width":789,"height":11}},{"id":"5f585467-1fa3-403c-8622-35b6c2b11519","block_type":"box","text":"managed by BlackRock","page_number":202,"box":{"x":102,"y":689,"width":163,"height":11}},{"id":"88395725-fdfc-45a3-8fcf-859b0d6bab8f","block_type":"box","text":"BlackRock has taken certain steps to mitigate perceived or potential conflicts including, but not limited to, the","page_number":202,"box":{"x":102,"y":707,"width":785,"height":11}},{"id":"be9cc068-d74a-4286-a057-28fe8d847af5","block_type":"box","text":"following:","page_number":202,"box":{"x":68,"y":722,"width":66,"height":11}},{"id":"a9432638-0a32-4ad1-86f2-7e83e5c07fc4","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":742,"width":6,"height":5}},{"id":"c83c8a59-bc79-434f-bfac-99b63cf6e91d","block_type":"box","text":"Adopted these Guidelines which are designed to advance our clients’ long-term financial interests in the","page_number":202,"box":{"x":101,"y":739,"width":741,"height":11}},{"id":"4dc2620e-c709-4d91-9606-f4eb211c3e22","block_type":"box","text":"companies in which BlackRock invests on their behalf","page_number":202,"box":{"x":101,"y":754,"width":383,"height":11}},{"id":"2f88ad97-fe16-4c93-9e9f-644ed747627b","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":774,"width":6,"height":5}},{"id":"ece5562d-1506-4d25-b49b-05408ea91f67","block_type":"box","text":"Established a reporting structure that separates BAIS from employees with sales, vendor management, or","page_number":202,"box":{"x":102,"y":771,"width":757,"height":12}},{"id":"35b3f1e9-3424-4dc1-a261-da852bb9d032","block_type":"box","text":"business partnership roles. In addition, BlackRock seeks to ensure that all engagements with corporate issuers,","page_number":202,"box":{"x":102,"y":787,"width":802,"height":11}},{"id":"c00cb984-eb3a-4734-aee2-d6eea20e0248","block_type":"box","text":"dissident shareholders or shareholder proponents are managed consistently and without regard to BlackRock’s","page_number":202,"box":{"x":101,"y":801,"width":794,"height":11}},{"id":"6db1b128-3c77-4bc3-8b8e-ac7e1e8f7517","block_type":"box","text":"relationship with such parties. Clients or business partners are not given preferential treatment or differentiated","page_number":202,"box":{"x":102,"y":816,"width":801,"height":11}},{"id":"f8a43889-e76c-441c-85b5-cac85fac333c","block_type":"box","text":"access. BAIS prioritizes engagements based on factors including, but not limited to, our need for additional","page_number":202,"box":{"x":102,"y":831,"width":762,"height":11}},{"id":"2508fafb-2513-4a1e-ba6c-81d1e86214a1","block_type":"box","text":"12","page_number":202,"box":{"x":69,"y":861,"width":9,"height":4}},{"id":"715bcfa8-00a2-4961-bf89-ee5176a34672","block_type":"box","text":"With Voting Choice, SMAs have the ability to select from a set of voting policies from third-party proxy advisers the","page_number":202,"box":{"x":83,"y":860,"width":814,"height":11}},{"id":"b993365a-1266-4342-ae4f-74cdfcddab77","block_type":"box","text":"policy that best aligns with their views and preferences. BlackRock can then use its proxy voting infrastructure to cast","page_number":202,"box":{"x":70,"y":875,"width":838,"height":12}},{"id":"f44871d8-6bec-421d-9d95-a42df4fc6379","block_type":"box","text":"votes based on the client’s selected voting policy.","page_number":202,"box":{"x":68,"y":891,"width":354,"height":11}},{"id":"818b4bbf-6f95-4e84-a1da-33a1417727a0","block_type":"box","text":"13","page_number":202,"box":{"x":69,"y":908,"width":9,"height":5}},{"id":"45c4d367-5adf-4807-a800-358d25bc8d56","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":202,"box":{"x":84,"y":908,"width":820,"height":11}},{"id":"975a4497-e622-4a30-9966-f684b9545455","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"da297361-c4c7-49fa-847b-b22e0d8dcd6c","block_type":"box","text":"Global Engagement and Voting Guidelines | 17","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"0e7ee9f0-776d-41e6-9897-0f4aa8b77644","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9e0d0b36-03aa-4c5e-b41c-915bbbe6bd35","block_type":"box","text":"information to make a more informed voting decision or to better understand a company’s perspectives on","page_number":203,"box":{"x":102,"y":45,"width":759,"height":11}},{"id":"cb756e23-5e1b-4619-a831-1c4990ca60ed","block_type":"box","text":"financially material risks and opportunities. Within the normal course of business, BAIS may engage directly with","page_number":203,"box":{"x":101,"y":59,"width":802,"height":12}},{"id":"d949a1f7-b65c-4bda-b1d2-4e015ab30aac","block_type":"box","text":"BlackRock clients, business partners and/or third parties, and/or with employees with sales, vendor","page_number":203,"box":{"x":102,"y":75,"width":719,"height":11}},{"id":"1c4c4041-eb8d-497f-9079-f8221a91eb53","block_type":"box","text":"management, or business partnership roles, in discussions regarding our approach to stewardship, general","page_number":203,"box":{"x":102,"y":89,"width":766,"height":12}},{"id":"41e0cc62-4df4-4150-a6f6-5624abda8c54","block_type":"box","text":"corporate governance matters, client reporting needs, and/or to otherwise ensure that proxy-related client","page_number":203,"box":{"x":101,"y":104,"width":758,"height":11}},{"id":"a2a1feef-9633-4ae0-b880-5c9cc08ab571","block_type":"box","text":"service levels are met","page_number":203,"box":{"x":102,"y":119,"width":157,"height":9}},{"id":"7e1fbefe-da6d-4fc2-b941-b010fa8df953","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":139,"width":6,"height":5}},{"id":"42860b8c-8440-4572-b010-9e154f01ee94","block_type":"box","text":"Determined to engage, in certain instances, an independent third-party voting service provider to make proxy","page_number":203,"box":{"x":102,"y":137,"width":777,"height":11}},{"id":"486dea61-3b9f-4876-bf3e-d03fe56227b9","block_type":"box","text":"voting recommendations as a further safeguard to avoid perceived or potential conflicts of interest, to satisfy","page_number":203,"box":{"x":101,"y":151,"width":779,"height":11}},{"id":"a62f9bc8-d664-44ef-ae57-30f419d58615","block_type":"box","text":"regulatory requirements, or as may be otherwise required by applicable law. In such circumstances, the","page_number":203,"box":{"x":102,"y":166,"width":738,"height":11}},{"id":"16649d57-feac-483c-a46d-8526e30bf045","block_type":"box","text":"independent third-party voting service provider provides BlackRock with recommendations, in accordance with","page_number":203,"box":{"x":102,"y":181,"width":782,"height":11}},{"id":"ec3c8994-8884-4bca-802d-9f11acdfeb17","block_type":"box","text":"the Guidelines, as to how to vote such proxies. BlackRock uses an independent third-party voting service","page_number":203,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"49503ded-a869-4e79-b34a-ac1e1793370a","block_type":"box","text":"provider to make proxy voting recommendations for shares of BlackRock, Inc. and companies affiliated with","page_number":203,"box":{"x":102,"y":211,"width":765,"height":11}},{"id":"32110af0-e9dd-4735-817e-ee6a3a650222","block_type":"box","text":"BlackRock, Inc. BlackRock may also use an independent third-party voting service provider to make proxy voting","page_number":203,"box":{"x":102,"y":226,"width":797,"height":11}},{"id":"73419e5c-d0ff-479f-9e4c-c59932b15daf","block_type":"box","text":"recommendations for certain perceived or potential conflicts of interest, including:","page_number":203,"box":{"x":102,"y":240,"width":584,"height":12}},{"id":"87404baa-aaae-4783-beaa-b788ff609c3c","block_type":"box","text":"•","page_number":203,"box":{"x":102,"y":261,"width":6,"height":4}},{"id":"7abfe39e-9039-480d-8e15-46b43c79ae85","block_type":"box","text":"public companies that include BlackRock employees on their boards of directors","page_number":203,"box":{"x":135,"y":258,"width":570,"height":11}},{"id":"1379f467-20b8-42d0-9818-f5a01a6e2ca1","block_type":"box","text":"•","page_number":203,"box":{"x":102,"y":278,"width":6,"height":5}},{"id":"f45bf728-1344-454a-b582-2d9137fa3f8e","block_type":"box","text":"public companies of which a BlackRock, Inc. board member serves as a senior executive or a member of","page_number":203,"box":{"x":135,"y":275,"width":748,"height":11}},{"id":"a83066c4-1c43-4d58-812c-3c013c1bfd41","block_type":"box","text":"the board of directors","page_number":203,"box":{"x":134,"y":290,"width":153,"height":9}},{"id":"ed46bd38-f952-45ee-b9db-2f044da43ac7","block_type":"box","text":"•","page_number":203,"box":{"x":102,"y":310,"width":6,"height":5}},{"id":"5c69553d-d158-433b-a099-ac60e55f38d4","block_type":"box","text":"public companies that are the subject of certain transactions involving BlackRock Funds","page_number":203,"box":{"x":135,"y":307,"width":626,"height":12}},{"id":"861f4d5b-c51b-453a-a34b-ecf470478b9b","block_type":"box","text":"•","page_number":203,"box":{"x":102,"y":328,"width":6,"height":4}},{"id":"6065ebff-f92e-401d-8264-51b5df2e9893","block_type":"box","text":"public companies that are joint venture partners with BlackRock, and","page_number":203,"box":{"x":135,"y":325,"width":490,"height":11}},{"id":"76b5932c-facc-4704-8166-3aa71e8eeaf3","block_type":"box","text":"•","page_number":203,"box":{"x":102,"y":345,"width":6,"height":5}},{"id":"30f8518e-0da0-456f-af4c-cdc359debeb3","block_type":"box","text":"public companies when legal or regulatory requirements compel BlackRock to use an independent third","page_number":203,"box":{"x":135,"y":342,"width":740,"height":11}},{"id":"c08d3935-5ff1-4f61-8d6a-7fd47f842029","block_type":"box","text":"party voting service provider","page_number":203,"box":{"x":135,"y":357,"width":200,"height":11}},{"id":"39ecb569-eeea-40b0-999d-5d9ba929b05e","block_type":"box","text":"In selecting an independent third-party voting service provider, we assess several characteristics, including but","page_number":203,"box":{"x":102,"y":376,"width":790,"height":11}},{"id":"370bd081-44ea-45b1-ba7e-6fc2803a5bad","block_type":"box","text":"not limited to: independence, an ability to analyze proxy issues and make recommendations in the economic interest","page_number":203,"box":{"x":69,"y":391,"width":834,"height":11}},{"id":"7f69bd14-c2eb-4f92-91cd-58a4846fc0aa","block_type":"box","text":"of our clients in accordance with the Guidelines, reputation for reliability and integrity, and operational capacity to","page_number":203,"box":{"x":69,"y":405,"width":806,"height":12}},{"id":"adab50cc-9de0-4741-bf6b-312aa8085a99","block_type":"box","text":"accurately deliver the assigned recommendations in a timely manner. We may engage more than one independent","page_number":203,"box":{"x":69,"y":420,"width":813,"height":12}},{"id":"24a6a7ee-4594-4749-8975-241ac15dc398","block_type":"box","text":"third-party voting service provider, in part to mitigate potential or perceived conflicts of interest at a single voting","page_number":203,"box":{"x":68,"y":435,"width":804,"height":11}},{"id":"a7181c04-000f-4f97-a5bc-46ef6edf7494","block_type":"box","text":"service provider.","page_number":203,"box":{"x":69,"y":450,"width":115,"height":11}},{"id":"eafb26db-0ed2-42c1-b6fe-1c5e42f56950","block_type":"box","text":"Securities lending","page_number":203,"box":{"x":68,"y":473,"width":131,"height":11}},{"id":"fc632f55-aa21-436a-a99a-af412d181e3f","block_type":"box","text":"If authorized, BlackRock acts as a securities lending agent on behalf of its clients. Securities lending is a well","page_number":203,"box":{"x":102,"y":491,"width":785,"height":11}},{"id":"fafa400d-57fb-444f-bfe4-66f7886d6449","block_type":"box","text":"regulated practice that contributes to capital market efficiency. It also enables funds to generate additional returns","page_number":203,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"7d6b93c7-0f3e-443d-bace-bf5593868584","block_type":"box","text":"which in turn may allow fund providers to offset fund expenses.","page_number":203,"box":{"x":68,"y":521,"width":452,"height":11}},{"id":"d505a2c9-f613-4a8c-8e00-8cb2d312064f","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":203,"box":{"x":101,"y":540,"width":779,"height":11}},{"id":"bee53b13-d046-4e2e-a12f-d06addc84e73","block_type":"box","text":"loan and may determine to recall them to allow for voting. This decision is guided by our fiduciary duty as an asset","page_number":203,"box":{"x":70,"y":554,"width":816,"height":12}},{"id":"b7caa160-61a1-4fb0-96e9-58170ffbdd49","block_type":"box","text":"manager to our clients in helping them achieve their investment goals. While this has occurred in a limited number of","page_number":203,"box":{"x":69,"y":569,"width":836,"height":11}},{"id":"cc6b8dcb-93e9-4bc7-80ec-77dda2865c77","block_type":"box","text":"cases, the decision to recall securities on loan as part of BlackRock’s securities lending program in order to vote is","page_number":203,"box":{"x":69,"y":584,"width":824,"height":11}},{"id":"bf3bae51-9c90-4595-93b0-dcc92ec92e8d","block_type":"box","text":"based on an evaluation of various factors that include, but are not limited to, assessing potential securities lending","page_number":203,"box":{"x":69,"y":599,"width":823,"height":11}},{"id":"8cd8f93a-c4a4-41a8-b1c5-3c9cbfba3cb0","block_type":"box","text":"revenue alongside the potential long-term financial value to clients of voting those securities (based on the","page_number":203,"box":{"x":69,"y":614,"width":761,"height":11}},{"id":"c50ad5d4-5b0b-4a64-ad46-4a54dc4f1ce5","block_type":"box","text":"information available at the time of recall consideration). BAIS works with active portfolio managers, as well as","page_number":203,"box":{"x":70,"y":629,"width":789,"height":11}},{"id":"aaf1fbdc-2af7-4640-a2d5-c663f5a0b5a8","block_type":"box","text":"colleagues in the Securities Lending team, to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":203,"box":{"x":69,"y":643,"width":821,"height":12}},{"id":"4dde82db-efb1-4ce2-beca-11b4de76fde6","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":203,"box":{"x":102,"y":662,"width":770,"height":11}},{"id":"c42de1c1-8271-4d6b-a0ce-26993374cc30","block_type":"box","text":"shares would not warrant recalling securities on loan. However, in certain instances, BlackRock may determine, in","page_number":203,"box":{"x":69,"y":677,"width":813,"height":11}},{"id":"2590ea82-8241-478d-bae3-ce29f261c9e3","block_type":"box","text":"our independent business judgment as a fiduciary, that the value of voting outweighs the securities lending revenue","page_number":203,"box":{"x":69,"y":692,"width":825,"height":11}},{"id":"a9eeabcb-12e3-4b06-b41e-92f8ba3157e3","block_type":"box","text":"loss to clients and would therefore recall shares to be voted in those instances.","page_number":203,"box":{"x":70,"y":707,"width":568,"height":9}},{"id":"05f13715-c23c-40c6-9262-03e883b77cd0","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":203,"box":{"x":102,"y":725,"width":790,"height":12}},{"id":"2115f7fa-8b40-44ac-9f9c-caa86c8c2a37","block_type":"box","text":"and may modify it as necessary.","page_number":203,"box":{"x":69,"y":740,"width":228,"height":11}},{"id":"4722baaa-9dcd-42d8-aa43-acf7ebc3b2ab","block_type":"box","text":"Reporting and vote transparency","page_number":203,"box":{"x":69,"y":763,"width":239,"height":11}},{"id":"372c7d1b-f038-4750-8951-20e9859dde32","block_type":"box","text":"BAIS is committed to transparency in the stewardship work we do on behalf of clients. We inform clients about","page_number":203,"box":{"x":102,"y":781,"width":788,"height":11}},{"id":"5ea36c71-8057-42fc-8f8f-a051eb1eed48","block_type":"box","text":"our engagement and voting policies and activities through direct communication and disclosure on our website.","page_number":203,"box":{"x":69,"y":796,"width":791,"height":11}},{"id":"40a57e36-2582-464f-b1df-0c70033ea035","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"07eadf5d-e461-460c-a47c-7878e65e0759","block_type":"box","text":"Global Engagement and Voting Guidelines | 18","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"d97ac731-2891-416d-9342-d2b88ab35c42","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d581850d-0a7f-4b28-9bc2-2d44cd2aa7b5","block_type":"box","text":"Want to know more?","page_number":204,"box":{"x":68,"y":762,"width":152,"height":8}},{"id":"1fe2e53f-9e56-451e-9713-03beeaf38be6","block_type":"box","text":"blackrock.com/stewardship | ContactActiveStewardship@blackrock.com","page_number":204,"box":{"x":69,"y":791,"width":510,"height":13}},{"id":"fabd59b0-8202-43d7-8253-5c32979dce84","block_type":"box","text":"The document is provided for information purposes only and is subject to change. Reliance upon this information is","page_number":204,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"f8784057-8aee-4398-9338-4deea0324c4a","block_type":"box","text":"at the sole discretion of the reader.","page_number":204,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"b08b5337-8ff9-4a44-8a12-7729d4157a87","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":204,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"c7f02054-8414-4062-a146-f784aafec4c7","block_type":"box","text":"©","page_number":204,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"50b0ce17-b0ef-4736-8735-20d8b25a3148","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":204,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"8d7b916e-4797-4281-9aeb-251ccf8a7b5d","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":204,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"9853e135-3500-4e01-b778-60c55b5ccdec","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"feed87df-009e-4834-8097-2a5b0dd090ec","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"bb7d5a05-40c9-479a-a6b8-b2958dd85e01","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2676caf8-95fa-4218-a5de-3be231b814d3","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":205,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"2b7b7176-52a4-47c4-93b6-eddb86c45aa3","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":205,"box":{"x":247,"y":90,"width":486,"height":11}},{"id":"da8faac6-51da-4aaa-8594-89e5a21399a9","block_type":"box","text":"Effective Date: January 1, 2025","page_number":205,"box":{"x":376,"y":105,"width":227,"height":11}},{"id":"a8e4ef13-c4ae-4b41-b2d2-1a7109f58a00","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":205,"box":{"x":231,"y":128,"width":515,"height":11}},{"id":"f81fed06-5ab0-48ae-b37b-2c3e808e67ba","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":205,"box":{"x":306,"y":151,"width":388,"height":11}},{"id":"f2e81752-6c6e-4d9d-a282-0261126e64b7","block_type":"box","text":"□","page_number":205,"box":{"x":184,"y":173,"width":14,"height":11}},{"id":"ac167a01-1784-4a54-83e3-0c25ed5f8438","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":205,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"45670608-69d6-4125-b8f5-a03206f4842c","block_type":"box","text":"□","page_number":205,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"2cf0cafe-bdd2-425f-b8f2-b5b195fc1700","block_type":"box","text":"Money Market Funds","page_number":205,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"2e434ebd-2602-4718-9185-1f0c6c44955d","block_type":"box","text":"□","page_number":205,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"c7a85ad1-6ab9-4f55-a9ac-dd1a4def7bbb","block_type":"box","text":"Closed-End Funds","page_number":205,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"78af61f6-c50a-4b0f-8ff2-eb6925d77cd3","block_type":"box","text":"□","page_number":205,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"b37d402b-63b9-42de-b9ef-66577e241a8e","block_type":"box","text":"Other","page_number":205,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"50f9b471-01e9-49b8-ae88-2afc7979d83b","block_type":"box","text":"Objective and Scope","page_number":205,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"e65ec99f-70cb-46c0-9ba5-3b6b19d65e0e","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":205,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"baec9bf0-cacc-4ce0-a5b9-ede7c995285b","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":205,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"868242cb-f459-46be-a454-c46fcc35a99d","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":205,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"fbb47139-e052-459a-b914-13e2194eb094","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":205,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"7c0be0ea-88a4-4058-b9cb-d77107bf3da9","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":205,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"7f81693e-99fa-4291-aff8-44b1f5781c48","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":205,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"66fa689f-40cf-42c5-8790-5381f11470cd","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":205,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"cc9c8d09-da61-4b4b-bfcf-fd1e00155923","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":205,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"df6a6df2-2bf4-4fac-9201-dc07f6263f76","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":205,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"32b1ca7e-1b1c-4d61-8f40-15035bd6ec70","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":205,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"6b369bc6-af86-4257-a054-d178da704a83","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":205,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"b5177d89-5055-4534-a6f7-e16a228ca714","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":205,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"5abee7d9-a6cb-4f17-bd83-fc5a8c3c3e10","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":205,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"e81119bb-c1f4-492b-a4d9-822756ba70df","block_type":"box","text":"Appendix A.","page_number":205,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"e0415e91-047f-459a-b4a7-8e9002c99edf","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":205,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"8ed4963a-04b2-4083-b2b9-2085d6175921","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":205,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"8fa32145-82b9-4dea-b237-745aec0a2f7d","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":205,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"9892d8ea-f178-4237-a98b-6c86a8a5bd6c","block_type":"box","text":"Conflicts Management","page_number":205,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"8a9e34f3-160d-4702-9658-fec4a3b4d001","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":205,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"0c50147d-c902-4d5c-9f79-1765f4174723","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":205,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"9ecb0a9b-696f-492e-ba3e-f6ba0b324c3c","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":205,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"3e0e9ee6-58b2-4a12-982d-dfb05ddb0b8c","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":205,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"d1cc4208-ec5b-402b-b8fb-2d64f1b3eab6","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":205,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"3f850c24-6d5c-4c8f-b31e-c46d66e917fe","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":205,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"9b0a15a9-4999-4b3b-a65f-d6cfb6eb3639","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":205,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"750cd73b-a930-43c9-808f-7ad24e49ea95","block_type":"box","text":"In certain instances, BIS will engage an independent third-party voting service provider to make proxy voting","page_number":205,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"fb4ce5d6-a5a2-4712-8a09-e6bae7fd3a32","block_type":"box","text":"recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":205,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"df395128-ac1f-45ff-b1da-6d0fc0bbdd00","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":205,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"528e8d3f-d4eb-42e7-ad24-e80949a0dea6","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":205,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"f71ee9ae-3ef9-414d-b5b8-ec2a15aa98b2","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":205,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"e5db1773-62e5-4ec3-b036-90e0eb823aa1","block_type":"box","text":"in clients’ financial interests. The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":205,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"57052f2b-f938-4d35-b12b-e732a79b7c65","block_type":"box","text":"connection with proxy voting.","page_number":205,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"1b44f084-b7a3-4fcb-92fb-4ef6ae364032","block_type":"box","text":"Reports to the Board","page_number":205,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"7346d825-ae63-4a69-9cbf-bace0228c244","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":205,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"c8187948-9301-4a78-b835-83d294482f9d","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":205,"box":{"x":102,"y":822,"width":794,"height":11}},{"id":"cb6cd386-3314-4d9f-b86f-e451bed65098","block_type":"box","text":"were in accordance with the Guidelines and the BlackRock Climate and Decarbonization Stewardship Guidelines,","page_number":205,"box":{"x":101,"y":837,"width":802,"height":11}},{"id":"18211378-2f5a-4289-92b3-b8004557cb8a","block_type":"box","text":"as applicable (2) any material changes to the Guidelines and the BlackRock Climate and Decarbonization","page_number":205,"box":{"x":102,"y":852,"width":747,"height":11}},{"id":"3e1135a4-9b37-4391-851f-15b54a9e16a6","block_type":"box","text":"Stewardship Guidelines, including material changes to conflicts management practices, that have not previously","page_number":205,"box":{"x":102,"y":866,"width":798,"height":12}},{"id":"259cf8ac-e046-4e00-8262-b0aaedc891a1","block_type":"box","text":"been reported.","page_number":205,"box":{"x":102,"y":882,"width":104,"height":10}},{"id":"f8e311f1-ccaa-488e-9092-3cf31dbc6007","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":205,"box":{"x":651,"y":45,"width":259,"height":11}},{"id":"a0b49370-b5a8-4494-8ff8-f1a33ce7ed2d","block_type":"box","text":"BlackRock","page_number":205,"box":{"x":69,"y":943,"width":78,"height":9}},{"id":"86c32bd8-a705-4135-9f1d-460b4fc722ba","block_type":"box","text":"Public Page 1 of 2","page_number":205,"box":{"x":469,"y":943,"width":440,"height":11}},{"id":"a98239fb-fc5b-4220-9119-7b8dbb6f4513","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"67c637b6-5b46-4de6-bce0-1f8c3187a09d","block_type":"box","text":"Appendix A","page_number":206,"box":{"x":101,"y":75,"width":82,"height":11}},{"id":"fe830f3a-5276-448c-8d0e-33395115725d","block_type":"box","text":"iShares Climate Conscious & Transition MSCI USA ETF","page_number":206,"box":{"x":135,"y":98,"width":389,"height":9}},{"id":"b3097284-55b1-46cc-a3cd-721c182ae3b3","block_type":"box","text":"iShares ESG Advanced MSCI EAFE ETF","page_number":206,"box":{"x":135,"y":120,"width":274,"height":9}},{"id":"e3d2847c-faf5-45f7-b7cc-886c1f60b152","block_type":"box","text":"iShares ESG Advanced MSCI EM ETF","page_number":206,"box":{"x":135,"y":143,"width":261,"height":9}},{"id":"9009d24b-818a-46ec-9b61-900fe03109b7","block_type":"box","text":"iShares ESG Advanced MSCI USA ETF","page_number":206,"box":{"x":135,"y":166,"width":268,"height":9}},{"id":"9318d134-cb8a-45f4-a6dd-aae1b9a40425","block_type":"box","text":"iShares ESG MSCI EM Leaders ETF","page_number":206,"box":{"x":135,"y":188,"width":250,"height":9}},{"id":"28bfd047-0573-47b2-9776-df55008683b9","block_type":"box","text":"iShares ESG MSCI USA Leaders ETF","page_number":206,"box":{"x":135,"y":211,"width":257,"height":9}},{"id":"4c2af720-e820-431d-bf6d-7d1653af28b5","block_type":"box","text":"iShares MSCI ACWI Low Carbon Target ETF","page_number":206,"box":{"x":135,"y":234,"width":304,"height":11}},{"id":"d575ac61-f44c-4e07-89d4-46c8f40f10f6","block_type":"box","text":"iShares MSCI KLD 400 Social ETF","page_number":206,"box":{"x":135,"y":256,"width":242,"height":9}},{"id":"cc6dc29b-8597-4864-9cd8-9b46d531a838","block_type":"box","text":"iShares MSCI USA ESG Select ETF","page_number":206,"box":{"x":135,"y":279,"width":245,"height":9}},{"id":"9d6915f7-73f3-4170-a1fd-60c6b3e0095b","block_type":"box","text":"iShares Paris-Aligned Climate MSCI USA ETF","page_number":206,"box":{"x":135,"y":302,"width":315,"height":11}},{"id":"905d0401-fb03-46e8-a758-75671f8c7dc1","block_type":"box","text":"iShares Paris-Aligned Climate MSCI World ex USA ETF","page_number":206,"box":{"x":135,"y":324,"width":380,"height":12}},{"id":"8bd850d4-13fb-4411-a0c5-b3922dd89cd7","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":206,"box":{"x":651,"y":45,"width":259,"height":11}},{"id":"5e9c4f45-f2b3-4d6d-a313-a2deb911ca94","block_type":"box","text":"BlackRock","page_number":206,"box":{"x":69,"y":943,"width":78,"height":9}},{"id":"00b9498e-2311-49f8-9272-07292b9201c4","block_type":"box","text":"Public Page 2 of 2","page_number":206,"box":{"x":469,"y":943,"width":440,"height":11}},{"id":"7c9233f1-32bf-4297-8363-39b9631e56ce","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"382ab88e-0325-4a13-8667-07ff373dcc11","block_type":"box","text":"BlackRock Investment Stewardship","page_number":207,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"65972baf-7e94-4f39-85d7-58141d6c1afb","block_type":"box","text":"Global Principles for Benchmark Policies","page_number":207,"box":{"x":341,"y":67,"width":296,"height":11}},{"id":"65582910-2555-4811-9c50-308d4e13c833","block_type":"box","text":"Effective as of January 2026","page_number":207,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"91a8350d-6260-4510-b56f-fdd6dfc36a9b","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"53d397f5-86aa-49c3-8fef-3bb9eac487e7","block_type":"box","text":"TABLE OF CONTENTS","page_number":208,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"2a34c6bf-a222-4023-934a-5b4b76e40b00","block_type":"box","text":"Page","page_number":208,"box":{"x":876,"y":65,"width":28,"height":9}},{"id":"89fd24b8-8ab2-46d7-8551-58ffff498182","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":208,"box":{"x":74,"y":84,"width":451,"height":9}},{"id":"1e9d50ad-2714-4821-95ae-c6098233e0ea","block_type":"box","text":".......................................... 3","page_number":208,"box":{"x":528,"y":84,"width":376,"height":9}},{"id":"e6d91ee0-2f92-4cb0-bc2c-3625274ffa6d","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":208,"box":{"x":74,"y":101,"width":337,"height":9}},{"id":"40f84692-b8f3-41ff-aa68-4b2ad80a3add","block_type":"box","text":"........................................................ 3","page_number":208,"box":{"x":414,"y":101,"width":490,"height":9}},{"id":"ddde2b33-58a0-4230-bf42-752213a24a00","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":208,"box":{"x":74,"y":117,"width":197,"height":9}},{"id":"416fca52-cb44-4857-960c-4f1fb10a8327","block_type":"box","text":"......................................................................... 4","page_number":208,"box":{"x":275,"y":117,"width":629,"height":9}},{"id":"26503d5e-a43a-4b46-b690-62261855ef33","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":208,"box":{"x":74,"y":134,"width":190,"height":8}},{"id":"f880630b-d2e7-45c6-afd4-327833ab06b7","block_type":"box","text":".......................................................................... 5","page_number":208,"box":{"x":267,"y":134,"width":637,"height":8}},{"id":"d442f62d-adb0-4d03-9cf1-b79e871d27b0","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":208,"box":{"x":73,"y":150,"width":294,"height":9}},{"id":"f2fd853b-a610-4a94-a847-5b1c5d75d01f","block_type":"box","text":"............................................................. 7","page_number":208,"box":{"x":373,"y":150,"width":531,"height":9}},{"id":"09fe575d-22a8-4157-8ad9-2cd3edcf830d","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":208,"box":{"x":74,"y":166,"width":728,"height":11}},{"id":"0467af00-baff-4990-8b5d-b001eae357a9","block_type":"box","text":"........ 7","page_number":208,"box":{"x":805,"y":166,"width":99,"height":9}},{"id":"edf24e97-5aaa-4467-a6c7-889edf6cebd8","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":208,"box":{"x":74,"y":183,"width":322,"height":9}},{"id":"5b940520-f229-4f20-88c7-3fbfb29f22c8","block_type":"box","text":"......................................................... 8","page_number":208,"box":{"x":406,"y":183,"width":498,"height":9}},{"id":"57f66984-84fa-4f2d-a37e-4ec8b68ff517","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":208,"box":{"x":73,"y":199,"width":595,"height":9}},{"id":"61343982-5fc0-44ae-bb82-7fee85ab48f7","block_type":"box","text":"........................ 9","page_number":208,"box":{"x":675,"y":199,"width":229,"height":9}},{"id":"7a1827d2-d2e0-4423-885a-2fd59cd40deb","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":208,"box":{"x":73,"y":215,"width":207,"height":9}},{"id":"ed5934cd-888b-430d-b0a8-ac712e994207","block_type":"box","text":"........................................................................ 9","page_number":208,"box":{"x":283,"y":215,"width":621,"height":9}},{"id":"f57f0bf1-51b3-4031-84bb-6ea8382c55f4","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":208,"box":{"x":74,"y":232,"width":484,"height":9}},{"id":"9c00e4ec-7ac5-43da-9d9c-627b8bcfc7c9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10","page_number":208,"box":{"x":561,"y":232,"width":343,"height":9}},{"id":"00f9923f-ba6f-43fc-9fdc-6e4dfbaf3833","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":208,"box":{"x":74,"y":248,"width":553,"height":9}},{"id":"e5e5c1d3-d5b6-455a-a838-f62e6c97ec1c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12","page_number":208,"box":{"x":634,"y":248,"width":270,"height":9}},{"id":"abe289d2-aeb9-4369-9d4d-dc1d01617de8","block_type":"box","text":"VOTING CHOICE","page_number":208,"box":{"x":73,"y":265,"width":118,"height":8}},{"id":"ca1fbb12-17bb-40e9-b17d-dd88a2dbe16d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13","page_number":208,"box":{"x":194,"y":265,"width":710,"height":8}},{"id":"3d3e37bb-2108-4a22-bdba-5a9c5134161a","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":208,"box":{"x":74,"y":295,"width":293,"height":9}},{"id":"4fc9b901-fc2f-4b24-88a5-9da53a75eba6","block_type":"box","text":".............................................................","page_number":208,"box":{"x":373,"y":302,"width":491,"height":2}},{"id":"b8315af9-f2b3-48a7-881d-68e23bf3e544","block_type":"box","text":"14","page_number":208,"box":{"x":886,"y":281,"width":18,"height":9}},{"id":"7a6cc19e-ff06-4ea9-82e9-8976dcc32059","block_type":"box","text":"The purpose of this document is to provide an overarching explanation of BlackRock’s global approach to our","page_number":208,"box":{"x":75,"y":341,"width":778,"height":12}},{"id":"d2413b93-c321-4c1c-9d5e-931d84abc15c","block_type":"box","text":"responsibilities as a shareholder on behalf of our clients, the principles that guide our dialogue with","page_number":208,"box":{"x":74,"y":355,"width":711,"height":11}},{"id":"dc18edd8-233d-49f9-9cf5-72afa8a69198","block_type":"box","text":"companies, and our commitments to clients in terms of our own governance and transparency.","page_number":208,"box":{"x":74,"y":369,"width":674,"height":11}},{"id":"b6d790e6-0228-4ada-a645-812494ad287b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"bd130c54-d3b6-4c95-8bc3-b87317ffa8b3","block_type":"box","text":"Global Principles | 2","page_number":208,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"8e79ac79-562b-466d-b06a-f5465b32d0c0","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":208,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d521d500-4983-410a-b3a6-3e33efdb7c6f","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":209,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"bf86ca61-c440-4a50-aa1a-00422b7a629b","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":209,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"91c0cc5b-f32a-4f2b-b5b7-8abbc5f9081f","block_type":"box","text":"is one of the ways we fulfill our fiduciary responsibilities as an asset manager on their behalf. BlackRock offers a","page_number":209,"box":{"x":70,"y":82,"width":806,"height":12}},{"id":"f8cc113b-be8c-49a6-900f-a0c2824c7156","block_type":"box","text":"range of proxy voting policies to reflect clients’ individual investment choices and goals.","page_number":209,"box":{"x":69,"y":98,"width":624,"height":11}},{"id":"3a1f6149-4a13-4a65-a278-a35ada72dec0","block_type":"box","text":"BlackRock Investment Stewardship (BIS) is responsible for stewardship activities in relation to clients’ assets","page_number":209,"box":{"x":102,"y":120,"width":781,"height":11}},{"id":"04b5fb6b-7dcf-4149-9db3-e3f90ea9455c","block_type":"box","text":"invested in index equity strategies. BIS takes a long-term approach in our stewardship efforts, reflecting the","page_number":209,"box":{"x":70,"y":135,"width":769,"height":12}},{"id":"19007f3f-83c6-4909-bb7d-d67eaa9f9a14","block_type":"box","text":"investment horizons of the majority of our clients. BIS does this through:","page_number":209,"box":{"x":70,"y":150,"width":514,"height":12}},{"id":"71de4427-e6aa-4863-80e1-c5dbe264c5b9","block_type":"box","text":"1. Engaging with the boards and management of companies","page_number":209,"box":{"x":69,"y":171,"width":451,"height":11}},{"id":"f1a672f2-2287-496c-bf6e-072c95cdb84e","block_type":"box","text":"in which clients are invested to deepen our","page_number":209,"box":{"x":527,"y":171,"width":305,"height":11}},{"id":"62b61904-f116-4885-8396-e3937906f67e","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":209,"box":{"x":102,"y":186,"width":784,"height":11}},{"id":"f5801bb8-870b-48cb-8f8d-34beef3d7c87","block_type":"box","text":"opportunities over time, and to help inform our voting on behalf of clients.","page_number":209,"box":{"x":102,"y":201,"width":526,"height":11}},{"id":"fa511488-392c-4a9e-ba92-f8ddb413e373","block_type":"box","text":"1","page_number":209,"box":{"x":630,"y":201,"width":4,"height":5}},{"id":"8fde646a-e694-4444-8417-527d6b32fd9a","block_type":"box","text":"2. Voting at shareholder meetings","page_number":209,"box":{"x":69,"y":221,"width":260,"height":11}},{"id":"6b6180ed-3a61-4956-927f-61084df40a15","block_type":"box","text":"on management and shareholder proposals for clients who have authorized BIS","page_number":209,"box":{"x":335,"y":221,"width":566,"height":11}},{"id":"d167fae4-5328-49c3-95d6-4afd52252115","block_type":"box","text":"to vote on their behalf.","page_number":209,"box":{"x":101,"y":236,"width":160,"height":9}},{"id":"b68ab77a-c48c-4b96-a221-1d866a1c2148","block_type":"box","text":"3. Contributing to industry dialogue on stewardship","page_number":209,"box":{"x":69,"y":256,"width":388,"height":11}},{"id":"ae69c81d-d67b-4e24-9b88-6aa3c101ab36","block_type":"box","text":"to share our perspectives on matters that may impact our","page_number":209,"box":{"x":462,"y":257,"width":412,"height":10}},{"id":"5107fe37-f2ee-4308-8a70-eaddbbe9a2d5","block_type":"box","text":"clients’ investments.","page_number":209,"box":{"x":101,"y":272,"width":147,"height":8}},{"id":"73db3f58-9259-4779-a4d9-40d4d0a09f5a","block_type":"box","text":"4. Reporting on our activities to inform clients","page_number":209,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"4e22fe0b-4da9-441d-ba10-f14fb1b1a43c","block_type":"box","text":"about our stewardship efforts on their behalf through a range of","page_number":209,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"7c09db7b-c12d-4018-9f6f-db2b6ddfe4ba","block_type":"box","text":"publications on our website and direct client communications.","page_number":209,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"2367f77d-6de2-45c7-b3cd-2af2e046f3d8","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":209,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"d6a75bed-e9ae-4224-95d2-310fad6bffed","block_type":"box","text":"voting on corporate governance matters and other material risks and opportunities under BIS’ Benchmark Policies.","page_number":209,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"e461433e-7301-4677-b3eb-14ebae7d30d0","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":209,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"1a799a6c-535b-4676-952d-0b709b8ee82a","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":209,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"9ea56588-9616-41e0-a65d-3d5351c1a46b","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":209,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"46fe5697-435f-4c5b-93b8-ddce513e8113","block_type":"box","text":"2","page_number":209,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"f0c17fd2-a37a-4466-9ae1-a8d89aecee3b","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":209,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"6865865b-071e-4362-a5b4-9c462af6f62a","block_type":"box","text":"Sound governance is critical to a company’s ability to create long-term financial value. We maintain global","page_number":209,"box":{"x":102,"y":443,"width":751,"height":11}},{"id":"5319fa36-c328-41ba-ae6c-8a61419c6361","block_type":"box","text":"principles on corporate governance, which guide our approach to stewardship across jurisdictions, while recognizing","page_number":209,"box":{"x":70,"y":458,"width":824,"height":11}},{"id":"80cfede4-4382-4a65-aea4-f12b2062502c","block_type":"box","text":"the unique characteristics of the different markets where companies operate.","page_number":209,"box":{"x":68,"y":473,"width":553,"height":11}},{"id":"104c5414-c5e1-4f53-9451-d301996b4b9e","block_type":"box","text":"Setting, executing, and overseeing strategy are the responsibility of management and the board. As one of many","page_number":209,"box":{"x":102,"y":496,"width":802,"height":11}},{"id":"9ab84e2e-a0a5-4e9d-8e16-2b470697742c","block_type":"box","text":"minority shareholders in public companies, BlackRock does not direct a company’s strategy or its implementation,","page_number":209,"box":{"x":69,"y":511,"width":813,"height":11}},{"id":"754bd202-97ed-41bb-b713-e90d3b1354c5","block_type":"box","text":"nor how they should manage material business risks. Our role, on behalf of clients as long-term investors, is to better","page_number":209,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"4e3aa6a0-3901-4a8a-a709-a473c8748853","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on opportunities to help protect and","page_number":209,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"5f392d72-e7fb-4e19-b88b-cd169d7d6561","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":209,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"cd2bc9f0-7bcc-4ee5-97e3-3821194c4503","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":209,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"f9a07620-5045-4687-8ce4-61bd21918e5c","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":209,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"0829c2d3-f764-4ff4-803b-33b6a3833a39","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":209,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"50c18963-d5b0-46df-bbbf-40112940e953","block_type":"box","text":"individual investors that they serve. Through stewardship, we assess how companies are creating long-term financial","page_number":209,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"7540143d-6e63-4aec-b0e0-d05c0b60f7cc","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. Our stewardship","page_number":209,"box":{"x":68,"y":654,"width":780,"height":12}},{"id":"e13ccd3f-62d4-4044-8762-5f20684c886c","block_type":"box","text":"program - including when engaging with companies and voting at shareholder meetings on behalf of clients - is","page_number":209,"box":{"x":70,"y":669,"width":784,"height":12}},{"id":"3a5d62e7-057e-48c1-8eb4-e1298b5616fe","block_type":"box","text":"conducted from a long-term investor perspective and takes a financial materiality-based approach, focused solely on","page_number":209,"box":{"x":69,"y":685,"width":828,"height":11}},{"id":"bab64816-c931-42f6-b4f5-700576f76b41","block_type":"box","text":"advancing clients’ long-term financial interests.","page_number":209,"box":{"x":69,"y":700,"width":334,"height":11}},{"id":"573ab7d7-9ca7-4ac6-a24f-9c48b3912513","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen our","page_number":209,"box":{"x":102,"y":722,"width":745,"height":12}},{"id":"e52a8815-8f51-4075-a19e-e755c0c1d92c","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":209,"box":{"x":69,"y":738,"width":785,"height":11}},{"id":"25b00b8f-0e17-468c-9168-dfda7f134ad0","block_type":"box","text":"opportunities over time, and to help inform our voting on behalf of clients. Engagements provide companies with the","page_number":209,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"569fd609-240e-45b0-bcab-f8a45ba80b16","block_type":"box","text":"opportunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":209,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"5b12e1d0-8ff1-452f-938a-ab73d88a58cf","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":209,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"54591718-6099-424a-8b1b-9cb079ad7b6c","block_type":"box","text":"1","page_number":209,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"6ff90705-3d71-4f48-96c1-63ceede03022","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":209,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"f83d7e6f-da6b-4398-addc-6379c53cc831","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":209,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"80644cc3-9548-40dd-9b56-d9fe81162e80","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":209,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"0a9933b7-0b7a-4526-94f4-092dc8ba503a","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":209,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"b9f71cf9-9fd6-4f9a-b7a5-9834b9058edc","block_type":"box","text":"2","page_number":209,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"0ac9bb11-bffe-46b7-b60e-8cc0c2e9ee7b","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":209,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"a4d39026-6de1-463f-a022-fa22841796f8","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":209,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"1402c985-191f-486b-bc0b-2d2cb7f5c98d","block_type":"box","text":"material business risk or opportunity.","page_number":209,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"ae3e59cb-1e97-44e9-aaaf-41a7ea0f006c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f9466522-9691-4c5b-b972-d6b0186ea86e","block_type":"box","text":"Global Principles | 3","page_number":209,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"046cd077-f36b-428d-ac1b-1d4570854ca7","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":209,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"617e6c61-d388-4cc8-8f22-fc7a3b220ae9","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":210,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"4119b64b-127d-450a-999e-2544c22f9fe6","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":210,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"67d47e59-e422-4ff3-bab7-f86abdd3672e","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":210,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"2bcb9ba4-3c62-4b03-b6ab-1b0d00f112f6","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":210,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"37f9d8dc-c607-45a1-9f0a-125ba8bd8a36","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":210,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"db0a2801-1580-409c-be87-1b8182f4937c","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-party research,","page_number":210,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"983ee90e-06cb-4e57-b21b-31f13b0ca591","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":210,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"3c404032-cfa9-4804-aa1f-c10d42a158a6","block_type":"box","text":"Generally, BIS supports the vote recommendations of the board of directors and management at companies","page_number":210,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"995a40d5-c4c8-4481-8c24-5988c19d21c8","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":210,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"8bc74400-dbba-432e-9de0-008d5a7338fd","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":210,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"705126dc-cfde-44b4-a2c0-6c9c9eae879b","block_type":"box","text":"support the election of directors or other management proposals, or we might not support management’s voting","page_number":210,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"5d089ec1-8610-4bb4-94f1-e76b034d5a49","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":210,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"680e0428-bc79-4fe1-959f-8622e5595f57","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":210,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"363bd5f1-a765-481b-bae9-99e5e796e49d","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by certain rights attached","page_number":210,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"e123f58d-44a3-4e9c-8c8f-86b44f4a6d7b","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":210,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"dfcfef81-f6c5-4343-b5e0-918be76170cc","block_type":"box","text":"3","page_number":210,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"df2a8697-c9e2-47e7-90f5-c1e16b30e6f3","block_type":"box","text":"For example, in","page_number":210,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"5b40886f-0b70-4222-8d6b-5aebb68cead5","block_type":"box","text":"most markets, shareholders have the right to:","page_number":210,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"66ce35f5-3a34-4877-9361-0e9322c7c446","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"02eace62-83e9-426c-b180-efcdb8ece0aa","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":210,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"064d4f37-ef9f-45b8-8c64-eda804f9b1b3","block_type":"box","text":"charter or bylaws.","page_number":210,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"b5f1bad5-655c-4bfa-97e8-dc77550749a1","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"227b3c3c-6f39-43f1-a774-514ef35f1000","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":210,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"6a0baedd-85c5-42fd-a4d6-1e43d6db7c79","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":210,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"fbe5e8a9-3671-4c60-9094-06e3e54d9a72","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"50485c3f-ad18-4e1d-b5c2-463ee71c4a0c","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":210,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"7f1b3c32-0d7c-49de-9e04-0dfc8887def1","block_type":"box","text":"are material — to make informed decisions.","page_number":210,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"4d212b79-2586-4302-b7d9-b67ce37e4320","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":210,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"5f65a299-bcbb-4dc7-b99b-295bda04e763","block_type":"box","text":"In our experience, there are certain globally applicable elements of corporate governance that contribute to a","page_number":210,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"df76e57d-16e7-45a4-aa32-2dda4b7cc69f","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":210,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"19db3e88-2347-4af8-827b-a2ed71b9e534","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":210,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"e6496939-6a2d-497e-a2da-c8082884edc1","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"2e8964dd-0802-4bbd-ad3b-f5e26f4ef288","block_type":"box","text":"Boards and directors","page_number":210,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"1449b4ca-48ba-465f-9130-c5d07913259c","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"ac56d7c9-520f-487e-bd9d-e740720b8e4e","block_type":"box","text":"Auditors and audit-related issues","page_number":210,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"22605164-7a9e-4b4e-bcca-76c0c48c89cf","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"3abe333c-d1e7-4608-8fad-1d47a0c382e8","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":210,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"e6ee3447-1f9c-4b19-a0a8-0bce1cc2e7e6","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"8c26e4a6-7dcf-4dd4-9721-2797c84281de","block_type":"box","text":"Executive compensation","page_number":210,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"6295ce10-199e-4a10-8bfc-a0c42c789986","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"8d9ab779-9016-43ce-a068-aa6bcba5478f","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":210,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"91bfd222-1427-43ce-a4bf-8be6a6e59965","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"841eab5c-a4b1-42e3-b428-318ad20697b1","block_type":"box","text":"Shareholder proposals","page_number":210,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"42a35223-a2ed-4cd9-a55b-76facb2de475","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":210,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"4df3064f-d3f2-4c48-9cd3-bd1f0bee91a9","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":210,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"390628b6-6432-49c1-838c-ce07861e04fd","block_type":"box","text":"which companies operate.","page_number":210,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"d3a2ac52-5bdd-468d-ba24-0b6459345e05","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":210,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"bcc477b5-03fe-4e10-acb0-f5b59e34da9b","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":210,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"c86f2da2-acda-4007-b3c2-b44cb3d6adbc","block_type":"box","text":"supports durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":210,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"6c1b9332-09df-41ae-930a-ade2082e3575","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":210,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"1de65f66-909e-49c3-bc13-f0f9142d3bd7","block_type":"box","text":"4","page_number":210,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"2e192a25-10bb-4b9b-9858-ab7f32a1ef9c","block_type":"box","text":"3","page_number":210,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"92e804a8-58e8-48a0-871e-2525b92d753e","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":210,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"7cb76863-15a7-4457-a6ea-d72506609031","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":210,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"fdcb0662-8837-4fb8-aea4-52070ed6a127","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":210,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"ccec2476-9849-4f8c-b005-908d1b209403","block_type":"box","text":"4","page_number":210,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"7d378e33-55c4-4549-ac37-65f1c282310c","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":210,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"70dddbdb-7157-4b02-bcaa-74cd5c2840d8","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":210,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"86341d59-a795-44d5-a2b8-c0ff5e10670c","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":210,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"157d2a75-9fa5-463c-afda-8499af01479f","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":210,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"be363cc0-02fc-4a14-a3d6-8639265eaa02","block_type":"box","text":"guidelines.","page_number":210,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"842d1e93-ece1-4fe3-9985-3b6c6e0c3a7c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"11e55349-f93c-4116-ac86-4e6d6b333e85","block_type":"box","text":"Global Principles | 4","page_number":210,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"545399fd-3bc4-416b-bf8f-45dd37f0a8be","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":210,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5df8ce0a-b9dc-430c-817d-affc54c8f1cc","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":211,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"de0ed76f-4063-41b7-abf5-0ad7599f8ee9","block_type":"box","text":"Oversight role of the board","page_number":211,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"d6039adf-5137-44dc-84ac-15ce85e99b0a","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":211,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"f273e1f6-718d-4672-b6a9-8550dd20a12c","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":211,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"ee261abb-697d-44d7-a236-899cb799b9a5","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":211,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"8fd3c047-732a-4962-bb4e-8a54d73a08d9","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":211,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"190f4261-86c1-46de-b935-dc8ba14411e5","block_type":"box","text":"long-term financial performance.","page_number":211,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"8be72631-d9dc-4ec5-9f1e-853a1594681b","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":211,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"661e883a-f019-4126-b168-88d85c1e1b4d","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":211,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"d535c952-85f2-48ef-953d-157db5fdc751","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":211,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"b98f893b-df26-456a-a349-ac3841ea6a0c","block_type":"box","text":"the business environment in which a company is operating.","page_number":211,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"b743f94f-2e15-4b27-be81-0dc071d955b9","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":211,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"023bd741-7874-47d7-adb5-9a2b4d4772ca","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":211,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"c8cf3b22-2481-481b-bff0-194604faad77","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":211,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"16d4a1da-699b-47d4-b313-fab459617e56","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":211,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"eb34da6e-0adf-44cb-bf8d-9a8d521edc66","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":211,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"bc66663f-744f-403e-bf89-5bf25a81fc94","block_type":"box","text":"mitigating such risks.","page_number":211,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"a8528779-f119-4ce9-99c1-fafc7e160a0b","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":211,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"81beb37a-49d9-48cb-8a5f-91750bb8f366","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":211,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"e8961886-2c2a-44c8-8357-466519c49325","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":211,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"86a9c753-8c4f-43ba-bc96-fe41a49ea16c","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to articulate the effectiveness of these","page_number":211,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"7b2052ff-b465-444b-bfe1-674fe9343056","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":211,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"d32d6f25-2a1d-4fe0-be8c-694208ea70e4","block_type":"box","text":"strategy.","page_number":211,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"386ef7c8-5429-44e1-8b0b-682317322597","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":211,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"7b294398-f864-47b1-b08b-9cee0abfb330","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":211,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"bb3b9805-ac11-4063-bb4e-20f5edd2a51a","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":211,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"d6b7a5cc-5494-4cf5-b85a-54ee2544640d","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":211,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"fec550ae-b1a3-418d-beb4-3aa64801147c","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":211,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"f1d338cc-93a5-4701-9f98-288afc57c2f1","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":211,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"ff736789-e4d1-42df-980d-75b4eef33960","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":211,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"4d17cb0a-2652-48f4-a690-f295719e9a83","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":211,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"cb14bcad-4bc9-47f5-a745-68315dc8ed1f","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":211,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"2eedf313-e25d-4c1f-8e0f-fb7712561c8b","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":211,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"f31d1457-652a-4883-adfa-9cb54d3c4580","block_type":"box","text":"Regular accountability through director elections","page_number":211,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"98c89883-82d8-477c-9089-8f04b734f66a","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for, or","page_number":211,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"26f88fcb-c7f1-463d-aa25-ba323d946655","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":211,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"42630bec-1fc9-4140-a60c-18cb71fb25e6","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":211,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"223fd645-8443-4844-ad3f-099697d9fe21","block_type":"box","text":"5","page_number":211,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"8af927fc-927b-4d1f-9851-493620183856","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":211,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"99fffd84-ef01-4d73-9bb2-f79dd0d41f5b","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":211,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"04be6871-6596-4ce9-b8ed-1b55f0fca352","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":211,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"ddf78b0c-2eae-4713-abfb-57a7fa52974d","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":211,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"7470764c-2db0-4da9-a72f-1640c1467776","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":211,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"3d50ab27-b2ec-4ebf-9d03-39578a4cd0e7","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":211,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"1855ca2d-83f5-4d0a-9b56-298c3fc8b286","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":211,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"7e5fcd17-de04-4efe-89a6-fc544805fa1f","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":211,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"066da865-60a7-4633-a710-70e1145975a5","block_type":"box","text":"5","page_number":211,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"e21d0132-58b1-461f-8757-1cb919b8d692","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":211,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"365e5da5-407c-408d-96e9-c32a9078f51a","block_type":"box","text":"market regulation or voluntary best practice.","page_number":211,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"7ae7df98-75af-4f3b-b58a-f672ceffb9b1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9a6162bf-f4e5-46ee-aab2-f181f6bb7865","block_type":"box","text":"Global Principles | 5","page_number":211,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"3806c9a8-e427-4f00-8031-b77af6334a15","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":211,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"def6f86b-f5f2-45cd-9883-df978795f8ec","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":212,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"180f560b-c7e4-4e3d-ba40-75a84a442111","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":212,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"a7d7c11a-4563-44be-b913-cca35dab4dc5","block_type":"box","text":"recently.","page_number":212,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"215f2588-4e45-4e52-8cf0-1ee3af0f2623","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":212,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"15e6b9cf-1d07-4afe-86f3-77b989616534","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":212,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"94f84e32-0391-41a3-a2b6-bc4fbf62351a","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":212,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"56723dad-13b5-457c-993b-0fc1acb35df1","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":212,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"2ca25e62-46aa-4da2-9ede-8aa0075afafb","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":212,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"0c962988-841b-4095-87d5-4188e6706352","block_type":"box","text":"Director independence","page_number":212,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"6151d121-cc81-4001-a37d-e7e761feeeaa","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":212,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"489c6abb-ea83-49f8-b6a7-6fda4403a8d8","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":212,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"a0f9ffbe-5d95-40d0-b99f-fe024e5d820a","block_type":"box","text":"6","page_number":212,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"ed4fc349-0e99-4087-a90a-1e3d653a5131","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":212,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"0348b7f6-11d3-41b9-b1e8-5b988f5f271a","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":212,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"ad70a896-d7f5-4f38-ac43-2b6e5540ac30","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":212,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"35ec2e01-f6ce-45aa-b165-8d65d89822df","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":212,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"4d5f2a07-5046-4d3a-a004-fa7f691c5d54","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":212,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"b268dd17-1f71-4d3c-b938-6a88e41ff37d","block_type":"box","text":"•","page_number":212,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"af477049-75a0-40d2-9d79-8d5bd5e4eb11","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":212,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"c0faf3d1-01ee-4652-9166-c55b531371da","block_type":"box","text":"•","page_number":212,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"f93d05fa-6203-4f7e-9587-e51a718c112d","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":212,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"7d439f62-29d2-40f6-9ec6-ed9de89f66b9","block_type":"box","text":"•","page_number":212,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"f0698291-6134-4c7b-be79-06ed50a4db1a","block_type":"box","text":"Interlocking directorates","page_number":212,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"bdb48b8b-6041-419e-a42f-d7c6a428b3b0","block_type":"box","text":"•","page_number":212,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"d974cb78-1c8a-4264-a54b-faef451927f4","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":212,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"e7516d1e-f76a-44d3-9203-b291753ea6fb","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":212,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"34d115ad-8755-440a-ae33-95a187ab67f9","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":212,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"93b6615a-385c-4549-8054-fc2b863f6576","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":212,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"c851f10d-fa22-421a-a663-6e7372546275","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":212,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"30d93487-fc5a-4b36-800f-ac6b87299d2c","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":212,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"c2f92a64-3656-41c2-91e7-b8a17520976a","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":212,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"d4d4e6cb-6c49-4e4d-9e5c-071ca37e71d2","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":212,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"6a64e608-0b7a-4580-96e1-9349e8bfb2af","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":212,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"340359ff-49c2-424e-a609-652e3962d59b","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":212,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"612f8181-a921-43e5-b990-cd5e52ad91f7","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":212,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"eed9a853-9a80-47aa-afdd-4dbd94422f82","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":212,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"9288ed5e-208e-4b8d-9361-1f06a93bcd23","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":212,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"93a7bdff-49c4-4151-b1e3-30a59f0c0b0f","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":212,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"b3194e2f-d52e-421c-b80c-3450c3374a65","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":212,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"72e7ffdb-d449-4a8f-ad98-70f1cf543c40","block_type":"box","text":"Sufficient capacity","page_number":212,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"5364deaf-8a07-444c-b821-5c9d4b2f0332","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":212,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"511f4d38-63fa-4d52-b524-cf1c76a3c2e1","block_type":"box","text":"appropriate amount of time to board and committee matters. It is important that directors have the capacity to meet","page_number":212,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"2d89aa30-5311-4686-b394-e0cba4453be6","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":212,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"fd95d6d2-4f81-4902-a0c0-f73ce29af8d9","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":212,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"5f09d701-572d-4b1b-8792-82126a97d66c","block_type":"box","text":"Board composition","page_number":212,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"2e245c8f-b45e-4254-b1f1-6ae5f3231358","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":212,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"0b141b53-d15e-4c4b-aa4e-0cc53c6391f1","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":212,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"314ef6bb-e083-48e6-a7e7-82ba91ae87bc","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":212,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"547dfa56-326e-45d7-b25c-807cd674f8b7","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":212,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"5c9c14b9-b643-40b7-aecc-a5cb32c580fc","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":212,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"57f8cfc7-2bca-4cc7-afba-98984833c8a4","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":212,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"d307f99e-a008-4df8-bc8a-74e99ae7afba","block_type":"box","text":"board, as well as the particular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":212,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"accb56ba-2927-450b-b1a6-95cea09c57e3","block_type":"box","text":"6","page_number":212,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"68cf3ee9-68e2-4c09-9f6f-95949ca2ef77","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":212,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"76ac6fc9-746d-42c1-a503-d7bdb90177a6","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":212,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"a076678f-c127-4597-8890-58dcdce3d7c3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"71870bff-6ebc-46de-a302-952fd441ebfe","block_type":"box","text":"Global Principles | 6","page_number":212,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"768a41da-fbb2-458f-ab91-c159301869d5","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":212,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"91247eb1-97b7-4f1b-91e7-24ba76c9749a","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":213,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"af56d4b3-c9a1-4691-b4e3-a3f310ebfaa6","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":213,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"0490513a-8bfd-4c1f-8840-38b3e7471aea","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":213,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"d68bc9d4-2afd-418e-8a54-af07efef03e1","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":213,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"71bfbd69-a62c-4f37-b1db-6b1f987755cb","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":213,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"4ba604c8-b93e-4bff-a7c8-2a80bab4a3a8","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":213,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"d05aa903-4581-4c72-829d-609ae22b01b9","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":213,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"ef9c25e1-1532-479e-9c49-bc03b5e64309","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":213,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"0e021a13-070a-4636-913c-2ed183b6b10d","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":213,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"f62f070a-91c2-4f07-8614-e1d1701d3115","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":213,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"d6310b11-fbda-4fdb-85be-80d7c6a8d924","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":213,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"f4b891b9-631f-42a9-b918-69af293461b6","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":213,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"eea5b427-7ba0-4e05-a017-e7f4fa582160","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":213,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"fe30f473-7822-4e5a-b959-ea4157c86c69","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":213,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"8a1b7451-b3ad-4d67-a723-8b1c6903f3b0","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":213,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"429a36f4-6a95-422c-b0f1-fd6baa0d2163","block_type":"box","text":"systems.","page_number":213,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"6a6b76e2-ab44-4793-9b8c-6f736b63cc1b","block_type":"box","text":"7","page_number":213,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"a4917857-b994-4090-8b2e-2a4f266fe000","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":213,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"47d150c5-34a9-44fc-b729-a0947b15ab29","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":213,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"c32e3c0a-cecf-47cf-ab75-b1a5df0a24cc","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":213,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"a4c91a88-e2c1-47d3-a600-500e6804dbe6","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":213,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"e89bd44c-eeb6-4ac3-9406-412ca509a6c1","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":213,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"ab0b9f2c-2b65-4160-b1b5-26970e69db33","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":213,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"1230aace-2287-486e-9a13-d51c8c1577d8","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":213,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"b2e68b68-8416-441b-8f6f-1d256c867305","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":213,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"99a7f870-5615-4e39-a23f-24cd465dc9b5","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":213,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"6511e2e4-1561-47f7-9d41-eba29ee124bf","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":213,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"c03a516c-5a84-47f2-8288-c0c9b030c91b","block_type":"box","text":"or internal audit function.","page_number":213,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"10ce5bf6-9b27-4f5a-af3e-89591a8ad227","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":213,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"928a3c96-748a-4011-ab26-ad680644b65c","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that auditors are,","page_number":213,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"e1c587ff-3f23-4621-8a0e-a40d564decc2","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":213,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"002c11cc-dc0c-47e9-98e6-d67050f61a5c","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":213,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"0cf30278-5a9f-4591-889d-f38caa9b55c2","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":213,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"806d6f00-6a9c-4e45-91b5-2c4f797d5e5a","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":213,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"4d97d368-cb2b-4553-ba0e-9985f38e8cb1","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":213,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"4f7632cb-47bf-4c28-9600-8837a66d4a53","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":213,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"2fedf984-9327-40e8-b59f-155513c540ad","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":213,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"9464a712-3765-41f2-8efb-59f8da19a6c1","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":213,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"1145b725-f02b-457b-9f9f-2079de413698","block_type":"box","text":"risk.","page_number":213,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"13e83512-7348-4e7c-9dfb-5fef096770a0","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":213,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"0d43ad27-6e7d-479d-a1d0-7634d57fd4cf","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":213,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"d85203a8-2649-4af9-9287-8789ebf93d05","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":213,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"6b43aa89-b481-41c3-a957-49454c7db615","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":213,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"92c6fdda-4d72-4980-b079-c25e1a690ec6","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":213,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"cda9edd1-ea5e-4b8c-ae5c-920249184a46","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":213,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"590a4e22-11bd-491f-9a6d-6921d465eb02","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":213,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"86528d0d-f7c3-4b29-b90c-58494461bfc9","block_type":"box","text":"7","page_number":213,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"3a1c330f-cd07-4723-a65f-4067ad3b3793","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":213,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"6d90d0b8-ccf0-462d-a866-d7bfb2c1306e","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":213,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"041ce60e-f6ee-4067-a74c-e50846752acc","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":213,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"e04a5fda-4460-4785-8946-093829105ded","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":213,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"9b2c2076-9afa-4f25-9537-3b8a9db1d845","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":213,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"4cef19a8-b0a8-4f64-ad26-b20c760be211","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f8195f92-14e2-42c9-85bf-64d3a27e11f1","block_type":"box","text":"Global Principles | 7","page_number":213,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"a5f7b031-7bed-4602-977c-5c057dd69582","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":213,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f0924d07-ea78-49e0-bdf8-5f492988f0fd","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a valid reason","page_number":214,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"2b4e2ca0-1aa7-4238-b17d-04fd64dc0f5e","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":214,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"ee135658-1e2b-417d-bf53-b49e4ed3de09","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":214,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"4539b233-c75e-4347-b3f7-1d2ffd198465","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":214,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"43fcb37b-676b-4eab-b678-1d0269ec79ae","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":214,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"d9d6ecdd-4323-4536-a9e9-02539a5d8b2b","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":214,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"5d087d7e-3160-4375-94c4-b5e3a5ea6d67","block_type":"box","text":"minimizing costs to shareholders.","page_number":214,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"59ce4c59-3fe6-4a4f-9a56-7913db99181e","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":214,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"b93d6e6f-002e-4bf2-9b77-a504fad8cc2c","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":214,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"3a06b5ec-9f0e-4bbb-a9a1-8ae9f30be6d4","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":214,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"22875983-86f9-4fdc-a756-1583ae6b7ada","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":214,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"35239b4b-8674-4e41-90eb-20ea9b9260a1","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":214,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"26773d03-f307-4e0e-afa5-856164180ce8","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":214,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"402300e2-b581-4d55-a3a5-e940a1f6c91e","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":214,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"5183672d-2e6f-42bf-a7aa-d8ec03a99280","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":214,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"b3c6bcd9-01bc-4347-8d44-1d687c3f3f6c","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":214,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"0cc7aeaa-fde6-4a1d-beee-4a96ccbd94ac","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":214,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"f2e8815e-7b8f-4857-ac7e-cb3a2f29b393","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":214,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"638c22fe-e1f2-49b0-8a86-180d107dadfe","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":214,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"23f5f20e-5cd8-4cb4-b544-9e3117df62f7","block_type":"box","text":"ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench","page_number":214,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"7381e1c6-6957-4264-95a9-ff0c11eb1809","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":214,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"9f6e86f9-514e-406b-b0f5-50075eeaefe9","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":214,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"3c651b01-02a7-49fe-84c3-be4766f99189","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":214,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"b9f16ced-38d6-4128-a49d-47d853b1b355","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":214,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"1d9fc110-1f27-4051-ab11-5675655e4dc7","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":214,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"c021e14c-bcf6-477e-965f-7372d57870db","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":214,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"9b9dab98-4938-40aa-8ee0-44042fb473eb","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":214,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"854c1a82-9b53-4786-9564-caade9cb1096","block_type":"box","text":"ownership.","page_number":214,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"1212271f-a9c9-4461-8def-f73a56b98094","block_type":"box","text":"8","page_number":214,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"6cc0f133-98bf-42c5-844a-b342fe479b6f","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":214,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"527bac5f-c5c0-4326-9a5f-10ecdf8c93b6","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":214,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"73a87858-046d-4c15-914f-a040ccac145b","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":214,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"3ccbee49-0c12-4eb5-8781-41955aeeef8d","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":214,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"5b002123-1d58-47f6-8dbb-a66dd88b2e4e","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":214,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"86f27125-d3f0-4ebc-b928-f3784662f63c","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":214,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"f769ded0-1e55-45dc-9f5e-e9665cc530e7","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":214,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"f7b95eb4-b2ff-4d64-ba4f-8e6b41643424","block_type":"box","text":"results over a period of years.","page_number":214,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"57b7447b-e459-4dff-aa72-b78c8effeb41","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":214,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"783998ed-9c56-4de3-b2a5-976c25abe732","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":214,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"f121106c-e56b-40d6-a8c4-bc179c56b067","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":214,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"f7080719-bf3b-4d6c-9e82-b42cfee34666","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":214,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"5e808016-170a-41b7-8c47-549a11f392e3","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":214,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"b80d76d5-159b-4379-bbfa-1e6011162341","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":214,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"be845608-2778-4b19-b9ea-bc18c115b72f","block_type":"box","text":"executive compensation strategies.","page_number":214,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"0f5f9044-7cb6-4ad4-b2c5-155129b11278","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":214,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"13da9fbe-643c-4286-9ce4-09af6caf0aa7","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":214,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"022a4e77-9a2b-48bb-9b5e-e487fb514f1b","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":214,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"ce898bac-358e-41e6-8f7c-d6c96ece7d5f","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":214,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"b7d44045-8c32-469d-8eb1-2a2cf377f2a9","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":214,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"8a670607-5cf8-42d3-84c6-6db0372e5616","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":214,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"547e3b6b-3448-4b9a-9bf4-49cde4133d27","block_type":"box","text":"8","page_number":214,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"467e542e-64d2-4f35-865e-bc65c13d2ccd","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":214,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"e627c702-9b57-4d67-9bc4-751189b79170","block_type":"box","text":"different markets.","page_number":214,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"153238ad-aa5c-4b07-a3b2-af7be5922019","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"89dd3523-649e-4447-858e-d5c38f6660da","block_type":"box","text":"Global Principles | 8","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"ccde77c4-5e89-4b3b-a6ea-006e6c1d6ed1","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":214,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"70393b54-107b-40ac-8379-a458f6441910","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":215,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"09271166-d1b8-4069-84a9-80490c8ef2e6","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":215,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"148efb59-62d5-4a6e-b079-7a4b7e2e1171","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":215,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"2c29d381-2a4d-42b9-8c4f-e5a21ce1d94f","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":215,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"a91b7b69-26d5-4c32-93d8-fce2069db4bd","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":215,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"264fdddd-d713-4a27-b161-fe2276054019","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":215,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"a29a0661-a1d6-47ad-8d92-90f63e119e31","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":215,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"a2eb4113-ca32-4dd0-9da3-2fb7fcbadfd6","block_type":"box","text":"whom they are charged with overseeing.","page_number":215,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"121b2288-22df-483b-bb1c-bd7f11d72f41","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":215,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"f3dde056-9e70-4656-9f74-f276f88dbe5f","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":215,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"710b7459-89ff-415e-9319-2ac0026720ac","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":215,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"a4b4a7af-5548-48b6-9c67-fed7013cf6f0","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":215,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"9dbbb892-c99a-44c5-99b1-9d1fa618b2fa","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":215,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"37fee4e8-0a49-446a-bff5-1590c77f9a55","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":215,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"faabab33-5704-424f-8344-f0dec19a6d2b","block_type":"box","text":"structures.","page_number":215,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"2f64ef56-1ce3-446c-8ce3-e07df1898430","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":215,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"cf9617f4-7d73-4df2-b1b8-55dd324aa191","block_type":"box","text":"Corporate form","page_number":215,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"e3646306-fa5d-4ee5-984e-c7f9af018b12","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":215,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"447df214-14b3-4ae4-9600-6181e8f247c9","block_type":"box","text":"the company’s purpose and business model.","page_number":215,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"f7186e79-9b8b-45f0-b44e-d2889012a373","block_type":"box","text":"9","page_number":215,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"56c8b5f3-713e-4145-8755-856ad95d6964","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":215,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"7578f1e6-1c43-48a3-9382-1ba9a903f429","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":215,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"ac5f160c-96f8-479e-ae4e-e91a0e0aabb6","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":215,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"6f7bb1ee-c9d9-44df-a620-bb942a73374c","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":215,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"cd6d5316-ef4d-4f3e-a147-04ff94b96dc2","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":215,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"c776cc1c-9105-402b-bb59-2c990a3960bd","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":215,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"4cbd38d2-378a-4d0b-84ff-b8f509a25e60","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":215,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"22b7d1f2-0136-4e53-9656-20a9d7247751","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":215,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"5a5f6c35-1dcd-4e3d-ab10-c093e31e8974","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":215,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"df030ec9-743e-4b6f-8840-1fe572849e68","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":215,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"3cb57242-8a60-4bd9-ad94-c93a8257501c","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":215,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"ff4d54cc-3ab9-4f68-9410-08f5f55d00d2","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":215,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"29d11899-de22-44f5-aff9-1ba16e37ff75","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":215,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"47278a53-1392-4495-84eb-20691b95e733","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":215,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"2404b6e4-afea-4a01-9644-2b044c818fc8","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":215,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"c2b69245-56ff-4b0c-9830-d30d8e673c52","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":215,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"b14d2e88-b125-4d65-8529-608e43967a13","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":215,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"c3a81bac-ae3b-41fd-8c0e-2b42bdfed7ca","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":215,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"9b89718b-dc1d-4bf8-9f41-8da9cd31daa2","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":215,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"ee0fde20-0ad4-4040-8d37-050c307f7513","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":215,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"cf03c4dd-67ec-4efe-9cc8-b2ca4f177904","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":215,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"11d0b7b9-c3a4-4035-820e-caf3b65bb8e5","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":215,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"8578cdb5-aa7b-4a47-9cc6-dffc068a2e0d","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":215,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"978aab6a-1294-4694-87ab-407e1067d6f0","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":215,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"e65be3de-df8e-485f-bbd1-30ad4205c9a4","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":215,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"513a00d3-a371-4aa2-b365-8a1dacb24958","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":215,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"95d627ac-f699-4fe6-afee-ba89c5bf22a7","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":215,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"52c5b34e-c3fe-44eb-a7bd-1fdf7caae1ed","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":215,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"19cf2633-b25d-4ec1-b718-0a629af892f3","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":215,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"717cb77b-f965-4417-8bbd-428be9c25da2","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":215,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"4538dd3f-b93e-49bf-87d0-f9359bd9a31f","block_type":"box","text":"the proponent. Therefore, when we vote in support of a proposal, we are not necessarily endorsing every element of","page_number":215,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"896a599b-de9c-4f0f-8e4d-f4ee49c0c2cd","block_type":"box","text":"9","page_number":215,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"32a7edbf-8d0e-41d4-9e6d-015e2b78dc1a","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":215,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"a2158f88-5953-4c7e-b59f-fe8acf10ec1e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"eb3cb81a-cec8-4a0d-8dc8-7d911f800a19","block_type":"box","text":"Global Principles | 9","page_number":215,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"49cdf2f0-9eec-440f-a77a-2cd688806061","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":215,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2d42ec21-caf4-44a4-b0f6-f930991df94a","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":216,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"54bac0b6-6353-496a-bb97-2d9545c03877","block_type":"box","text":"different reasons than those put forth by the proponent, when we believe that overall it may advance our clients’","page_number":216,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"c41f4385-598e-4abc-a3c5-651e3fcf941e","block_type":"box","text":"long-term financial interests.","page_number":216,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"8b140118-2343-486b-8a56-109a919f00a5","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":216,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"4c8b5599-ef6e-4d68-9d33-28cfc2914ba5","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":216,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"e82f657f-24b0-4554-b807-0be9444a7dcf","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":216,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"9a26e3b8-45ea-45ea-a9a5-dabbc4200359","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":216,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"148c5a81-c2c4-478d-9ff4-9934296f19ee","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":216,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"795e4c1f-5ac3-41ef-b6ca-98472b66a7c3","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":216,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"41e90f7f-b396-45cb-9c4b-593b9eabd543","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":216,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"dd9321bc-c9f2-45ef-b67e-6655f652ec90","block_type":"box","text":"term financial value creation.","page_number":216,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"09529716-eafd-4f02-965b-c5fef589ab69","block_type":"box","text":"10","page_number":216,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"7bccca41-8dcd-4dd1-bd46-135d07e8f131","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":216,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"3bf13ada-6768-4eb7-a042-05adbd44e851","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":216,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"e4813c08-13c2-4083-becd-44867683f459","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":216,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"2f27a80c-ea0e-43b7-8a77-8c84b4a6011b","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":216,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"c7067b84-a6c2-4491-851c-6a87540c85dd","block_type":"box","text":"industry-specific metrics.","page_number":216,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"3ef921ff-47d0-4c5d-b4c0-48df79dbf1b9","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":216,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"c22f07df-1789-490c-8a04-2812d0005577","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":216,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"383a55b9-3e3b-4bc7-8b49-2bafcf3d0aab","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":216,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"5dad730f-9eed-4e69-adb9-1ebe2fa209f3","block_type":"box","text":"11","page_number":216,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"400bdf52-3fe3-474f-b60e-4c7aaaf36fc6","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":216,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"2ad74ce1-e422-40fb-862e-fa7708404979","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":216,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"010a7a01-17ea-4fe6-b32c-d83754ffdd69","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":216,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"f08b7c1f-c27c-4086-a16f-53eed9e65cd2","block_type":"box","text":"specific.","page_number":216,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"d6a83187-3521-41cb-b246-699bd637204b","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":216,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"2776b44e-5821-43b9-9669-1d3c0d23cd9e","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":216,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"ec373a80-3ee1-457d-9acb-938f0a5c5b77","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":216,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"4e6e67b3-42f2-4a5f-88ee-37ddfeb5a38e","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":216,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"1a026cfd-ea9e-454a-8642-b08abdd5a22c","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":216,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"9abe5397-0863-4909-8a99-f5f3e7f74d3e","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":216,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"0ea2639b-5ba7-4482-bf5e-198d55cd994d","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":216,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"43d8fc52-47cd-4c02-bc20-ffbf6bd7e764","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":216,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"4be7ed1f-bc07-4bb4-85ad-ff844e2fff60","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":216,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"6902faf3-223d-4290-8c1a-b8a316308596","block_type":"box","text":"10","page_number":216,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"b431aa1c-5070-4733-8a25-ec35f6788fd2","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":216,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"01d42c17-15eb-4c2f-ae85-79979c3f8f77","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":216,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"4241fa99-d098-4f66-b14f-8847d147df29","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":216,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"0c0dff82-1323-4de6-a63d-fd62b88eae8e","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":216,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"5f24303c-270d-4464-b319-ab38e4083cc5","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":216,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"c3bdefb9-d5a8-44e7-9285-51baa1dfe709","block_type":"box","text":"11","page_number":216,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"d8fb4d85-8b6a-4df9-a5d1-5f8a37b9a196","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":216,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"317821da-1d58-4296-8eea-2429a0c8992b","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":216,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"30f0ce97-3127-43e1-84b7-e6414b5bf587","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":216,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"0c8cdbbf-7107-45f6-9292-07d51cd48bb3","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":216,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"ae137464-bfde-4550-bc61-6d74e53b32f1","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":216,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"77167e59-27a8-403b-9dac-f4c963309089","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":216,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"e5aad355-c775-4ceb-bc03-794b9dcc79bb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ef4030d4-3f55-4318-983d-280486b01ae6","block_type":"box","text":"Global Principles | 10","page_number":216,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"08767a64-ddae-4475-a8df-11822e8e1624","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"de0f1458-6614-495b-a7f7-9f032094a922","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":217,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"ace030bf-d6b5-461c-bfba-171fec946171","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":217,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"401fb18d-cf96-40e3-80c3-a4da8c6ffe43","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":217,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"ef23091a-a3b5-43e0-a46e-090e4f7f70d1","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":217,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"71edbc85-e995-4b93-846b-9d30b78e8377","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":217,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"ca624d20-1ba9-4811-bf62-0e1f1440dd52","block_type":"box","text":"12, 13","page_number":217,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"073878e5-8b9b-4a75-8dd8-311a19ad0a0f","block_type":"box","text":"From company disclosures and","page_number":217,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"928b139b-2197-4230-8252-a2195b481750","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":217,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"a32732ea-a7b9-44fb-afe6-80a9be859e40","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":217,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"118893f7-245e-403d-a5c3-541be9edec38","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":217,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"429c0138-dc34-4f08-a86c-8288cf44deda","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":217,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"15ca8511-0fbb-42bf-b7e2-1b16934f6e2a","block_type":"box","text":"viewed as best practice in the market.","page_number":217,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"cfad6bc8-029e-4d4d-a27c-5efe13894cd2","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":217,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"9dbb3594-c770-4af6-83c6-3eb6844e687d","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":217,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"d9e61632-f211-42b8-b01d-a3050422873f","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":217,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"0138d39f-06b1-4d23-ae8b-ccf5dc72f27a","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":217,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"5e8023bf-cfdb-49f6-a74d-e749251764d5","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":217,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"2d0f5d03-eabb-450e-81ef-95d77f49807f","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":217,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"b08a45da-cacf-4d13-948a-f630eacdf42b","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":217,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"5fe13717-d116-490e-a248-5865aafecee5","block_type":"box","text":"interests of their investors.","page_number":217,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"967d9ee3-e158-48d6-85d3-092cded82d6a","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":217,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"edd6adff-639f-4dec-ab5a-72b3be4f5095","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":217,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"e1bc8b44-1b2d-4301-942a-4ead4e97a1f0","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":217,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"cab198b8-b7be-4f2f-96c0-149714f49005","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":217,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"669e2d44-1e23-404d-95ed-eb1a9919999d","block_type":"box","text":"good-faith basis as methodology develops.","page_number":217,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"f019294f-46b3-48f3-8b99-c3be3a7000cc","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":217,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"3f14ecd0-61f6-4bff-8cc0-f130325accd8","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":217,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"e910beaa-8079-48a5-8985-d3a4ad26b680","block_type":"box","text":"generate long-term financial returns.","page_number":217,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"8a27bb01-7f7a-42aa-bc58-f1dd7ec04378","block_type":"box","text":"14","page_number":217,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"6e597aac-bb07-4e6e-a615-5a2e51f4a864","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":217,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"533b9777-d918-464d-b632-994beafd9687","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":217,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"eb8ef678-ab43-4704-b5a5-244f71909fad","block_type":"box","text":"15","page_number":217,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"c6b54bb9-f925-4c90-8fd0-03104034ab74","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":217,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"b5522bd4-cb73-4e76-9d98-9173eeb9de52","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":217,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"626ec972-45e8-4d05-b833-231c05a13063","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":217,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"9cc86f63-1243-4c76-b976-63b35e69a833","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":217,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"2e2b495e-fadb-4f22-9b0f-d48bded224dc","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":217,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"4683ebbd-3468-4418-8776-6ad7d2c4d88a","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":217,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"1e091cca-a178-4c89-8f86-b6828c904be3","block_type":"box","text":"12","page_number":217,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"71c56fc7-acc1-4557-a720-0940fac1125f","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":217,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"b6c8e250-d512-4eb4-ae36-02fa9ec5c31f","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":217,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"b48082d5-767b-4058-acf4-31bf99b8e779","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":217,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"144043b5-e522-481e-9add-f27345043d2a","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":217,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"3caf495d-a160-49c7-9c3d-4c0f543ec015","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":217,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"8a90e9d2-d787-4e85-8b29-466099c9aeb2","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":217,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"6f545e26-1398-4fda-ad8a-d3e9f3b1c617","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":217,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"4f723a40-bc71-43fe-b49d-7e2b465b6695","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":217,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"3bed0d29-2d34-4523-b729-b021f0f08e6d","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":217,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"590cd092-06b4-461c-8cc1-44472d337db7","block_type":"box","text":"13","page_number":217,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"3c42aca5-88d3-4d8a-8dee-17e04da767f4","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":217,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"33a0f593-14b2-46e6-8900-5998ddb318cd","block_type":"box","text":"2025.","page_number":217,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"387a9571-24d8-4c36-9ac1-4e1c949eb84f","block_type":"box","text":"14","page_number":217,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"fcd8e8ec-d729-4b97-b40d-1181f7feb256","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":217,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"1c253967-ce87-44e5-b8d3-ab5a5f2b4379","block_type":"box","text":"2025.","page_number":217,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"99b0a031-c178-40b1-a993-6b8783f7a922","block_type":"box","text":"15","page_number":217,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"dba8bdfe-80b5-4b53-868e-95867d7d4f6e","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":217,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"cd567d18-e90a-4e3c-a4d8-ba7aedaca6e6","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":217,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"0b27891d-70b9-4703-8440-4e507fe86a32","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":217,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"a7032559-eb82-48ad-bf24-43d40601fcd9","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":217,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"aa3572b6-8b7d-4aa8-bde3-60012cb52558","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":217,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"ea5f1f4f-2ba5-4fcc-b758-efae368368b6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"81db3f5e-2c7f-44f7-ba64-7520a3e0a741","block_type":"box","text":"Global Principles | 11","page_number":217,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"70a0a1a4-8ab7-4b5e-8fe1-2308a4a6059b","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d29066e-2a83-4dc5-bed8-f19a5796606f","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":218,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"7fdda8a2-2ba6-445d-b692-4a5e2f10bba2","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":218,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"d6d4cb94-d8c5-49ad-a9fc-4e3d613b58dc","block_type":"box","text":"16","page_number":218,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"e97aae96-a92a-46b0-b99c-1da3c8f826bc","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":218,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"91f1bfac-03f8-4042-bc84-56261f8297a5","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":218,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"c78980f1-366f-4efc-b8f4-0c583ec5d456","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":218,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"4e8c5600-c365-4ea3-96c5-d5bb0ac2cedf","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":218,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"cf054163-f900-41d8-b60b-f0ab202e6f0a","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":218,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"699fc3d4-bdfb-4751-8ec5-bf8dd6602cc1","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":218,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"5580c28e-383d-4f4e-857e-c7d3d4374af3","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":218,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"32b2223e-d02d-4f2e-9fcd-1f665cef4bb6","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":218,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"f834c0cb-f5c3-423b-b4a1-5e114a2f75e0","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":218,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"78652196-681b-4cd9-a02d-b810ff3ee8b6","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":218,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"828e1014-c0f0-42ef-8e44-1596f1042906","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":218,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"b6858424-c6ce-47b5-b783-0044ee1f1ab5","block_type":"box","text":"impacts.","page_number":218,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"eba1296d-36da-4184-ad69-4d869785c176","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":218,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"7aa89aa6-dedd-4dec-a9ed-0905ea1a441e","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":218,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"9a6e7c4f-b1eb-4d1d-84f1-cf4c3b6045e5","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":218,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"5d857c48-2a0a-4b7f-b615-900a399c14d8","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":218,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"45378c00-3ea6-43f8-82da-14fff2f082a8","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":218,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"579f4824-e342-4ca2-ac9a-94d134a5a3b8","block_type":"box","text":"clients at the global and regional level.","page_number":218,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"024746f0-e9d6-4570-9da7-757a6a34ce98","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":218,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"1320aa45-1a8a-4322-aed7-670d479e3397","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":218,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"90c59630-b626-479d-b02e-64e50622bdc9","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":218,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"897b2abf-0a50-4acf-8877-a291e0db16ac","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":218,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"cfc3960b-d33f-4d8f-80fa-cd8aa7deaa1c","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":218,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"d58003f3-c20f-48fb-9179-40b7e3c95cdb","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":218,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"51bdc6c0-0b83-4b37-9650-5d017484cfbb","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":218,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"a6b82acd-32f8-456f-9ca1-de211f9b3112","block_type":"box","text":"are independent from the investment stewardship function.","page_number":218,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"f269d14a-e811-42f9-8ead-f31bfdd0bbe4","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":218,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"aaeec70a-b435-4e0f-ac4f-e1c22020d933","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":218,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"67ade8ef-dd5c-477c-9950-7f766c67a5c3","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":218,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"571fa47f-0c6d-43fa-8f20-7b524a4dcf74","block_type":"box","text":"VOTE EXECUTION","page_number":218,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"6b7f2161-0415-4169-9cbe-f8391e220028","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":218,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"1725e668-b94b-4f84-bd28-f539fdda3593","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":218,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"ab268ffd-a419-41a7-a70e-385d990f9cb3","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":218,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"3cce7b3b-c1fc-44c0-a829-7b0424c8ee7d","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":218,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"4c07eedd-0bf0-4c52-b63d-189b8e2dc4a7","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":218,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"40343af4-6e43-42e9-a22e-e689a89e09b8","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":218,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"ed3d6ab7-1dd4-4d56-9feb-a0c7280e2f59","block_type":"box","text":"management policies and procedures,” below).","page_number":218,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"d10aa949-30a7-4f6a-a25f-0b15a11225dc","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":218,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"de1f94fc-5f30-4d6e-9c94-39a884b885fb","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":218,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"831b3086-bed9-4837-85aa-cead0ab95ec9","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":218,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"43835df9-2f5e-4fd6-91c4-855110cac7a4","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":218,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"f852545f-cecb-4f69-93c8-488b0c71d88a","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":218,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"bfd9933c-8d4a-47ac-8812-2e39bba517f6","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":218,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"d4866a24-3c87-46c8-98b0-9fc66c10796b","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":218,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"b27150d9-4b96-4184-ae55-6b3a02c13ccd","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":218,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"c78de911-7fd4-435a-91d3-02d48473c14c","block_type":"box","text":"16","page_number":218,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"b5748a29-011f-40c5-81c6-e3cd6650dfed","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":218,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"fe20537d-00e1-487c-ada2-69141a8cd91c","block_type":"box","text":"December 2025.","page_number":218,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"6bebdf54-e13e-4449-85ad-745063aef377","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"07b66543-fde5-41fd-8c27-2e9400871c76","block_type":"box","text":"Global Principles | 12","page_number":218,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"c72e6eeb-87e9-4ff5-a3db-e87b1cbea353","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b50118a-c8cd-42c1-b009-003094ef0fff","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally","page_number":219,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"6f9fab17-61a0-4bae-baba-294c727dab89","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":219,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"ce106f21-4146-425f-bdae-ffbe12f42ea0","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":219,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"a346634d-fc5c-4a80-b500-30aba9dcb2d8","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":219,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"e4fd2beb-92f3-4b9c-9937-bcbf1187cefb","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":219,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"5dbd56fc-701c-44b7-ad28-0b9438e7fb33","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":219,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"e822a8f4-cfc7-427c-b8b0-615f6396a254","block_type":"box","text":"enterprise-level vendor management activities.","page_number":219,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"8901b655-0fdf-4108-a840-a8c979b0cc8a","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":219,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"fd75aa3c-e455-4e9e-ab54-72c4cb1f60ce","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":219,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"d5405071-c7db-4fd8-b601-09d48185cb07","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":219,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"cecf6c55-9455-4f71-b0d6-fe99da0da4cd","block_type":"box","text":"BlackRock employees.","page_number":219,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"d3fb00dd-ad86-406d-b4db-5cb8d94c2a2c","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":219,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"a552e3e5-0684-4c95-9279-79d4672848e8","block_type":"box","text":"SECURITIES LENDING","page_number":219,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"43d3a587-db3a-4e51-80fd-d313e6e34384","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":219,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"6669f469-b38d-4e28-90c9-c6e7a96d921f","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":219,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"1075a818-76fe-446a-8cab-3deaef4ffd4e","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":219,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"fa21fcbe-52d1-402c-b5dc-85cc9f27d845","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":219,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"96ecf66f-40d1-44d1-9c6f-bd262a8528f3","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":219,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"114540a6-55aa-42a4-b26b-0f6fab4d4d03","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":219,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"0299b749-74cb-448c-8511-768358b45859","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":219,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"cd36a744-eb3b-4038-8131-5e87e47eea35","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":219,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"79f7acee-8eeb-451f-88de-d190f1e72d34","block_type":"box","text":"recall securities on loan as part of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":219,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"e5eb7792-a660-4d86-ad03-28c5cd5cebb7","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":219,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"eb6b6ef8-9242-4f62-be8b-9d9f44c7a48f","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":219,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"3116af0c-8561-4a65-b108-2c0106c3760e","block_type":"box","text":"of recall consideration).","page_number":219,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"3db74b76-a50c-4afe-99ab-9744d145373c","block_type":"box","text":"17","page_number":219,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"c6475389-47b5-4d4d-8eb6-ef759b86e673","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":219,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"52c2777b-149d-4475-af1b-1f75126e25fe","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":219,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"3793b80a-ba2d-492e-9ae4-7e0563d67ce5","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":219,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"770b9c38-fefb-4703-ac70-89f702d4010b","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in certain instances,","page_number":219,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"0ef0796a-58f6-4c32-9f65-225ad0e5a83d","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":219,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"d8ceb1f9-d01b-4ad5-9e1c-bdfd89b11739","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":219,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"16bb9395-e245-4646-8c86-6c2c03074be9","block_type":"box","text":"important to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":219,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"ec9bd1ae-4a83-4055-a58c-424bd99b78c3","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":219,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"e0c01659-6e22-48cf-8581-af893d140a88","block_type":"box","text":"and may modify it as necessary.","page_number":219,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"398c1c22-7e57-43ff-a398-669a1ccfd07a","block_type":"box","text":"VOTING CHOICE","page_number":219,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"c1d41dcf-d13e-45b6-a629-cac421fd39ca","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":219,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"f1d8c340-9258-432b-b409-c89e864417c0","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":219,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"1ae7afd2-586f-41c0-ab7e-6810565812a5","block_type":"box","text":"18","page_number":219,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"8ebada3b-3855-4f95-bd08-ed07dac6e3ec","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":219,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"dcc7f85b-0e43-4dbb-acca-8fcb2b85220f","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":219,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"6ccc11cb-650a-4b84-846e-1f2e289924d8","block_type":"box","text":"17","page_number":219,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"7bd2380e-c559-4afc-a9c5-8c87c0b9d94b","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":219,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"cda6908c-8b38-4725-bf20-12dd52453ad6","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":219,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"aae0accc-c513-43ef-8baa-78e599fddc57","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":219,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"b33c2ed3-c78c-4558-8dbc-e0f93f8d21c9","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":219,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"0180630e-9104-45b2-9620-f21d2f98edd4","block_type":"box","text":"business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an","page_number":219,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"475b0ad1-9b82-4b8b-b18d-2d2ad8603ed1","block_type":"box","text":"estimated record date without knowing whether there will be a vote on matters which have a material impact on the","page_number":219,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"270c4f3c-f6c6-4c4d-916f-e3b672b0ea28","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":219,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"ad3460c8-8c9c-404b-ac09-751d27f47684","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the opportunity to vote).","page_number":219,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"829a9012-5aae-4796-9a69-e232ccfbadd4","block_type":"box","text":"18","page_number":219,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"7c5cf1f0-daf8-47a7-92f3-427316ace22f","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":219,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"37df7253-9974-492e-9525-6bd227785945","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":219,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"a7019410-72af-43e3-a5ae-fc7d95d0ed8c","block_type":"box","text":"including the decision to lend securities.","page_number":219,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"a5b84cc9-cbef-478b-83b0-8253dbf2998d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a8f03708-f8a8-4616-a8a5-7800e1de01bd","block_type":"box","text":"Global Principles | 13","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"0deb2d95-20dc-428b-9642-35092228a0af","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b51df96e-0d88-40e8-9b9c-b2688eaed201","block_type":"box","text":"certain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":220,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"82d0b481-5039-48b3-be7c-bdd774efc0c9","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":220,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"06b36df6-fe4f-4b83-b0bd-b0e8cd16b2ad","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":220,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"eb8a2344-967b-4c96-8140-371431b62fff","block_type":"box","text":"19","page_number":220,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"5719ac18-b735-4555-97c9-b7d977631d20","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":220,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"a8ebcb98-9b57-4dc1-ae90-00f3d123455f","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":220,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"2a749e78-0d7f-4b5a-9e48-bfccb58296b5","block_type":"box","text":"20","page_number":220,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"cd430064-6f6f-497e-92a6-65928dc4bcdd","block_type":"box","text":"As a result, the shares attributed to BlackRock portfolios in company share registers may be voted differently","page_number":220,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"742ade22-ae3d-442f-ab02-de93b66c3c1c","block_type":"box","text":"depending on whether our clients have authorized BIS to vote on their behalf, have authorized BIS to vote in","page_number":220,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"4379966b-e712-45ed-b705-aec46d61bcf3","block_type":"box","text":"accordance with a third-party policy, or have elected to vote shares in accordance with their own policy. Our clients","page_number":220,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"ab156a45-076f-4599-964b-3e2a57097df5","block_type":"box","text":"have greater control over proxy voting because of Voting Choice.","page_number":220,"box":{"x":69,"y":158,"width":454,"height":11}},{"id":"9e07fe8b-5d47-4da1-89e9-d23a5c72b73d","block_type":"box","text":"21","page_number":220,"box":{"x":525,"y":158,"width":9,"height":5}},{"id":"52e8ccdc-c475-4295-8c1a-9adca8f04704","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":220,"box":{"x":343,"y":188,"width":293,"height":9}},{"id":"6bc7d489-eef9-4dfc-8143-4eca54688052","block_type":"box","text":"We are committed to transparency of the stewardship work we do on behalf of clients. We inform clients about","page_number":220,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"ebf9f63c-b7a8-4488-afe0-c8479efef39f","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":220,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"83b08946-b336-472f-8475-db7093c2d6a8","block_type":"box","text":"website. We make public our regional voting guidelines for the benefit of clients and the companies in which we","page_number":220,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"86b1eaec-efe7-40f2-8636-caea7983b970","block_type":"box","text":"invest on their behalf. We also publish commentaries to share our approach to engagement on our five engagement","page_number":220,"box":{"x":70,"y":256,"width":825,"height":12}},{"id":"1d6101b5-657d-469c-8914-94c4ac0e4098","block_type":"box","text":"priorities, as well as quarterly reports detailing our proxy voting and engagement activities.","page_number":220,"box":{"x":70,"y":272,"width":644,"height":11}},{"id":"7763272a-f0aa-4ceb-989b-148fb2577932","block_type":"box","text":"19","page_number":220,"box":{"x":69,"y":324,"width":9,"height":4}},{"id":"0223fd12-4e95-4370-838d-d96a0a55de2b","block_type":"box","text":"With Voting Choice, SMA clients have the ability to select the policy that best aligns with their views and","page_number":220,"box":{"x":83,"y":323,"width":739,"height":12}},{"id":"a0686896-4d76-412f-87cb-fccae3e7240d","block_type":"box","text":"preferences from a set of voting policies from third-party proxy advisers. BlackRock can then use its proxy voting","page_number":220,"box":{"x":70,"y":338,"width":800,"height":12}},{"id":"1dcaa290-d018-485b-bc63-cbe70a6ccec8","block_type":"box","text":"infrastructure to cast votes for the SMA based on the client’s selected voting policy.","page_number":220,"box":{"x":70,"y":354,"width":596,"height":11}},{"id":"76e40b52-2a93-432b-a253-11af375e1504","block_type":"box","text":"20","page_number":220,"box":{"x":69,"y":372,"width":9,"height":4}},{"id":"2fd33ff3-3d3b-475d-9f6f-213a58203e39","block_type":"box","text":"Read more about BlackRock Voting Choice on our website.","page_number":220,"box":{"x":84,"y":371,"width":415,"height":11}},{"id":"a254c5dc-66cd-4d8f-865b-a1681a3d4850","block_type":"box","text":"21","page_number":220,"box":{"x":69,"y":389,"width":9,"height":5}},{"id":"abf71099-b740-4f06-af05-9376aa4ec505","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":220,"box":{"x":84,"y":389,"width":820,"height":11}},{"id":"58a99edb-4769-4564-9f60-73c1ddc00fc2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3e386453-de49-45c8-bd3c-9ca9b58c8c67","block_type":"box","text":"Global Principles | 14","page_number":220,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"e1a1e685-a77f-470a-ae3d-ef3aabd4ac70","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e401e787-72e8-4508-b8ab-7bfca6542061","block_type":"box","text":"Want to know more?","page_number":221,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"71ba926c-d3ba-4d59-aae6-4328b4fbb10e","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":221,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"11bcf23d-be4a-406d-a0fb-ef6a3c9bf715","block_type":"box","text":"This document is provided for information and educational purposes only. Investing involves risk, including the loss of","page_number":221,"box":{"x":68,"y":792,"width":839,"height":11}},{"id":"a1e9b207-d95e-41ca-9781-3b0d6748557a","block_type":"box","text":"principal.","page_number":221,"box":{"x":70,"y":807,"width":62,"height":11}},{"id":"38ffa7c5-d4d8-4976-bb53-2c22f8a854a4","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":221,"box":{"x":69,"y":852,"width":196,"height":11}},{"id":"02845b52-d1ed-4ad2-a8e0-88fa9c2a3089","block_type":"box","text":"©2025 BlackRock, Inc. All rights reserved.","page_number":221,"box":{"x":69,"y":883,"width":303,"height":11}},{"id":"af647aa7-812e-4def-8e16-80705465e9c2","block_type":"box","text":"BLACKROCK","page_number":221,"box":{"x":379,"y":883,"width":92,"height":8}},{"id":"5923f0ce-67b9-44fd-a2fe-c21cf71db438","block_type":"box","text":"is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":221,"box":{"x":478,"y":882,"width":417,"height":11}},{"id":"1a835a47-a1b7-4df1-8918-f75715a31d1f","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":221,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"1c0f3ef6-bddc-4d61-a411-5403b9524b4b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1156c953-2648-49b1-8439-36ed7670f90c","block_type":"box","text":"Global Principles | 15","page_number":221,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"4010619f-8de2-4003-9df3-84f0911e053e","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2c69fe0d-a354-45b4-beeb-8e2c6b06abfd","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"e82c00f0-94b0-4abd-83de-c02b4f28f3e7","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":222,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"35a55b65-9141-494a-9822-a4487811ccb0","block_type":"box","text":"Effective as of January 2026","page_number":222,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"611a3b78-f8f9-433b-8d00-65b3f2680c97","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b63f254-4366-4f39-9fb3-ab1b396318b2","block_type":"box","text":"Contents","page_number":223,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"9b8b3c01-abe6-426a-a60a-a5493e6b1c44","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":223,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"3c489e70-377b-47e1-9043-01ca91793fc7","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition 3","page_number":223,"box":{"x":68,"y":96,"width":841,"height":11}},{"id":"725162d3-6b75-4182-b274-f3b0c6e5ad4e","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":223,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"ba26ddd7-5d40-450a-8a9f-5ba13d32d37e","block_type":"box","text":"Understanding the investment implications of the transition to a low-carbon economy 4","page_number":223,"box":{"x":69,"y":129,"width":840,"height":11}},{"id":"5acd6773-4c31-4e6e-9e81-25c6fcf96878","block_type":"box","text":"The Guidelines’ design principles","page_number":223,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"adfe3b19-b12d-4d26-aa05-8bb16ebfcf99","block_type":"box","text":"4","page_number":223,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"7ff48c27-c074-4194-866d-9950a39caee1","block_type":"box","text":"Voting approach under the Guidelines","page_number":223,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"1f0900d5-39e1-4471-8650-71968cdaa784","block_type":"box","text":"5","page_number":223,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"773fb90e-8b81-4183-8940-75c2552987fa","block_type":"box","text":"Related matters","page_number":223,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"447bbee6-5e50-4634-bef0-cc1d06ad5363","block_type":"box","text":"8","page_number":223,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"61bc491b-9779-4363-9603-a86a3217ca8c","block_type":"box","text":"Appendix 1","page_number":223,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"e114e853-8840-4a4b-b39f-1747c7cb18e1","block_type":"box","text":"10","page_number":223,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"5f087c88-bb64-46c4-89a7-ea1e9bd86394","block_type":"box","text":"Appendix 2","page_number":223,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"c19e8ba2-9d19-4921-a587-29200eab0009","block_type":"box","text":"11","page_number":223,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"c9b0f918-0e40-476d-ad74-a1e78cc5aafd","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f1f2a067-ffc2-4bc8-ae03-04fd89e3c259","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":223,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"44a85548-ddef-4187-a961-00c688048855","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"15b2a844-cf6d-4d6b-a05c-718707d9e9d7","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":224,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"edf2c146-856c-4db5-aa9f-13b056e42c16","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":224,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"0fdfdd7d-c8b2-4bfa-b060-1e1a4efb8ea7","block_type":"box","text":"is one of the ways we fulfill our fiduciary responsibilities as an asset manager on their behalf. BlackRock offers a","page_number":224,"box":{"x":70,"y":82,"width":806,"height":12}},{"id":"49fe4cbb-a1d9-4d6a-b427-97d150f228bd","block_type":"box","text":"range of proxy voting policies to reflect clients’ individual investment choices and goals.","page_number":224,"box":{"x":69,"y":98,"width":624,"height":11}},{"id":"124745d7-f4ad-4722-bb4b-7de0ccd96004","block_type":"box","text":"BlackRock Investment Stewardship (BIS) is responsible for stewardship activities in relation to clients’ assets","page_number":224,"box":{"x":102,"y":120,"width":781,"height":11}},{"id":"7117fb92-fb0e-4294-9ba5-07f6f2deabaa","block_type":"box","text":"invested in index equity strategies. BIS takes a long-term approach in our stewardship efforts, reflecting the","page_number":224,"box":{"x":70,"y":135,"width":769,"height":12}},{"id":"73f1495c-83ab-4d1a-8500-13ad73cbb2a4","block_type":"box","text":"investment horizons of the majority of our clients. BIS does this through:","page_number":224,"box":{"x":70,"y":150,"width":514,"height":12}},{"id":"88d1886a-b5df-426c-b3dc-b46101324952","block_type":"box","text":"1.","page_number":224,"box":{"x":70,"y":171,"width":11,"height":9}},{"id":"1fd8eb5b-32dc-47e1-b99d-a5cc3a81e8d1","block_type":"box","text":"Engaging with the boards and management of companies","page_number":224,"box":{"x":102,"y":171,"width":418,"height":11}},{"id":"8f01fbdc-4aa4-4a8c-9885-456495681747","block_type":"box","text":"in which clients are invested to deepen our","page_number":224,"box":{"x":527,"y":171,"width":305,"height":11}},{"id":"49d34203-4b48-4382-a1e6-16537c44f0b2","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":224,"box":{"x":102,"y":186,"width":784,"height":11}},{"id":"356e471a-8459-452c-b8b5-e69157478d7c","block_type":"box","text":"opportunities over time, and to help inform our voting on behalf of clients.","page_number":224,"box":{"x":102,"y":201,"width":526,"height":11}},{"id":"c4849bf3-6dde-4b1b-b7e9-dd94769d038c","block_type":"box","text":"1","page_number":224,"box":{"x":630,"y":201,"width":4,"height":5}},{"id":"972efee3-e0f0-4e72-9202-c0942cc2334f","block_type":"box","text":"2.","page_number":224,"box":{"x":69,"y":221,"width":12,"height":9}},{"id":"67906151-9a56-4b86-94e7-fb129bdf3adc","block_type":"box","text":"Voting at shareholder meetings","page_number":224,"box":{"x":101,"y":221,"width":228,"height":11}},{"id":"1670d36b-d111-4e3b-a8d0-b97a790e8bcd","block_type":"box","text":"on management and shareholder proposals for clients who have authorized BIS","page_number":224,"box":{"x":335,"y":221,"width":566,"height":11}},{"id":"48b63987-98ed-4d81-a3d1-a4c23f24cb0b","block_type":"box","text":"to vote on their behalf.","page_number":224,"box":{"x":101,"y":236,"width":160,"height":9}},{"id":"93b50ec4-9895-4da7-abd9-1d49c7a3c404","block_type":"box","text":"3.","page_number":224,"box":{"x":69,"y":256,"width":12,"height":9}},{"id":"60a2042f-654e-4aac-8c7f-803f83b059fa","block_type":"box","text":"Contributing to industry dialogue on stewardship","page_number":224,"box":{"x":101,"y":256,"width":356,"height":11}},{"id":"dd0d703c-3d55-4598-8cbc-a6593d11496b","block_type":"box","text":"to share our perspectives on matters that may impact our","page_number":224,"box":{"x":462,"y":257,"width":412,"height":10}},{"id":"b7149dbd-f1cb-4108-885f-ac810befb528","block_type":"box","text":"clients’ investments.","page_number":224,"box":{"x":101,"y":272,"width":147,"height":8}},{"id":"3eb7d199-3085-4530-85e3-009a4be084fc","block_type":"box","text":"4.","page_number":224,"box":{"x":69,"y":292,"width":12,"height":8}},{"id":"4e58fd18-3380-4c41-a2ef-bff92922c9cb","block_type":"box","text":"Reporting on our activities","page_number":224,"box":{"x":102,"y":292,"width":193,"height":11}},{"id":"0a96d0bd-3cb5-4ea9-aab2-efc9815f56cf","block_type":"box","text":"to inform clients about our stewardship efforts on their behalf through a range of","page_number":224,"box":{"x":301,"y":292,"width":579,"height":11}},{"id":"87f57397-bfd1-4dd6-aa97-8456c49e7126","block_type":"box","text":"publications on our website and direct client communications.","page_number":224,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"4a4a5b5c-16bc-4181-8718-04efb9a474b1","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition","page_number":224,"box":{"x":68,"y":337,"width":635,"height":11}},{"id":"2dd30228-5c3a-4f20-97bb-28767995b369","block_type":"box","text":"2, 3","page_number":224,"box":{"x":704,"y":337,"width":17,"height":6}},{"id":"5e08cf2a-f942-48b4-b8b7-93ae3c30f9e1","block_type":"box","text":"Some of our clients are pursuing decarbonization as an investment objective, including many of our largest","page_number":224,"box":{"x":102,"y":360,"width":761,"height":11}},{"id":"acabc468-cf94-48bd-8e81-ac3cde0e14d4","block_type":"box","text":"European clients, who have made net zero commitments.","page_number":224,"box":{"x":70,"y":375,"width":407,"height":11}},{"id":"5d86222a-977e-4b3d-bac2-e0dd0482080a","block_type":"box","text":"4","page_number":224,"box":{"x":479,"y":375,"width":4,"height":4}},{"id":"104debc9-754e-4148-bce3-bb739b464620","block_type":"box","text":"To support our clients’ unique and varied investment","page_number":224,"box":{"x":488,"y":375,"width":376,"height":11}},{"id":"680a430f-7216-4a45-8dce-c9b50e2fd1b6","block_type":"box","text":"objectives, in July 2024, BlackRock launched the Climate and Decarbonization Stewardship program.","page_number":224,"box":{"x":69,"y":390,"width":718,"height":11}},{"id":"d6729efe-e4ef-40c7-b434-3f99aaf9aa07","block_type":"box","text":"The Climate and Decarbonization Stewardship team (the dedicated team) applies these proxy voting guidelines","page_number":224,"box":{"x":101,"y":413,"width":789,"height":11}},{"id":"397fe0c0-8d9c-4472-a51a-d31f20aebf1b","block_type":"box","text":"(the Guidelines) to those funds that BlackRock offers to clients that have climate and decarbonization objectives and","page_number":224,"box":{"x":69,"y":428,"width":833,"height":11}},{"id":"520ae1f6-f10d-40a6-94c3-e64b8cbc3c4f","block_type":"box","text":"where the funds’ respective governing body has explicitly approved the application of the Guidelines (referred to in","page_number":224,"box":{"x":68,"y":443,"width":814,"height":11}},{"id":"fcdf419a-9f05-4032-b37a-b7e73b966948","block_type":"box","text":"this document as “in-scope funds”).","page_number":224,"box":{"x":68,"y":458,"width":256,"height":11}},{"id":"3600cd03-89c8-4173-aefd-f63650833e7c","block_type":"box","text":"5","page_number":224,"box":{"x":326,"y":458,"width":4,"height":5}},{"id":"6546e1d7-4036-43c3-a4c8-60e697ba705a","block_type":"box","text":"Separately managed account (SMA) clients have a range of options, including","page_number":224,"box":{"x":336,"y":458,"width":551,"height":11}},{"id":"761105f4-a786-49e7-ac70-8ba0282c1e2d","block_type":"box","text":"instructing BlackRock to apply these Guidelines to their SMA holdings.","page_number":224,"box":{"x":70,"y":473,"width":499,"height":11}},{"id":"5f85b10c-a8a7-4f45-8678-667e9beb4d70","block_type":"box","text":"THE CLIMATE AND DECARBONIZATION STEWARDSHIP GUIDELINES","page_number":224,"box":{"x":242,"y":503,"width":493,"height":9}},{"id":"2f32b9e3-c0a3-48b3-bcfd-c5b9a6177340","block_type":"box","text":"These Guidelines set out the dedicated team’s approach to engaging and voting on matters related to climate","page_number":224,"box":{"x":101,"y":526,"width":784,"height":11}},{"id":"61b21e04-8ca6-424b-9bba-c0a31c187a9e","block_type":"box","text":"risks and the transition to a low-carbon economy at companies that are held by in-scope funds and accounts that","page_number":224,"box":{"x":69,"y":541,"width":806,"height":11}},{"id":"faa76ebb-fe16-4d7a-98cb-08a6e97e829a","block_type":"box","text":"apply these Guidelines.","page_number":224,"box":{"x":69,"y":556,"width":165,"height":11}},{"id":"734e8df7-0538-4d57-8447-1ec090eb7a01","block_type":"box","text":"The Guidelines differ from the Benchmark Policies in that they consider, in addition to financial objectives,","page_number":224,"box":{"x":101,"y":579,"width":755,"height":11}},{"id":"1c2bb839-6e24-4f5c-a837-063b1dd4dbf2","block_type":"box","text":"companies’ strategies to align with the transition to a low-carbon economy. They also incorporate the more ambitious","page_number":224,"box":{"x":69,"y":594,"width":834,"height":11}},{"id":"a53f0061-3899-4e1e-a30e-2319dc4d1ba3","block_type":"box","text":"goal of the Paris Agreement - namely to limit average global temperature rise to 1.5°C above pre-industrial levels.","page_number":224,"box":{"x":68,"y":609,"width":806,"height":11}},{"id":"4f61d3ef-4644-40d0-8ae7-e8f624976af7","block_type":"box","text":"6","page_number":224,"box":{"x":876,"y":609,"width":4,"height":5}},{"id":"42936720-3fa9-4796-a0c4-0d162e55d184","block_type":"box","text":"The Guidelines apply primarily to companies in sectors that play an important role in the transition to a low","page_number":224,"box":{"x":101,"y":632,"width":766,"height":11}},{"id":"22881953-77f2-4752-bbdd-2f8e3d4fe49f","block_type":"box","text":"carbon economy. This includes companies which produce goods and services that contribute to real world","page_number":224,"box":{"x":69,"y":647,"width":753,"height":11}},{"id":"1f0bb5c5-d2d7-440e-b069-d46e8ae57c3e","block_type":"box","text":"decarbonization or have a carbon intensive business model and face outsized impacts from the low-carbon transition,","page_number":224,"box":{"x":69,"y":662,"width":836,"height":11}},{"id":"0a2b8268-6b45-4b32-9aa9-562cee2a1e5d","block_type":"box","text":"1","page_number":224,"box":{"x":69,"y":692,"width":4,"height":4}},{"id":"cea93584-aafe-4f13-aae8-138126532b8a","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":224,"box":{"x":79,"y":691,"width":790,"height":11}},{"id":"3212cff6-2e3f-4d2d-9dfb-598ebaa491ad","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":224,"box":{"x":69,"y":706,"width":836,"height":12}},{"id":"0ad3f98c-4670-4316-b1bd-a645213f1095","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":224,"box":{"x":68,"y":721,"width":805,"height":12}},{"id":"bf06d95e-7346-4282-8ffa-f44488fc2fec","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":224,"box":{"x":69,"y":737,"width":405,"height":11}},{"id":"e80fbbf2-944d-4ccc-acdb-98a94fc63c11","block_type":"box","text":"2","page_number":224,"box":{"x":69,"y":755,"width":4,"height":4}},{"id":"69435f12-6ac0-46e2-812c-343d4d32750c","block_type":"box","text":"BlackRock has heard from a growing number of clients globally that they have made, or are planning to make,","page_number":224,"box":{"x":79,"y":754,"width":780,"height":11}},{"id":"1800ddea-fcd4-4f88-9f90-2e8caa685a92","block_type":"box","text":"commitments to align their investment strategies with the transition to a low-carbon economy. This stewardship","page_number":224,"box":{"x":69,"y":770,"width":793,"height":11}},{"id":"ee3d7874-2dc1-4912-a33e-0aeceaf846ff","block_type":"box","text":"option helps those clients meet their climate and decarbonization investment objectives and is part of BlackRock’s","page_number":224,"box":{"x":69,"y":784,"width":820,"height":12}},{"id":"eab0877c-02c2-49ab-ad07-e2926ae33999","block_type":"box","text":"commitment to offer clients choice.","page_number":224,"box":{"x":69,"y":799,"width":252,"height":10}},{"id":"bcc83515-3cf2-4c8d-bbcc-603f0235e856","block_type":"box","text":"3","page_number":224,"box":{"x":69,"y":818,"width":4,"height":4}},{"id":"fa8505ec-c0b3-45e0-aa56-1f0b96678ef0","block_type":"box","text":"Key climate, decarbonization and low-carbon transition related terms used in these Guidelines are explained in","page_number":224,"box":{"x":79,"y":817,"width":788,"height":11}},{"id":"ec3a310c-4fa2-490c-85c6-821f41541e3e","block_type":"box","text":"appendix 1.","page_number":224,"box":{"x":69,"y":833,"width":81,"height":10}},{"id":"a138c0a8-94a7-4328-944d-0cc3d3bd3236","block_type":"box","text":"4","page_number":224,"box":{"x":69,"y":850,"width":4,"height":5}},{"id":"df556c9d-de1b-4022-85ab-023a2d4b9ab6","block_type":"box","text":"Includes a select group of our largest client relationships. Net zero commitments are sourced from respective","page_number":224,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"9d69fa4b-5634-4cb2-b099-089ebb2acef2","block_type":"box","text":"company websites, as of January 2025.","page_number":224,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"6454c252-eafd-46ee-be1d-12c5b3c38ace","block_type":"box","text":"5","page_number":224,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"5ab13a41-70aa-4d48-87e9-23ecdc65906f","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":224,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"bdc2b34b-87c3-472f-a061-f9a8b5dbe89e","block_type":"box","text":"6","page_number":224,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"029e00a8-020d-4978-9ba5-4d2543c2f8fa","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":224,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"ed5d04ca-8d74-4210-8640-deeb4663f168","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7415d1f4-5b99-4507-9745-340563208bd8","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":224,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"375d6394-15e7-416d-8b43-f22fa3496036","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ee9d7f42-b452-4d4d-8193-ca3826867eff","block_type":"box","text":"particularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":225,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"350e8a5f-dd4e-4dba-a9cd-f9f3a6cb9e00","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":225,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"fa18d7fe-9558-4b54-b702-91ebdd2908da","block_type":"box","text":"7","page_number":225,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"51d80ec2-6578-4d0d-9029-e36c2cb3d9dd","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":225,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"8760243b-96fb-42c1-939b-f6d1fc025024","block_type":"box","text":"Benchmark Policies.","page_number":225,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"f32c4319-7390-4013-9c7b-1ca5aee8f3c5","block_type":"box","text":"8","page_number":225,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"bfb99d8f-a1b7-41b5-b86a-3378ce4ea191","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":225,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"e3c547f6-090d-474e-a892-48d5ea8e514a","block_type":"box","text":"decarbonization as an investment objective, BIS undertakes our stewardship responsibilities in line with our","page_number":225,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"f3139962-16be-457b-a5ff-59c1a3c012df","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. This includes","page_number":225,"box":{"x":70,"y":128,"width":775,"height":11}},{"id":"b94ecbf0-f7f2-42af-b1fd-2caced1dff66","block_type":"box","text":"consideration of climate-related risks and opportunities in a company’s business model, where material to the","page_number":225,"box":{"x":69,"y":143,"width":787,"height":11}},{"id":"96bd2122-bcf4-42d1-9645-12596c10da90","block_type":"box","text":"company’s ability to deliver long-term financial returns.","page_number":225,"box":{"x":69,"y":158,"width":388,"height":11}},{"id":"9d077a06-75a5-453f-923d-206bc0ce4631","block_type":"box","text":"Please see Appendix 2, which sets out the key differences between the BIS Benchmark Policies and these","page_number":225,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"30da0772-bde2-49cc-8186-d9384c1ee1c6","block_type":"box","text":"Guidelines on items related to climate risk and the transition to a low-carbon economy.","page_number":225,"box":{"x":69,"y":196,"width":617,"height":11}},{"id":"bc89809a-f858-46ab-9ece-8be91ecd30c8","block_type":"box","text":"UNDERSTANDING THE INVESTMENT IMPLICATIONS OF THE TRANSITION TO A LOW-CARBON ECONOMY","page_number":225,"box":{"x":111,"y":226,"width":757,"height":9}},{"id":"6e62da6f-c4d6-42f5-a2fb-07446ce47549","block_type":"box","text":"Research from the BlackRock Investment Institute (BII) highlights that changing government policy, technology,","page_number":225,"box":{"x":102,"y":249,"width":785,"height":11}},{"id":"e16f4e1f-6b62-4c36-b21f-e26626a7722b","block_type":"box","text":"and consumer and investor preferences are driving the transition to a low-carbon economy, but sectors and markets","page_number":225,"box":{"x":69,"y":264,"width":825,"height":11}},{"id":"1813f35d-8e02-43af-a868-b9114e80bc3e","block_type":"box","text":"can decarbonize at varying speeds given the dynamic and uncertain nature of technological feasibility, consumer","page_number":225,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"bd0c6ee7-1ef5-4204-89ea-5495d04966dc","block_type":"box","text":"demand, and government policies, among other factors.","page_number":225,"box":{"x":69,"y":294,"width":395,"height":11}},{"id":"e8c6bad0-7a1c-4f2b-9e9d-80919fa02844","block_type":"box","text":"9, 10","page_number":225,"box":{"x":466,"y":294,"width":21,"height":6}},{"id":"da59b149-fd43-4491-901c-5368d57b108b","block_type":"box","text":"To better understand the shape and speed of a transition to a low-carbon economy, BlackRock has developed the","page_number":225,"box":{"x":101,"y":317,"width":808,"height":11}},{"id":"12533bcc-9914-4a5a-ae0a-a0de9be76471","block_type":"box","text":"BlackRock Investment Institute Transition Scenario (BIITS), powered by Aladdin","page_number":225,"box":{"x":70,"y":332,"width":559,"height":11}},{"id":"f46daa1c-1ed1-4553-8426-fab4d960a4f3","block_type":"box","text":"®","page_number":225,"box":{"x":630,"y":332,"width":6,"height":5}},{"id":"530e6a4b-9195-43c5-be2d-c15d6fcabf8f","block_type":"box","text":"technology. BIITS is a research","page_number":225,"box":{"x":641,"y":332,"width":223,"height":11}},{"id":"3ad571a0-3c23-4189-a085-2eafa2b85080","block_type":"box","text":"based, analytical forecast of how the low-carbon transition is most likely to play out based on what we know and","page_number":225,"box":{"x":69,"y":347,"width":799,"height":11}},{"id":"969dac35-f51f-49ab-9a8c-d75bae8bde76","block_type":"box","text":"expect today. It can help inform a top-down assessment of a company’s business risk arising from the transition. BII","page_number":225,"box":{"x":69,"y":362,"width":828,"height":11}},{"id":"70a35de1-742a-47fe-b918-444ad863de48","block_type":"box","text":"based its key assumptions on rigorous research, and the input of BlackRock’s portfolio managers and other experts.","page_number":225,"box":{"x":69,"y":377,"width":834,"height":12}},{"id":"53550779-1b1e-4793-bf9d-d0e452a62083","block_type":"box","text":"These Guidelines draw from the proprietary insights generated by BIITS and Aladdin Climate","page_number":225,"box":{"x":101,"y":400,"width":655,"height":11}},{"id":"8c1467b9-49c5-4477-a970-82afc18f074a","block_type":"box","text":"®","page_number":225,"box":{"x":756,"y":400,"width":6,"height":5}},{"id":"255e92e1-5d0c-41dd-b2cb-e9f48591d2df","block_type":"box","text":", BlackRock’s Risk","page_number":225,"box":{"x":764,"y":400,"width":131,"height":10}},{"id":"a12a6952-2f17-4649-89bb-0cd645eb8779","block_type":"box","text":"and Quantitative Analysis Group, and the broader BIS team to help inform and guide engagement and voting activities","page_number":225,"box":{"x":69,"y":415,"width":838,"height":11}},{"id":"e544e237-24a6-4223-afc2-0782237bd74e","block_type":"box","text":"on behalf of clients invested in in-scope funds and SMAs.","page_number":225,"box":{"x":69,"y":430,"width":408,"height":11}},{"id":"c32319fd-058a-4693-aa04-f09ae0fe1e75","block_type":"box","text":"11","page_number":225,"box":{"x":479,"y":431,"width":9,"height":4}},{"id":"60804ff7-2a13-4a5f-a9d8-314bdeb65bca","block_type":"box","text":"In doing so, the dedicated team takes into consideration","page_number":225,"box":{"x":495,"y":430,"width":401,"height":11}},{"id":"ec2e477f-c451-40c0-81ab-3e3a3801f857","block_type":"box","text":"the fact that the necessary data to assess individual companies currently has limitations, but is improving.","page_number":225,"box":{"x":68,"y":445,"width":763,"height":12}},{"id":"301d584e-06b7-4a2a-ac76-98afbaabfadb","block_type":"box","text":"THE GUIDELINES’ DESIGN PRINCIPLES","page_number":225,"box":{"x":347,"y":476,"width":284,"height":8}},{"id":"94039873-1c6d-41ed-976e-4fa05629dcad","block_type":"box","text":"The framework of these Guidelines is designed to:","page_number":225,"box":{"x":101,"y":498,"width":357,"height":11}},{"id":"7f0b849c-bc74-49b4-984b-3dd916a829ea","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":521,"width":6,"height":5}},{"id":"bf166e71-9ec7-4ffb-b1e8-11d1dd3b781e","block_type":"box","text":"Prioritize sectors and companies that play an important role in the transition to a low-carbon economy:","page_number":225,"box":{"x":102,"y":518,"width":751,"height":11}},{"id":"ef86b5e7-78bb-4960-bbf1-a66e3bd5fe75","block_type":"box","text":"This","page_number":225,"box":{"x":859,"y":519,"width":28,"height":8}},{"id":"37a7a4b8-45fd-4a52-b8c6-737a96fc5678","block_type":"box","text":"includes companies which produce goods and services that contribute to real world decarbonization or have a","page_number":225,"box":{"x":102,"y":534,"width":782,"height":11}},{"id":"fac22af1-e757-4a9b-b60f-95c787cda25a","block_type":"box","text":"carbon intensive business model and face outsized impacts from the low-carbon transition.","page_number":225,"box":{"x":101,"y":549,"width":648,"height":11}},{"id":"8e65d31a-cb39-4e22-8c11-9a815f652bae","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":572,"width":6,"height":4}},{"id":"d62a60dc-30a6-4adf-b281-05407a19631f","block_type":"box","text":"Apply a nuanced approach to our analysis that acknowledges the unevenness of the low-carbon transition","page_number":225,"box":{"x":101,"y":569,"width":772,"height":11}},{"id":"24914dfa-c82c-43e4-9aee-c27647840d0f","block_type":"box","text":"across sectors and markets:","page_number":225,"box":{"x":101,"y":584,"width":208,"height":9}},{"id":"b8e33c0d-a605-4fed-bb0d-922efb5b2802","block_type":"box","text":"The Guidelines take into consideration the varying speeds at which sectors and","page_number":225,"box":{"x":315,"y":584,"width":566,"height":11}},{"id":"9f3b0573-3377-4a25-a984-8b637fdf1516","block_type":"box","text":"markets are decarbonizing based on technological feasibility, consumer demand, government policy, regulatory","page_number":225,"box":{"x":102,"y":599,"width":789,"height":11}},{"id":"45101e44-cd70-4a4c-ae86-2e06e15e0488","block_type":"box","text":"frameworks and other factors. Further, the Guidelines recognize that these factors are uncertain and dynamic.","page_number":225,"box":{"x":101,"y":614,"width":785,"height":11}},{"id":"87bb9eeb-a390-4ef3-a818-7f6da8225de6","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":637,"width":6,"height":5}},{"id":"028bc31c-dcc4-403b-91bc-4d1e72a3de01","block_type":"box","text":"Take a long-term, pragmatic approach to the low-carbon transition that minimizes disruption to portfolio","page_number":225,"box":{"x":101,"y":634,"width":759,"height":11}},{"id":"6b85a1b8-6922-4572-a29b-48b7e1140a8c","block_type":"box","text":"companies and their key stakeholders:","page_number":225,"box":{"x":101,"y":649,"width":282,"height":11}},{"id":"7f42ae71-c879-4097-bd34-2c263767e090","block_type":"box","text":"The Guidelines recognize the challenges that many companies face in","page_number":225,"box":{"x":389,"y":649,"width":496,"height":12}},{"id":"a7a6a77a-c06d-4f00-a528-394861a138f5","block_type":"box","text":"adapting their business models to the low-carbon transition. It reflects a view that a smooth transition — where","page_number":225,"box":{"x":102,"y":664,"width":794,"height":12}},{"id":"42d78ed8-91ca-4bde-9133-4e617454d777","block_type":"box","text":"companies adapt while continuing to deliver financial returns — is a better long-term investment outcome and","page_number":225,"box":{"x":101,"y":680,"width":783,"height":11}},{"id":"d1a46d2b-0522-4658-b3ea-db124b04a748","block_type":"box","text":"7","page_number":225,"box":{"x":69,"y":709,"width":4,"height":5}},{"id":"9a2e71ff-e225-4b92-a8f8-caafc51aafe4","block_type":"box","text":"These companies may already be low-carbon operators or be demonstrating momentum in reducing emissions in","page_number":225,"box":{"x":78,"y":709,"width":803,"height":11}},{"id":"5d3e32df-b597-4889-90eb-ad61ed530a9b","block_type":"box","text":"their operations, providing key inputs or goods and services that support real world decarbonization, or pivoting their","page_number":225,"box":{"x":68,"y":724,"width":832,"height":11}},{"id":"8eea7f05-278f-4fc7-be04-c459a7d0eb87","block_type":"box","text":"current business model to contribute to the transition to a low-carbon economy.","page_number":225,"box":{"x":69,"y":739,"width":565,"height":11}},{"id":"ede09931-3b69-4cf9-9c9d-1b0ed54cd251","block_type":"box","text":"8","page_number":225,"box":{"x":69,"y":757,"width":4,"height":5}},{"id":"1f26ee5d-cb12-49fe-8951-b8b41e82e5a0","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":225,"box":{"x":78,"y":757,"width":789,"height":11}},{"id":"2410bcfc-0130-469c-af49-ba9c071798d1","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":225,"box":{"x":70,"y":772,"width":829,"height":11}},{"id":"101f42d6-011b-4d9b-85f2-c9acd2c29138","block_type":"box","text":"based approach, and are focused solely on advancing clients’ financial interests.","page_number":225,"box":{"x":69,"y":787,"width":576,"height":11}},{"id":"6dea4a63-985a-4594-98d3-c571c4930a81","block_type":"box","text":"9","page_number":225,"box":{"x":69,"y":805,"width":4,"height":4}},{"id":"31128677-d991-4437-a785-7c514ee5095a","block_type":"box","text":"BII’s latest research shows that while decarbonization continues, its pace is increasingly uneven across sectors and","page_number":225,"box":{"x":79,"y":805,"width":828,"height":11}},{"id":"393c1435-bbfe-42fd-816e-c59446f01847","block_type":"box","text":"regions, and overall slower than previously expected.","page_number":225,"box":{"x":69,"y":820,"width":375,"height":11}},{"id":"b36ca622-bb82-41d1-b765-bd079fec5849","block_type":"box","text":"10","page_number":225,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"42936ca6-65e0-4f69-92d8-83d99bb76b91","block_type":"box","text":"BlackRock, “Evolving energy transition, evolving opportunities,” February 2025.","page_number":225,"box":{"x":84,"y":837,"width":565,"height":12}},{"id":"06008f99-605c-456c-bea4-d18d3fbdba43","block_type":"box","text":"11","page_number":225,"box":{"x":69,"y":855,"width":9,"height":5}},{"id":"03bbd5e0-c197-4f66-a420-b2675f6ec392","block_type":"box","text":"Aladdin","page_number":225,"box":{"x":83,"y":855,"width":51,"height":9}},{"id":"840307a6-6a73-478d-8b73-9bc710f4ae93","block_type":"box","text":"®","page_number":225,"box":{"x":135,"y":855,"width":6,"height":5}},{"id":"13fce1eb-d4f6-4662-9088-2c3063f36df9","block_type":"box","text":"Climate is a suite of climate analytics including forward-looking scenario analysis and net zero alignment","page_number":225,"box":{"x":147,"y":855,"width":745,"height":11}},{"id":"0136cdf4-0c24-420c-ab8c-8321fb4d9636","block_type":"box","text":"analytics. Aladdin","page_number":225,"box":{"x":69,"y":870,"width":123,"height":11}},{"id":"c4be0a51-eb61-404f-9162-b1e614681a76","block_type":"box","text":"®","page_number":225,"box":{"x":193,"y":870,"width":6,"height":5}},{"id":"41d79d2e-c242-49be-a970-063304aa02c8","block_type":"box","text":"is a proprietary investment and risk management platform.","page_number":225,"box":{"x":205,"y":870,"width":418,"height":11}},{"id":"05552b15-3257-4780-9a1a-563af6917998","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"af268632-6ead-425c-b9a4-5027eed67098","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 4","page_number":225,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"b695b534-4a03-498d-aed3-3fd670bb3ca6","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b8558251-b119-4083-a653-2d0c57f4ea00","block_type":"box","text":"less disruptive to other key stakeholders than a disorderly transition. Further, the Guidelines consider the","page_number":226,"box":{"x":102,"y":45,"width":751,"height":11}},{"id":"6caf0af0-3ae2-4771-afbb-36c5b28cfdd0","block_type":"box","text":"differences between the actions and outcomes over which company management has influence, and those it","page_number":226,"box":{"x":101,"y":60,"width":778,"height":11}},{"id":"41eb979d-1046-420e-8080-3f0d29147548","block_type":"box","text":"does not.","page_number":226,"box":{"x":101,"y":75,"width":66,"height":9}},{"id":"de5f8d65-c865-4b3b-bd63-7252132ef5d5","block_type":"box","text":"•","page_number":226,"box":{"x":69,"y":98,"width":6,"height":4}},{"id":"2d7e73e2-c1bc-4c43-a843-09d7d44eb36d","block_type":"box","text":"Focus on useful, contextualized disclosures that help inform investors views, while recognizing data","page_number":226,"box":{"x":102,"y":95,"width":729,"height":11}},{"id":"fc003447-25d9-4362-a2a5-2bdd319957fd","block_type":"box","text":"limitations:","page_number":226,"box":{"x":102,"y":110,"width":80,"height":9}},{"id":"6d8d34f9-af08-4942-be5a-6a41bf4ee850","block_type":"box","text":"Under the Guidelines, the dedicated team looks for disclosures that outline key milestones and","page_number":226,"box":{"x":189,"y":110,"width":679,"height":11}},{"id":"6bedb7a7-36ac-458b-9ff1-9a70a95771e2","block_type":"box","text":"dependencies underpinning the company’s low-carbon transition strategy, explain the trade-offs required to adapt","page_number":226,"box":{"x":101,"y":125,"width":807,"height":12}},{"id":"ddbcd4b5-83e2-4c66-89bd-2193dd5e9e9f","block_type":"box","text":"the business model, and include relevant data and narrative.","page_number":226,"box":{"x":101,"y":141,"width":433,"height":10}},{"id":"c7ae81ca-11c1-4518-8b71-db0fb80f67c0","block_type":"box","text":"•","page_number":226,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"2d54b225-b8b1-4380-9469-6145e7463bb8","block_type":"box","text":"Consistency with the participating clients’ position as a minority investor:","page_number":226,"box":{"x":101,"y":161,"width":541,"height":11}},{"id":"eca62247-52be-4135-8aa8-f573772c9933","block_type":"box","text":"The boards and executive leadership","page_number":226,"box":{"x":648,"y":161,"width":261,"height":11}},{"id":"6c870c17-d496-41ec-80a2-242382b8c86b","block_type":"box","text":"of companies determine a company’s strategy and its implementation. Under the Guidelines, the dedicated team","page_number":226,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"0bcb319c-2130-499c-88df-d944d2e329f9","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":226,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"efcee486-9d95-4842-9d78-5d4df6a36eae","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":226,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"8c89ba3f-d136-47d7-912a-4ba22c9ef6cf","block_type":"box","text":"Voting approach under the Guidelines","page_number":226,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"2f3a9954-733d-42e3-adbc-540a6975a5f0","block_type":"box","text":"12","page_number":226,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"bed62fd6-6138-4ebe-b18c-a4a0c5d23c0a","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":226,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"abb48608-b44c-493f-8717-57819ee33c26","block_type":"box","text":"case-by-case approach that reflects the uneven pace of the low-carbon transition across sectors and markets, and","page_number":226,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"a0d9f590-c4cd-49fc-b7c1-9b96bc18ffe4","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":226,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"492f555f-93df-427c-a0fc-6c6d41f18b1a","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":226,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"71b4b0e3-7ec9-4499-8e01-8a308f491879","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":226,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"11bf14e2-e41b-4418-b8cb-1c332aea950c","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":226,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"188a73c9-97dd-4ea3-99ef-26c434eda665","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":226,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"17faf495-ef3a-43f8-8256-22faa2a709b4","block_type":"box","text":"Corporate Disclosures","page_number":226,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"1fcefa0a-f653-46e1-9b4c-22967bf0e18a","block_type":"box","text":"13","page_number":226,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"e4a42afa-a642-445e-bb7b-92cace004f30","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":226,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"98e913a8-2bc5-4ee7-9143-f32127b30199","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":226,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"882f0ca2-efa8-45e0-81a6-0ad79f70f3d8","block_type":"box","text":"to companies that are important to the transition to a low-carbon economy to explain the strategy and governance","page_number":226,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"ed5a0df5-01ec-4530-a0b2-b3c7871675c8","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":226,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"e71157ff-5cd6-4bf4-9b84-a6780878d696","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":226,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"6148cce9-f09f-442e-9d9e-64d9b740e590","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":226,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"0d677794-46d6-4e19-9ed0-fd931b4ba722","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":226,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"67038b33-f58e-41b0-902a-eb6320295e8e","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":226,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"811b4516-c27d-4033-a48d-8c4ff83f635b","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":226,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"c555b3f9-3b4e-45a7-a4b4-759366f8b296","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":226,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"b257a9a2-118c-4f2d-8ce2-ba581cf94782","block_type":"box","text":"14, 15","page_number":226,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"730011f5-8093-46c0-a78e-a648a152f876","block_type":"box","text":"IFRS","page_number":226,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"05136b04-e314-4e97-96d1-54537725c1ed","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":226,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"069673de-ff2e-4ff5-9b12-84ea7ebbf3f4","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":226,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"af1462e8-8176-4878-b757-33f774cc3c55","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":226,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"53ed7215-d058-497f-82f8-7371950383d0","block_type":"box","text":"and assurance standards are developed.","page_number":226,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"8e17ed92-0861-484d-8986-854988e62c65","block_type":"box","text":"12","page_number":226,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"551681e1-bb27-4597-a5c7-8d9859b8bdf3","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide","page_number":226,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"225c08b9-0ac0-4ac4-a92b-68beac89e0bf","block_type":"box","text":"as to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated","page_number":226,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"249a3fb8-39a8-4900-a8a5-2eef7ae9941d","block_type":"box","text":"team with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":226,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"c5281e99-da4a-481f-845d-606b859485d3","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":226,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"50f1a782-dbdd-45b9-8500-eea17a8f1a41","block_type":"box","text":"13","page_number":226,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"83afab91-68d9-45c1-aed9-4135dce16cef","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":226,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"0b8ed5d0-c48e-4cd3-854f-f5fef646b553","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":226,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"5a4271b2-9b24-441e-8318-c1fc43986695","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":226,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"290573ee-37fa-49b3-a727-1288c87ff8bc","block_type":"box","text":"14","page_number":226,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"b3683d1d-8bb1-45a3-bb10-2528ff668841","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":226,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"6d963fb7-e04f-4553-a707-96311e934ed3","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":226,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"a1cbc515-908b-4640-8563-2788f134a601","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":226,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"5c9b0382-fc5d-46b5-9b9d-b21432224341","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":226,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"cd74d3f6-eaeb-451f-907e-b234c6c15549","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":226,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"8c3cc14c-4f72-4245-bb34-1371e098134b","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":226,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"0a199988-1028-4d13-bfec-2db8511a689b","block_type":"box","text":"15","page_number":226,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"15cea540-14dc-48b8-978a-b3574492f10a","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":226,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"3d25ebff-a6bd-46d9-a39f-bf152939362e","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":226,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"33245af9-6aa6-48de-acae-bf89c6dccbeb","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":226,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"826eddaa-3fbf-4912-9cd2-b4b0251229ae","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":226,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"016187e5-2b9b-4938-b91b-ff1c8d31b0f7","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":226,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"22e288cf-e917-4208-8445-1394bb401600","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"58bcca16-ae65-4888-b79d-86974103bb10","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":226,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"faaf03f1-927a-4d8a-8c57-5e54762f42a9","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8791b019-6496-4895-93bb-61869b20f35d","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":227,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"b7b08a56-9ba4-4c9b-b197-2a67e409071b","block_type":"box","text":"16, 17","page_number":227,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"13b3a126-a273-4430-8cbc-207544ed0305","block_type":"box","text":"In addition, the dedicated team looks to","page_number":227,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"cfc41a8c-5c5b-4507-89a5-f2d50e78da34","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":227,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"6fdf423c-140e-4b44-92a1-e1db23125fb4","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":227,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"34367c4c-4e93-49cb-b936-84757b7537a0","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":227,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"4cadc9d7-0608-4f4a-bb99-8ec1623e1759","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":227,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"352cb2d5-2e81-4f7d-9bf1-024bf71c5466","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":227,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"4900a731-3502-4910-98d0-135cd12d2d58","block_type":"box","text":"18","page_number":227,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"71eb68a9-b6fd-4ddc-b206-d3ab6a0b5299","block_type":"box","text":"However,","page_number":227,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"e3bae829-b065-4f11-bd12-077a6a4a9f40","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different parts of","page_number":227,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"0017f3bc-3e49-422f-8b56-4fe09fa8a2cb","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":227,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"fbb974b2-ac90-45fd-a323-9f6aa535c4c3","block_type":"box","text":"their decarbonization targets. For some companies that play an important role in the low-carbon transition, scope","page_number":227,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"1fc32a67-2799-42fe-b450-12a4467aedc4","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":227,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"89bfc0f2-5658-4946-ad58-4a41090bfba1","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":227,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"934729d0-c6f3-487f-b0c1-5cbfffd63521","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":227,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"75440517-4986-4d93-a088-f3307903251a","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":227,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"fb6226d1-766a-4ac1-9126-bab6c8cd339e","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":227,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"e4d9623d-1871-425e-ad94-b9a004346917","block_type":"box","text":"transition risks.","page_number":227,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"7f4388a2-9417-4ba7-a087-ea2d7a4b314f","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":227,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"6abf28dc-0f27-4315-bb05-2d2b1c1052f1","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":227,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"f5516e99-4c2a-48e1-8dd2-9278875bffb8","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":227,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"45f4b825-6006-45c8-9717-d06dbddddc25","block_type":"box","text":"Transition plans","page_number":227,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"27e801d2-9817-43dc-b01e-adc41aa2a89e","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":227,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"a843c348-d6de-4031-97e8-8721b31fa0c0","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":227,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"f74b560a-a189-4d86-a827-89e5c93f5534","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":227,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"aaad647e-4a19-41f8-a0e2-d2bf90ef0314","block_type":"box","text":"(see Appendix 1).","page_number":227,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"aa6e9ebc-981f-428d-877c-e2189cd94dbb","block_type":"box","text":"19","page_number":227,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"fefc7c58-d748-4ce4-8a1f-477d433a42c4","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":227,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"7db4f365-e56c-4985-8119-6ff7631ad1f2","block_type":"box","text":"transition plans.","page_number":227,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"02a4b7fb-f23a-429f-9778-e52a422f4671","block_type":"box","text":"20","page_number":227,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"5bceac2f-e757-423b-b029-ff3bebd3086b","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":227,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"e0a98f98-855a-445e-a74a-ad73b7167616","block_type":"box","text":"reporting approaches.","page_number":227,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"ec931fc1-7ced-4730-b9de-6d9ae3027f08","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":227,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"202a010d-a129-478d-ac9c-5f415b91ec03","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":227,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"6101fd54-91ad-4b95-86cd-d812eba27776","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":227,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"f7bf33fc-ce99-43a5-982e-4bbccd894679","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":227,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"b31dbabf-ebdd-4f24-a4ce-95bc2170af9a","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":227,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"56f92662-c620-406c-8542-8665e2c172f6","block_type":"box","text":"informed voting decisions.","page_number":227,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"f8f35e5d-d7a1-4526-afe9-fbecfe0fd970","block_type":"box","text":"16","page_number":227,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"000e4f41-9dca-44e0-8526-d56ff95905c8","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":227,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"8ca16f8a-882a-45d2-8070-2d0ab8d097f9","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":227,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"3ed2ff26-936e-4fe2-a99d-be2e2357f303","block_type":"box","text":"December 2025.","page_number":227,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"922a98ac-92ef-4dc7-8b16-ac6684bdd791","block_type":"box","text":"17","page_number":227,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"f2d7b6f1-b71c-45d1-af2e-ff5c3e412d28","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":227,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"a5ebf29a-e997-4978-8141-75f131260e3a","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":227,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"6ead234b-f1bc-4616-b0c6-b4844161a44f","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":227,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"59d571c5-1626-4640-b938-9315ac9e02ce","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":227,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"4d7b0ecc-5af3-4e41-8f54-f6b2490c4be7","block_type":"box","text":"18","page_number":227,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"9ee6f2ba-f414-413d-a06f-529831df9920","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":227,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"82184d49-6ea5-45ef-9b23-a773bd238303","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":227,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"3c5a03f1-4e24-4ab5-897f-c55068633eec","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":227,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"e25160cd-6792-451b-80ad-3dcd53daace2","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":227,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"64f3a6ed-ee37-4cee-b4fa-a60d5ff4acdc","block_type":"box","text":"material to their business models.","page_number":227,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"25893931-365c-4582-8ba1-05e8551f9893","block_type":"box","text":"19","page_number":227,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"93cf326a-a281-4710-a066-83a20c7d7bae","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":227,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"59149e8b-4cd1-4fac-a071-e3014182b272","block_type":"box","text":"December 2025.","page_number":227,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"c1f11026-3b4f-47f4-91e7-f5dfcdc76bfb","block_type":"box","text":"20","page_number":227,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"40854af5-6ed8-41be-8607-9c02203381f1","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their","page_number":227,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"bac923a7-6d6c-48d2-a248-36c19bd9f3fe","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":227,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"a7d39ad1-00ff-48c4-8860-865851719454","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":227,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"7d725a49-7637-45d1-b499-e84451b8ac95","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":227,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"35a80d1d-d363-477f-a36a-342d1d00a4e9","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":227,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"1dcb3cb0-b538-4959-9799-8a3bd3c89a8f","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. Website accessed in","page_number":227,"box":{"x":68,"y":883,"width":821,"height":11}},{"id":"c5274f8f-bfd4-463d-9a4d-a8e25a736742","block_type":"box","text":"December 2025.","page_number":227,"box":{"x":70,"y":898,"width":118,"height":9}},{"id":"a7b2d2bd-93ef-4b34-b14b-2f6608d9aaff","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"deb8c98b-804f-41f6-ac0b-486b990cd28f","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 6","page_number":227,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"d3c43eeb-0d23-41b4-b200-25f43837c3f2","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"47d6a93b-c9c7-4d47-bc82-7f295c96d0c9","block_type":"box","text":"Boards and directors","page_number":228,"box":{"x":69,"y":45,"width":151,"height":9}},{"id":"a9c1c391-8793-4366-9cf0-d4b67837a0af","block_type":"box","text":"An effective and well-functioning board that has appropriate governance structures to facilitate oversight of a","page_number":228,"box":{"x":101,"y":67,"width":775,"height":12}},{"id":"a0a83712-228c-42ac-a38f-5dd75f21266c","block_type":"box","text":"company’s management and strategic initiatives is critical to the company’s ability to deliver on its low-carbon","page_number":228,"box":{"x":69,"y":83,"width":782,"height":11}},{"id":"4d683e76-0d67-451c-8995-ad9b0acb519b","block_type":"box","text":"transition strategy. In assessing the role and effectiveness of the board in this regard, the dedicated team seeks to","page_number":228,"box":{"x":68,"y":98,"width":825,"height":11}},{"id":"d7e4357d-7113-48ce-a0aa-e4ddf4d7a6a3","block_type":"box","text":"understand whether:","page_number":228,"box":{"x":69,"y":113,"width":145,"height":9}},{"id":"eb553390-fe1e-4be6-8021-936fe8a855d9","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":136,"width":6,"height":4}},{"id":"b4fdd90e-01d6-4881-b39c-d15d2f8ed9e6","block_type":"box","text":"The board has clear oversight responsibilities for climate and low-carbon transition-related risks and","page_number":228,"box":{"x":101,"y":133,"width":711,"height":11}},{"id":"107052cb-03e2-4bc2-b2f9-ca12df579732","block_type":"box","text":"opportunities in the company’s business model. The Guidelines consider the whole board to have responsibility","page_number":228,"box":{"x":102,"y":148,"width":796,"height":11}},{"id":"df82badb-666e-41ba-b5ba-e31a4452ea30","block_type":"box","text":"for oversight of the company’s long-term strategy, including those aspects related to the transition to a low","page_number":228,"box":{"x":101,"y":163,"width":765,"height":11}},{"id":"ba9c5546-5947-4a10-a8ae-aef4c142c1dd","block_type":"box","text":"carbon economy.","page_number":228,"box":{"x":101,"y":178,"width":119,"height":11}},{"id":"f4afc8f4-b00c-43fd-aec5-e3348b125664","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":201,"width":6,"height":5}},{"id":"a548f0fc-7942-49e4-9c89-da7ad04cb745","block_type":"box","text":"Management has established a robust low-carbon transition framework and long-term strategy, with clear","page_number":228,"box":{"x":102,"y":198,"width":747,"height":12}},{"id":"17628e7b-a8e9-44d1-8aa1-e59490cbdff9","block_type":"box","text":"accountability for delivery by senior executives.","page_number":228,"box":{"x":102,"y":213,"width":333,"height":12}},{"id":"8d385ba5-2d0f-4c20-8637-f9a2ef867513","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":237,"width":6,"height":4}},{"id":"3f5c9939-9296-4979-8910-90388561dcfe","block_type":"box","text":"The capital management strategy explains how the company allocates investments to (traditional and next","page_number":228,"box":{"x":101,"y":234,"width":758,"height":11}},{"id":"5cb91a02-5b7d-4166-b837-dc56d77b9419","block_type":"box","text":"generation) business lines and innovation, and returns cash to shareholders, consistent with the company’s","page_number":228,"box":{"x":101,"y":249,"width":772,"height":11}},{"id":"0ee0c527-a533-465c-bb79-f592e8702919","block_type":"box","text":"stated low-carbon transition strategy.","page_number":228,"box":{"x":102,"y":264,"width":260,"height":11}},{"id":"f9174a37-7080-4b27-944c-f4bef752d2eb","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":287,"width":6,"height":4}},{"id":"7f390c14-0ff4-4414-86d4-a5f9dd65d113","block_type":"box","text":"The climate and low-carbon transition risks most likely to significantly impact the business are integrated into the","page_number":228,"box":{"x":101,"y":284,"width":807,"height":11}},{"id":"ac1869b0-3ad8-4589-b53d-3b07bc957284","block_type":"box","text":"company’s enterprise risk management processes and reporting.","page_number":228,"box":{"x":101,"y":299,"width":465,"height":11}},{"id":"316a9cb0-218c-4433-9364-4416955bd8b2","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":322,"width":6,"height":5}},{"id":"666330c4-55e3-4376-92b8-a5fba1e077a5","block_type":"box","text":"The company has set scope 1 and 2 GHG emissions reduction targets, science-based and independently verified","page_number":228,"box":{"x":101,"y":319,"width":804,"height":12}},{"id":"257c0bc4-2fa1-4d82-846d-ff458b031eaf","block_type":"box","text":"where possible, against a baseline, that are consistent with the ambition to limit average global temperature rise","page_number":228,"box":{"x":101,"y":335,"width":806,"height":11}},{"id":"0e0d9f2c-b6b9-46f9-93ec-7bbcd0b0ae09","block_type":"box","text":"to no more than 1.5°C above pre-industrial levels.","page_number":228,"box":{"x":101,"y":350,"width":354,"height":10}},{"id":"80ef69e1-f6dd-4524-a4f1-bdaedd715786","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":373,"width":6,"height":4}},{"id":"e588627e-2a26-4d46-b629-c84f7739baee","block_type":"box","text":"There is a clear link between the company’s scope 1 and 2 GHG emissions reduction targets over time and its","page_number":228,"box":{"x":101,"y":370,"width":788,"height":11}},{"id":"7a74c932-c0c4-464c-a357-4eecb0a32791","block_type":"box","text":"long-term low-carbon transition strategy.","page_number":228,"box":{"x":102,"y":385,"width":282,"height":11}},{"id":"bd60bcca-5265-417e-be01-0dc89cfa452f","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":408,"width":6,"height":4}},{"id":"95fdc469-3401-4af5-a943-3c5d303a70b9","block_type":"box","text":"The company is monitoring its most significant scope 3 emissions and disclosing these where it is confident in","page_number":228,"box":{"x":101,"y":405,"width":790,"height":11}},{"id":"78770908-afa3-4e14-bc36-b367de7b5dbe","block_type":"box","text":"the data. Given forthcoming regulatory requirements in certain jurisdictions, some companies are voluntarily","page_number":228,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"46bb4d0c-6aea-4941-873b-ad563816151c","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":228,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"adf04713-cd1b-450b-91a1-9f645524732b","block_type":"box","text":"with the different constituents in their value chain.","page_number":228,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"652eb7e1-c899-4fad-a22b-c6bd737409bf","block_type":"box","text":"21","page_number":228,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"3a1daf2a-ecc8-4366-bf10-0d6dfc33796f","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"b432544b-b74c-495c-ac8b-f3ff65d8b213","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":228,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"1dfdb6d4-ea5f-43d6-b7b6-d056330e193a","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":228,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"acf2bcf2-ac75-43c4-a9e3-05718fb62009","block_type":"box","text":"22","page_number":228,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"c2c7de14-3063-45f1-a598-25e06a4c86be","block_type":"box","text":"The dedicated team looks for","page_number":228,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"eb6f374b-6b9f-4f8b-ad0b-b13359f33838","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":228,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"d526941c-9a59-4dc0-a062-46bc604193df","block_type":"box","text":"related to the low-carbon transition.","page_number":228,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"0a241480-3550-4ef2-81ff-e862c8ca3f14","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":228,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"cbb202fc-841e-4a7c-bc05-06ae749bf408","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors standing for","page_number":228,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"c6f257f6-005e-491c-aa59-b7fb8b907836","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":228,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"ae7b63d6-e2a4-4b0b-9145-be1e539d2e71","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. Where the dedicated team","page_number":228,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"0191d836-f5a5-4b22-bb8e-634fb29c131f","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":228,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"e630411c-0ea1-48c7-a637-eb7ca5b39396","block_type":"box","text":"having the most responsibility for the issue. The directors most likely to be in focus are the chair of the board","page_number":228,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"8b1beb0b-dea0-4590-8f5b-970560c9cec7","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":228,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"d5b8a017-fd4c-4b47-bda2-1858be814353","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. In certain markets, the","page_number":228,"box":{"x":69,"y":659,"width":808,"height":11}},{"id":"f1cbea5c-2cca-4e68-8528-facc5d910a81","block_type":"box","text":"team may withhold support for the discharge of the supervisory board or equivalent and/or board reports.","page_number":228,"box":{"x":68,"y":675,"width":758,"height":11}},{"id":"2869bafc-8155-4e17-bb32-938656b28994","block_type":"box","text":"23","page_number":228,"box":{"x":828,"y":675,"width":9,"height":4}},{"id":"ac1f20c9-0757-436e-8f5e-cad3d2a9d19e","block_type":"box","text":"21","page_number":228,"box":{"x":69,"y":704,"width":9,"height":5}},{"id":"4bef8193-4c93-42ed-84a8-f8992f839dd5","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":228,"box":{"x":84,"y":704,"width":825,"height":11}},{"id":"ffc7132c-6828-4dbd-9a41-801f00abb55c","block_type":"box","text":"paper “Scope for improvement: Solving the Scope 3 conundrum.” Their research indicates that there are 2-3 material","page_number":228,"box":{"x":70,"y":719,"width":835,"height":11}},{"id":"654e0697-860a-487c-a1a1-b514c25f93a9","block_type":"box","text":"scope 3 GHG emissions categories by sector. The research uses a definition of materiality from the GHG Protocol,","page_number":228,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"cec8494c-c9c9-4b70-8272-70b45709971a","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":228,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"1c8864f2-ec2a-45ac-8ae5-20bcc768b4af","block_type":"box","text":"offer the most significant GHG reduction opportunities and are most relevant to the company’s business goals.”","page_number":228,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"7a2d702f-0410-4cc5-948e-84039eab55fd","block_type":"box","text":"Website accessed in December 2025.","page_number":228,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"91a78ad5-5548-42a1-b881-e50b278e3f93","block_type":"box","text":"22","page_number":228,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"805393a8-5b1c-40e5-868b-2703e0814982","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":228,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"a1992caf-1144-46b9-8db5-31edc6acbd23","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":228,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"64c91a50-06de-4832-9e78-0f291978ad6f","block_type":"box","text":"23","page_number":228,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"62a7e3bf-f10f-4b60-99d0-f46fee31e65a","block_type":"box","text":"Board report votes are generally advisory and relate to reports issued by the board of directors that may contain","page_number":228,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"4e8622da-17f0-41d2-9dd2-f05967e2a144","block_type":"box","text":"information on a company’s sustainability efforts, operational resilience, or financial condition, among others.","page_number":228,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"f57c68c7-cd6b-4f3e-96cc-0bd5c6f971a2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a2ace79f-e6ec-496e-87dc-4e5fdcdfdc89","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":228,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"1f280a2e-82eb-4100-9038-8ea9d4215622","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a4682220-6431-476c-a56e-f3ce236630fb","block_type":"box","text":"Where the dedicated team has not supported director elections over climate concerns in a prior year, and the","page_number":229,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"acc656c1-4f42-4eca-857e-6e47a7b50deb","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":229,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"664e6330-f33c-46fc-8725-d2f6ed17c16f","block_type":"box","text":"may escalate by not supporting the re-election of additional responsible directors.","page_number":229,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"ef12d666-08e1-4f89-bef6-4556169d7d15","block_type":"box","text":"24","page_number":229,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"c3d10ff5-d71d-42c0-99aa-4e8fe14ea57e","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":229,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"e1fb94ca-eefc-459a-af63-49b2f7181827","block_type":"box","text":"In certain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":229,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"df314974-481b-4f8b-9d15-6612077a8137","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress reports. The Guidelines consider these","page_number":229,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"855a3d28-58ef-4ff1-890f-75007aced050","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":229,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"81218999-e3e2-4f0a-97ea-964dbdc9dba2","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally supports management’s climate","page_number":229,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"ca9a9297-9f69-4a08-9008-bcf1734c5dd0","block_type":"box","text":"strategy proposal if, in the team’s assessment based on these Guidelines, the strategy is aligned with the low-carbon","page_number":229,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"f2cd76fc-0dc9-4f8b-898f-359f092e4557","block_type":"box","text":"transition. Similarly, the dedicated team generally supports management’s proposal on a progress report if the","page_number":229,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"57788520-2b32-47cf-bff0-9cddaa8c043c","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":229,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"392cbb7d-6317-457c-8531-6c64425c81b2","block_type":"box","text":"transition plan and targets.","page_number":229,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"bdd6eb03-cf02-4b31-a328-1248c9ab6087","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":229,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"59e2e27a-e564-40d0-9ec3-349c8dc231d5","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":229,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"e8364913-8cb6-4272-b7c9-d95bedb5d0ea","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics and have varying degrees","page_number":229,"box":{"x":70,"y":302,"width":824,"height":11}},{"id":"913834a2-0c57-499f-96a5-928d2cfcf239","block_type":"box","text":"of relevance for companies across sectors, locations, and business models.","page_number":229,"box":{"x":69,"y":317,"width":543,"height":11}},{"id":"891088fd-16fb-4d31-a4d5-6c4ce41d1f50","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while considering the","page_number":229,"box":{"x":102,"y":339,"width":767,"height":12}},{"id":"e0f042f6-d874-48b5-b08a-d4803becd31c","block_type":"box","text":"company’s individual circumstances. When the dedicated team votes in support of a proposal, it is not necessarily","page_number":229,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"cd2927ff-9e59-4674-923a-5bef43232ac7","block_type":"box","text":"endorsing every element of the proposal or the reasoning, objectives, or supporting statement of the proponent.","page_number":229,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"2e4b3616-1cc9-4eb4-a1c2-f78cfbc912d3","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s low-carbon","page_number":229,"box":{"x":102,"y":392,"width":802,"height":12}},{"id":"66f2ea77-58ae-4f81-a0bf-f072297386b8","block_type":"box","text":"transition strategy and targets. The dedicated team assesses the implications for, and the relevance to, the","page_number":229,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"305e6856-a764-4082-86c2-46b1a4d72732","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may support","page_number":229,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"ed175585-c039-43a4-adc2-78e4e4ccbc02","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":229,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"f4558aed-03a3-468a-9bd7-7072f75a112f","block_type":"box","text":"•","page_number":229,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"5e185783-b0ab-4174-944d-f3a9922f9a26","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":229,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"77e03cab-8c32-47dd-812c-c4ea8ada185b","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":229,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"f6117839-8074-40bc-b566-fb1ead1e2e37","block_type":"box","text":"•","page_number":229,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"5253803c-43c6-4f0a-943e-70aaa32fd508","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":229,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"98feee6a-791c-4aa2-b24f-b17818166543","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":229,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"5c24d4f9-65e6-4a20-981b-ea25a9e6b4ca","block_type":"box","text":"•","page_number":229,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"872ed86e-ecd8-4396-9d9b-e14681821217","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":229,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"52c5bd3f-d4b9-4e9a-bdf8-e894aa6a323b","block_type":"box","text":"•","page_number":229,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"14985dcd-01dc-4c11-84c1-2536bd1cc0b4","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":229,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"0015b3d3-269e-4967-b762-bf46430f0672","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":229,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"1ce68b58-b3c1-4aae-b25e-69563ec4793d","block_type":"box","text":"25","page_number":229,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"61f83788-1a1b-4aaf-be7c-4dac39fcebd2","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":229,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"0b5f23a9-f807-4437-9ce3-b9ccce34a512","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":229,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"bd284441-7d07-4236-a924-8b1b84b5ec57","block_type":"box","text":"RELATED MATTERS","page_number":229,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"e7f538c8-e8a0-4529-a0b2-8126c5d227cb","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":229,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"44340dce-ae90-4563-9f11-eb9ceb0b3146","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":229,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"08aff672-3c5e-458c-985f-7be193a03963","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":229,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"f071e377-fb7c-4411-b776-d98ec3b00674","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":229,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"df95e59d-b505-41a5-bb00-4a9184751f25","block_type":"box","text":"Executive compensation","page_number":229,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"71864223-29eb-4dd9-8335-f85f4748ced8","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":229,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"85e6830f-b631-410a-9da2-1aeacae46899","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":229,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"691ad882-b9e3-44ab-a032-bd7eb7221e5b","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":229,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"cf13ebbc-434b-4df9-9ea0-74b50ae5fe08","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":229,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"ee7f8cbe-3a75-412a-a6b2-5087f14d9075","block_type":"box","text":"24","page_number":229,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"ff377093-b749-49f4-94ad-626c0cfdbdce","block_type":"box","text":"While the dedicated team may escalate voting by not supporting additional management proposals, principally","page_number":229,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"0ed5a281-0aba-42af-9851-c528133c1091","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":229,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"ed9d2d21-9b51-48d5-a4ce-abe85ba11f82","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":229,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"654a13b8-0727-4ac7-9934-9318d5b9b192","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":229,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"cd666465-5b51-4866-a372-50e355a0e64b","block_type":"box","text":"25","page_number":229,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"c1d80d9b-35d3-4afd-8603-fce9cbfe4cb4","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":229,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"1a35cf0b-091a-4763-936a-ff303205c549","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":229,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"2e3e49ed-f2e8-4590-9447-da91b35c89aa","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"30078ee2-daab-4e30-8509-f750bc80fc5e","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":229,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"88c8505e-c9e0-44f7-b1cc-e2748942bde2","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":229,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b1e085fb-cc4c-4ece-bf4d-674792a755c8","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":230,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"206a9660-37e4-4219-b4ff-4dc9601bf2ab","block_type":"box","text":"strategy and risk management.","page_number":230,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"50ad6a26-dd34-4020-99af-f69701948df7","block_type":"box","text":"Auditors and audit-related issues","page_number":230,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"dc312d95-fb10-45c8-bb60-89750e9b826a","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":230,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"90db93bb-289f-4881-a41c-64620239c3d0","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":230,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"79cb7a9d-4634-41ce-9c59-09be1bc732cb","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":230,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"59ad2eb0-7c11-45c5-b0a0-86d78380e1f5","block_type":"box","text":"context of its audit report. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":230,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"48a37f1d-364f-431d-b9a5-551fba86d7fa","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":230,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"d416cd40-54fd-4443-8b35-3c601c4cf32a","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":230,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"0244e422-67ab-4a73-822f-95f26369515b","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":230,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"a88b6df4-3cb8-400c-88ad-158765294015","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":230,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"77c812f3-088b-4cc2-b45f-1b9a7355a5fd","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":230,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"234c07d3-1c74-4737-81b4-d2ce45246f34","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":230,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"bf8a3b2b-30ca-4100-9491-fed5a625d553","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":230,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"e38857af-34e9-4c3c-9808-30f772b6b1de","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":230,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"90e1a297-cb6e-431f-a11a-83636f483d7e","block_type":"box","text":"sustainability-related risks and opportunities that may be relevant to a company’s business model and long-term","page_number":230,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"309595bd-f4d3-4ade-a707-9f4c36b88436","block_type":"box","text":"financial performance. These include a company’s impacts or dependencies on natural capital and key","page_number":230,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"f2981d31-0947-4f71-89c5-4175ff5a2126","block_type":"box","text":"stakeholders.","page_number":230,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"90171e56-c08c-4264-a8e9-ecf973384ef9","block_type":"box","text":"26","page_number":230,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"5eafb661-3daa-4210-b956-82f79afd18a9","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":230,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"1f0bea9f-029e-46f7-a4cc-b510d0a6823e","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":230,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"03f5c59c-38cd-418e-9c37-b842b87df8e2","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":230,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"d19ffbac-e9ee-446c-8b66-72569aac10e4","block_type":"box","text":"team may engage companies that face risks and opportunities related to land use and deforestation, access to fresh","page_number":230,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"b73a82b1-f486-4687-aa7f-1812d04c0287","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":230,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"35633120-c559-402e-ae11-d76530fa9150","block_type":"box","text":"26","page_number":230,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"8e4e4cde-a2d0-4c94-8cca-002661a79d13","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":230,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"d0e1d51f-b8a8-4453-aa69-609e47f0190f","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":230,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"10c9b761-f660-4728-bc8c-e008ac7a9886","block_type":"box","text":"BlackRock Investment Stewardship","page_number":230,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"851114df-cbca-458f-af6f-4eb928708d05","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":230,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"7baf0eeb-5933-42ba-8edb-6694afe4a8ee","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":230,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"421c79b0-7440-4811-a3c7-bad358a65701","block_type":"box","text":"Appendix 1","page_number":231,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"5179ade4-b4ca-475a-b3db-c08f67418ea6","block_type":"box","text":"Terminology","page_number":231,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"5dcda1e8-6a91-4566-a089-1879b211f708","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":231,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"5c2c1205-25b4-4f71-a460-6beef6ffe1c2","block_type":"box","text":"Climate risk:","page_number":231,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"0616c69d-4f5a-42a6-be93-60619c79ed62","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":231,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"0a0a4c1d-70c0-4496-b9af-f4b65255cf0b","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":231,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"9cdbf5cf-5d9d-4c07-8f1f-1476d918a31b","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":231,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"3962d61d-0a99-42f8-8046-642d4017d280","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":231,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"594808d3-1c9c-4e31-9e2b-5c5b167cbc4e","block_type":"box","text":"The global economic shift toward lower","page_number":231,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"ab22c69a-6ffd-46f7-b070-1dc06fb5000c","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":231,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"7b390d2f-58a4-424f-95a5-3abdab700ce1","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":231,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"c2f77e12-dfac-41de-be95-693bd1c3ad04","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and portfolios.","page_number":231,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"d3b73aa2-32c4-4852-81b8-90ea8be87368","block_type":"box","text":"Decarbonization:","page_number":231,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"dad9bfcf-0ee0-41e9-83cc-206d093008de","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":231,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"7b66fb2e-ce65-46b8-88d1-37e2d96abe35","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":231,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"2bce575c-b635-45af-8b45-dd2fd2754a84","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":231,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"184cfdc4-af46-4d3e-9882-303e3a7d5280","block_type":"box","text":"e.g., methane.","page_number":231,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"f0aebb3d-579c-48ff-80e2-7c19ba4ccda5","block_type":"box","text":"Climate-related risks and opportunities:","page_number":231,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"815613d2-4ad0-44fd-9011-851290771763","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":231,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"4472f4d2-6732-47e7-b75e-80c0a4bf73a5","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":231,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"d607dfed-1ff0-4e4c-913f-548571d9acb1","block_type":"box","text":"to physical climate change.","page_number":231,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"f487dd16-149e-40cb-b42b-9f5f797ce7a4","block_type":"box","text":"Climate-related transition plan:","page_number":231,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"49712f09-673a-4465-a627-f23dc11199c1","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":231,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"1e7de8a4-cb55-4fca-a936-ef1fbec5d077","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":231,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"a2a5d542-4580-4546-bb6f-84b444a8c356","block_type":"box","text":"greenhouse gas emissions.”","page_number":231,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"ac9fe5d3-f06a-4694-8180-41f652f03f3a","block_type":"box","text":"27","page_number":231,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"6777c1ef-026e-4789-9ef8-dd7f742b2f39","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":231,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"8d70f60d-5cbc-4114-b9c1-05e2fceb0a7f","block_type":"box","text":"Targets that “","page_number":231,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"6d40353a-4217-48a9-acb1-562ae7c488a9","block_type":"box","text":"are in line with what the latest climate science","page_number":231,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"e7a4c1f1-6b72-485c-88bb-03bc1d6ff501","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":231,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"9b2ab606-1d47-43b3-a645-fabd5248194c","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":231,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"3ae060ea-a806-4d6d-8f2f-92abd79cec00","block_type":"box","text":"global warming to 1.5°C. They define how much and how quickly a business must reduce its emissions to be in line","page_number":231,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"7378b9fd-f8b5-497d-a97d-96da6c0d1713","block_type":"box","text":"with the Paris Agreement goals.”","page_number":231,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"0d87a6f2-74a0-48ca-bd09-4b847b99fe83","block_type":"box","text":"28","page_number":231,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"d92d6d8e-ddce-4f79-9cc9-edbb6b4c5af3","block_type":"box","text":"Scope 1:","page_number":231,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"c97e57c6-aa82-4b01-8498-a7f764182064","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":231,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"980f0688-3858-4fc9-93fe-bb3a43c4445a","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":231,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"b595c098-d330-49fa-93cf-d466cf859317","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":231,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"235cc965-b3d7-4f87-b4c4-2fb7862ac715","block_type":"box","text":"29","page_number":231,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"085ff223-6592-491d-9fad-0489be5bf034","block_type":"box","text":"Scope 2","page_number":231,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"3bf7168b-752c-4094-8108-23cbbecf584c","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":231,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"87eb31bb-8f37-4f77-a19b-85fba28e41a4","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":231,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"4e6601d8-1793-4ded-a4b3-ff71d2ab4487","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":231,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"bfa95e72-6a4b-4295-815b-9160d78eff51","block_type":"box","text":"30","page_number":231,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"3a366f1c-a22e-4953-8135-1df1a17746ed","block_type":"box","text":"Scope 3:","page_number":231,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"0b5ae855-3051-43db-9de6-efdf6123742c","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional reporting category that allows for the treatment","page_number":231,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"44ba50e2-2558-4383-8046-007240b3e6bf","block_type":"box","text":"of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur","page_number":231,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"ee1263ce-437e-47eb-a591-95458d8358d6","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":231,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"7fc69778-eaa7-4592-b886-ee722c3cbd6d","block_type":"box","text":"31","page_number":231,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"abab61cb-8d5c-4d7b-96b6-10ba7eece333","block_type":"box","text":"27","page_number":231,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"17e5efd5-c749-40d6-91cf-2c2d596e683a","block_type":"box","text":"As defined by the International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":231,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"b4313785-dd7f-4af0-939f-2c4862d66e21","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":231,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"fe514c1a-571e-4885-8ce7-89b7d24a510a","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":231,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"935e06ab-cab5-479f-ac61-8afbbddb94e9","block_type":"box","text":"28","page_number":231,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"f25e0f88-b60b-41e8-ad7e-8b065d4d0ae8","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":231,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"fef52562-4b27-4ac7-a64b-c869c6e36356","block_type":"box","text":"enables companies and financial institutions worldwide to play their part in combating the climate crisis. We develop","page_number":231,"box":{"x":69,"y":742,"width":831,"height":11}},{"id":"1210b879-fe05-4cd1-9cdc-44c3ebea0050","block_type":"box","text":"standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in","page_number":231,"box":{"x":69,"y":757,"width":826,"height":11}},{"id":"d365f41b-df90-443e-9742-470d5de782aa","block_type":"box","text":"line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.”","page_number":231,"box":{"x":70,"y":772,"width":795,"height":11}},{"id":"99f38815-4a12-4f60-a775-47abb27432dc","block_type":"box","text":"Source: Science Based Targets initiative, “About Us.” Websites accessed in December 2025.","page_number":231,"box":{"x":69,"y":787,"width":666,"height":11}},{"id":"5625821f-08c2-4d28-859c-2811e956ac72","block_type":"box","text":"29","page_number":231,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"930bae09-e1ff-4476-80da-e307d7bfa2be","block_type":"box","text":"Greenhouse Gas Protocol, “A Corporate Accounting and Reporting Standard,” Revised Edition.","page_number":231,"box":{"x":84,"y":805,"width":670,"height":11}},{"id":"b46ba76a-e870-47cf-b65a-7c6cc33f6601","block_type":"box","text":"30","page_number":231,"box":{"x":69,"y":823,"width":9,"height":4}},{"id":"e10f7535-1df1-4609-856e-d50899fca05d","block_type":"box","text":"Greenhouse Gas Protocol, “A Corporate Accounting and Reporting Standard,” Revised Edition.","page_number":231,"box":{"x":84,"y":822,"width":670,"height":12}},{"id":"30b5154e-7301-4881-97d0-f6d88ff4acfb","block_type":"box","text":"31","page_number":231,"box":{"x":69,"y":840,"width":9,"height":5}},{"id":"5fec45c3-6edf-4dc9-a135-69a1ab314b40","block_type":"box","text":"Greenhouse Gas Protocol, “A Corporate Accounting and Reporting Standard,” Revised Edition.","page_number":231,"box":{"x":84,"y":840,"width":670,"height":11}},{"id":"2d6be135-7add-4d57-af3a-10dab4279bd3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":231,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"269ff903-fab9-48af-a05c-106f00168b00","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 10","page_number":231,"box":{"x":500,"y":942,"width":409,"height":13}},{"id":"d3db200e-f24c-4274-8898-871e43e40ad5","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":231,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a718d279-4594-411b-b869-951bb9bd861e","block_type":"box","text":"Appendix 2","page_number":232,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"4ee50bbf-7863-45dd-906c-03c8a66b0fb0","block_type":"box","text":"Comparison of key differences between how the BIS’ Benchmark Policies considers climate-related risks,","page_number":232,"box":{"x":101,"y":67,"width":771,"height":11}},{"id":"dfd3187d-db47-4856-a942-6786a6bcf52b","block_type":"box","text":"where appropriate, and these Guidelines:","page_number":232,"box":{"x":68,"y":83,"width":299,"height":10}},{"id":"4bead055-c6ce-4ee8-8dd6-dba9f544d63b","block_type":"box","text":"32","page_number":232,"box":{"x":368,"y":83,"width":10,"height":4}},{"id":"010e8f56-1b33-4948-984f-fc60c41a3510","block_type":"box","text":"BIS Benchmark Policies","page_number":232,"box":{"x":302,"y":106,"width":174,"height":9}},{"id":"7e9dff67-ecb7-44b5-a29b-0ac17cb33a15","block_type":"box","text":"33","page_number":232,"box":{"x":477,"y":107,"width":9,"height":4}},{"id":"21981557-8bbc-42f7-95d2-43d345d678ec","block_type":"box","text":"Decarbonization Guidelines","page_number":232,"box":{"x":643,"y":106,"width":196,"height":9}},{"id":"8293af3d-881b-4f53-b9a6-ccff5cf7da67","block_type":"box","text":"Key concepts","page_number":232,"box":{"x":75,"y":122,"width":98,"height":11}},{"id":"20b45156-ae5b-452c-a490-75ae4c40f59f","block_type":"box","text":"Focuses on financial performance","page_number":232,"box":{"x":232,"y":121,"width":240,"height":11}},{"id":"58020113-9a78-47a3-8d00-bda3b42705a3","block_type":"box","text":"and engages companies on","page_number":232,"box":{"x":231,"y":137,"width":195,"height":11}},{"id":"f1d6f040-9e73-484e-9fe7-4d0877e8087a","block_type":"box","text":"climate and transition topics when","page_number":232,"box":{"x":231,"y":152,"width":244,"height":11}},{"id":"16f4776c-e139-4cdc-9ce4-b6540ebfe22f","block_type":"box","text":"material to their business","page_number":232,"box":{"x":232,"y":167,"width":181,"height":9}},{"id":"f5133b4b-841f-4985-ab26-cfc6154d4d72","block_type":"box","text":"Prioritizes the disclosure of how a","page_number":232,"box":{"x":232,"y":186,"width":239,"height":9}},{"id":"9c43f6e6-abf4-4548-8afe-68d569da7b7a","block_type":"box","text":"company is managing material","page_number":232,"box":{"x":231,"y":201,"width":215,"height":11}},{"id":"d8072ebf-1d50-4a30-b128-c8886b6e70da","block_type":"box","text":"climate and transition-related risks","page_number":232,"box":{"x":231,"y":216,"width":246,"height":9}},{"id":"34935ea4-5d66-4410-b104-10d4324bb29f","block_type":"box","text":"and opportunities","page_number":232,"box":{"x":231,"y":231,"width":125,"height":11}},{"id":"9c59e92c-8050-4d5c-912b-90bf121a6f9d","block_type":"box","text":"Considers both financial performance","page_number":232,"box":{"x":578,"y":121,"width":267,"height":11}},{"id":"075126bc-31a2-47e4-940f-f13eb15656e9","block_type":"box","text":"and decarbonization objectives","page_number":232,"box":{"x":578,"y":137,"width":218,"height":11}},{"id":"a86d26c5-e366-44e9-b180-2222ad051fa3","block_type":"box","text":"consistent with funds’ and clients’","page_number":232,"box":{"x":577,"y":152,"width":244,"height":9}},{"id":"f05e3df1-3ec1-4efd-af63-3dc054ab3325","block_type":"box","text":"investment objectives","page_number":232,"box":{"x":578,"y":167,"width":153,"height":11}},{"id":"511f054b-c12b-4b88-85de-f73ec591d612","block_type":"box","text":"Assesses the alignment of a","page_number":232,"box":{"x":577,"y":186,"width":203,"height":11}},{"id":"8f79c9a5-baa2-4c84-803e-fd315c924fef","block_type":"box","text":"company’s business model","page_number":232,"box":{"x":577,"y":201,"width":193,"height":11}},{"id":"4c3baeb4-5499-4ee7-8bea-7bd2126a6f44","block_type":"box","text":"with the ambition to limit global","page_number":232,"box":{"x":577,"y":216,"width":223,"height":11}},{"id":"5e333827-f08a-40d9-9a83-b6ac11bf4dba","block_type":"box","text":"average temperature rise to","page_number":232,"box":{"x":578,"y":231,"width":196,"height":11}},{"id":"e83cc12d-21a9-43e4-b242-6b03c9c650a3","block_type":"box","text":"1.5°C above pre-industrial levels","page_number":232,"box":{"x":578,"y":246,"width":230,"height":11}},{"id":"969ed2fe-2adf-49e4-a828-c51354679a3b","block_type":"box","text":"Prioritized","page_number":232,"box":{"x":75,"y":269,"width":72,"height":9}},{"id":"791a95f2-2cc5-4e99-91e7-d7cdf13e949c","block_type":"box","text":"companies for","page_number":232,"box":{"x":74,"y":284,"width":103,"height":11}},{"id":"7f167773-98a1-4713-9b26-71859c8370a3","block_type":"box","text":"climate-related","page_number":232,"box":{"x":74,"y":299,"width":109,"height":9}},{"id":"06d8a389-51dd-4b1d-8c7a-5fd7bb63bce3","block_type":"box","text":"engagement","page_number":232,"box":{"x":74,"y":315,"width":90,"height":10}},{"id":"6ed98c68-0e00-44a2-ba59-9462eb54e624","block_type":"box","text":"Largest Scope 1 and 2 GHG emitters Largest total value chain GHG","page_number":232,"box":{"x":232,"y":269,"width":557,"height":11}},{"id":"3dbde069-5806-485d-bdcd-024b62ada6d6","block_type":"box","text":"emitters (Scope 1, 2, and 3)","page_number":232,"box":{"x":578,"y":284,"width":201,"height":11}},{"id":"5e85256f-4ea9-4b23-8519-122bf960bcff","block_type":"box","text":"Emissions","page_number":232,"box":{"x":75,"y":337,"width":72,"height":9}},{"id":"5873eef2-4574-4372-a72f-482250013f60","block_type":"box","text":"reporting","page_number":232,"box":{"x":75,"y":352,"width":66,"height":11}},{"id":"f1d4df7b-6ec4-4b15-894c-de65e68e67a6","block_type":"box","text":"Seeks reporting of Scope 1 and 2 Seeks reporting of Scope 1, 2 and","page_number":232,"box":{"x":231,"y":337,"width":592,"height":11}},{"id":"2543bfc1-0f6b-4a08-9e44-65f4a8b300b0","block_type":"box","text":"significant 3","page_number":232,"box":{"x":578,"y":352,"width":86,"height":11}},{"id":"4f5ae566-0176-482c-8bfb-243a379eaaff","block_type":"box","text":"Emissions targets","page_number":232,"box":{"x":75,"y":375,"width":130,"height":11}},{"id":"22c73cea-05a7-4ae0-9b8f-34f41a08ede0","block_type":"box","text":"& decarbonization","page_number":232,"box":{"x":74,"y":390,"width":131,"height":9}},{"id":"fd373401-35e5-465d-aac0-b1f6b361cb19","block_type":"box","text":"efforts","page_number":232,"box":{"x":74,"y":405,"width":48,"height":9}},{"id":"d9ff5012-e41e-44f0-8bd3-95d2fe53955b","block_type":"box","text":"Seeks the disclosure of Scope 1 and","page_number":232,"box":{"x":231,"y":375,"width":262,"height":11}},{"id":"13f88eaa-c624-45c5-a76d-b7bba5787556","block_type":"box","text":"2 targets","page_number":232,"box":{"x":231,"y":390,"width":64,"height":11}},{"id":"7c108880-64c1-4bcc-92a8-6ea84d8b38b2","block_type":"box","text":"Seeks Scope 1 and 2 targets and","page_number":232,"box":{"x":578,"y":375,"width":239,"height":11}},{"id":"9d791492-9b3b-4417-89ad-a3581da0e1b8","block_type":"box","text":"assesses decarbonization efforts","page_number":232,"box":{"x":578,"y":390,"width":238,"height":9}},{"id":"fd2ec2d3-0820-41a5-8f11-df1d078f68ea","block_type":"box","text":"Temperature &","page_number":232,"box":{"x":74,"y":428,"width":108,"height":11}},{"id":"f8d03cbc-15bf-4315-931e-358f7b8baa15","block_type":"box","text":"scenario","page_number":232,"box":{"x":74,"y":443,"width":61,"height":9}},{"id":"6ad44927-14e6-4954-ad4e-744ade27b0a1","block_type":"box","text":"alignment/","page_number":232,"box":{"x":74,"y":458,"width":82,"height":11}},{"id":"7c4cdaf5-0c83-4d11-82d7-e557b38cadf5","block_type":"box","text":"pathways","page_number":232,"box":{"x":75,"y":473,"width":68,"height":11}},{"id":"89b72a90-f9de-4639-b323-30ca83a7c7d7","block_type":"box","text":"Seeks disclosure from companies","page_number":232,"box":{"x":231,"y":428,"width":241,"height":11}},{"id":"401a597d-f2c7-4682-a517-a69490be55e1","block_type":"box","text":"that identifies and discusses the","page_number":232,"box":{"x":231,"y":443,"width":233,"height":9}},{"id":"7be0a519-ad0f-4562-a64e-66d4e00bf943","block_type":"box","text":"most plausible decarbonization","page_number":232,"box":{"x":232,"y":458,"width":219,"height":11}},{"id":"eb8b6ac0-02a4-4824-82a3-519cddbca06f","block_type":"box","text":"pathway","page_number":232,"box":{"x":232,"y":473,"width":57,"height":11}},{"id":"58b32bf8-20a9-44c1-ae1c-6b9d10782868","block_type":"box","text":"Assesses temperature and","page_number":232,"box":{"x":577,"y":428,"width":191,"height":11}},{"id":"44ac7f40-e3e2-43a3-b1fa-6af0320f2fb5","block_type":"box","text":"scenario alignment/pathways","page_number":232,"box":{"x":578,"y":443,"width":209,"height":11}},{"id":"4bd077f4-d126-4ae9-b61b-7568c521bfc1","block_type":"box","text":"to 1.5°C degrees","page_number":232,"box":{"x":577,"y":458,"width":121,"height":11}},{"id":"514d4cf4-67c5-4cc1-a146-7bd79597aa92","block_type":"box","text":"Science-based","page_number":232,"box":{"x":74,"y":496,"width":104,"height":9}},{"id":"d39b0259-4335-4bd7-aa7f-0a85b5b68807","block_type":"box","text":"targets","page_number":232,"box":{"x":74,"y":511,"width":53,"height":11}},{"id":"ea942542-ba2d-4ef5-8994-70436308d0a9","block_type":"box","text":"commitments &","page_number":232,"box":{"x":74,"y":526,"width":116,"height":9}},{"id":"4b39f5fb-75c4-4521-a143-69b593dbf528","block_type":"box","text":"verifications","page_number":232,"box":{"x":74,"y":541,"width":89,"height":9}},{"id":"6122527e-46aa-47f0-aca8-607d2936d5a1","block_type":"box","text":"Disclosure topic but not vote","page_number":232,"box":{"x":232,"y":496,"width":203,"height":11}},{"id":"09b11cdd-2886-49d2-b0c8-0442afad5a10","block_type":"box","text":"escalation criteria","page_number":232,"box":{"x":231,"y":511,"width":126,"height":9}},{"id":"a5421f97-d42d-431b-b327-b233b5e18c4a","block_type":"box","text":"Seeks science-based targets and","page_number":232,"box":{"x":578,"y":496,"width":235,"height":11}},{"id":"283bafe5-11dd-45ae-89fe-a24fd1fc5864","block_type":"box","text":"verifications where possible; may","page_number":232,"box":{"x":577,"y":511,"width":237,"height":11}},{"id":"6c2167b4-34bd-4118-8029-d6b8174ae8e6","block_type":"box","text":"take voting action where absent","page_number":232,"box":{"x":577,"y":526,"width":227,"height":11}},{"id":"39785ac3-5838-4758-bf5b-f0aebc60c160","block_type":"box","text":"Company’s role in","page_number":232,"box":{"x":74,"y":564,"width":130,"height":11}},{"id":"92dfc7b5-6879-4cdf-9d7f-71fe7f90ee05","block_type":"box","text":"the transition","page_number":232,"box":{"x":74,"y":579,"width":98,"height":9}},{"id":"236acdcd-a1c0-4d15-8491-7986673a9fed","block_type":"box","text":"Disclosure topic but not vote","page_number":232,"box":{"x":232,"y":564,"width":203,"height":11}},{"id":"000c5837-818d-4327-b923-370d09abc1d7","block_type":"box","text":"escalation criteria","page_number":232,"box":{"x":231,"y":579,"width":126,"height":9}},{"id":"f4577ac7-96ab-4cbe-b314-523ac5950fc5","block_type":"box","text":"Assesses activities benefitting from","page_number":232,"box":{"x":577,"y":564,"width":254,"height":11}},{"id":"a7df3200-7d33-43b9-92c0-0d255fff08e4","block_type":"box","text":"and/or contributing to the transition","page_number":232,"box":{"x":578,"y":579,"width":254,"height":11}},{"id":"6aff5101-3ab8-431a-b182-0d45583f6b88","block_type":"box","text":"to a low-carbon economy","page_number":232,"box":{"x":577,"y":594,"width":176,"height":11}},{"id":"9d83db80-b4b6-494f-95ec-c2923620c29c","block_type":"box","text":"Shareholder","page_number":232,"box":{"x":74,"y":617,"width":87,"height":9}},{"id":"12a99178-a682-4f78-9ae1-d28eaba7b94f","block_type":"box","text":"proposals","page_number":232,"box":{"x":75,"y":632,"width":69,"height":11}},{"id":"19dd8f57-fd90-4e3f-a6f1-1de96c3c72b5","block_type":"box","text":"Case-by-case approach with focus","page_number":232,"box":{"x":231,"y":617,"width":240,"height":11}},{"id":"d0f7dafe-0c62-462f-8558-8ced8f403fa6","block_type":"box","text":"on implications for long-term","page_number":232,"box":{"x":231,"y":632,"width":202,"height":11}},{"id":"0223a501-8247-47ed-86fa-1089c46cb937","block_type":"box","text":"financial value creation","page_number":232,"box":{"x":231,"y":647,"width":163,"height":9}},{"id":"c1226481-8887-488d-8a2a-e08cd0e31b4e","block_type":"box","text":"No support for shareholder","page_number":232,"box":{"x":232,"y":666,"width":192,"height":11}},{"id":"a0022b06-9db3-43c6-872a-4ea4d0599dbf","block_type":"box","text":"proposals that seek to direct","page_number":232,"box":{"x":232,"y":681,"width":205,"height":11}},{"id":"bcb284c9-fda0-4bea-b9e8-24029817ecfb","block_type":"box","text":"management strategy","page_number":232,"box":{"x":232,"y":697,"width":153,"height":10}},{"id":"37d69647-0d79-44f4-a4df-72897abd9cb5","block_type":"box","text":"Case-by-case approach with","page_number":232,"box":{"x":578,"y":617,"width":195,"height":11}},{"id":"2a4493bb-9447-48c0-b2c4-eece5642f585","block_type":"box","text":"further consideration given to","page_number":232,"box":{"x":577,"y":632,"width":209,"height":11}},{"id":"11058207-f3a9-443e-9699-e32de3f28135","block_type":"box","text":"decarbonization objectives in","page_number":232,"box":{"x":578,"y":647,"width":204,"height":11}},{"id":"750dfeea-7c05-4b22-8951-7c8c802f50e5","block_type":"box","text":"addition to financial performance","page_number":232,"box":{"x":578,"y":662,"width":235,"height":11}},{"id":"3c5895f5-1013-4b49-abaa-59d2a3bc4752","block_type":"box","text":"No support for shareholder","page_number":232,"box":{"x":578,"y":681,"width":192,"height":11}},{"id":"882f8166-9d13-46f9-9f72-8522bde9daba","block_type":"box","text":"proposals that seek to direct","page_number":232,"box":{"x":578,"y":696,"width":205,"height":11}},{"id":"a969c622-ea66-4d69-a0b6-65287913aab2","block_type":"box","text":"management strategy","page_number":232,"box":{"x":578,"y":712,"width":154,"height":10}},{"id":"186f8434-6a5e-41f6-92d2-492ca3968aaf","block_type":"box","text":"32","page_number":232,"box":{"x":69,"y":750,"width":9,"height":5}},{"id":"b5bf8a6d-48cd-42bd-89ef-8cc33f318979","block_type":"box","text":"There may be some regional variations in voting under these Guidelines in light of company circumstances, policy","page_number":232,"box":{"x":83,"y":750,"width":809,"height":11}},{"id":"f6599ae0-1ff4-4383-bb81-f3a504434f31","block_type":"box","text":"requirements in a particular market or a country’s Nationally Defined Contributions, amongst other things.","page_number":232,"box":{"x":69,"y":765,"width":755,"height":11}},{"id":"bf70c04b-b033-4abc-b716-f0bf5ad97b8b","block_type":"box","text":"33","page_number":232,"box":{"x":69,"y":783,"width":9,"height":4}},{"id":"071d0188-3438-40c8-95ff-8cfb260f4137","block_type":"box","text":"The BIS Global Principles, regional voting guidelines, and Engagement Priorities (collectively, the BIS Benchmark","page_number":232,"box":{"x":83,"y":783,"width":798,"height":11}},{"id":"79b85abe-8b3a-4208-b31b-e528ffc7012e","block_type":"box","text":"Policies) set out the core elements of corporate governance that guide our investment stewardship program. The","page_number":232,"box":{"x":69,"y":798,"width":803,"height":11}},{"id":"19359228-bbb0-451b-84dc-26cea5059b91","block_type":"box","text":"Benchmark Policies apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":232,"box":{"x":70,"y":813,"width":800,"height":11}},{"id":"5231f353-09f0-43c0-9e44-f77f40cfc5c8","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":232,"box":{"x":69,"y":828,"width":648,"height":11}},{"id":"e811165b-b0d4-44b8-804e-a0da2955ae57","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"cddae7e2-0b7e-4378-9dbd-6526853925e8","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 11","page_number":232,"box":{"x":500,"y":942,"width":409,"height":13}},{"id":"4723a5fa-e5d6-4e03-bc45-350f7a54ec48","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":232,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"54258ff4-4053-4dba-9b85-4ec4c7bafcf0","block_type":"box","text":"Want to know more?","page_number":233,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"74ba209c-11d0-4c0e-9cf9-8d26621089ab","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":233,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"ddbf0291-2c1f-482b-b4ec-c93436af24b0","block_type":"box","text":"This document is provided for information and educational purposes only. Investing involves risk, including the loss of","page_number":233,"box":{"x":68,"y":792,"width":839,"height":11}},{"id":"17c2e837-d40a-4af5-b689-c9048cedc4b1","block_type":"box","text":"principal.","page_number":233,"box":{"x":70,"y":807,"width":62,"height":11}},{"id":"8650fd0b-4bf5-495c-ac80-8c740aa6c510","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":233,"box":{"x":69,"y":852,"width":196,"height":11}},{"id":"39c8c09e-b226-445d-a9c9-5eebfc9b4c49","block_type":"box","text":"©2025 BlackRock, Inc. All rights reserved.","page_number":233,"box":{"x":69,"y":883,"width":303,"height":11}},{"id":"19309240-c0cb-4114-8906-fdde90f9f045","block_type":"box","text":"BLACKROCK","page_number":233,"box":{"x":379,"y":883,"width":92,"height":8}},{"id":"71fe79ec-5400-42a3-a3dd-debe2a127e9c","block_type":"box","text":"is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":233,"box":{"x":478,"y":882,"width":417,"height":11}},{"id":"0602e6c1-23ee-449a-8284-98784d92fb34","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":233,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"91ce1a6f-aa17-4bcb-a836-849548d0e34c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":233,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"04377ee2-d97e-4dcf-bf8b-40dc46b70470","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 12","page_number":233,"box":{"x":500,"y":942,"width":409,"height":13}},{"id":"1f862625-22ea-41c6-a9b9-1a4a2bcfefcb","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":233,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e8fb202c-2ccc-477f-b6f0-1ba090bf01b5","block_type":"box","text":"[This page intentionally left blank]","page_number":234,"box":{"x":370,"y":489,"width":238,"height":12}},{"id":"209cd50f-efce-4b31-9ee1-f69682f39c2e","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":234,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c00da235-c237-4176-9768-a46e3d88af73","block_type":"box","text":"SAI-CAPAP-0926","page_number":235,"box":{"x":69,"y":943,"width":114,"height":9}},{"id":"49e6d1aa-cbbc-4bce-bf1f-4358123aed05","block_type":"box","text":"BNM1026U-6032633-19203505","page_number":235,"box":{"x":647,"y":981,"width":171,"height":7}}],"unit":"per_mille","page_width":[{"value":594,"pages":[1,2,3,4,5,6,7]},{"value":612,"pages":[8,9,10,11,12,13,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28,29,30,31,32,33,34,35,36,37,38,39,40,41,42,43,44,45,46,47,48,49,50,51,52,53,54,55,56,57,58,59,60,61,62,63,64,65,66,67,68,69,70,71,72,73,74,75,76,77,78,79,80,81,82,83,84,85,86,87,88,89,90,91,92,93,94,95,96,97,98,99,100,101,102,103,104,105,106,107,108,109,110,111,112,113,114,115,116,117,118,119,120,121,122,123,124,125,126,127,128,129,130,131,132,133,134,135,136,137,138,139,140,141,142,143,144,145,146,147,148,149,150,151,152,153,154,155,156,157,158,159,160,161,162,163,164,165,166,167,168,169,170,171,172,173,174,175,176,177,178,179,180,181,182,183,184,185,186,187,188,189,190,191,192,193,194,195,196,197,198,199,200,201,202,203,204,205,206,207,208,209,210,211,212,213,214,215,216,217,218,219,220,221,222,223,224,225,226,227,228,229,230,231,232,233,234,235]}],"page_height":[{"value":774,"pages":[1,2,3,4,5,6,7]},{"value":792,"pages":[8,9,10,11,12,13,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28,29,30,31,32,33,34,35,36,37,38,39,40,41,42,43,44,45,46,47,48,49,50,51,52,53,54,55,56,57,58,59,60,61,62,63,64,65,66,67,68,69,70,71,72,73,74,75,76,77,78,79,80,81,82,83,84,85,86,87,88,89,90,91,92,93,94,95,96,97,98,99,100,101,102,103,104,105,106,107,108,109,110,111,112,113,114,115,116,117,118,119,120,121,122,123,124,125,126,127,128,129,130,131,132,133,134,135,136,137,138,139,140,141,142,143,144,145,146,147,148,149,150,151,152,153,154,155,156,157,158,159,160,161,162,163,164,165,166,167,168,169,170,171,172,173,174,175,176,177,178,179,180,181,182,183,184,185,186,187,188,189,190,191,192,193,194,195,196,197,198,199,200,201,202,203,204,205,206,207,208,209,210,211,212,213,214,215,216,217,218,219,220,221,222,223,224,225,226,227,228,229,230,231,232,233,234,235]}],"attributes":{"chunk_type":"page_range","start_page":1,"end_page":235}},"source":{"type":"Model","id":"github:dorsalhub/pdf-extractor","version":"0.5.0","execution_id":"abb199ed-fcf3-4ed6-9a42-cefe6693d558"},"user_id":1000002,"date_created":"2026-10-19T22:27:56.504000Z","date_modified":"2026-10-19T22:27:56.504000Z","private":false}